Northern Tool + Equipment is assembling a pricing approach based on advanced artificial intelligence (AI) algorithms.
The Minnesota-based specialty retailer of tools and equipment is deploying the intelligent pricing platform from Revionics, an Aptos company. Specifically, Northern Tool + Equipment will deploy Revionics’ AI-powered solutions for pricing optimization, promotions, markdowns, and competitive intelligence.
As a result, Northern Tool + Equipment hopes to develop pricing strategies that achieve stronger financial results and increase customer satisfaction. With the Revionics pricing platform, the company will adopt a unified pricing strategy that enables it to respond faster to changes and opportunities in the market with appropriate pricing.
Leveraging Revionics’ AI algorithms, Northern Tool + Equipment seeks to deliver optimized prices across every channel and product, taking continuing shifts in consumer demand, local conditions and other factors into account. The solutions will also support Northern Tool + Equipment in delivering targeted promotions, optimizing markdown plans throughout the product lifecycle, and monitoring competitive pricing trends.
The retailer decided to increase the levels of automation, scale and sophistication in its management of pricing across its omnichannel retail enterprise as its business has grown both in size and complexity. In April 2021, specialty beauty retailer Sally Beauty Holdings Inc. deployed the Revionics intelligent pricing platform to help ensure it offers competitive price levels to its customers.
“As customers’ shopping needs evolve, Northern Tool + Equipment is continually looking for ways to evolve our business to best meet customer expectations,” said John Bakke, executive VP at Northern Tool + Equipment. “In line with that commitment, we are embarking on a price optimization journey with Revionics to achieve more customer-centric and agile pricing — whether a shopper is engaging with us in-store or online. After a thorough review of leading AI pricing software vendors, we selected Revionics due to its proven-at-scale solutions, the team’s retail-specific expertise, and the company’s track record of successful deployments. With our Revionics partnership, we can optimally adjust lifecycle pricing across our vast assortment in a way that maintains our strong focus on the customer.”
Based in Burnsville, Minn., family-owned Northern Tool + Equipment sells products through direct channels, online, and 120 retail locations across 22 states.