Keep it simple: Clever Drop + Clever raise
Tools retail company from The Netherlands keeps their repricing rules very simple
It’s a common misconception that Repricing (especially if automated) has to be a complicated process.
Our Dutch client, a tool retail company, shows that sometimes the less is more. They decided to keep things simple, but nonetheless, their pricing strategy has improved significantly.
The client has a Shopify store, with 25K products – 1500 most important ones’ prices monitored by Price2Spy. Even though this industry can be very competitive, our client has decided to focus on 4-8 competitors per product. Also, they made the decision that all Brands/Categories should follow the same repricing rules:
- Clever drop – the client wants to be 1% cheaper than the cheapest competitor while keeping at least a 15% profitability margin
- Clever raise – the client wants to be 1% cheaper than 2nd cheapest competitor
How did Price2Spy help?
Price2Spy has a Repricing module that allows clients to define pricing strategies according to their needs. Our client decided to go for a non-automated repricing solution, however, it’s worth mentioning that each of our repricing suggestions was approved by the client.
The Repricing module has been configured in the following way:
- Repricing is done daily at 8 AM, and the client’s Category Managers log in to Price2Spy around 9 or 10 AM and check repricing opportunities
Last, but not the least, it’s important to point out that on average, Price2Spy calculates:
- 20 products for Clever Drop – client usually approves 12-15 of these
- 10 products for Clever Raise – client usually approves 5-8 of these
Additional information
| Features | Details |
|---|---|
| Country | The Netherlands |
| Client size | Basic |
| Category Managers | 3 |
| Industry | Tools |
| Platform | Shopfy |
| Number of products | 1500 |