FCP Euro is a leading online provider of Genuine, OE, and OEM parts for European cars. Established as a brick-and-mortar store in 1986, and brought online in 2001, FCP Euro is one of the fastest-growing automotive eCommerce companies in the United States.
FCP Euro has achieved consistent double-digit revenue growth since its inception online in 2001 and is forecasted to surpass $500 million in revenue and 600 employees by 2025. The company has been awarded spots on the Inc. 5000 Fastest growing private companies in 2011, 2012, 2016, 2017, 2018, 2019, 2020, and 2021.
The company currently operates its eCommerce headquarters and distribution out of Milford, CT where it currently has 220 employees, 105,000 sq. ft of distribution and fulfillment, and $20 million of inventory. The company has plans for physical expansion into the Southwest US (Arizona) and Southeast US (Florida) over the next 24 months and is looking for leadership and managerial talent to support both organic and geographic headcount expansion.
With over 200,000 SKUs in its online parts catalog, FCP Euro seeks to enhance the pricing management system by implementing Competera’s Pricing Platform. The project is aimed at sustaining the balanced growth of bottom line metrics as well as increasing Customer Lifetime Value at maximized margin rates.
Reflecting on the motivation driving FCP Euro to look for a pricing solution, David Cowan, Head of Pricing at FCP Euro, points out the major impacts that the company was looking to gain through a software implementation. In particular, the retailer needed a single location where prices could be managed across the entire catalog, could be accessed by all necessary stakeholders, and was capable of leveraging advanced technology solutions.
"Prior to Competera, pricing at FCP Euro was typically managed by one person, making the process and infrastructure vulnerable and less likely to scale. Part of the draw to Сompetera is having a single source of truth that anyone can access. In regards to implementing a pricing strategy, we used to change prices globally, i.e. on the brand level, which was not always effective. We saw Сompetera as a means of implementing a more granular strategy across multiple dimensions. Looking towards the future, we saw Competera’s deep integration of machine learning and artificial intelligence, to truly understand price sensitivity and elasticity, as an effective tool to scale, grow, and maintain the profitability of the business,” comments David Cowan.
The comprehensive setup fully covering the retailer’s pricing needs, unique technology, and optimal value proposition became the core factors underlying the decision of FCP Euro to choose Competera as a pricing software provider.
The project realization will enable the retailer to actively and effectively manage prices at an SKU level at one place, ensure margin uplift for the entire assortment with no loss on revenue, as well as get an overview analysis on decision trees for any assortment level while having a clear interpretation on the reason and logic behind every price recommendation.
"The FCP Euro team had a clear understanding of the crucial role of pricing, especially now, in a time of growing inflation and price transparency. And for us, it is a pure pleasure to work with David Cowan and others from FCP Euro who know exactly what they want from pricing and how the use of advanced technology can be leveraged to its full potential. We are excited to kick-off a pricing journey together and look forward to the full rollout of ML-based recommendations ensuring the maximum margin uplifts for FCP Euro," adds Alex Galkin, CEO at Competera.
The cooperation between FCP Euro and Competera implies the gradual implementation of several stages. Following the rollout of Competitive Data service, rule-based Pricing Automation and elasticities-based Price Optimization are to be enacted.