CPO Commerce Supercharges its Pricing Capabilities

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CPO Commerce Supercharges its Pricing Capabilities

By Tim Denman - 01/14/2016
CPO Commerce, America’s leading online tool retailer, has upgraded its big data and analytic capabilities to make more precise pricing decisions across all categories at the speed, scale and frequency needed to compete more profitably.

The retailer operates in a highly competitive, price-transparent environment and requires a solution with self-learning capabilities that reflect ever-shifting shopper and competitor behavior and demand. By adopting Revionics® Price Optimization, CPO Commerce is able to leverage its internal and external big data, including competitive data, to quickly make pricing decisions.

The solution features sophisticated-yet-usable science, which achieves operational efficiencies with data automation and price management while providing tools for planning, simulation, analysis and measurement. This empowers retailers to be more strategic fact-based pricing decisions. The solution is designed to: turn insights into pricing actions at the speed and scale necessary to remain competitive, align pricing strategies and tactics with category and financial objectives, execute competitive positions while maximizing profit opportunities, and forecast and measure the impact of price changes.

Girisha Chandraraj, chief operating officer for CPO Commerce granted RIS News with an exclusive interview recently to discuss not only his company's latest technology advancements but the state of the greater pricing landscape.

RIS News: Shoppers have unprecedented access to competitive pricing information. How does that visibility complicate CPO Commerce’s business?
Chandraraj: Shopper visibility to competitive pricing does not complicate our business model; it is just part of our reality. Price transparency cuts both ways. We have to accommodate for it in the way we go to market and make sure our value proposition is clear to the customer. Understanding how all the pieces fit together is critical.
 
RIS News: How does the implementation for an advanced price optimization solution help CPO Commerce compete in a cost conscious environment?
Chandraraj: Pricing tools help us manage dynamic pricing at scale. The online marketplace is very fluid and dynamic, and online businesses that resell products need scale to be effective. The only way to manage your business at scale with transparency and pricing fluidity is with automated tools.
 
RIS News: How can retailers compete with those willing to take a loss on a sale (Amazon, Jet.com, etc.)?
Chandraraj: It is not completely clear to me that retailers are willing to take losses — that may or may not be the case in reality. However, like most businesses, some products might be priced aggressively for marketing purposes — each company needs to match their overall mix according to their go-to-market strategy and business goals.  
 
RIS News: Can you share any pricing best practices? How often should prices be changed? Best time of day for price changes? Etc.
Chandraraj: We change prices constantly. We don’t really subscribe to a methodology of the "right time of day" to change prices. We constantly monitor the market and make price changes as we see conditions evolve. We can go days or weeks without changing prices on certain SKUs — it all depends on the market and competitive landscape for that product. Each category has its own competitive complexion.