Build.com Remodels Their Pricing Intelligence With Wiser
Build.com is a leading online home improvement retailer, offering bathroom, kitchen, lighting, hardware, fans and cooling products, and more. Build has access to the strongest distribution network in America, so they can get you what you need, when you need it.
Challenges
Build.com recognized early on that the dynamics of the $400B home improvement market are ideal for online shopping, with consumers looking for simpler and quicker access to a greater selection of products than possible with a traditional big box retailer. Build.com also knows that dynamic online pricing analysis and intelligence are necessary for long term e-commerce success.
Online competitive pricing is a moving target and Build.com needs to have insight into the pricing strategies of other leading retailers in the home improvement category to build and reinforce their competitive advantage.
Prior to deploying Wiser Solutions Pricing Intelligence, Build.com had limited SKU-level data resulting in competitive blind spots including SKU elasticity. Build.com would manually monitor competitive prices as a percentage off-list, and if they did decide to react and/or match a competitor’s price, it would go across an entire category, which was sub-optimal at the individual SKU level, as it made some products less competitive and delivered lower margins on others.
Solutions
Wiser now effectively monitors pricing for over a billion permutations and combinations of products, categories, and competitors, providing Build.com with:
- SKU elasticity insights: Build.com is able to understand which SKU sales volumes are prone to price changes and which are not when making pricing decisions.
- Real-time whole pricing information: For Build.com, one of the most important factors is that they have real-time in-cart pricing including shipping and availability.
- An integrated margin optimization solution: Build.com integrated Wiser’s Pricing Intelligence data into their pre-existing business intelligence & web analytics solutions.
- Added competitive insights beyond pricing: Build.com has daily insights to assortment opportunities, manufacturer price promotions and many other areas. They can also view where their competitors are focusing their efforts, whether it be on a certain category or SKU set.
PRODUCTS USED:
"We have a vast amount of insight into our market on a category, sub-category and even individual product level. We can also track competitor reactions to past price changes to help us forecast results before we implement new strategies.”
Devin Van Hout
Chief Merchant, Build.com
Results
With Wiser’s Price Intelligence solution, Build.com has seen the following value:
- Increased sales & profitability: By acting at the SKU vs. category level, Build.com is able to right price individual products and account for SKU elasticity.
- Better, faster pricing decisions: Previously, Build.com was using manual efforts and processes to monitor competitive prices with limited efficiency and effectiveness.
- Predictive pricing insights: Build.com analyzes SKU elasticity, web traffic, and competitor reactions to price moves to realize a robust pricing strategy and associated tactics.
- Improved negotiating position with manufacturers: Wiser’s retail price intelligence delivers insights into manufacturer price promotions that Build.com can leverage in their own supplier negotiations.
Gain a Partner in Wiser
Wiser Solutions is in it for the long haul. We will be a dedicated partner to your marketing efforts as we work with you to establish baselines, run tests, optimize workflows, and turn our real-time data into confident marketing decisions for your business.
Knock that next merchandising campaign out of the park. Win market share from your competition with price optimization. Understand shopper insights to create better messaging. No matter your goals, Wiser is here to help.
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