oraya - Market Intelligence & Price Management Blog

Case Study: Increasing the competitiveness of manufacturers

Written by oraya Official | Jun 14, 2023 4:45:00 AM

In today's competitive marketplace, pricing is a critical element in a manufacturer's success. Setting the right price for a product can make the difference between a company's success and failure. But as a manufacturer, how do you know if you are pricing your products optimally? And how can you keep up with the constantly changing market trends?

With a multitude of variables and influences to consider, it can be difficult to determine the optimal price point. The luggage industry is no exception to this challenge. With countless brands and retailers offering similar products, manufacturers face the challenging task of creating a successful competitive strategy. This is where oraya insights comes in. However, with the help of oraya insights, our automated price monitoring software, our client in the luggage industry was able to achieve their price optimization goals and gain a competitive advantage in their market.

 

Challenges of optimal pricing in the travel equipment industry

Manufacturers of high-end luggage face several challenges when pricing their products. First, they must consider material, production and labor costs, which can be higher than those of less expensive luggage. Second, they must consider competition and market demand for high-quality luggage. While many consumers are willing to pay a higher price for a well-made, durable suitcase, they may also choose cheaper alternatives. Third, manufacturers must balance their profit margins with the need to remain competitive in the marketplace. Ultimately, competitive pricing for high-end luggage is a delicate balancing act that requires careful consideration of several factors, including:

  1. Cost calculation (production, labor and operating costs, calculatory costs, etc.)
  2. Margin
  3. Included reductions and discounts
  4. Contribution margin
  5. Competitor and market prices
  6. Demand and customer perception
  7. Seasonality
  8. product life cycle
  9. technological development
  10. regulations and laws (e.g. book trade)
  11. Economies of scale
  12. supplier relationships
  13. distribution channels
  14. Economic situation
In a relatively timely manner and to a sufficient extent, manufacturers must answer solutions to significant questions, including:

• Where exactly are my products sold and by whom? 

• What content is used to present the product? 

• For how much are retailers offering my products?

oraya insights provides the ability to trigger automated, periodic searches to easily answer these questions. The software searches selected sales platforms and stores fully automatically. It provides clear information and analysis options on all offers, price trends and suppliers.

With our case study, we offer our readers valuable insights into our client's objective for optimized pricing. By using the market monitoring software oraya insights, our client from the luggage industry was able to achieve the following results:

• Improved communication on their own EIA strategy

• Significantly higher usage of the UVP by retailers