Spare Parts Pricing Excellence
How to maximize your existing EBIT potential through spare parts pricing
The automobile industry’s current economic situation is strongly marked by volatile sales markets and constantly increasing pressure on sales margins. In times like these, the spare parts business plays a key role as a significant source of ongoing sales and high margins. Yet the demands of spare part pricing have risen, too, especially due to increased product complexity and the internationalization of the sales network.
Frequently, the enormous potential of the spare part business for increasing EBIT (2-10%) is clearly underestimated and not utilized completely. Pricing activities focus on the core business, which frequently has to deal with declining margins. As a result, more and more often we see inadequate pricing methods in the spare part business – mirrored in part by the fact that businesses fail to make the most of customers’ willingness to pay. Instead, they sell spare parts for too much or too little money.