Profitability margin varies per category
German lighting retail chain treats certain product categories in a very different way
Depending on which industry they belong to, clients may have different requirements. If they offer several product categories, they often treat them differently. That’s the case with our client, a retail lighting chain from Germany.
This client has a WooCommerce store, with over 26K products, and 5K key products are monitored via Price2Spy. It’s important to note that this is a very competitive industry, therefore, our client has expressed the need to monitor both marketplaces and classic retail websites. Speaking in numbers, Price2Spy is monitoring 130 competitors in total – 10 competitors are identified as key, while others are monitored just for individual categories.
Having all this in mind, our clients’ request was pretty much expected – introduce Repricing rules split per Category, each Category having its own desired profitability margin.
How did Price2Spy help?
Price2Spy has a Repricing module that allows clients to define pricing strategies according to their needs. This time, the client has decided to proceed with the main strategy of keeping the price at the same level as the cheapest competitor – for both Clever Drop and Clever Raise.
Additionally, key categories have been configured as non-automated, meaning that the client needs to verify price changes before they take place. When it comes to other categories, repricing has been fully automated.
Let’s take 2 competitors as an example:
- Eglo – profitability margin at 40%, manual repricing
Nordlux – profitability margin at 55%, automated repricing
Repricing was performed via Direct Repricing to the clients’ WooCommerce store.
What does that exactly mean?
- Repricing suggestions calculated 4 times per day
- Key categories are repriced by 4 Category Managers who log in and inspect pricing suggestions daily
- Other categories are repriced fully automatically
- On average Price2Spy suggest 3-5 price changes per day per category, which means a total of 150-250 products with potential price changes per day
- 40% of these price suggestions refer to categories repriced manually, 60% for categories configured for automated repricing
- Automated repricing has been set up to be executed 4 times per day
Additional information
More additional details about this client are listed on the right-hand side.
If you need a hand with setting the best repricing strategy for your business, we believe that Price2Spy can help you!
In case you want to know more about Price2Spy, please feel free to send your questions to info@price2spy.com. As always, we encourage you to sign up for a free 30-day trial to learn more about the tool.
| Features | Details |
|---|---|
| Country | Germany |
| Client size | Basic XL |
| Category Managers | 4 |
| Industry | Lighting |
| Platform | WooCommerce |
| Number of products | 5000 |