One of the oldest players in the professional and hobby tool segment has always relied on technical innovations, and launched its first online store in 1998. This is also why two years ago uni-max decided to try a tool for tracking competitive product prices. However, its use was not ideal, the tool was still in its infancy, had many bugs and proved insufficient for uni-max’s use. So, in uni-max they worked with price by testing different price points.
“We tested clients’ sensitivity to price. We took a product, set a price for a week, then tried a different price for a week, then a third price. We watched what that did to sales or margins. This was to see at what price levels that product was giving us the biggest absolute margin. This was systematic, but quite expensive to operate and maintain,” says Martin Svoboda, Head of Marketing.
But after nine months, they returned to monitoring of the competition. The initial problems were eliminated and the tool worked much better.