Dynamic prices increase earnings at Danish white goods chain

Dynamic prices increase profits at Danish white goods chain

The Danish white goods chain ‘El-Salg Center Aalborg’ is one of the leading stores within white goods in North Jutland. The store has now moved to next level and introduced dynamic pricing through a price robot and electronic price tags.

Dynamic prices have long been used in the hotel and airline industry. Here, the price is adjusted on an ongoing basis in relation to supply and demand, as well as the competitive situation. In this way, it is possible to optimize profits. The increasing e-commerce business within sale of physical products has also helped to increase the need for dynamic pricing in the retail sector.

This is precisely the case at El-Salg Center Aalborg, where the focus is on the customer and providing a competent service. The store has therefore implemented a new pricing strategy that frees up extra resources for customers while improving profits.

"Dynamic prices give us a competitive advantage. All pricing takes place automatically, so now we can run the same pricing strategy in our physical store as on our webshop."
Michael Lindblad, white goods consultant at El-Salg Center Aalborg

Automatic pricing strategy – online and offline

El-Salg Center Aalborg uses the price robot, PriceShape, to get an overview of competitors' prices. Prices are adjusted automatically at the webshop through price rules. Prices are continuously adjusted based on competitor data. Therefore, the store associates do not have to do anything. The same applies to the physical store, which is using electronic shelf labels from Delfi Technologies.

- Dynamic prices give us a competitive advantage. All pricing takes place automatically, 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 prices create growth

Today, most consumers research and compares before purchasing. With PriceShape, you can monitor prices and define pricing rules that automatically adjust prices based on data about competitors' prices. Prices are updated at the same time on the webshop and in the store.

Dynamic prices help to increase conversions and create growth no matter whether it is an entire chain or a single store. You can also use the price robot to set up specific campaigns - e.g. 20% on a particular brand for a certain time period.

Fully automatic 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, which also ordered the ESL solution, got it delivered and installed within just a few weeks.

The store wanted a quick start-up, as they wanted to use the time during the Corona shutdown to prepare the system. In that way, the store could get the full benefit fromstart in connection with a sudden reopening.

- It went surprisingly fast and has been incredibly easy to implement. Both PriceShape and the Delfi solution are intuitive and easy to use. It is something that everyone can do - and it was a decisive factor for us, says Michael Lindblad and continues:

- After we have introduced dynamic prices, we always have the optimal price. It all runs fully automatically and saves a lot of time for us. It has also improved our competitiveness and ultimately, it helps to increase our profits.

About El-Salg

El-Salg is one of Denmark's largest independent 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 one of North Jutland's leading stores within sales and service of white goods.

 

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