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What is the difference between an EDLP retailer and a high-low retailer? Why does Carmex charge them a different price?
On Sep 22, 2024
Everyday low price (EDLP) retailers, such as Walmart, offer consumers the lowest price every day without discounting through promotions. High-low retailers, such as Walgreens, charge consumers a higher price, but they occasionally discount the product through special promotions, which Carmex often supports with "marketing discretionary funds." Carmex typically offers its products at different prices to EDLP and high-low retailers to account for the promotional expenditures and to allow each retailer to reach profit margin goals.