Case Study: Increasing the competitiveness of manufacturers

In today's competitive marketplace, pricing is a critical element in a manufacturer's success. Setting the right price for a product can make the difference between a company's success and failure. But as a manufacturer, how do you know if you are pricing your products optimally? And how can you keep up with the constantly changing market trends?

With a multitude of variables and influences to consider, it can be difficult to determine the optimal price point. The luggage industry is no exception to this challenge. With countless brands and retailers offering similar products, manufacturers face the challenging task of creating a successful competitive strategy. This is where oraya insights comes in. However, with the help of oraya insights, our automated price monitoring software, our client in the luggage industry was able to achieve their price optimization goals and gain a competitive advantage in their market.

Challenges of optimal pricing in the travel equipment industry

Manufacturers of high-end luggage face several challenges when pricing their products. First, they must consider material, production and labor costs, which can be higher than those of less expensive luggage. Second, they must consider competition and market demand for high-quality luggage. While many consumers are willing to pay a higher price for a well-made, durable suitcase, they may also choose cheaper alternatives. Third, manufacturers must balance their profit margins with the need to remain competitive in the marketplace. Ultimately, competitive pricing for high-end luggage is a delicate balancing act that requires careful consideration of several factors, including:

1. Cost calculation (production, labor and operating costs, calculatory costs, etc.)
2. Margin
3. Included reductions and discounts
4. Contribution margin
5. Competitor and market prices
6. Demand and customer perception
7. Seasonality
8. product life cycle
9. technological development
10. regulations and laws (e.g. book trade)
11. Economies of scale
12. supplier relationships
13. distribution channels
14. Economic situation

• Where exactly are my products sold and by whom? 

• What content is used to present the product? 

• For how much are retailers offering my products?

oraya insights provides the ability to trigger automated, periodic searches to easily answer these questions. The software searches selected sales platforms and stores fully automatically. It provides clear information and analysis options on all offers, price trends and suppliers.

• Improved communication on their own EIA strategy

• Significantly higher usage of the UVP by retailers