“With a steep competitive landscape and a still fragile economy, there is no room for pricing errors,” says Holiday Stationstores spokesperson.
Holiday Stationstores, which operates more than 450 corporately-owned and franchise convenience stores, has renewed its service agreement with Revionics due to the benefits it has obtained by leveraging Revionics’ Life Cycle Price Optimization solutions.
The renewal agreement includes Revionics Price Optimization, Revionics Promotion Optimization and Revionics Markdown Optimization for full price life cycle planning and management.
Holiday implemented Revionics Price Optimization solutions in October of 2010 to achieve the following business objectives:
• Gain a deeper understanding of Key Value Item (KVI) pricing along with leveraging margin enhancements of less sensitive items
• Improve zone structure to take better advantage of competitive positioning
• Make more fact and science-based pricing decisions and better align pricing with category strategy
• Compare and analyze outcomes of different pricing strategies and allow for ‘what-if’ scenarios
To date, Holiday is very pleased with Revionics’ base price planning and optimization capabilities, which is improving its competitive position and is on track to achieve the gross profit margins predicted by using the solution. In addition, Holiday is looking forward to increasing the utilization of the Revionics Promotion Optimization and Scenario Planning solutions. It is also looking forward to the enhanced Tiered Pricing capability, which will help Holiday make decisions regarding how to most effectively price items with tiered prices. This will ensure that the best tiered pricing is recommended for optimal sales and profit.
“With a steep competitive landscape and a still fragile economy, there is no room for pricing errors; therefore, we needed to adopt a proven, science-based solution that allows us to develop pricing that is reflective of our strategy and provides optimal results,” stated Dean Solyntjes, director of pricing and business support for Holiday Stationstores. “We are extremely pleased with the ROI and increased gross margin we have obtained from Revionics’ system, and we are looking forward to fully leveraging all the capabilities their pricing solutions have to offer.”
“Holiday has been leveraging Revionics to determine optimal prices and as a result they have seen an impact in gross margins. They have established a successful fact-based methodology and we are very excited to continue working with them to help grow their overall business,” said Marc Hafner, Revionics president and CEO.