Essay On Lowe's Pricing Strategy

1146 Words3 Pages

The Lowe’s organization has long been successful in reaching its broad based customers through national television, radio announcements, newspapers, magazines, direct mail, emails, and the internet.The organization is seeking to gain more consumers through Multicultural marketing outlets to reach even more customers. Their ads are designed to promise a broad product selection and tout their pricing strategy. Lowe's tag line is "everyday low price (EDLP)" which is their pricing strategy that promises customers everyday low pricing without the need to wait for sale price events or comparison shopping. EDLP to a pricing strategy in which a retailer offers its customers consistently low prices on every product, without running sales or price promotions. The store sets prices fairly and then maintains them for a long time, …show more content…

Lowe’s has maintained their pricing strategy with the advantages to the company, as well. The Lowe’s organization is able to focus more on marketing quality and less on sales advertisements. There is less sales fluctuation which helps out with staffing and their business practices, in general, become easier. It goes without saying that Lowe’s has a distinct advantage using this pricing strategy, simply because of its name: Lowes, plus the letter “t”, equals lowest, as in lowest pricing available. It looks like the strategy is continuing to work as 2017 is shaping up to be a better year than 2016 for the Lowe’s organization. Net earnings for the first three quarters were $2.9 billion, versus $2.4 billion for the same timeframe in 2016, according to the company’s Nov. 21, 2017 report (News Release). Lowe’s President and CEO, Robert Niblock, stressed at a conference that Lowe’s intends to be price competitive, whether the competitor is another store or an online retailer. In other words, the Lowe’s organization will always compete in the price wars as they continue to keep the consumer in

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