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Manufacturers leave money on the table for 73% of their purchased parts

HubSpot Video

Traditional Pricing Methods Don't Work
in Today's Digital Environment

 

HERE'S WHY:

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Countless competitors

Manufacturers compete with many 3rd party vendors on the same parts. These vendors use digital capabilities to constantly update prices and expand their offerings.

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Complex parts portfolio

Manufacturers have thousands of SKUs in their portfolio, making it impossible to manually keep track of market prices and lead times. For their customers, it is easy to benchmark individual parts.

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Cost-plus pricing

Manufacturers source parts from different suppliers at varying discounts. Unknowingly, cost-plus methods lead to underpriced or overpriced parts as no market data is considered.

What do manufacturers need to succeed?


They need market intelligence for parts.

Step 1: Benchmark Competitor's Prices


  • 220705-Price-Potentials-Exclusive-Parts

     

    Parts with no or limited competition.

    Your customers have a hard time finding alternative suppliers for those parts.

  • 220705-Price-Potentials-Underpriced-Parts

     

    Parts that are priced below market.

    Your competitors charge more for these parts than you.

  • 220705-Price-Potentials-Overpriced-Parts-1

     

    Parts that are priced above market.

    Your competitors charge less for these parts than you.

  • 220705-Price-Potentials-Competitive-Parts

     

    Parts that are priced at market.

    Your competitors charge about the same for these parts than you.

  • Exclusive Parts (52%)
  • Underpriced Parts (22%)
  • Overpriced Parts (22%)
  • Competitive Parts (4%)

Exclusive Parts (52%)

220705-Price-Potentials-Exclusive-Parts

 

Parts with no or limited competition.

Your customers have a hard time finding alternative suppliers for those parts.

Underpriced Parts (22%)

220705-Price-Potentials-Underpriced-Parts

 

Parts that are priced below market.

Your competitors charge more for these parts than you.

Overpriced Parts (22%)

220705-Price-Potentials-Overpriced-Parts-1

 

Parts that are priced above market.

Your competitors charge less for these parts than you.

Competitive Parts (4%)

220705-Price-Potentials-Competitive-Parts

 

Parts that are priced at market.

Your competitors charge about the same for these parts than you.

Step 2: Compare Lead Times


Updated Delivery Time Potentials

55 %
Shorter Lead Time

Parts for which you have a shorter lead time. Customers will always buy this part from you if it is a lead-time critical part.

24 %
Longer Lead Time

Parts for which you have a longer lead time. Customers will always buy this part from your competitors if it is a lead-time critical part.

21 %
Same Lead Time

Parts for which you have the same lead time as you competitors. Customers will compare price and other criteria to decide where to buy this part.

HOW DO MANUFACTURERS BENEFIT?


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Increase prices with confidence for underpriced parts.

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Capitalize on exclusivity for parts with limited competition.

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Boost sales volume and increase customer loyalty.

Get Started with MARKT-PILOT

100+ customers - 20% average increase in parts revenue