A US-based online retailer that carries an extensive selection of the finest quality, industrial grade torque tools. Their torque wrenches make it easy for customers to apply the correct amount of torque for any job.
They offer tools from leading brands such as CDI by Snap-On Industrial Brands, Williams Tools, Seekonk, Norbar, Tohnichi, Digitool Solutions, Precision Instruments and TorqUP Pneumatic Tools.
5,364 products in their product inventory.
Revenue however, was mainly being driven from a core set of products, which left the company at risk of having all their eggs in one basket.
The company had tried simple competitor re-pricing tools in the past, but had seen a limited return on investment.
They were looking for a more comprehensive and proven price optimisation tool.
12 % increase in Products Sold
30% increase in revenue
22% increase in profits
The company selected BlackCurve’s Price Optimisation Tool.
Google Shopping Data was chosen for the competitor data source, with exclusions applied for certain market places and vendors.
The primary data source utilised to support pricing decisions was historic sales history.
BlackCurve’s Rules Engine was configured to allow this retailer the ability to set up their own safeguards on the core products that contribute most towards revenue.
The remainder of the product inventory is being managed by BlackCurve’s A.I. Engine, for fully autonomous price optimisation.
The retailer’s website is built on BigCommerce, and is updated every night with applicable price changes.
Within the first month a strong return on investment was witnessed. 70 new products were being sold that had not been sold previously, which amounted to a 12% increase in inventory sell-through. This was driven through both price increases and price decreases, with zero cannibalisation of existing product sales.
Compared to the last 12 (30 day) periods, the retailer witnessed a revenue increase of 30%, and a profit increase of 22%.
As a well-established company, with no additional expenditure on marketing activities during this time, and no noticeable changes in the wider market behaviour, it was straightforward to attribute the increase in revenue and profitability to BlackCurve’s Price Optimisation Software.