DIY and Home Improvement Retailers
A Complete Pricing Solution
From nails to appliances, a single faucet to an entire renovation – DIY price points and basket sizes are vast – and so are the demand fluctuations, customer bases, customer preferences, and styles. Each of these presents unique opportunities for pricing.
With CLEARDEMAND AI Pricing and Planning Solutions, retailers can manage their merchandising and stay ahead of demand and cost changes while maximizing revenue, cost, and customer delight.
Focus On ROI
Typical Improvements 8 - 15% ROI
Regular Price
Promotion
Clearance
AI Price and Promotion Planning & Optimization
For DIY and Home Improvement Retailers
Synchronizes Prices, Promotions, and Markdowns Online and In-store to Produce a Consistent Experience
Price Locally For Your Customers
Manage prices for your local markets for your various DIY and business customers.
Manage Every Product's Lifecycle
Set prices for all merchandise at each stage of its lifecycle - fast moving, slow moving, seasonal, staple, large purchase, convenience, and on and on.
Demand Shifts and Cost Fluctuations
The DIY market is multi-directional with tremendous demand and cost fluctuations. These moments can make or break a category, so proactive and responsive pricing becomes a must.
Price For Projects
Incorporate affinities and cannibalizations as you set prices for DIY projects, whether the customer is renovating their bathroom, landscaping their backyard or finishing their basement.
Promote Intelligently
Understand the lift, revenue, units and profits for your promotions and vehicles before making a final decision.
Forecast Demand
Ensure supply will meet demand by integrating the promotional demand forecast into your replenishment and ordering systems.
Maximize Profit and Revenue
Find that sweet spot between maximum revenue and maximum profit for every item.
EBOOK
Accelerate Your Pricing Maturity
Intelligent Price Management and Optimization is increasing in importance for omnichannel retailers in light of current developments. Legacy processes that rely on spreadsheets and rules of thumb no longer meet the challenge.
No matter how proficient a retailer is in their pricing maturity, they can take steps to improve their profit, revenue, and competitive position.
This guide from Clear Demand outlines the path to optimization for sustained profitability in today’s highly dynamic marketplace.
Case Study
Enhancing Lifecycle Pricing Outcomes at a Leading DIY Retailer
An American multinational DIY retailer long known as a low-price leader that operates in every state and the District of Columbia and sells a large assortment of national and private label merchandise including tools, appliances, paint, construction products, and seasonal home and garden products.
Maintaining its low-price leader image a large assortment incurred operational challenges.
Merchandising was siloed, with more than 80 managers making category decisions for over 250K store SKUs and 1M online SKUs.
The retailer identified multiple objectives to improve its pricing practices, including:
• More rapid competitive response
• Improve efforts to localize prices
• Maintain and apply a more accurate integrated forecast
• Identify KVIs and price them correctly
• Meet margin targets
• Maintain line structure
Following a discovery phase to uncover relevant information, the Clear Demand team engaged in a thorough data collection and analysis, leveraging their expertise to collaborate with the retailer in formulating a comprehensive implementation and rollout plan.
This collaborative effort encompassed the strategic aspects of the plan and meticulous definition of an approval process.
Furthermore, the team refined and established new user roles, ensuring that the implemented solution aligned with the retailer’s operational framework and objectives.
This meticulous process underscores Clear Demand’s commitment to tailoring solutions that not only address immediate needs but also contribute to the long-term success and efficiency of the retailer’s operations.
Clear Demand’s solution delivered improved comp-store sales through application of both rules and optimization.
Many pricing decisions were automated where appropriate, and localized pricing helped to improve the retailer’s competitive price image.
Accurate forecasting helped reduce stock outs and promotional effectiveness improved. On clearance items, sell-through improved 18% and revenues increased by 12%.
Clear Demand’s solution increased comparable-store sales by effectively applying a combination of rules and optimization strategies.
The implementation involved the automation of numerous pricing decisions, ensuring a streamlined and efficient process. Notably, the incorporation of localized pricing strategies played a pivotal role in elevating the retailer’s competitive pricing image within the market.
The integration of accurate forecasting methodologies yielded significant benefits, notably in the reduction of stock outs and the enhancement of promotional effectiveness. This precision in forecasting not only optimized inventory management but also contributed to a more seamless and responsive retail environment.
Furthermore, the impact on clearance items was particularly noteworthy, with a remarkable 18% improvement in sell-through rates. This translated into a 12% increase in revenues, underscoring the tangible and positive outcomes delivered by Clear Demand’s solution across various facets of the retailer’s pricing and inventory strategies.