About the Client
“Nobody knows tools, like Justtools!” said our lovely friends at Justtools Australia.
The company has been around for 40 years and was quick to adapt to the digital transformation around 15 years ago, under the domain of justtools.com.au. As its name implies, Justtools Australia is a power tools retailer.
The power 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 varied in size, so Luke states that the company focused on 10 major competitors in the market and set their tone according to those major competitors. And that tone was quite aggressive, powered up with solid market intelligence.
Luke was involved in the process that gave Prisync the chance to deliver current competitor pricing data which was collected manually before.
We sat down with him to hear how things were before Prisync over at Justtools, and in which ways exactly our software has been of help to these fine folks from Melbourne, Australia.
Problems before Prisync
Luke put 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, JustTools were only able to track 30-40 products. With the limited data they’ve obtained, 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’ve 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.
JustTools 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.
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.Luke / IT & Web Manager of JustTools
Prisync’s “fantastic” (in Luke’s own words) price change email notifications was another reason why they choose us.
For Justtools, the result was clear improvements in several areas.
In Luke’s particular case, the key expectation from pricing automation was to increase the number of product prices they benchmark vs. their competitors, and the number of strategic price changes.
Right after signing up, the Justtools 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.
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.
The company used to apply 15-20 price changes/week, and after Prisync, Justtools saw 40-50 price changes/day. In other words, in terms of price dynamism, Justtools scaled their capabilities to a striking 18x level.
Again in Luke’s words, the time spent on gathering competitive intelligence “decreased dramatically!”.
With Prisync, the Justtools team had increased the efficiency of competitive intelligence gathering by 300%.
Like in the case of all our customers across the world, Prisync’s automated competitor price tracking software helped Justtools to increase their sales and profit substantially.
Justtools 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.
Justtools’s monthly revenue hovered around 400K AUD (about 300K USD) and the marginal monthly revenue increase delivered by Prisync (5,5% instead of 1%) was 18K AUD (13K USD). A solid $13K gained in exchange for a $119/month subscription.
With the average gross profit margin of the DIY & Hand Tools retail market around 35%, we can conclude that a $119 subscription yielded a net profit of $4550 (out of 13K USD extra revenue). In other words, Prisync has delivered a massive ROI of 38x for Justtools!
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, Justtools had utilized the power of pricing automation.
For the upcoming months, the team planned to further increase the number of SKUs to be tracked via Prisync and to automate the price changes with Prisync’s Dynamic Pricing Engine to make things even more interesting.