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