Mastertools was established in the Netherlands in 2008, specializing in selling various high-quality tools. They serve both the B2B and B2C segments. In 2009, they launched their webshop, mastertools.nl, which generates most of their sales today, making Mastertools one of the largest online providers of professional tools in the Netherlands.
We had the pleasure of interviewing Richard Korthuis, who has been with the company since 2017. He has experienced almost every role, from working in the warehouse to becoming an E-commerce Manager, a position he still holds today.
Richard is also involved in implementing various systems, among which was PriceShape. They turned to PriceShape after being dissatisfied with their previous pricing tool. They were promised a pricing tool that was supposed to provide them with a pricing setup, but it failed to meet their expectations. They discovered that the prices were not changing as desired and, on several occasions, noticed that their prices were unnecessarily low.
"We were pleasantly surprised when we found PriceShape and used our trial period. We could obtain a much larger dataset about our competitors, and we didn't encounter problems with our pricing. Furthermore, the level of service is some of the best I've experienced in a long time."
Richard Korthuis, E-commerce Manager
Richard told us their primary intention with a pricing tool was to transition from making decisions based on gut feelings to data-based decisions.
Mastertools currently employs 25 individuals working throughout the company. PriceShape is used in Marketing, E-commerce, and Category Management. This means that the same data is used in all the decision-making processes at Mastertools, which has led to good results.
Richard Korthuis, E-commerce Manager
The data has likewise allowed Mastertools to optimize their marketing budget. They can now find products with a good profit margin and high competitiveness.
"Our marketing budget has decreased by about €2000 per day, but we achieved a 6% increase in turnover compared to last year. This means we get the same sales, or even more, at a lower price because we can now see exactly which products our marketing budget should be allocated to on
Google Shopping Ads."
Richard Korthuis, E-commerce Manager
Mastertools' product range has expanded over the years. In 2008, Mastertools primarily consisted of a van that traveled to customers and sold various tools. Since then, they have expanded their product range to include everything the construction industry needs. You can still find the brands they initially sold since these brands are the most sought-after in the market and generate the highest profits. Richard mentioned that focusing on these well-known brands automatically increases their competition.
"It's a competitive market, and when you sell the same products,
price is often the most important factor for customers."
Richard Korthuis, E-commerce Manager
Mastertools goes through many considerations when purchasing products. Richard explained that in the past, this process was based on gut feelings; unfortunately, this strategy also led to poorly purchased products where demand was lower than expected, resulting in lost profit.
"We can base our purchases on data rather than gut feelings by using the PriceShape data. It's always a gamble to buy new products, but now, with all the data we get, our purchases are well-considered. We look at factors like the profit margin, market demand, and how competitors in the market promote and price the same product."
Richard Korthuis, E-commerce Manager
This means that Mastertools can now analyze which products to purchase because of their high demand and good margins and likewise identify which products not to buy. Richard mentioned that when they are ready to enter new markets, they know that PriceShape will help them. The data provided through the platform helps them understand the new needs they are entering.
Richard emphasized in the interview a pleasant surprise with the level of service they received from PriceShape. Since the first interaction, Richard has been pleased with the quick response time. Mastertools had been accustomed to a response time of about a week from their previous provider.
Richard stated that their experience with PriceShape has included a response time within an hour. He mentioned that it was refreshing and quickly felt that the company shared the same interest in their success. Richard also expressed satisfaction with the onboarding process, highlighting how everything proceeded swiftly and professionally.
"The knowledge you (Jonas) and your colleagues have about pricing and your system is fantastic. I was so impressed with your response time and the knowledge you can provide for issues. It's refreshing that you don't need to go through several people to get an answer, but your support can respond directly."
Richard Korthuis, E-commerce Manager