Pricefx Made Our Company Even Faster And More Profitable
About the Customer
Profi Parts is a German family-owned regional spare-parts seller in the automotive aftermarket with approximately 400 employees. Their headquarters, and biggest warehouse is in Koblenz. Profi Parts plan to double this warehouse in size but also transform it into a flagship auto store that will be complemented by their additional 14 locations nationwide.
When Profi Parts started their pricing optimization project they were searching for the best tool among multiple pricing software companies. Pricefx was the winner, and we have been in close cooperation with Profi Parts since 2017 as the Pricing SaaS provider of choice. With help of Profi Part’s Marketing director, Mr. Schwarz, Pricefx was the first SaaS solution ever implemented at Profi Parts. Being used daily, Pricefx keeps bringing value ever since.
The Challenge
Profi Parts faced a challenge on multiple levels. With the large scale of their operation, they lacked a modern pricing department in addition to a managerial lack of visibility when it came to prices, margins and planning. The only tool used in the original pricing set-up was Excel. Given the size of operation but also the quantity of items listed, operating the Excel spreadsheets was rather time consuming and very prone to error.
Pricefx Solution
The cooperation with Pricefx started with the focus on building a modern pricing department at Profi Parts and on the analysis of the entire product line and creating the appropriate Price Lists.
Pricefx was quickly able to move to the implementation of our state-of-the-art pricing software, meeting the requirements and expectations of the dynamic auto-parts sales universe. The implementation process only took three months before the Pricefx solution was fully running.
Today, Profi Parts are using our Price Builder daily to calculate new Price Lists. In 2021 alone, Pricefx Price Builder enabled Profi Parts to create 2195 Price Lists from almost 300 different suppliers. Pricefx is also maintaining approximately 1.6 million SKUs. All of this is done while seamlessly integrating all the required data with Profi Part’s SAP
The Results
Profi Parts were able to simplify and accelerate their pricing efforts. The process is now semi-automated with no risk of human error. This resulted in increased quality in addition to transparency in pricing and revenue management. Consequently, we have been able to streamline the number of man-hours required for price list updates and management by 50% while increasing the speed of any change realization.
Another benefit became quickly apparent too – Profi Parts were able to increase their margin within just three months with the implementation of Pricefx. Consequently, Profi Parts decided to add rounding to their Price Builder capability in late 2021. This brought an additional 0.1% uplift in margin in the first six months after the implementation of the Price Builder rounding rules. A huge improvement for a three-month effort!
“We like to work with PriceFX because it gives us the possibility to react quickly and flexibly to the market changes.”
Andreas Schwarz
Mr. Schwarz is the Head of Marketing, and the main user of PFX