“Nobody knows tools, like Just Tools!” reads the website of our lovely friends Just Tools Australia.
The company has been around for 40 years, and was quick to adopt its business into e-commerce around 15 years ago, under the domain, justtools.com.au. As its name implies, Just Tools Australia is a retailer selling power tools and cordless tools to folks who work in the construction industry.
As one may expect, Just Tools’ competitive landscape is quite crowded, and according to Luke (pictured left), the IT & Web Manager of the company, there are new competitors popping up every day. (sounds familiar all the retailers out there?)
Of course, those competitors vary in size, so Luke explains that the company focuses on 10 major competitors in the market, and set their tone of competitiveness according to those major competitors, and that tone is mostly quite aggressive, powered up with solid market intelligence.
With 50-100 orders per day, with average basket size of 150-200 AUD, we can certainly tell that they are doing a good job!
Luke has been involved in all the decision making process that gave Prisync the chance to help Just Tools Australia to navigate in their competitive landscape by delivering the fresh competitor pricing data that the company has been populating manually before meeting Prisync. He’s totally the right person to talk to, thanks to his 15 years of experience within the company, where he has taken hands-on roles through the digitalisation of the business in different areas like IT, digital marketing and many others – evidently including fantastic customer support!
We sat down with Luke 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 & without Prisync
Luke puts things down quite clearly. According to him, there were 2 clear problems before embracing the automation of Prisync:
- Due to their crowded competitive landscape, they were always in need of competitor pricing information, but they have been gathering this manually, and this was surely an inefficient and insufficient process.
- They were sure that, their competitors were also monitoring their prices and were taking quick actions according to their pricing strategy.
Given the limitations of manual competitor price tracking, Just Tools were only able to apply competitor price checks for about 30-40 products, and with the limited data they get through that manual analysis, they were only able to make 15-20 price changes per week across their whole assortment.
Luke and the team has decided to address these 2 problems that were clearly affecting their bottom-line, and started to look for an automated way to monitor competitor prices, and scale the number of products they monitor vs. competitors. By doing that, they wanted to improve their pricing dynamism by applying more and more smart price changes within their web shop.
Then, one day, they found exactly what they were looking for.
Life after & 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 several pain killers addressing their numerous pains.
The story of Just Tools’ search for an automated competitor price tracking software was not an exception to that and before making a final decision, the company has tried out number of different options, by comparing them vs. each other 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 (sounds emphatic?) and easiness to use. (Prisync is completely self-service unlike other competitor price tracking platforms that require setups/integrations, a lot frictions etc.)
Prisync’s “fantastic” (in Luke’s own words) price change email notifications were also a big plus while making the decision after a comparison vs. other tools out there.
The results yielded out of this choice demonstrated clear improvements in several areas for Just Tools and as always, its great to hear/learn that we, as Prisync, are really giving a valuable service to our customers, in ways that are clearly visible to them.
In Luke’s particular case, the key expectation in automating the process was to increase the number of product prices that the company could benchmark vs. its competitors, and the number of strategic price changes to be applied upon that data.
Right after the subscription, Just Tools team were able to scale their benchmarking capabilities up to monitoring 500 SKUs several times a day (4, to be specific), from a limited 30-40 SKUs per week. That’s ladies and gentleman, 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 analysed assortment.
This massive upgrade in terms of the accessibility of the fresh market pricing data, also fulfilled the other major need of the company, i.e. 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.
Also, this performance boost required even less amount of time. Therefore, we can tell that Prisync made Just Tools’ competitive intelligence processes both more effective and efficient. Again in Luke’s words, the time spent on gathering the required competitive intelligence “decreased dramatically!” Before Prisync, Just Tools team used to spend about 1-2 days per week to conduct the manual analysis, and this required time decreased to the level of only 1-2 hours per day with all the detailed analysis and strategic decision making processes included. In other words, Just Tools team increased their time efficiency of their competitive intelligence process 300%. The boost in efficiency is actually way higher than this when we consider the dramatic improvements yielded by automated competitor price tracking.
The bottom line and the ROI of Prisync for justtools.com.au
Behind all these needs felt by Just Tools and all other Prisync users from more than 50 countries, stands a major assumption, quite linked with Prisync’s very own existence.
This assumption or let’s say claim is that Competitive Pricing Intelligence and applying a smart competitive pricing strategy on top of that intelligence increases the sales and profit margins of an e-commerce company. As a data-driven data company, when it comes to evaluating the value of any certain experiment or decision, we rely on figures instead of shiny verbal claims.
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 margins in clearly demonstrable figures. Yay!
Here, we want to make on thing clear. Prisync mostly has the privilege of working with smart companies that are already growing and increasing their sales via other smart strategies. Therefore, we specifically focus on the marginal sales increases in those companies, i.e. Prisync’s direct monetary contribution into the bottom line of the company.
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 money value of this growth was even more significant. The regular growth of revenue within 6 months period before adopting Prisync was around 1%, and took a satisfactory boost with the introduction of Prisync’s automated competitor price tracking capabilities, and jumped to 5,5%. – we’re talking about a striking 5,5x increase in revenue growth within the company. Given the daily order count and the average basket sizes of the company, its monthly revenue hovers around a solid 400K AUD (about 300K USD) and the marginal monthly revenue increase (5,5% instead of 1%, so 4,5% more revenue increase) delivered by Prisync is 18K AUD (13K USD). – that’s ladies and gentleman a solid 13K USD gained out of a 119 USD monthly subscription.
With the average gross profit margin of the DIY & Hand Tools retail market calculated as around 35%, we can conclude that a 119 USD subscription actually yielded an extra profit, i.e. net cash of 4550 USD (out of 13K USD extra revenue). In other words, Prisync has delivered a massive ROI of 38x for Just Tools! 38x!
Next step: Applying automated Dynamic Pricing for a broader assortment
To sum up, we are fortunate enough to hear another success story from one of our customers.
With 466x scalability in terms of SKUs being benchmarked vs. competitors, 18x increase in pricing dynamism, i.e. the frequency of applying online price changes, 300% improvement in time-efficiency within the competitive pricing intelligence processes, and a 38x ROI, for their subscription spending, Just Tools is still just getting started with the power of pricing automation.
For the upcoming months, the team plans to further increase the number of SKUs included in their competitive assortment within Prisync, and to automate the price changes they apply within their store, with Prisync’s Dynamic Pricing Engine.
Looking at all those exciting days ahead, we’ll keep on working hard, delivering the same superior customer support for Just Tools and all our customers to keep them smiling. 🙂