Taloon & netrauta streamline pricing with ai & automations
Results
Precision in time to market
BHG successfully reduced the time required to reprice products, even those with higher pricing.
Improved profit margins
BHG has seen a substantial increase in profitability by optimizing pricing based on real-time data.
industry
Home improvement
region
Global (selected markets)
main modules
BHG Group, a leader in the consumer e-commerce domain in the Nordics and beyond, has carved a niche in the home improvement sector, including do-it-yourself, hardware, and home furnishings. With a strong presence across Europe, BHG stands out as a top online retailer. In Finland alone, the group’s turnover reached an impressive +100M€ in 2022. Alongside their showroom sales outlets, their e-commerce brands Taloon.com and Netrauta.fi are leading the way in the Finnish home improvement sector.
The challenge
BHG Group operates in a highly competitive and price-sensitive market, demanding agile and fast pricing. The main challenge was the transition from semi-manual and time-consuming pricing to data and AI-driven pricing with clear insights on development. Main three focused challenge areas were:
- Price sensitivity in a competitive market: navigating a market where customers are highly responsive to price changes, requiring a careful balance between competitiveness and profitability.
- Extensive product pricing: effectively pricing many products, each with its unique demand curve, competition, focus weight, and cost considerations.
- Diverse portfolio management: catering to their extensive product portfolio’s various seasonal and supplier requirements, requiring a flexible and responsive pricing approach.
The solution
BHG chose Pricen for its Finnish brands Taloon.com and Netrauta.fi to address these challenges. With Pricen, BHG was able to automate pricing dynamically with the combination of flexible automation and different AI models. Pricen was integrated directly into BHG’s ERP system to cater to the data-driven approach, enabling a direct and fast platform for a data-driven pricing process. The objectives for the project were:
- Centralized and competitive pricing: streamlining pricing management across an extensive product portfolio and making sure both profitability and competitiveness were tackled.
- Automated pricing workflows: Running a vast product portfolio needs a well-facilitated range of automated pricing strategies, from discounting to profit optimization to securing profitability.
- Data-driven pricing approach: leveraging real-time data, flexible automation, and AI models for informed pricing decisions on a brand, product, and category leve
The results
The introduction of Pricen has led to significant enhancements in BHG’s pricing strategy:
- Precision in time to market: BHG has successfully reduced the time required to reprice products, even those with higher pricing
- Improved profit margins: BHG has seen a substantial increase in profitability by optimizing pricing based on real-time data with Pricen’s profit optimization algorithms.
- Automatic and dynamic pricing models: BHG can now dynamically adjust prices based on any data attributes they see fit.
- Flexible strategies with AI: Products can be moved from data-driven systems to AI models automatically.
“Say the least, Pricen is a must-have tool for us. We are super happy Pricen users! The automation level and sophistication of Pricen’s AI models have helped us to make better profitability and increase our ability to be a fully data-driven company.”
Joonas Kauti
Commercial Director, BHG Group (Taloon.com / Netrauta.fi)
Using your existing data to uncover hidden opportunities
BHG Group’s journey with Pricen illustrates the transformative impact of harnessing your internal data for pricing. This strategic approach streamlines operations and unlocks new avenues for growth, innovation, and customer engagement. BHG’s success in leveraging technology for data-driven decision-making is a benchmark for others in the industry, highlighting the potential of integrated solutions in achieving business excellence.
FAM Brands
Explore how FAM Brands, owner of Wildfox and Three Dots, achieved a 10% net profit increase with Pricen's markdown pricing module.
