How Do Your Prices Compare to the Competition?
We helped this distributor tackle inflationary pressures by validating their price increase approach and rationale through market intelligence studies.
An automotive aftermarket parts distributor was faced with an inflationary environment and was unsure how their price increases affected their pricing compared to the competition. We proved that pricing was not the most important factor in customers’ purchase decisions and built confidence in their price increase strategy.
The company was trying to keep pace with cost increases while driving additional margin gain. They were actively going to market with modest price increases but lacked visibility into customer perceptions and competitor actions to guide price decisions. They feared their prices were significantly higher than the competition.
INSIGHT2PROFIT surveyed 200 auto repair shops and wholesale distributors to guide more aggressive actions while mitigating risk. Survey responses provided clarity for their pricing strategy and enabled our client to be bolder and more confident with price increases to take to the market. They also uncovered talking points to use when communicating those increases, because of a greater understanding of what the customers valued the most.