Pricing Strategy for Holiday Stationstores Pays Off


CHALLENGE
Holiday Stationstores needed:
  • Pricing software which took price sensitivity into account, and allowed "what-if" scenario planning to test different strategies
  • To improve competitiveness with pricing on key value items
  • Pricing strategy & recommendations by product category

"We realized we needed the science of a system in order to understand the price sensitivity of the items we sell, which offers an elasticity of demand calculation. A system removes some of the emotion that is built into pricing decisions and allows us to develop pricing that is consistent with our view of the strategic role of each category."
says Dean Solyntjes, Director of Pricing and Business Support at Holiday Stationstores.



SOLUTION
Choose the Right Pricing Solution

Since 2010 Holiday Stationstores has experienced success using Revionics's base pricing software, which provides analytical detail, forecasts results and provides analysis of sales trends. This software allows them to be proactive to demand with pricing strategy and shape consumer behavior, instead of reactive to consumer behavior or competitor actions.



RESULTS
Improved Profit Margins at 400 convenience stores in 10 states

Overall, Holiday is impressed with the system and the results achieved so far. Solyntjes said the company is on track to achieve the gross profit improvement it anticipated, and will start using additional functionality such as Promotion Optimization in the future.

"Our category managers are very experienced and data driven, but this system has helped us achieve a new level of discipline to our pricing processes," said Solyntjes.

 


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Note: This case study was based on an interview with Dean Solyntjes, Director of Pricing and Business Support at Holiday Stationstores. The full article was written by Tammy Mastroberte, was posted on July 19, 2011, and can be found on CS News Retail Technology's website www.retailtechnology.csnews.com.