CASE STUDY

Profasee's Price Optimization: How Terran Elevated Profits and Drove Business Value Pre-Sale

About Terran:

Terran, a dynamic e-commerce enterprise, has been on a journey of continuous improvement for years. They've explored diverse strategies to enhance their operations, from optimizing logistics to SEO enhancements. However, a key turning point came when they focused on the power of pricing to elevate profits. Their dedication to exploring every potential lever led them to challenge a common notion - raising prices on Amazon.


The Challenge

Unlocking Price Elasticity on Amazon

Terran recognized that an e-commerce business has various levers at its disposal. Among these, one of the most impactful yet often underestimated strategies is raising prices. The prevailing belief is that higher prices might lead to decreased sales volume. However, Terran sought to challenge this perception and explore the concept of price elasticity on Amazon.

The Solution

Profasee's Advanced Pricing Optimization

Already well-versed in price optimization, Terran aimed to refine and automate their approach. Their quest led them to discover Profasee, an advanced repricing solution offering superior pricing strategies, data-driven insights, and hands-off automation.

Key Features:

  • Profit-Driven Repricing: Terran harnessed Profasee's data-driven repricing technology to set price bounds based on their business objectives, primarily focused on profit maximization.
  • Hands-Off Automation: Profasee streamlined pricing adjustments, reducing manual effort and freeing up valuable time for core business activities.
  • Data-Backed Insights: Profasee's robust analytics unveiled unique price elasticity insights for each product, assisting Terran in identifying profit-boosting opportunities without compromising sales volume.

The Impact

Elevating Profits and Driving a Successful Business Sale

With Profasee in their corner, Terran realized impressive results:

  • An astonishing 12.1% profit increase across the tested SKUs.
  • An additional monthly profit of $1,406, translating to nearly $17,000 in annualized profit from the nine tested SKUs.
  • Substantial enhancements in average gross margins and gross profit per unit.
  • Business Sale Pre-Sale Optimization: Terran leveraged Profasee's insights to bolster their business's profitability and increase its enterprise value, setting the stage for a successful business sale.

 

Conclusion:

Terran's success story illustrates the potential of data-driven repricing solutions to significantly impact e-commerce profitability, leading to a more successful business sale. By leveraging Profasee to boost profits and enterprise value, Terran has set a promising example for e-commerce entrepreneurs eager to optimize pricing strategies and maximize business value.


The strongest results in the game
Profasee runs on billions of data points to give you the most accurate predictions possible to drive profits to the bottom-line without sacrificing BSR.
Terran.com's President & CEO

"I rarely endorse tools, but Profasee is a game-changer. In e-commerce, you have limited levers to pull, and price optimization is often the most impactful. However, the fear of increasing prices is overwhelming. Profasee's sophisticated approach to automated repricing helped us achieve an impressive 12.1% profit boost on just nine SKUs. Our average gross profit per unit increased by $1.45, and our gross margins improved from 35% to 41%. We sold slightly less but ended up with a significantly healthier and more profitable business. It's an exciting tool that offers a ninefold ROI and proves that in business, being first with new technology pays off."

Profasee is engineered specifically for and by Amazon sellers.
Amazon’s most visionary brands trust Profasee.
Profasee is the ultimate Amazon pricing advantage.
Need to see it to believe it? Let us show you what Profasee can do for your business.
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