"Deception or strategy": products on sale 1+1

The ceiling on proposals, both in volume and in cost, is being considered by the Ministry of Development in order to include in the final prices part of the funds that suppliers spend annually on promotions and thus implement and maintain the government’s plan for “constant price reductions.”

However, government spokesman Pavlos Marinakis made it clear that “under no circumstances will 1+1 offers or other promotions in the form of discounts will not be cancelled”. “The government will never interfere in how each company chooses the way to promote its products, and in the way consumers choose this or that product,” the official said. “The policy of trade with “clean/transparent prices” continues to be a priority of the Ministry of Development “.

The main question, as has happened many times in the past, is whether permanently reduce the prices of goodsso that consumers can easily compare, how much a particular product is sold for in different supermarket chainsas well as achieve greater transparency in relationships between suppliers and retailers.

“According to the ministry, discussions are underway with all representatives of the trade market to determine a legislative framework that will clarify the situation,” Mr. Skrekas said. The appropriate strategy, according to the Minister of Development, is Every Day Low Price.

At the moment, the competent services are considering all options, the most common of which concerns determining (establishing) a low ceiling for the volume and cost of products.

If, for example, today 50% of a product’s volume is sold through offers (promotions), this percentage should drop to 30%. “Most sales of a product cannot come from permanent offers (discounts), if it is never sold at the original price,” says a ministry source. It turns out that after statements by a government representative, the company with “clean prices” may undergo some changes or be frozen.
Everyday Low Price – EDLP is a pricing strategy in which the retailer maintains consistently low prices for its products instead of offering frequent discounts or promotions such as 1+1 offers, discount coupons, short-term 50-60-offs. 70%, etc.

Everyday Low Prices contrasts with the high low (HiLo) strategy, in which companies frequently change prices, run promotions, and offer discounts to attract customers at certain periods of time. With EDLP, customers are encouraged to shop whenever they want because they can count on finding the same low prices all the time without having to search for “special offers.”

As noted in a 2017 IELKA (Institute of Consumer Goods Retail Research) survey, 74% of respondents “chased” for the best deals in various supermarkets, wandering around the city and buying one product in one, and another in another. Which was, according to consumers, “inconvenient” and costly.

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