How One Supplier Eliminated Dumping and Achieved 300% Sales Growth

A client came to us (a supplier with its own store, a leader in its segment, with 5 brands in its portfolio) facing a major problem—widespread dumping by stores. For example, out of 150 stores, 88 were dumping. The sales department had no orders because most customers were buying products at dumping prices in other online stores.

The client essentially had no idea which stores carried its products. Additionally, 5 sales managers were handling “dumping” issues.

What We Did

Our task was to develop a strategy for dealing with dumping. First, we appointed a single person responsible for handling dumping. We also needed to update the agreement with dealers, or more accurately, re-sign it.

Then we tackled the main challenge—combating dumping using PriceCop’s automated tools:

Identified stores carrying the company’s products.
Set up a mailing with a warning about the upcoming monitoring and included the current price list.
Sent notifications about dumping, attaching screenshots.
Managers followed up with stores by phone calls.

Stores that took no action received an official complaint because the client holds the trademark rights.

Results

Within just one month, we saw significant improvements. Only 35 stores were still dumping, and we continued to work (fight) with them. Sales through the call center tripled. Sixty-five new stores started offering the brand’s products.

As the market gradually stabilized, new stores found it profitable to sell the company’s products.

After 2 months, 14 stores stopped selling the company’s goods because they could not adhere to the recommended retail price and relied solely on dumping.

The investment in monitoring paid off within 2 months. From a financial perspective, this was an excellent outcome.

Bottom Line:

A 300% increase in sales compared to the same period last year.
157.5 hours saved by the sales department thanks to automation: 5 managers * 1.5 hours (per day) = 7.5 (per day) * 21 workdays.
The number of interested stores increased from 180 to 250: up 39%.
Dumping dropped from 88 stores to 24 in just 2 months: down by 73%.

The costs of monitoring proved to be a profitable investment for the company, ultimately generating revenue.