Increasing revenue
without losing profit margin

The consumer electronics retailer Foxtrot used Competera’s platform to optimize pricing

"Foxtrot is a major omnichannel consumer electronics retailer. Started in 1994, the company is a member of Euronics International, an international association of over 14,000 independent electrical retailers in 36 countries. Foxtrot attracts 27.8 million customers annually."

Foxtrot used Competera’s platform to hit three goals within a six-week market test:

  • To maximize revenue without losing profit margin
  • To stop mimicking the pricing moves of competitors
  • To prove the feasibility of Competera’s solution

Challenge

The retailer exhausted all the traditional scaling approaches.

The company used to mimic competitors’ pricing and promo decisions.

Solution

Data-driven demand-based price recommendations to ensure financial growth.

Ensuring that only true competitors influence pricing decisions.

Results: Foxtrot hit all the set goals

Pricing managers have switched from routine to more strategic tasks, while the retailer boosted its financial performance.

+13.6%

Revenue

+51.5%

Profit margin

Saved as compared to the control group

+5.8%

Sales items

+7.8%

Transactions

Pricing races are growing non-stop. Setting the optimal prices is the key instrument to manage retail profits efficiently. The main question is what a reasonable price range and adjustment to increase sales and keep the margin optimal are.

quote picture
Tatyana Moyiseenko
Tatyana Moyiseenko
Commercial Director at Foxtrot

Challenge

  • Profit margin losses

    Pricing managers lack time and data to factor in demand elasticity to set optimal prices for every product.

  • Bulky and time-consuming pricing

    The in-house ERP and Excel-based pricing systems have technical limitations to store and process pricing data.

  • No single database of previous pricing decisions

    Pricing managers have no means to analyze and repeat the success of past pricing and promo decisions.

Solution

Regular demand-driven recommendations for price and promo decisions

The market test featured two groups:

Test group

Managers used demand-based price and promo recommendations.

Control group

Managers used traditional manual pricing methods

Competera factored in all of Foxtrot's business constraints, analyzed millions of data points of historical data, and considered the demand elasticity of every product to create optimal price and promo recommendations regularly at the portfolio level.

Results: Foxtrot hit all the set goals

revenue
profit margin
sales items
transactions
  • Control Group
  • Test Group
  • Performance boost

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A consumer electronics retailer maximized revenue without losing their margins

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