Wednesday, August 5, 2009

Price Spider

If you scroll down to my July 1st post, you'll read about my new software toy we called SMART SCRAPER.

Well, it's been over a month since we started using it, and it was time to think up a bit better name. Smart Scraper and the putty knife graphic seemed OK at the time, but as we continued to say the name, it just sounded more and more like something from a late night infomercial. So after much deliberation, voting and heated debate, we officially changed the name to PRICE SPIDER!

We have now done an analysis on over 15,300 office supply items we sell using the software. We entered several factors such as - Strength of the Canadian dollar, lower negotiated office supply pricing from our suppliers, items we purchase in bulk, how much space and cash flow the items take in our warehouse and — most importantly — what Staples, Office Depot, Grand & Toy and others are selling the items for.

Of the 15,300 items we ran through Price Spider, there were almost 5000 matches apples-to-apples against the competition. These items we guarantee are lower than the competition. On the remaining 9500 items, we decided to lower our prices! (800 items we kept the same price.) What this means to you the customer is that most items in our 2009 Big Book catalogue are now lower than the published price you see on the pages!

Our customers couldn't believe it today as our sales people started telling them that thousands of items have just DROPPED IN PRICE! Ask your other suppliers that you buy office supplies from if they are lowering their prices. The strong dollar and aggressive pricing from the wholesalers have reduced costs, and they should pass on the savings I think.

On the flip side though, when oil prices go up, the dollar goes down or the economy starts ramping up (or all three) - inflation will kick in, and prices will start going up and so will the need for us to raise prices.