Market feedback prompts Lesjofors pricing strategy change.
The Part Alliance pricing team is altering the pricing strategy for Lesjofors coil springs to become more competitive and grow sales.
The team’s pricing changes, which took effect 1 February 2020, is based on feedback from the branch network and analysis of market pricing for alternative brands KYB and Kilen.
Head of pricing Dave Ledder said: “This product category is volatile in volume and the market is at the mercy of factors we can’t control, such as the weather, but our market data tells us there are still plenty of sales out there to be captured from our competitors.”
Back in February 2018 the UK experienced ‘Beast from the East’, which brought a raft of ice, snow, cold temperatures and salt to our roads.
As a result, our volume and revenue on coil springs increased by around 35 per cent for several weeks after that weather had passed.
Dave said: “Since the beast, we’ve seen much milder temperatures in the UK and that has affected volume.
“I read somewhere recently that 2019 was the eleventh warmest year in the UK since records began.
“We’ve adapted our pricing strategy to offset the impact of that warm year and we’re now in a position to capitalise on being more competitive in the market, as well as being in a prime spot to take advantage of any inclement weather this winter.”
The procurement team have ensured that Lesjofors are extremely well stocked, leaving the netowork well prepared for any increase in volume due to the new pricing strategy, weather conditions or customer promotions on coil springs that our marketing team will be launching in February.