In the ‘Zone: How a Dynamic Pricing Strategy Helped This Supplier’s Sales Soar

Since their launch in 2010, Supplier V43 has evolved from a local Melbourne startup to a leading online supplier of furniture and bedding.

Supplier V43 is a family-run business whose mission is to offer the highest-quality furniture and bedding at the lowest prices. With the help of their small team of highly trained staff, they run a business with low overheads to offer competitive pricing to their customers.

The business has invested in creating in-house inventory software that helps them check their stock in real time. This safeguards against out-of-stock issues and helps create a more efficient supply chain.

Supplier V43 also operates three Melbourne-based showrooms where customers can see their high-quality furniture in person, something the business says sets them apart from their competitors.

The Challenge

Like almost every supplier in the game, Supplier V43 faced some of their greatest challenges during the pandemic. As Melbournians hunkered down indoors, businesses that previously relied on face-to-face interactions and high-functioning supply chains began to falter.

“From 2020, lots of our suppliers were closing their factories and it was harder to get sufficient products at good prices,” says Honey, one of Supplier V43’s dedicated team members.

“In the current market, product prices are increasing. Right now, one of the most common problems has to do with freight,” says Honey when we sat down for an interview in September. “Our carriers’ shipping prices are 4x higher than they were pre-pandemic.”

With prices from their own suppliers and manufacturers increasing, Supplier V43 realised first-hand the importance of implementing a competitive pricing strategy.

“The increase in prices has proved to us how important it is to offer competitive shipping prices,” says Honey. “It’s simple; customers will always shop with you if you’re offering the lowest prices.” 

The Solution

Supplier V43 joined Dropshipzone as a way to expand its channel coverage on various online marketplaces. Upon joining Dropshipzone, they discovered that B2B pricing must be as dynamic as B2C.

“When we first joined Dropshipzone, we weren’t getting traction because our prices were the same across all the marketplaces we were selling on,” says Honey. “Our Account Manager discussed with us the importance of having a competitive pricing strategy, and since then there’s been a significant improvement in our sales.”

In fact, upon adopting a more dynamic pricing strategy, their sales increased by 80 per cent from July to August this year. 

Dropshipzone is ‘the place’ for Suppliers looking to increase their selling capabilities and sell to more Retailers. It’s made by entrepreneurs, for entrepreneurs - one of the main selling points for Supplier V43. 

“The platform is different to other marketplaces that we sell on,” says Honey. “Dropshipzone is the place for business owners, so our Retailers are going on the platform with the sole intention of stocking their website, and our sales ultimately reflect that.”

Getting in the ‘Zone

With the support of Dropshipzone, Supplier V43 has been able to broaden its reach to more than a hundred Retailers in 2023. By prioritising quality and implementing a competitive pricing strategy, Supplier V43 has seen a rise in customer interest. Dropshipzone's strategic approach to pricing has enabled Supplier V43 to achieve its goals without compromising on quality.

“We are always trying to find ways to improve our products for our customers. Our goal over the next couple of years is to continue to grow our range of indoor furniture,” says Honey. “Working with Dropshipzone means we have the time to focus on these things, and they take care of the rest.”