Case Study: a specialty home retailer achieves a 5% initial price increase with First Insight

Specialty Home Retailer boosts prices 5% with First Insight

A specialty home retailer faced uncertainty regarding consumer willingness to pay higher prices during a period of economic upheaval. They challenged First Insight to determine if they could implement a 20% price increase on top products across four categories without negatively impacting demand.

Using its InsightPRICING software, First Insight tested the proposed price increases. The results showed significant demand decreases for items like coffee tables and sofas at the new price. First Insight then modeled a strategy where the 20% increase was implemented but items were periodically promoted at 15% off. This showed a much lower change in demand, allowing the retailer to proceed. By leveraging First Insight's solution, the retailer successfully achieved a net 5% increase in initial price.