Music and related retail
Price Monitoring, Dynamic Pricing, Repricin,, Pricing und AnalyticsSince the year 2000, the music industry worldwide has suffered a 20% drop in sales in almost all important markets. Even though this decline was less severe in 2004, the crisis has not yet been overcome. Music industry representatives often cite the combined effect of digital and physical piracy as one of the main reasons for the loss. According to a study by the International Federation of the Phonographic Industry (IFPI), the global market for pirated discs totalled 1.7 billion units in 2003, while disc piracy increased by 45 million units compared to 2002 – an increase of 4%. (University of Darmstadt)
The willingness of potential consumers to pay is significantly lower than the prices that currently apply to the available paid music services.
The results of our study indicate that a price reduction for music downloads would lead to increasing revenues, which would be beneficial for both providers and consumers.
The challenge
We started looking for price intelligence software because we found that our products (like most e-retailers) are extremely price sensitive. We therefore needed an accurate, automatic and timely method to collect market prices. The tool helped us a lot in providing a basic logic for our pricing structure. As a result, our pricing was optimized from a cost-based to a market-based pricing structure, improving revenue and profitability.
The Solution
The brainbi price information platform contains data on millions of products from leading brands such as Boss, Marshall, Fender, Ibanez, Takamine, Gibson, Shure and Audio-Technica, among many others. The data collected by the platform is presented in an intuitive way to enable retailers and brands to make a detailed analysis of the music retail industry.
Our systems track and update data on products from different music retail categories on a daily basis: Brass and woodwind instruments, audio recording equipment, amplifier and DJ equipment, accessories, percussion, orchestral strings, guitars and keyboards, and pianos and organs.
%
Share of customers using music streaming
Music sales in million euros (2018)
Sales of physical CDs
%
Importance of the prize
- More sales 10%
- Greater gross profit 20%
- Higher customer satisfaction 16%
The results are astounding
Sales have increased by 10% from month to month. There are other factors that have had a positive impact on sales growth, but we are sure that a better price position has contributed a lot. What is more striking is that we are achieving a significantly higher profit (approx. 20%) with the same sales volume. So, even without sales growth, brainbi has had a very positive impact through more efficient pricing.
Our offer to you
Understanding existing customers
Understand your customers and their past and future behavior. Get the most out of your marketing efforts. Target the right customer group at the right time. understand the true value of each existing customer.
Easy integration without technical understanding
Our one-click APIs or plug-ins are ready to use without any setup; the artificial intelligence learns from every customer interaction
Winning new customers
Understand where your customers come from and where Google sees your shop. See your positions and collect a history of ranking information. Keep track of your changes and the results or hire us to do the work for you. Understand the real value of your ranking. We provide key metrics like: Number of results, number of monthly searches, paid completion, cost per click and many more…
Become competitive
Price is one of the most important aspects of online shopping. All you need to do is provide us with the website of your competitor and we will send you a notification as soon as something happens. 24/7.
Knowing about prices and price changes enables you to react and stay competitive!
