“Nobody knows tools, like Just Tools!” says our lovely friends at Just Tools Australia. We’re here to learn how Just Tools improved ROI with help from Prisync.
The company has been around for 40 years and was quick to adapt to the retail digitalization around 15 years ago, under the domain of justtools.com.au. As its name implies, Just Tools Australia is a power tools retailer.
Just Tools’ competitive landscape is quite crowded, and according to Luke, the IT & Web Manager of the company, there are new competitors popping up every day. Sounds familiar?
Those competitors vary in size, so Luke states that the company focuses on 10 major competitors in the market and set their tone according to those major competitors. And that tone is quite aggressive, powered up with solid market intelligence.
Luke was involved in the process that gave Prisync the chance to deliver fresh competitor pricing data which was collected manually before.
We sat down with him to hear how things were before Prisync over at Just Tools, and in which ways exactly our software has been of help to these fine folks from Melbourne, Australia.
Life before Prisync
Luke puts things down quite clearly. He pointed to two particular problems previous to embracing Prisync’s pricing automation:
- Due to their crowded competitive landscape, they were always in need of competitor pricing information, but they gathered it manually. Manual tracking was certainly inefficient and insufficient.
- Their competitors were also monitoring their prices and were making frequent adjustments based on the intelligence they gathered.
Given the limitations of manual price tracking, Just Tools were only able to track 30-40 products. With the limited data they obtain, they were only able to make 15-20 price changes per week across their whole assortment.
Luke and the team have decided to address these problems clearly affecting the bottom-line. They started to look for an automated way of monitoring competitor prices and wanted to scale the number of products they monitor. Doing that, they sought to dynamically price products by applying frequent and well-informed price changes.
Then, one day, they found exactly what they were looking for.
Life with Prisync
In today’s digital landscape, the B2B software market is like an open global pharmacy, where businesses of all sizes from various industries are always in search of pain killers addressing their numerous pains.
Just Tools’ search for an automated competitor price tracking software was not an exception to that. Before making a final decision, the company had tried out a number of different options by comparing all via free trials/demos, etc.
According to Luke, Prisync was the clear choice for the company out of all the options evaluated, mainly thanks to our proudly superior customer support and ease of use. Prisync is completely self-service, unlike other competitor price tracking platforms that require setups/integrations, lot frictions, etc.
Prisync’s “fantastic” (in Luke’s own words) price change email notifications was another reason why they choose us.
For Just Tools, the result is clear improvements in several areas. For us, it’s great to hear/learn that we, as Prisync, are adding value to our customers, in ways that are effective and appreciated.
In Luke’s particular case, the key expectation from pricing automation was to increase the number of product prices they benchmark vs. its competitors, and the number of strategic price changes.
Right after the subscription, the Just Tools team was able to scale their monitoring capabilities up to 500 SKUs several times a day (4, to be specific), from a limited 30-40 SKUs per week.
That ladies and gentlemen, is a solid increase from 30-40 data points per week to 14.000 data points, in other words, a 466x scalability in terms of competitively analyzed assortment.
This massive upgrade in terms of accessibility of the fresh market pricing data also fulfilled another major need of the company, applying smart competitive price changes more frequently. Just Tools’ website now has much more dynamic prices.
Specifically, as we stated earlier, the company used to apply 15-20 price changes a week, and with Prisync’s capabilities, Just Tools’ website now sees 40-50 price changes a day. In other words, in terms of price dynamism, Just Tools scaled their capabilities to a striking 18x level.
Before Prisync, the Just Tools team used to spend about 1-2 days per week to conduct the manual analysis. It decreased to only 1-2 hours per day with all the detailed analysis and strategic decision-making processes included.
Again in Luke’s words, the time spent on gathering competitive intelligence “decreased dramatically!”.
With Prisync, the Just Tools team increased the efficiency of competitive intelligence gathering by 300%.
The bottom line and the ROI of Prisync for justtools.com.au
Like in the case of all our customers across the world, Prisync’s automated competitor price tracking software helped Just Tools to increase their sales and profit substantially.
With that in mind, Just Tools’ growth rate in terms of units sold, during a 6 months period with Prisync was 8%, compared to a regular growth and sales increase of 3%. In other words, Prisync almost tripled the growth rate of the company.
The regular growth of revenue during a 6-months period before adopting Prisync was around 1%, and it took a satisfactory boost, jumping to 5,5%. That’s a striking 5,5x increase in revenue growth.
Just Tools’s monthly revenue hovers around 400K AUD (about 300K USD) and the marginal monthly revenue increase delivered by Prisync (5,5% instead of 1%) is 18K AUD (13K USD). A solid 13K USD gained in exchange for a 119 USD monthly subscription.
With the average gross profit margin of the DIY & Hand Tools retail market around 35%, we can conclude that a 119 USD subscription yielded a net profit of 4550 USD (out of 13K USD extra revenue). In other words, Prisync has delivered a massive ROI of 38x for Just Tools!
Next step: Applying automated Dynamic Pricing for a broader assortment
With 466x scalability in terms of SKU benchmarking, an 18x increase in pricing dynamism and the frequency of price changes, a 300% improvement in time-efficiency, and a 38x ROI, Just Tools is just getting started to utilize the power of pricing automation.
For the upcoming months, the team plans to further increase the number of SKUs to be tracked via Prisync and to automate the price changes with Prisync’s Dynamic Pricing Engine.
Looking at all those exciting days ahead, we’ll continue delivering the same superior customer support for Just Tools and all our customers to keep them smiling!