Business Overview
Donaghy Brothers are Northern Ireland’s leading independent electrical retailer stocking common household appliance brands including Sony, Dyson, Rangemaster and more. They manage an inventory of 5,000 products, and sell both online and through their physical stores.
“I couldn’t recommend them enough to any online retailer… the return on investment has been high”
Seamus Óg McGilligan, Online Sales Manager at Donaghy Brothers
The Challenge
Despite having 5,112 products in their inventory, revenues were mainly driven from a core set of products which left the company exposed to sales concentration.
The company had tried simple competitor re-pricing tools in the past but had seen a limited return on investment.
They were looking for a more comprehensive and proven price optimisation tool.
9 times return on investment
The Solution
Donaghy Brothers selected The BlackCurve Price Optimisation Platform.
The Platform leveraged competitor prices and Donaghy Brothers’ sales history data.
BlackCurve’s Rules Engine was configured to allow the retailer to set up safeguards on core products that contribute most towards revenue.
BlackCurve’s A.I. Engine managed the remainder of the product inventory for fully autonomous price optimisation.
The retailers website is updated daily with applicable price changes.
The Results
The initial pilot was over a 3 month period, where BlackCurve was tested on a small subset of Donaghy Brothers’ products. During this pilot phase, Donaghy Brothers achieved the following:
Selling unsold inventory - 93 unique products that had not sold prior to BlackCurve managing their pricing.
New sales and revenue - generated approximately £90,000 in new revenue for the business.
Strong ROI - over the 3 month period, Donaghy Brothers achieved a 9 times return on their investment.
Donaghy Brothers signed a longer term contract and have been a BlackCurve customer for 3+ years.
Seamus Óg McGilligan
Online Sales Manager at Donaghy Brothers
“Before we made the decision to go with BlackCurve we were using a simple re-pricing solution and were not seeing any benefits.”
“BlackCurve offers smart pricing decisions and, even though the initial costs of BlackCurve were slightly daunting, because they offered a pilot phase this de-risked the decision.”
“The team have been supportive throughout the process, and not only do you get access to the technology, but also the expertise of their data science team.”
“I couldn’t recommend them enough to any online retailer. So far, we have only put a small subset of our inventory through their platform, and the return on investment has been high. We look forward to continuing to develop our partnership with them, as pricing is one of the best levers to achieve your business goals.”