Case Study

Pricing Improvements for an Online Wine Retailer

Pricing Improvements for an Online Wine Retailer

Pages 5 Pages

CASE STUDY Pricing Improvements for an Online Wine Retailer “Intensity’s insights and recommendations helped us sharpen prices for our customers while also protecting profitability . And they were a true pleasure to work with.” – Rich Bergsund, CEO of wine.com Summary A leading national online wine retailer was seeking to improve its competitive edge using pricing strategies in a highly dynamic online selling environment. Historically, they used a cost-plus pricing model, yet the retailer was interested in alternatives that would increase website traffic, improve profit margins, and enhance customer perception of value. Intensity designed, implemented, and tested a new pricing strategy for the online retailer. Our strategy involved dynamically pricing bottles based on: (1) competitor

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