The onset of digital changed the  distribution landscape, with more buyers shopping online. Increasing price transparency has enabled buyers to compare and evaluate products before making purchase decisions. Additionally, competition has begun to frequently change prices.

The client’s sales team feared that they were losing sales, as their products were priced higher than competition. To verify this and understand their price position, the distributor began manually gathering competitive pricing insights. However, this manual approach was time-consuming, and erroneous.

The pricing team deployed our competitive pricing intelligence solution to understand the client’s price position. We began this approach by identifying the distributor’s Key Value Items (KVIs). These KVIs were accurately matched with exact or similar competitor products, to deliver an objective view of the distributor’s price position. The pricing insights revealed that the company’s products were priced lower than competition, and they could actually increase prices.

To scale and automate this process, we provided the client with intuitive dashboards. Through these dashboards, the business can regularly access timely and accurate competitive pricing insights at scale.

We continue to work with this distributor to deploy algorithms that provide price recommendations based on pre-defined price rules and demand elasticity. Using such price recommendations, the client is empowered to make data-driven price decisions and remain price competitive.