About the Company
FUNBOY is a California-based luxury purveyor of original summer essentials. Founded in 2015 by a family of creative rebels, FUNBOY launched with an exclusive collection of fancy floats for adults who refuse to grow-up. Since then, FUNBOY’s celebrity-coveted limited edition floats and forward design have garnered a global following of like minded individuals, tastemakers and adventurers who collectively live life FUNBOY.
PriceBot
Price Optimization
United States
Apparel
The Goal
FUNBOY came to Tontine as part of an overall strategic change in direction — the brand wanted to be seen as accessible while still remaining aspirational, and reverse the years-long unintended evolution of inching upmarket (which had gradually hurt their brand perception since the core target demographic now felt like their products were out-of-reach). However, at the same time, FUNBOY had just signed a multi-year wholesale deal with Nordstrom — with strict MAPs in place, price testing had to be discreet and handled with extreme caution.
The Strategy
First, using the platform’s UTM parameters filtering, geofencing, and “fingerprinting” functionalities, Tontine’s experts ensured that the risk a Nordstrom shopper would be redirected to an experimental cohort during a price test is minimal. At the same time, armed with demographic and historical sales data from FUNBOY, Tontine’s experts presented a range of pricing options generated by PriceBot (a competitive benchmarking engine that aggregates and anonymizes data from other Tontine clients in the same vertical to produce laser-sharp recommendations). Once the lower-bound range of the price curve had been established, the focus turned towards establishing a complete price elasticity parabola — and there’s no better way to do so than using Tontine’s multi-armed bandit (MAB) test configuration. Ditching the usual guess-and-check process, the MAB test configuration allows Tontine’s experts to set a ceiling and floor price, and from there, the pricing engine will automatically create four price points (at the 25%, 50%, 75% and 100% point) and dynamically allocate traffic towards the winning prices, thus ensuring that at the end of the test, there’s conclusively and definitively one winning price.
The Results
FUNBOY’s management team were blown away by the results: initially, there was a persistent fear among the team that by going downmarket, they’d have to sacrifice brand perception, gross revenues, and profit margins. The initial price tests showed quite the contrary — conversion rates increased by more than 25% with even a 4-7% price decrease, and just as importantly, because they didn’t have to discount their products now to boost conversion rates, perception of brand value among the core target demographic was not diminished. FUNBOY also began testing their free shipping thresholds with Tontine, and that resulted in a 31% improvement in gross margins within 60 days.
More case studies
"How do you know if you’re charging the maximum customers are willing to pay? You don’t. We certainly didn’t. That’s why we use Tontine."
“Finding the best price for each of our products is a lot faster with Tontine. And in our industry, that means we’re able to bring a product that’s on-trend to market a lot quicker.”
"Working with Tontine is as hands-on/off as you’d like. The Price Optimization Experts ensure they’re consistently delivering value without becoming another burdensome platform to manage."
"When we started working with Tontine, they promised us full control, incredible support, and clear-cut ROI. They’ve delivered. You won’t find a more professional & accommodating team elsewhere."
"How do you stay ahead of the rapidly evolving landscape in such a competitive industry? You reconsider every aspect of your business regularly — starting with pricing."
“Tontine’s A/B testing system is very different from anything we’ve used previously — it’s undeniably more effective and impactful.”
“Tontine makes it easy for our team to focus on developing new marketing initiatives rather than the operations of price testing. With Tontine, we’re in good hands.”
"Risk-free price testing is an insurmountable challenge with our complicated custom infrastructure… rarely do you find a team so helpful and willing to dive straight into it to ensure everything is set up perfectly."
"Tontine is the best kept secret for Shopify retailers. We can now safely adjust our prices to maximize profit without losing customers, because we have the data to back it up."
"Our D2C channel was a loss leader in our revenue mix— until we started working with Tontine. This was the path of least resistance to growing our revenue without any associated overhead."
"Clients typically see a 5-7x ROI increase on their creative assets even without extensive CRO work — Tontine is our unfair advantage."
"Tontine helped us test different price points for new products with a group of superfans, so when we released the products publicly, it was at the most profitable price."
“Kudos to Tontine’s team for meeting our extremely strict standards and SLAs. The whole Tontine team stepped up and worked hand-in-hand with us to meet our needs.”
"Tontine is a true partner, rather than just another vendor. We rely on them for strategic insights, competitive market analysis, and most importantly, reliable price test results."
"Truly a no-brainer: Tontine is the go-to solution if you’re trying to focus on your business’ bottom line instead of just optimizing for the top line. For us, this is the most important profit lever we have in our toolkit."
"Our biggest concern was the technical lift needed to integrate with Tontine. Thankfully, their Implementation Specialists handled it all, and didn’t stop working until we were satisfied."
"We haven’t discovered an A/B testing solution that prioritizes protecting our brand integrity as much as Tontine has. The only solution that’s truly compatible with our stack."
“No strenuous integration, no ambiguous data, and no friction working closely with Tontine’s team. This has been a dream partnership.”
“Tontine’s AI engine, PriceBot, is exceptional… the more data it ingests, the better it gets at predicting prices, even for unreleased products.”
“We can’t fathom of an easier or faster way to price test our products and receive a decisive result in just days. Tontine is integral to our merchandising strategy.”
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