Galaxus is focusing on price transparency
Sales prices fluctuate. In online trading often daily. How big and how frequent these changes are is no longer a secret: Galaxus is the first online retailer in Germany to disclose the historical price development of all its products.
Galaxus Germany and digitec Galaxus in Switzerland are shedding light on the often murky world of pricing: the leading online retailer will now disclose the historical price development for the products available in its stores. Clicking on the price of a product or scrolling down will reveal a graph under the «Price development» tab. It shows how the product’s sales price has developed in recent months. «There’s a good reason for our transparency offensive: Getting a picture of price trends has been cumbersome for consumers,» says Oliver Herren, founder and CIO of digitec Galaxus AG. «That’s why we disclose how prices develop in our stores.»
Expensive today, affordable tomorrow
The biggest influence on sales prices at digitec Galaxus is purchase prices, availability with suppliers as well as prices from the competition. For example, if the product managers buy 100 screens, they will analyse the continuously updated quotation data from various suppliers and select the best offer. If they then buy another 100 screens a day later, the process is repeated. But the best offer available might still be more expensive or cheaper than 24 hours before. As a result, sales prices can also fluctuate in the short term.
By the way, monitoring competitors and the adjustment of sales prices are almost completely automated at Galaxus Germany and digitec Galaxus. However, digitec Galaxus has no influence on the pricing of offers from marketplace retailers.
Personalised pricing: not a thing at digitec Galaxus
This new price transparency also disproves the persistent rumour that Galaxus and digitec work with dynamic prices: «Personalised pricing models contradict our corporate philosophy,» says Florian Teuteberg, CEO of digitec Galaxus and Managing Director for Galaxus Germany. «We don’t change our prices just because someone uses an Apple device to browse our range or prefers to do their shopping on the go in the mountains. Every visitor to our Swiss shops always sees the same price at the same time. The same is true for Galaxus in Germany as well.»
The price chart does the trick
Customers find the new price charts accessible, useful and user-friendly. In addition, the transparent price overview seems to create trust and satisfaction. This was the result of a qualitative survey conducted in close cooperation with the University of Zurich. A recent representative Gfk survey came to similar conclusions: 66% of all respondents would like online retailers to display historical price trends transparently. Only 19% opposed the idea. Price transparency is particularly well received by the younger generation and men.
Visuals
Image pricing tool
Logo Galaxus
Hamburg headquarters
Image Florian Teuteberg
Image Oliver Herren
Contact for media representatives
Galaxus Deutschland
Daniel Borchers
Schützenstraße 5, 22761 Hamburg
Phone: +49 40 334 614 772
E-mail: media@galaxus.de
