DAILY EQUITY REPORT BY EPIC RESEARCH- 18 DECEMBER 2012
Ducere Analysis Report Sample
1. Opportunity Analysis
Dūcere Index Analysis
Quarterly Report
Published: April 19, 2011
2.
DŪCERE INDEX ANALYSIS
T HE P RICE P ROS I NSIGHTS
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.
O VERALL S CORE
During the first quarter 2011, ABC Co.’s overall score was 2.7 points under their targeted rating. 87% of pursued
5.8 opportunities, including re‐capturing marketplaces sales and improving competitive pricing on 26 SKUs were not
out of
acheived. Additionally, 7 FBA opportunities were missed and the product feed remains ripe with unlisted SKUs
10.0 and items with inventory issues.
O PPORTUNITY F ACTOR DŪCERE INDEX RATINGS
An analysis of marketplace sales shows
2.5 that ABC Co.’s products include both
CURRENT RATING TARGET RATING
out of
fast movers and items that have high 10
10.0 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
8
projected that 63.5% of the opportunity lost should
have been recovered by ABC Co.
P RODUCT F ACTOR 6
The first quarter closed with 81% of the
4.8 total products in the data feed
out of remaining unlisted. ABC Co. maintained
10.0 an above average Order/SKU 4
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 2
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
OVERALL SCORE OPPORTUNITY FACTOR PRODUCT FACTOR
Dūcere Index Analysis Page 2 of 10
3.
P RICING & I NVENTORY O PPORTUNITIES | A LL P ARTNERS
ABC CO.’S SOLD ORDERS REVENUE
PRODUCT (SKU) PRICE PRICE LOST 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
S UMMARY | A LL P ARTNERS LOSS INDEX (TARGET = 0)
ABC CO. AVERAGE
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 8
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 6
situations the competitor had stock and a reasonable
DŪCERE LOSS INDEX
price). See Exhibit A for a complete list of the 26 SKUs.
Above Average Stock‐Related Losses 4
Above Average Price‐Related Losses
1,800 orders lost to vendors (26 SKU sample)
$150k+ revenue lost to vendors (26 SKU sample) 2
71% of all orders lost to vendors ‐ price within 5%
0
STOCK‐RELATED PRICE‐RELATED
Dūcere Index Analysis Page 3 of 10
4.
P RICING & I NVENTORY O PPORTUNITIES | A LL M ARKETPLACES
ABC CO.’S SOLD ORDERS REVENUE
PRODUCT (SKU) PRICE PRICE LOST 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
S UMMARY | A LL M ARKETPLACES PROJECTED REVENUE LOSSES
In a sample of items listed by ABC Co. that were
within the top 5,000 products selling on $18
marketplaces, 88% of the items ABC Co. was within
5% of the sold price or did not have stock allocated. $16
This equated to over 90,000+ orders lost in categories
$14
where sales growth accelerated for the quarter.
PROJECTED REVENUE LOST (IN MILLIONS)
Based on current price/stock attributes, projected $12
revenue losses will exceed $16M by Q3. See Exhibit B
$10
for a complete list of top selling marketplace SKUs.
10 SKUs carried by ABC Co. had a 175+ DPI $8
$12M+ revenue lost on 10 top selling SKUs $6
Sales Conversion Rates Exceeded 2.3%
$4
90,000+ orders lost to outside competition
$2
$0
Q1 Q2 Q3
Dūcere Index Analysis Page 4 of 10
5.
P RODUCT O PPORTUNITIES PRODUCT DATA FEED BREAKDOWN
Fewer than 20% of the items provided in the product ACHIEVED REMAINING
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 100%
TOTAL
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 19% 81%
LISTED
their products.
A minimum “Selected Seller” rating of 35% is
required for partners to be eligible for special
76% 24%
resourcing from The Price Pros (including applying STOCK
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 0% 20% 40% 60% 80% 100%
would become “Selected Seller” qualified.
ORDERS/SKU DISTRIBUTION "SELECTED SELLER" QUALIFICATION
ABC CO. AVERAGE Qualified Not Qualified
25%
100%
20% 90%
80%
58%
% OF LISTED PRODUCTS
70%
15% 75%
% OF LISTED PRODUCTS
60%
50%
10%
40%
30%
42%
5%
20%
25%
10%
0% 0%
3+ ORDERS 5+ ORDERS 10+ ORDERS 50+ ORDERS ABC CO. AVERAGE
Dūcere Index Analysis Page 5 of 10
6.
P RODUCT O PPORTUNITIES | I TEMS N OT A VAILABLE
AMAZON SELLING ORDERS TOTAL
PRODUCT ASIN PRICE SOLD REVENUE
Honeywell 11' x 14' Room Air Purifier B001AYI21E $ 78.03 451 $ 35,192
Panasonic 6500 Series Dect6.0 Phone/3
B0036RDR5E $ 60.69 426 $ 25,854
Handsets
Royal Machines 29172A 17 Sheet Cross Cut
B002KGFOH6 $ 120.99 150 $ 18,149
Shredder
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.
SAMPLE SUB‐CATEGORY DISTRIBUTION
ABC CO. MARKETPLACES
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Dūcere Index Analysis Page 6 of 10
7.
EXHIBIT A: ITEMS SOLD BY OTHER VENDORS *
ABC CO.’S SOLD ORDERS LOST
PRODUCT PRICE PRICE 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
Dūcere Index Analysis Page 7 of 10