ducere analysis sample report

Opportunity Analysis

Dūcere Index AnalysisQuarterly Report

Published: April 19, 2011

Dūcere Index Analysis of 10

2.5 out of 10.0

5.8 out of 10.0

4.8 out of 10.0

DŪCERE INDEX ANALYSIS THE PRICE PROS INSIGHTS The first quarter 2011, gross merchandise sales (GMS) for partners selling through The Price Pros grew over 124% relative to the

first quarter of 2010. The growth far exceeded that of the online marketplaces which was 41%. The main contributing factor is

Price Pros constant improvement as top seller on the various marketplaces driven by its proprietary Dūcere Analytics Suite. Our

partners validated our Dūcere index value by virtue of dramatically increasing sales using the recommendations and analysis

results. Amazon’s growth was supported by stand‐out categories such as Consumer Electronics (23% Growth) and Computer

Hardware (17% Growth). The first quarter also saw headlines filled with big acquisitions by key online marketplaces. eBay paid

over $2.4B for GSI Commerce and invested heavily in Turkey‐based company GittiGidiyor.

OVERALL SCORE During the first quarter 2011, ABC Co.’s overall score was 2.7 points under their targeted rating. 87% of pursued

opportunities, including re‐capturing marketplaces sales and improving competitive pricing on 26 SKUs were not

acheived. Additionally, 7 FBA opportunities were missed and the product feed remains ripe with unlisted SKUs

and items with inventory issues.

OPPORTUNITY FACTOR An analysis of marketplace sales shows

that ABC Co.’s products include both

fast movers and items that have high

run rates with other Price Pros partners.

Sales were lost on items when the price was within 5%

of the selling price; 93 of the items sold over $17M

with outside competition. The Dūcere computation

projected that 63.5% of the opportunity lost should

have been recovered by ABC Co.

PRODUCT FACTOR The first quarter closed with 81% of the

total products in the data feed

remaining unlisted. ABC Co. maintained

an above average Order/SKU

distribution but sales were inhibited by

the 24% of listed items that did not have inventory.

Additionally, ABC Co. only qualified as a “Selected

Seller” on 25% of listed products. This means that ¾ of

their listed products were ineligible to “win” the

customer sale. The percentage is well below the

average of 42% and below the 35% threshold for

eligibility of data cleanup and rebate promotional

opportunities with The Price Pros. 0

2

4

6

8

10

OVERALL SCORE OPPORTUNITY FACTOR PRODUCT FACTOR

DŪCERE INDEX RATINGS

CURRENT RATING TARGET RATING


0

2

4

6

8

STOCK‐RELATED PRICE‐RELATED

DŪCER

ELO

SSINDEX

LOSS INDEX (TARGET = 0)ABC CO. AVERAGE

PRICING & INVENTORY OPPORTUNITIES | ALL PARTNERS

PRODUCT (SKU) ABC CO.’S PRICE

SOLD PRICE

ORDERS LOST

REVENUE LOST

NO STOCK ITEMS (PRODUCTS WITH NO INVENTORY AT THE TIME OF SALE)

Intel X25M 120GB SSD Gen2 2.5 Sata (DB1256) $ 233.47 $ 226.63 110 $ 24,929

ASUS 23IN WS LCD 1080P ML238H (DL5705) $ 177.44 $ 174.41 78 $ 13,604

ASUS 21.5IN LCD 1920X1080 VE228H (DL6548) $ 144.99 $140.30 88 $ 12,346

19IN WS LCD 1440X900 1000:1 (CH5406) $ 109.35 $103.92 102 $ 10,600

Transcend 32GB COMPACT FLASH CARD (CM5610) $ 75.20 $ 75.05 138 $ 10,357

PRICING OPPORTUNITIES (ABC CO.’S PRICE WAS WITHIN 5% OF SOLD PRICE)

Smart Buy 21.5IN LCD Multitouch (CC0750) $ 232.59 $ 228.83 130 $ 28,375

Plantronics WG200/B Voyager PRO UC (CA4819) $ 115.45 $ 111.52 164 $ 18,289

Lenovo IDEAPAD S10‐3 N455 1.66G 1GB (CQ6914) $ 336.57 $325.20 56 $ 18,211

Acer 17IN LCD 1280X1024 V173 DJB VGA (CT2986) $ 91.11 $ 86.28 98 $ 8,455

TECHCRAFT 60IN WIDE TV (Y94882) $ 120.88 $ 118.41 58 $ 6,749

TOTALS ‐ ‐ 1,022 $ 151,915

SUMMARY | ALL PARTNERS ABC Co.’s Loss Index was higher than average,

primarily on account of lost opportunities created by

items with competitive pricing but no inventory. The

table above includes a sample of items wherein sales

were lost due to either no inventory or because the

price was 1% ‐ 5% above the selling price (in both

situations the competitor had stock and a reasonable

price). See Exhibit A for a complete list of the 26 SKUs.

Above Average Stock‐Related Losses

Above Average Price‐Related Losses

1,800 orders lost to vendors (26 SKU sample)

$150k+ revenue lost to vendors (26 SKU sample)

71% of all orders lost to vendors ‐ price within 5%


$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Q1 Q2 Q3

PROJECTEDREV

ENUELO

ST(INMILLIONS)

PROJECTED REVENUE LOSSES

PRICING & INVENTORY OPPORTUNITIES | ALL MARKETPLACES

PRODUCT (SKU)

ABC CO.’S PRICE

SOLD

PRICE

ORDERS LOST

REVENUE LOST

NO STOCK ITEMS (PRODUCTS WITH NO INVENTORY AT THE TIME OF SALE)

Canon EOS 5D Mark II 21.1 MP 3IN LCD (DQ2963) $ 2,640.02 $ 2,599.95 1,820 $ 4,731,545

Epson PowerLite Home Cinema 8350 (DP8208) $ 1337.66 $ 1,249.99 2,100 $ 2,725,143

Acer AS7741G‐6426 I5‐480M 2.66G 4GB (DV7317) $ 712.60 $ 699.72 1,625 $ 1,136,737

Gateway LT3120U AMD 690E 1.20G 2GB (DJ6842) $ 345.09 $ 345.41 1,839 $ 635,085

Logitech Z‐5500 5.1CH 505W SPEAKERS (E33562) $ 441.88 $ 440.00 820 $ 360,650

PRICING OPPORTUNITIES (ABC CO.’S’S PRICE WAS WITHIN 5% OF SOLD PRICE)

Pentax K‐5 Lens Kit 18X55MM WR (DQ2296) $ 1,691.67 $ 1,659.17 740 $ 1,228,549

Acer AS5253‐BZ602 E350 1.6G 2GB (DV7313) $ 364.13 $ 361.48 17,29 $ 624,963

ASUS U43JC‐B1 I5‐460M 2.53G 4GB (DL9286) $ 937.52 $ 895.99 549 $ 491,737

Lenovo IDEACENTRE Q150 SFF D510 1.66G(CQ6949) $ 378.56 $ 349.99 1,118 $ 391,387

Zotac ZBOX SFF D525 2GB 250GB BD (KA1011) $ 539.41 $ 528.64 338 $ 178,923

TOTALS ‐ ‐ 2,005 $ 12,504,719

SUMMARY | ALL MARKETPLACES In a sample of items listed by ABC Co. that were

within the top 5,000 products selling on

marketplaces, 88% of the items ABC Co. was within

5% of the sold price or did not have stock allocated.

This equated to over 90,000+ orders lost in categories

where sales growth accelerated for the quarter.

Based on current price/stock attributes, projected

revenue losses will exceed $16M by Q3. See Exhibit B

for a complete list of top selling marketplace SKUs.

10 SKUs carried by ABC Co. had a 175+ DPI

$12M+ revenue lost on 10 top selling SKUs

Sales Conversion Rates Exceeded 2.3%

90,000+ orders lost to outside competition


PRODUCT OPPORTUNITIES

Fewer than 20% of the items provided in the product

feed are listed on marketplaces. This is far below the

average of 53% product‐listing ratio. Within the

listed products, nearly 1‐out‐of‐4 items do not have

stock at the time of a marketplace order. There are

90k+ SKUs in the product feed that do not have

UPCs. The mix of listed products is producing an

above average order/sku distribution, however ABC

Co. is only qualified as a “Selected Seller” for 1/4th of

their products.

A minimum “Selected Seller” rating of 35% is

required for partners to be eligible for special

resourcing from The Price Pros (including applying

VIRs to pricing competiveness). As an example, if a

half point (0.5%) was applied to ABC Co.’s product

pricing by The Price Pros, an 3% of their product line

would become “Selected Seller” qualified.

0% 20% 40% 60% 80% 100%

STOCK

LISTED

TOTAL

76%

19%

100%

24%

81%

PRODUCT DATA FEED BREAKDOWN

ACHIEVED REMAINING

0%

5%

10%

15%

20%

25%

3+ ORDERS 5+ ORDERS 10+ ORDERS 50+ ORDERS

% OFLISTED

PRODUCTS

ORDERS/SKU DISTRIBUTION

ABC CO. AVERAGE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ABC CO. AVERAGE

25%

42%

75%

58%

% OFLISTED

PRODUCTS

"SELECTED SELLER" QUALIFICATION

Qualified Not Qualified


PRODUCT OPPORTUNITIES | ITEMS NOT AVAILABLE

PRODUCT AMAZON ASIN

SELLING PRICE

ORDERS SOLD

TOTAL REVENUE

Honeywell 11' x 14' Room Air Purifier B001AYI21E $ 78.03 451 $ 35,192

Panasonic 6500 Series Dect6.0 Phone/3 Handsets

B0036RDR5E $ 60.69 426 $ 25,854

Royal Machines 29172A 17 Sheet Cross Cut Shredder

B002KGFOH6 $ 120.99 150 $ 18,149

Panasonic Additional Digital Cordless Handset B0036D7SOO $ 49.35 330 $ 16,286

HP 17BII+ Financial Calculator B0000CAQ0C $ 74.39 107 $ 7,960

Eton American Red Cross Solar Radio B001QTXKCE $ 24.27 326 $ 7,912

TOTALS ‐ 1,790 $ 111,353

The above table is a sample of six consumer electronic items that are not sold through ABC Co. but sold 100+ orders with other

vendor partners. In the first quarter, these six items accounted for 1,790 orders equating to $111k+ in revenue. The

manufactures include Honeywell, Panasonic, and HP. The sub‐category distribution chart below highlights sub‐categories within

the consumer electronics segment that are given greater focus by the online marketplaces versus ABC Co.’s current product

mix. Electronic Components and Storage Components are on pace to grow steadily over the next few months.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

SAMPLE SUB‐CATEGORY DISTRIBUTION

ABC CO. MARKETPLACES


EXHIBIT A: ITEMS SOLD BY OTHER VENDORS*

PRODUCT ABC CO.’S PRICE

SOLD PRICE

ORDERS LOST

LOST REVENUE

SMART BUY 21.5IN LCD MULTITOUCH $232.59 $228.83 124 $28,375

WG200/B VOYAGER PRO UC $115.45 $111.52 164 $18,289

IDEAPAD S10‐3 N455 1.66G 1GB $336.57 $307.55 56 $17,223

17IN LCD 1280X1024 V173 DJB VGA $91.11 $86.28 98 $8,455

21.5IN LED 1920X1080 ML228H $157.88 $155.24 50 $7,762

TECHCRAFT 60IN WIDE TV $120.88 $118.41 57 $6,749

22IN WS LCD 1680X1050 V223W $131.34 $129.53 50 $6,477

SS WOW CATACLYSM MOUSE $93.11 $92.55 61 $5,646

HDPRO SUPER SLIM TILTING MOUNT $99.70 $91.85 53 $4,868

TECHCRAFT 60IN WIDE $210.86 $210.42 23 $4,840

KCR LTHR COMP CASE 15.4IN $70.74 $63.16 72 $4,548

3PK CYAN MAGENTA YELLOW TONER $97.02 $94.74 47 $4,453

TECHCRAFT 42IN WIDE TV STAND $99.47 $90.88 48 $4,362

ION USB TURNTABLE $41.59 $34.95 108 $3,775

MAXELL DVD‐R 16X 100‐PC $19.32 $13.94 258 $3,597

SANUS MEDIUM FULL MOTION $64.28 $59.43 51 $3,031

SANUS SUPER SLIM LCD/LED MED $48.79 $45.06 65 $2,929

425VA CP UPS 120V STANDBY GREEN $38.75 $36.32 63 $2,288

PROFESSIONAL PIEZO DYNAMIC $42.79 $40.90 52 $2,127

AMERPHONE AMPLIFIED $32.69 $31.53 54 $1,703

DESKJET 1000 PRINTER J110A $29.49 $28.85 58 $1,673

19IN WS LCD 1440X900 V193W EJB $90.05 $88.54 15 $1,328

THRUSTMASTER T.FLIGHT HOTAS X $44.77 $44.18 23 $1,016

USB MINI CABLE KIT $13.51 $10.70 73 $781

25PK CDR 700MB 80MIN DIGITAL $9.52 $8.30 47 $390

SPARE EARTIPS BACKBEAT 9XX $2.75 $2.75 73 $201

25PK DVD‐RW 4.7GB 2X SPINDLE $10.63 $10.19 18 $183

TOTALS ‐ ‐ 1,861 $ 147,069

*Partial item listing; include only items where ABC Co.’s Selling Price was within 8% of the marketplace sold price


EXHIBIT B: TOP MARKETPLACES ITEMS CARRIED BY ABC CO.

PRODUCT DESCRIPTION VENDOR SKU

SELLING PRICE

MIN OFFER

PRICE DŪCERE POP. INDICATOR

ORDERS

LOST

REVENUE LOST

EOS 5D MARK II 21.1 MP 3IN LCD DQ2963 $2,640.02 $2,599.95 31.8 1,820 $4,731,545

POWERLITE PROJ HOME CINEMA 8350 DP8208 $1,337.66 $1,299.99 36.7 2,096 $2,725,143

G73JW‐A1 I7‐740QM 1.73G 8GB 1TB DL6654 $1,802.18 $1,773.76 16.5 943 $1,673,436

PENTAX K‐5 LENS KIT 18X55MM WR DQ2296 $1,691.67 $1,659.17 13.0 740 $1,228,549

AS7741G‐6426 I5‐480M 2.66G 4GB DV7317 $712.60 $688.99 28.4 1,625 $1,119,306

AS5253‐BZ602 E350 1.6G 2GB DV7313 $364.13 $350.47 30.3 1,729 $605,928

U43JC‐B1 I5‐460M 2.53G 4GB DL9286 $937.52 $895.99 9.6 549 $491,737

N61JQ‐B2 I7‐740QM 1.73G 4GB DL6653 $1,206.32 $1,149.36 5.5 312 $358,945

1080P UPCONVRSION DVD/VCR COMBO DQ2755 $219.42 $214.99 28.7 1,642 $352,953

U41JF‐A1 I3‐380M 4GB 500GB DY3190 $884.70 $864.53 6.3 363 $313,461

PANASONIC DSC/CAMCORDER MICRO BX5409 $299.82 $286.42 15.9 907 $259,703

27IN LCD 1920X1080 100000:1 2MS DE1183 $313.82 $308.17 14.7 842 $259,325

DIGITAL WIRELESS QUAD SD DV DE6051 $340.74 $328.99 12.9 738 $242,893

23IN 3D WS LCD 100 000:1 1080P DF2153 $507.99 $487.32 7.9 451 $219,762

ZBOX SFF D525 2GB 250GB BD KA1011 $539.41 $528.64 5.9 338 $178,923

EB1501P‐B016E SFF ATOM D525 DL6671 $527.93 $504.18 5.5 317 $159,603

PERFECTION V600 CLR FB BH3920 $198.00 $190.61 14.6 836 $159,289

SP2500 HIGH‐POWER 2.1 PC DZ6840 $214.96 $211.79 10.8 619 $131,064

23.6IN WS LCD 1920X1080 1000:1 Y89309 $183.80 $179.99 11.8 674 $121,331

T101MT‐EU17‐BK N450 1.66G DA5598 $463.95 $451.22 4.0 226 $101,849

SMART BUY 4520S I3‐370M 2.4G DJ1868 $487.37 $479.00 3.7 211 $100,877

900MHZ 4PK WRELESS BLK SPKR SET CB5295 $169.47 $162.49 10.8 618 $100,341

AM3 890FX MAX‐16GB ATX 4PCIE16 CR5630 $236.35 $228.99 7.6 434 $99,336

7IN PORTABLE TABLET DVD/CD/MP3 CL4235 $88.43 $85.23 19.6 1,119 $95,413

SMALL BUSINESS WRLS‐G PTZ T61429 $218.86 $212.88 7.5 431 $91,798

1TB RUGGED HARD DISK TRIPLE DM0509 $196.99 $190.00 8.1 461 $87,518

PIVOTVU ROTATING STAND AND CASE KA2577 $51.14 $49.99 28.3 1,620 $80,969

2TB PROFESSIONAL HARD DRIVE CZ0933 $226.67 $224.00 6.1 350 $78,409

MINI‐PC ATOM D510 NM10 ION DC9568 $234.05 $224.10 6.0 342 $76,575

SP‐H03 DLP PROJ 1000:1 CQ6665 $297.42 $283.27 4.7 269 $76,160

TECHCRAFT 60IN WIDE Y94889 $228.06 $219.87 5.8 330 $72,649

RAZER MEGALODON GAMING HEADSET BG1135 $132.50 $126.84 9.0 515 $65,267

EAR FORCE DPX21 5.1/7.1 HEADSET DY1271 $141.34 $136.79 8.2 467 $63,944

SMART BUY 24IN WS LCD 1920X1200 CC0177 $296.57 $291.24 3.8 219 $63,694

CORSAIR COOLING HYDRO SERIES CA3042 $71.64 $69.94 14.7 838 $58,594



SELLING PRICE

MIN OFFER


ORDERS

LOST

REVENUE LOST

GEFORCE 9500GT PCIE 2.0 1GB U46540 $66.63 $63.54 14.6 835 $53,050

21.5IN LCD 1920X1080 VE228H DL6548 $158.87 $152.99 5.9 339 $51,854

2TB GRAID 7200RPM FW/USB/ESATA CZ0904 $241.55 $230.86 3.8 216 $49,880

22IN WS LED 1920X1080 1000:1 DM3053 $198.52 $189.99 3.9 221 $42,064

650W TX650 V2 PSU 80 PLUS GC4796 $98.78 $97.99 6.9 393 $38,492

CYBORG R.A.T. 7 GAMING MOUSE DE5518 $78.10 $75.99 8.8 503 $38,217

DUAL MODE BOOMBOX FOR SIRIUS & DE5833 $95.38 $93.11 6.5 373 $34,726

BD‐COMBO 6X USB 2.0 BLUE CK7843 $157.95 $154.61 3.8 215 $33,284

PYLE 3.5IN SLIM MONITOR LICENSE CL3953 $52.45 $50.24 10.9 624 $31,329

SPOT SATELLITE MESSENGER T54437 $96.19 $93.98 5.8 333 $31,295

STYLUS NX515 CLR P/S/C 36PPM BC6668 $61.51 $59.88 8.9 508 $30,431

SANDISK 16GB EXTREME III SECURE T34949 $73.43 $69.99 7.4 423 $29,623

ACCESSORY CAMERA FOR LW2702 CB4990 $118.04 $115.97 4.3 246 $28,570

X360 WLESS PRO DRUMS & CYMBAL DE7431 $125.58 $122.84 3.8 216 $26,563

ELECTRONIC DICTIONARY/THESAURUS D85661 $73.07 $70.39 6.6 377 $26,506

SBC‐06D1S‐U DIAMOND BLUE DY3371 $109.80 $105.00 4.1 232 $24,312

CORDLESS PHONE 1 HNDST DECT 6.0 Y96185 $66.56 $64.69 6.6 375 $24,270

1.8IN 4G VIDEO MP3 PLAYER CL4243 $24.10 $23.95 17.3 988 $23,659

UNIDEN DECT 6.0 BIG BUTTON Y97360 $78.09 $74.48 5.5 313 $23,345

DURACELL 175W MINI INVR T40704 $31.23 $31.07 12.7 728 $22,630

TRAVEL POWER PRO 16000 MAH DE6312 $80.93 $77.99 5.1 289 $22,513

DOCSIS 3.0 CABLE MODEM 172 CK8561 $82.06 $79.00 4.9 278 $21,970

SANGEAN RCR‐2 AM/FM T53094 $57.22 $55.84 6.5 369 $20,582

BOSS COMPLETE 8 GAUGE AMP T49121 $11.08 $10.99 30.8 1,763 $19,371

VISTABLET PENPAD GRAPHIC TABLET DE4579 $36.72 $36.33 8.9 509 $18,480

SINGLE ALARM INCH GREEN LED CL4859 $13.42 $13.02 24.4 1,394 $18,146

RT‐N12 WL N 11N 300MB 4PORT CC7912 $38.79 $37.00 8.3 475 $17,560

AT&T CORDED/CORDLESS PHONE CL5155 $58.90 $57.99 5.2 299 $17,366

ER‐6I ISOLATOR EARPHONES 3.5MM F53986 $71.35 $68.00 4.5 255 $17,336

SHOWER AM / FM / WB / DE7091 $44.40 $42.84 7.0 401 $17,165

AUDIO 655 DSP PC HEADSET US DF4775 $28.94 $27.69 10.4 596 $16,498

HIGH ZOOM CAMERA CASE ‐ BLACK CL4154 $12.10 $11.99 24.0 1,370 $16,430

LYCOSA MIRROR SPECIAL EDITION U78524 $70.90 $68.01 3.8 219 $14,878

CHARGING SYST FOR IPOD/IPHONE DQ2166 $43.43 $42.92 5.9 337 $14,460

PYLE REAR CAMERA W/ NITE VISION T51810 $22.23 $21.94 10.7 611 $13,401

PANASONIC MENS SHAVER PRO CURVE V00145 $30.28 $29.08 8.0 458 $13,316

ALARM CLOCK SPEAKER‐IPHONE/IPOD CB5629 $61.01 $60.62 3.8 219 $13,301



SELLING PRICE

MIN OFFER


ORDERS

LOST

REVENUE LOST

XM UNIVERSAL DOCK AND PLAY CA0842 $36.78 $36.19 6.2 357 $12,918

INTEL G31 LGA775 MAX‐4GB 2DDR2 BX0025 $45.67 $44.48 4.7 270 $12,015

CYBORG R.A.T. 5 GAMING MOUSE DE6017 $58.36 $55.99 3.8 214 $12,003

JVC FULL‐SIZE HEADPHONES T47717 $57.05 $56.11 3.7 212 $11,904

CISCO‐LINKSYS USB ETHERNET U78571 $25.32 $24.95 6.6 380 $9,481

ILUV DUAL ALARM CLOCK W BED Y67134 $36.93 $36.29 4.3 247 $8,977

FUJI XP10 ACCESSORY KIT DQ2014 $20.48 $20.08 7.7 438 $8,796

12‐14 LATOP ATTACHE CL4206 $18.06 $17.39 8.5 487 $8,476

SEMPRON X1 140 AM3 BU0875 $36.43 $34.95 3.9 224 $7,820

SONY HOME STYLE STEREO T50058 $12.17 $11.75 11.6 664 $7,802

PANASONIC FULL SIZE Y67517 $11.76 $11.51 8.1 462 $5,320

PELICAN MEMORY CARD CASE STORES V32612 $16.66 $16.19 5.3 303 $4,902

PANASONIC RECHARGEABLE T47955 $8.31 $8.16 8.1 461 $3,763

GRIDIT ORGANIZER BLACK IDEAL DA0552 $16.91 $16.57 3.8 217 $3,591

USB GENIUS LUXEMATE I200 DN9107 $15.51 $14.90 4.0 231 $3,444

SURGEARREST HOME/OFFICE 8OUT Q07243 $15.60 $15.44 3.9 221 $3,416

BOSS 6 5IN 3‐WAY CHAOS SPEAKERS T43960 $15.42 $14.74 4.0 229 $3,382

PYLE 15FT XLR MALE TO T52295 $5.03 $4.95 11.1 635 $3,144

MINI USB 89KEY KEYBOARD CL5857 $10.08 $9.99 5.1 291 $2,911

JVC FULL SIZE HEADPHONE T47714 $10.62 $10.23 4.8 275 $2,816

CASE LOGIC GLOVE BOX T41716 $3.38 $3.35 3.7 212 $710

TOTALS

‐ ‐ 898.1 51,319 $ 17,740,753

ducere analysis sample report

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