Evaluation from our experts:
What are the key factors to consider when choosing a new parts pricing strategy?
"Customer acceptance is key. You must market to your current customers the reasons for a change and have a plan to make sure they understand the reasons. Ensure you have strong data concerning market prices, prior to making changes. Determine the increased revenue that potentially can be achieved."
Why can taking the time to decide on a pricing strategy positively impact your parts business?
"For most manufacturers, the aftermarket business is key to their revenue and profit. Because this is such an important part of any manufacturer’s business it is imperative to 'get it right.' This often takes some time and effort, but it will prove very valuable for the entire company."
How can a market-based parts pricing strategy influence after sales?
"In today’s environment of supply chain issues and inflation, it is especially imperative to keep up with all the market trends - including purchase prices, selling prices, and delivery times. Market-based prices from a very dependable source can make the difference between making a lot of revenue and making little to no revenue. It is important to keep up to date on the changes within the market and adjust prices when necessary to protect and increase aftermarket business."