Discover how one beauty company increased its profitability

Today we want to tell you about a success story in the beauty  and personal care sector, which by configuring their products  on our PriceZing platform, achieved significant results in the  profitability of their business. 

This brand was going through one of its most critical moments  in its history, its sales were not growing but its  profitability was decreasing. Raw materials, inputs and labor  costs have increased by more than 28% in the last 6 months.  

It was in December 2022, when he had to make price increase  decisions for the new year, that he discovered PriceZing, and  gave himself the opportunity to try a new methodology to  improve his results and make the company viable and profitable. 

The first challenge he encountered was to connect with his real  customer, put himself in his shoes and think like him. He never thought that in order to set his prices he should ask himself  the question of what are the benefits or features of his  products (and those of his competitors) that the customer  understands and for which he makes purchasing decisions. 

Once he was able to understand his customers, he began a process  of recognizing his competition. At this point, the competitors he had initially were few, and sometimes they were not his real  competitors. Here there was a lot of work, he researched  directly but also asked his customers which brands they bought  and why. 

Here he found a new scenario that he had never contemplated.  New brands, new competitors and a great market opportunity for his products that had special characteristics and took care of  people’s health. He immediately realized that he had a great opportunity to raise prices and communicate his benefits well. 

One of the star products that this entrepreneur has, is the  hair treatment, a product with special 100% natural ingredients  and without silicones, with a great packaging different from  those of his competitors. He understood his customer, made some  good comparisons with his competitors and found that he was  leaving money on the table. 

Thanks to the pricing strategy with Pricezing, the price of  this product increased by 32% and the volume did not decrease,  bringing great results in the profitability of the product and  the business. Additionally, every month you have in your hands  the updated information of your competitors’ prices and now  you can manage your price in advance. 

Like this entrepreneur, there are numerous companies in Latin  America that sell products of all kinds through digital  channels. Companies that manage their pricing proactively,  manage to increase their revenue by 5% and their profit margin  by more than 10%.

Price is the variable that maximizes business profitability,  but it is the least studied and most unknown variable.  Start learning about value-based pricing methodologies now.  Here we explain.