SITUATION
A national distributor carried an extensive long-tail product portfolio, many of which had low sales volume and thin margins. Despite having access to sales data, their insights were fragmented, making it difficult to determine which products were worth keeping and which were driving unnecessary complexity. The distributor faced mounting pressure to improve profitability while maintaining a strong market presence.
OBSTACLES
The biggest challenge was the lack of visibility into their product portfolio performance. Sales data was fragmented across different teams, and there was no structured approach to analyze price elasticity or identify cross-sell opportunities. Without a systematic method to evaluate sales potential, pricing adjustments, and product rationalization, the distributor struggled to make informed decisions. The result was a bloated catalog with many underperforming SKUs, leading to operational inefficiencies and reduced profitability.
ACTION
Leveraging the Revify platform, the distributor was able to quickly dissect its long-tail product portfolio. The tool provided a structured framework to:
- Identify cross-sell opportunities by highlighting complementary products that customers frequently purchased together.
- Pinpoint low-value products that increased complexity without significant contribution to sales or profitability.
- Conduct a price elasticity analysis to determine which products could benefit from price adjustments to boost sales without hurting margins.
By using Revify’s data-driven insights, the distributor was able to refine its pricing strategy, remove complexity, and optimize its product assortment.
RESULTS
The distributor eliminated nearly 20% of low-value products, which reduced operational overhead and simplified their sales process. By fine-tuning prices based on Revify’s elasticity analysis, they saw an increase in both sales volume and margins on key products. The refined strategy allowed them to focus on high-impact SKUs, ensuring both profitability and sales growth.
