EL-SALG CENTER AALBORG DYNAMIC PRICES
Dynamic pricing boosts earnings at Danish white goods chain
El-Salg Center Aalborg is one of North Jutland’s leading white goods stores. Now the store has gone one step further and introduced dynamic pricing through the use of a price robot and electronic price tags.
Dynamic pricing has long been used in the hotel and airline industry. Here, prices are continuously adjusted according to supply and demand, as well as the competitive situation. This makes it possible to optimize earnings. The increase in online sales of physical products has also increased the need for dynamic pricing in retail.
This is exactly the case at El-Salg Center Aalborg, where it is all about putting the customer first and providing a competent service. That’s why the store has implemented a new pricing strategy that frees up extra resources for customers while improving profitability.
"Dynamic pricing gives us a competitive advantage. All pricing is automatic, so now we can run the same pricing strategy in our physical store as on our webshop."
AUTOMATIC PRICING STRATEGY – ONLINE AND IN-STORE
El-Salg Center Aalborg uses the price robot, PriceShape, to get an overview of competitors’ prices. By setting up price rules, prices are automatically adjusted on the store’s webshop. The prices are continuously adjusted based on competitor data, so staff do not need to take any action. The same applies in the physical store, which has electronic price tags from Delfi Technologies.
– Dynamic pricing gives us a competitive advantage. All pricing is automatic, so now we can run the same pricing strategy in our physical store as on our webshop,” says Michael Lindblad, white goods consultant at El-Salg Center Aalborg.
DYNAMIC PRICING CREATES GROWTH
Today, most consumers research and compare the price of an item before purchase. With PriceShape, you can monitor prices and define pricing rules that automatically adjust prices based on competitor price data. Prices are updated simultaneously on the webshop and in-store.
Dynamic pricing helps increase conversions and drive growth, whether it’s an entire chain or a single store. You can also use the pricing robot to set up specific promotions – for example, 20% off a specific brand for a set period of time.
FULLY AUTOMATED SETUP SAVES TIME
All data is available in real time and prices are adjusted fully automatically. This eliminates many hours of manual work at El-Salg Center Aalborg, who ordered, received and installed the electronic price tags in just a few weeks.
The store wanted to get up and running quickly, as they wanted to use the time during the Corona lockdown to prepare the system. That way, they could take full advantage from the start in connection with a sudden reopening.
– It went surprisingly quickly and has been incredibly easy to implement. Both PriceShape and the Delfi solution are intuitive and easy to use. It’s something that everyone can figure out how to use – and that was a decisive factor for us,” says Michael Lindblad and continues.
– Since we introduced dynamic pricing, we always have the optimal price. It’s all fully automated and saves us a lot of time. It has also improved our competitiveness and ultimately helps increase our profitability.
ABOUT ELECTRICAL SALES
El-Salg is one of Denmark’s largest voluntary purchasing chains within white goods and consumer electronics. The chain is owned by 170 independent stores with real professionals who have solid expert knowledge. El-Salg Center Aalborg is, among other things, one of North Jutland’s leading stores in sales and service of white goods.
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