The Era of Profitability – Boosting Competitive Pricing and Market Agility with Wiser.

Background

A leading retailer in both Peru and Mexico, offers a diverse range of electronics and consumer goods. As the retail landscape has become increasingly competitive, maintaining price leadership and profitability became essential to the retailer’s continued success. With thousands of products listed across numerous categories and multiple sellers operating on its marketplace platform, the retailer needed a powerful, flexible solution capable of managing dynamic pricing, allowing them to navigate the complexities of a fast-paced and evolving market.

A Deputy Manager in charge of the Peru and Mexico markets, recalls, “As we expanded, it became clear that we needed more than just a pricing tool - we needed a user-friendly, real-time pricing intelligence solution that could empower us to make smarter decisions and stay ahead of our competition.”

To address these challenges, they turned to Wiser, leveraging its advanced data solutions to monitor prices, improve decision-making, and strategically position themselves in an increasingly crowded marketplace. With Wiser’s support, the retailer was able to streamline pricing management, gain valuable market insights, and stay competitive in a rapidly evolving retail environment.

Challenges

Before partnering with Wiser, the retailer faced several key challenges:

• Inefficient Price Management Software: the retailer had a pricing tool that offered market competitiveness insights, but its lack of user-friendliness made it challenging for the team to fully leverage the data effectively. As a result, the tool was underutilized, leading to inadequate decision-making and poor price management. This ultimately caused missed opportunities and negatively affected revenue.
• Manual Competitor Price Monitoring: With thousands of products to track, manually managing pricing by navigating to competitor websites was both time-consuming and inefficient. “We used to enter data into Excel, copying URLs and manually tracking prices. It was stressful and incredibly difficult to manage, especially during large-scale events,” explains the Deputy Manager. The complexity of tracking detailed information—like prices, shipping costs, delivery dates, and payment plans—across 7,500 to 10,000 products was overwhelming. “You’d need an army of people to handle that manually. it’s inefficient and no longer viable in such a fast-paced environment.”
• Complex Marketplace Dynamics: As both a retailer and a marketplace, they faced the added complexity of managing prices across its 2,500 products (in Peru), as well as the 7,500 products listed by various sellers. Since sellers control their own pricing and stock strategies, the retailer felt a loss of direct control over pricing, which required the implementation of much stricter oversight policies. Additionally, the rise of competing marketplaces increased the pressure for them to adopt more efficient tools and strategies to stay ahead in the competitive landscape.

Solutions

To address its pricing challenges, the retailer partnered with Wiser, leveraging its data-driven solutions and pricing intelligence to transform their strategy. Key solutions included:

• Real-Time Price Monitoring: Wiser’s real-time market intelligence enables the team to continuously monitor competitor pricing and adjust strategies accordingly. “We’re on the right track,” says the Deputy Manager, emphasizing how Wiser’s tools have helped them stay ahead in an increasingly competitive and fast-paced market in both Peru and Mexico.
• Dynamic Price Adjustments: With Wiser, they can adjust prices multiple times a day, boosting agility during key promotional events, like Cyber Day. “We used to change prices once a day. Now, we adjust prices 3 or 4 times a day to stay competitive,” says the Deputy Manager. These events create short-lived but dramatic sales spikes, often compressing a month’s worth of sales into a single week. Speed is crucial to capitalize on these opportunities – not just for price changes but also for managing payment plans and shipping, both of which are essential in the LATAM region, where consumers rely on installments and expect flexible delivery.
• Comprehensive Competitor Analysis: Wiser’s insights extend beyond just pricing. The team can now monitor a wide range of factors, including shipping options, promotions, and product availability, allowing them to optimize their overall commercial strategy. “Our commercial proposition isn’t just about price because customers aren’t always looking for the cheapest option,” explains the Deputy Manager. “Some want financing options, others need same-day delivery, and some prefer in-store pickup.” Understanding these nuances enables the retailer to fine-tune its offerings and maintain a competitive edge.

“Wiser has been instrumental in helping us manage prices more efficiently and stay competitive. Their tools give us the insights we need to make better, faster decisions in a constantly evolving market.”

Deputy Manager

Results

Since partnering with Wiser, the retailer has seen significant improvements in several areas:

• Enhanced Competitiveness and Market Positioning: With real-time pricing data, the retailer has remained competitive in key categories, dynamically adjusting prices multiple times a day to increase sales during promotional events and minimize stock risks. Additionally, Wiser’s insights have helped the team make more informed decisions regarding promotions, product bundling, and overall market positioning, ensuring they stay ahead in a fast-paced retail environment.
• Enhanced Price Oversight and Seller Management: As a marketplace with over 7,500 products listed by multiple sellers, the retailer needed to balance seller autonomy with the need for price consistency, aligning with market standards and avoiding issues like price gouging or underpricing. Wiser’s price monitoring provided real-time visibility into both internal and competitor pricing, allowing the team to identify discrepancies, ensure price parity, and provide sellers with data-driven pricing guidance to sellers. This helped them maintain competitive pricing while still allowing sellers flexibility, fostering a healthier, more balanced marketplace ecosystem.
• Improved Efficiency and Usability: Wiser’s user-friendly tools have streamlined decision-making at the retailer. The team can now instantly access product and competitor data, speeding up decisions without the need for manual data entry or lengthy meetings. This ease of use has enhanced team engagement, responsiveness, collaboration and overall operational efficiency, allowing the team to quickly identify price improvement opportunities and react to critical changes in real time. The Deputy Manager notes, “The biggest improvement has been the efficiency in timing and processes, allowing us to operate with much more agility.”
• Successful Market Entry in Mexico: Wiser’s data was invaluable in helping the team navigate the complexities of launching in a new country. Detailed market insights allowed the retailer to identify competitors, understand best-selling products, determine price-positioning and shape their assortment strategy in Mexico. Additionally, Wiser helped them tailor their approach to the significant differences in payment methods between Mexico and Peru, ensuring they met local consumer preferences and payment expectations.
  
  

Conclusion

The retailer's partnership with Wiser has revolutionized its approach to pricing. Real-time data and pricing intelligence have empowered the team to refine not only its pricing strategies but also its overall responsiveness to market changes. The Deputy Manager reflects, “Wiser has been instrumental in helping us manage prices more efficiently and stay competitive. Their tools give us the insights we need to make better, faster decisions in a constantly evolving market.”

Wiser’s flexibility and close collaboration have been key to the retailer’s success. Whether switching competitors, tracking new categories, or adjusting products, Wiser has continuously adapted to their changing needs. This adaptability has made Wiser an integral partner in navigating the complexities of the retail environment.

In today’s market, profitability hinges on efficient pricing strategies. “If a company isn’t actively monitoring prices and competitiveness, they’re likely losing money - either through pricing too low or missing sales by misaligning their offer with market demands,” warns the Deputy Manager. The retailer’s experience underscores the importance of real-time data and strategic price monitoring. As the Deputy Manager notes, “Just because you’re unaware of your competition’s lower prices doesn’t mean it’s not happening.” With Wiser’s data-driven insights, the retailer has been able to stay ahead, optimize strategies, and maintain profitability in an increasingly competitive market.

For retailers aiming to enhance pricing strategies and maintain a competitive edge, Wiser provides the essential insights and adaptability to thrive in today’s rapidly evolving industry.