Doubles Profit Per Impression With Pricing Agents

About The Company

Malouf Home is a company that designs and manufactures a wide range of premium sleep and comfort products, including mattresses, bedding, bed frames, furniture, and sleep accessories. Malouf Home is known for combining quality material with innovative design, Malouf emphasizes customer-centric solutions to enhance sleep experiences. The company also has a strong commitment to social responsibility, with initiatives focused on sustainability, fair labor practices, and community support. Each of Malouf’s products are made with high quality materials that showcase the brand’s commitment to providing their customers with the best sleep.

Challenge

Malouf identified a valuable opportunity to enhance their digital pricing strategy. As a brand known for high-quality, competitive products, Malouf saw the importance of exploring diverse pricing tactics to boost overall revenue. Historically, Malouf had adhered to a whole-number pricing model, maintaining consistency across its product line. However, with recent feedback Malouf recognized there was an opportunity to expand their pricing. Driven by this insight, Malouf set out to refine their pricing approach to better align with customer expectations and maximize profitability, aiming to strike the ideal balance between the two.

Solution

Using Spresso AI’s Pricing Intelligence, Malouf Home deployed dynamic pricing agents across four key SKUs, allowing for real-time adjustments and granular insights.

Spresso’s pricing agent enabled Malouf to set a minimum price aligned with brand guidelines, while still testing various price points to uncover optimal pricing for each SKU.

Following the recommendations for vanity pricing, Malouf was also able to explore a more specified variance in price that may have been previously limited by the standard whole number catalog prices. Overall, Spresso’s technology provided detailed performance metrics, such as impressions, purchases, and conversion rates, allowing Malouf to see how each SKU responded to pricing changes.

Aggregated Results

Currently, Malouf has integrated Spresso’s pricing intelligence across four of its SKUs, yielding impressive results over recent months.

For each of these products, Spresso identified an optimal price point lower than Malouf’s standard pricing, which, although reduced, led to an increase in conversion rates and an overall boost in both revenue and profit.

Since implementing Spresso’s pricing intelligence, Malouf has experienced a substantial lift across these four SKUs: revenue has increased by approximately 124.8%, and profit has risen by about 116%. These insights have empowered Malouf to make informed adjustments to their standard approach, enabling further exploration of price ranges that optimize both revenue and profitability.

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