Improving Product Margin in Just 90 Days
About the Company
OliveNation is your premier destination for high quality cooking and baking ingredients tailored to the needs of bakeries, breweries, caterers, ice-cream makers, food manufacturers, and beyond. OliveNation specializes in catering to commercial food and beverage businesses, offering bulk sizes, easy shipping, and free samples to support your culinary endeavors.
In an era marked by escalating food expenses, OliveNation strives to provide competitive prices alongside an extensive selection for their customers whether at-home bakers or large bakeries. A cohesive pricing strategy that balanced revenue goals while protecting margins is critical for OliveNation.
Margin enhancing pricing for all SKU sizes
Pricing Intelligence’s optimization capabilities allow each SKU variation to test different price points to achieve a campaign goal. With the expansive size options in OliveNation’s assortment, their team was able to easily set up campaigns to price test all size options to maximize profit objectives.
Vanilla Extract: Consumer and Bulk Sizes
Consumer: Madagascar Vanilla Extract - 32 fl oz
+25% Profit Lift, +41% Sales Lift
A lower price point, compared to existing catalog price, performed better for a consumer sized product to maximize overall profit lift and revenue.
Bulk: Madagascar Vanilla Extract - 1 gallon
+46% Profit Lift, +39% Sales Lift
A higher price point, compared to existing catalog price, performed best for a bulk sized product and despite a lower conversion, overall profit goals were met while also increasing revenue.
