Our client, who sells hardware and related items through Lowes, lost an assortment of $3 Million in annual sales to a competitor last year. This competitor used inferior raw materials to manufacture their products which lead to a bid with a significantly lower price per item. During last year’s line review, the conversation revolved around the price for both our client and their competitors. Fortunately, our client uses high-quality inputs to manufacture their products which meant that they could not make a profit at their competitor’s lower price point.
We conducted feedback analysis of the competitor for the SKUs that our client lost. Then we presented our product’s feedback distribution side by side with our competitor during the mid year line review. The comparison is pictured below.
Shifting the Conversation
Our client is in a hyper competitive market. The 46% of end customers who wrote a 1-star review for the competitor’s products will likely think twice about shopping at Lowes in the future. We were able to demonstrate the problem with using price as the determining factor in whose product got shelf space.
We were able to win back the lost $3 million in lost sales. Our client was able to successfully shift the line review discussion away from price and into an area where they truly thrived, quality. Using feedback analysis we were able to tell a more fully developed story, a story about how going with the lower price option caused long term harm to the Lowes brand.