- Location: Eastchester, New York
- Industry: Hardware
- Affiliation: True Value
- Founded: 1909
- Solution: Epicor Pricing Planner
"Pricing Planner is a powerful tool that lets us analyze our prices and make better, more strategic decisions about how to price our products. It has significantly boosted our margin."
John Fix III, President | Cornell's True Value
Cornell's True Value Boosts Margin and Automates Manual Price Change Tasks with Epicor Eagle Pricing Planner
Cornell's True Value, located in Eastchester, New York, is a thriving hardware business. Since 1909, Cornell's has offered a diverse mix of hardware and housewares along with rental and repair services.
Recently, Cornell's added the Eagle Pricing Planner solution to more accurately and dynamically manage price changes. Pricing Planner has enabled the staff at Cornell's to analyze retail prices and compare them with other metrics such as suppliers' suggested retail and competitor prices. John Fix III, president of Cornell's True Value, explains more, "Prior to Pricing Planner, it was difficult and impractical to look at competitive pricing. Now, we can comparative shop, and adjust our prices on individual items as needed. It's easy to use and easy to identify pricing opportunities or issues."
Comparative Analysis with Suppliers' Suggested Pricing
Pricing Planner has allowed Cornell's to reexamine their pricing levels in relationship to True Value's suggested retail pricing levels, which range from Standard Pricing to Price Level One to the higher Price Level Two. Before Pricing Planner, implementing price changes meant calling Cornell's wholesaler and waiting a week or two for the price changes to be downloaded. And, at that time, Cornell's could only change prices at the class level, never at the item level.
With Pricing Planner, Cornell's can achieve more efficient, granular price management. "I decided to take advantage of higher margin and set my retail price to True Value's Price Level Two, but only for certain items," notes John. "I was able to implement the changes to those items in the Eagle system without having to import or export spreadsheets. And now, instead of running a large batch of price changes every few weeks, I can do three or four smaller sets of price changes in a single day."
Effortlessly Capturing Competitor Pricing
John Fix III has especially enjoyed using the Mobile Pricing Planner shopping app to collect competitor pricing data. Using a smartphone at a competitor's store, John simply identifies the competitor in the application or sets up a new competitor and scans the item. The application automatically populates the fields, providing a description of the item. He then enters the price and saves it. "I have priced big box stores and even scanned some items while at the supermarket. In the past, I would've been forced to make a mental note of prices or write them on a piece of paper," continues John. "Now, I can store my competitors' pricing data in Eagle and pinpoint additional margin opportunities."
Identifying and Correcting Pricing Outliers
Pricing Planner has also provided Cornell's a clear view of the "outliers," those items with pricing much higher or lower than their counterparts. "If an item is twenty percent higher or lower than our competitors' prices, I notice," states John. "The item is probably priced incorrectly, or we missed a pricing change. Pricing Planner gives us the visibility to correct it."
Custom Price Categories Facilitate In-depth Analysis
Cornell's can create and analyze custom price categories using the Category Analysis viewer. "We can link items not already linked by class, fine line, manufacturer, or vendor. For example," adds John, "we can designate a segmentation for all storm-related goods. Or create a category for seasonal items. It gives us a lot of flexibility to compare prices for a group of items normally in different departments, classes, or fine lines."
Anticipating the Impact of a Price Change
The sales velocity analysis enables Cornell's to determine how sales volumes are affected before and after a price change. "If we raise the price two percent, we can see how it will translate to sales and margin," remarks John. "I can more accurately assess if an item is very price sensitive and where I can anticipate losing sales units from a price change. I can find the price point where I can price higher and get more margin even with losing some sales units."
Pricing Planner: A Powerful Tool
Pricing Planner has eliminated a lot of manual work for Cornell's True Value and improved margin. "We're in a retail environment where there's a great need for margin. Stores are looking at their inventory to see where there's margin opportunities, but they don't have the right tools," says John. "With Pricing Planner, you can look at pricing with more awareness and intelligence, and it eliminates a lot of the manual work. Pricing Planner is a powerful tool that lets us analyze our prices and make better, more strategic decisions about how to price our products. It has significantly boosted our margin."
Epicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise, and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit