About the Company
If you’re a teenage girl, parents of a teenage girl, or live around teenagers, you’ve probably seen Brandy Melville clothing, even if you didn’t know it. Founded in 2009 by Italian immigrant Silvian Marsan who moved to Los Angeles, Brandy Melville has exploded onto the teen fashion scene with its fast adaptation of trends and signature flowy, semi-vintage aesthetic.
PriceBot
Price Optimization
United States
Fashion
The Goal
With the proliferation of fast fashion competitors like Shein and Boohoo, Brandy Melville struggled to stand out in the crowded market. The company came to Tontine with two demands: (1) to craft a price optimization strategy that’ll drive additional gross revenue during certain peak seasons like early spring and fall, and (2) ensure that any strategy implemented will not conflict with the brand’s “accessible luxury” positioning. Furthermore, these objectives must be achieved without causing any channel conflicts — since Brandy Melville has a robust brick-and-mortar presence throughout the United States, it’s imperative that they don’t lose the trust of in-store shoppers just because they’re price testing on their Shopify storefront.
The Strategy
First, Tontine’s Price Optimization Experts mapped out the coordinates of every single Brandy Melville brick-and-mortar store, and geofenced the area surrounding those stores so in-store shoppers in the vicinity are “fingerprinted” and excluded from any active online price tests. Next, Tontine’s experts digested sales velocity data from both brick-and-mortar stores and online storefront, and aided by PriceBot, determined that Brandy Melville’s staple products would likely see a 22-27% increase in conversion rate if prices were decreased within a 5-8% range.
The Results
By implementing the incrementally reduced prices, Brandy Melville saw a 25.4% increase in conversion rates (putting it at the upper bound of Tontine’s forecasts) — and just as importantly, they were able to achieve this without discounting their products, thus devaluing their hard-earned brand perception. In order to further mitigate any potential channel conflicts, we also implemented a “containment strategy” centered around testing by zip codes and using Bayesian inferences to slowly expand the test cohorts. Recently, Tontine and Brandy Melville inked a five-year contract — even though we frown upon long-term contracts as annoying and inflexible, Brandy Melville intimately understood one important takeaway from the price tests they’ve ran so far: Tontine is indispensable to the company’s ambitious growth plans.
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"How do you know if you’re charging the maximum customers are willing to pay? You don’t. We certainly didn’t. That’s why we use Tontine."
“Finding the best price for each of our products is a lot faster with Tontine. And in our industry, that means we’re able to bring a product that’s on-trend to market a lot quicker.”
"Working with Tontine is as hands-on/off as you’d like. The Price Optimization Experts ensure they’re consistently delivering value without becoming another burdensome platform to manage."
"When we started working with Tontine, they promised us full control, incredible support, and clear-cut ROI. They’ve delivered. You won’t find a more professional & accommodating team elsewhere."
"How do you stay ahead of the rapidly evolving landscape in such a competitive industry? You reconsider every aspect of your business regularly — starting with pricing."
“Tontine makes it easy for our team to focus on developing new marketing initiatives rather than the operations of price testing. With Tontine, we’re in good hands.”
"Risk-free price testing is an insurmountable challenge with our complicated custom infrastructure… rarely do you find a team so helpful and willing to dive straight into it to ensure everything is set up perfectly."
“Tontine basically provides the ground truth for any product release, since it starts with pricing. This is a very, very critical piece to the way we operate.”
"Tontine is the best kept secret for Shopify retailers. We can now safely adjust our prices to maximize profit without losing customers, because we have the data to back it up."
"Our D2C channel was a loss leader in our revenue mix— until we started working with Tontine. This was the path of least resistance to growing our revenue without any associated overhead."
"Clients typically see a 5-7x ROI increase on their creative assets even without extensive CRO work — Tontine is our unfair advantage."
"Tontine helped us test different price points for new products with a group of superfans, so when we released the products publicly, it was at the most profitable price."
“Kudos to Tontine’s team for meeting our extremely strict standards and SLAs. The whole Tontine team stepped up and worked hand-in-hand with us to meet our needs.”
"Tontine is a true partner, rather than just another vendor. We rely on them for strategic insights, competitive market analysis, and most importantly, reliable price test results."
"Truly a no-brainer: Tontine is the go-to solution if you’re trying to focus on your business’ bottom line instead of just optimizing for the top line. For us, this is the most important profit lever we have in our toolkit."
"Our biggest concern was the technical lift needed to integrate with Tontine. Thankfully, their Implementation Specialists handled it all, and didn’t stop working until we were satisfied."
"We haven’t discovered an A/B testing solution that prioritizes protecting our brand integrity as much as Tontine has. The only solution that’s truly compatible with our stack."
“No strenuous integration, no ambiguous data, and no friction working closely with Tontine’s team. This has been a dream partnership.”
“Tontine’s AI engine, PriceBot, is exceptional… the more data it ingests, the better it gets at predicting prices, even for unreleased products.”
“We can’t fathom of an easier or faster way to price test our products and receive a decisive result in just days. Tontine is integral to our merchandising strategy.”
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