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

If you are interested in finding more about our client, we invite you to take a look at the table listed on the right-hand side.

If you’re also trying to find the best pricing strategy for your business, we believe that Price2Spy is just the right tool for you!

Please feel free to reach out to info@price2spy.com in case you have questions. If you want to learn more about the tool, we invite you to sign up for a free trial.