AI Market Research

Pricing strategies are a crucial component to a machine manufacturers' success, here we break down everything you need to know considering pricing strategy as it relates to machine manufacturing.

Pricing Strategy
GLOSSARY

Aftermarket Parts

CONTENTS

1 - What is AI Market Research

2 - How AI Market Research Supports Pricing Strategies

3 - The Importance of AI Market Research for Business Success

4 - About MARKT-PILOT

DEFINITION

What Are Aftermarket Parts?

Aftermarket parts or also known as competitive parts, are replacement components made by third-party manufacturers rather than the original equipment manufacturer (OEM). Designed to match the fit and functionality of the original parts, they offer an alternative solution for repairs and upgrades. 

Common examples of aftermarket parts:

  • Automotive: Brake pads, air filters, headlights 
  • Electronics: Phone chargers, laptop batteries 
  • Machinery: Hydraulic pumps, bearings, seals 
  • Intralogistics & Material Handling: Conveyor belts, forklift tires

Aftermarket parts offer a budget-friendly alternative to OEM components. However, quality can vary, as some aftermarket options are manufactured to lower standards in order to reduce costs. 

Aftermarket Parts_Definition_EN

How Do Aftermarket Parts Work? 

Aftermarket parts become available once an OEM’s product is in circulation. Consumers and businesses choose competitive parts based on their specific needs, whether it’s affordability, performance, or accessibility. Designed to be compatible with original components, they differ in some aspects.

  • Cost savings: Often cheaper than OEM parts due to competition.
  • Varied quality: Some parts exceed OEM standards, while others may not.
  • Availability: Wider selection and quicker access compared to OEM supply chains.
  • Customization options: Enhanced features that OEM parts may lack.

 

OEM vs. Aftermarket Parts: Key Differences 

Feature OEM Parts Aftermarket Parts
Manufacturer Original equipment manufacturer Third-party suppliers 
Quality & Fit  Guaranteed compatibility Can vary, some exceed OEM quality, many others not 
Price  Typically more expensive  More cost-effective
Availability Limited to OEM dealers Wider market availability
Warranty  Often covered by OEM Depends on the supplier
Customization Limited  More variations available

 

BENEFITS OF AI MARKET RESEARCH

How AI Market Research Supports Pricing Strategies 

AI-driven market research streamlines the analysis of large datasets, such as competitor pricing, customer trends, and material costs. By automating repetitive tasks, it not only saves time but also delivers greater accuracy than common manual methods. This approach is particularly relevant to machine manufacturers aiming for market-based pricing strategies. 

WHY AFTERMARKET PARTS

Why Machine Manufacturers Collaborate with Aftermarket Parts Producers

In the machine manufacturing industry, aftermarket parts are essential for maintaining machinery efficiency and cost-effectiveness. Machine breakdowns can lead to costly production delays, making quick delivery and reliable availability of replacement parts critical. OEMs are working more with aftermarket producers to cut costs, ensure parts are available, and extend product lifecycles. The ongoing trend to these partnerships help to address risks like protection of intellectual property, warranty issues, and pricing competition. 

ADVANTAGES OF COLLABORATION

Supply Chain Optimization
Partnering with aftermarket manufacturers ensures a steady supply of critical components and reduces dependency on proprietary manufacturing, helping OEMs meet service agreements.   

Expanded Customer Options
OEM-approved aftermarket parts provide cost-effective alternatives without sacrificing performance, offering customers flexibility while maintaining quality.   

Lifecycle Service Expansion   
OEMs offering long-term maintenance contracts can ensure parts availability by working with third-party producers, even beyond the machine’s production run. Some also license aftermarket companies to produce legacy parts. 

Cost Management & Profitability   
Using high-quality aftermarket parts lowers production costs while maintaining quality. For high-volume, non-proprietary components like bearings, seals, and hoses, aftermarket suppliers often offer better prices.   

Technology & Innovation Exchange   
Aftermarket producers excel in reverse engineering and advanced materials, bringing innovation to OEM designs. Collaboration enables co-development of improved components that outperform older ones. 

PRICEGUIDE-featured-image
BLOG

Overview of Parts Pricing Strategies

In this article, we review a few of the most common parts pricing strategies for OEMs.

More about the Parts Business in Machine Manufacturing

Discover how AI-powered solutions can help your business unlock its full revenue potential in the aftermarket. Contact us to learn how optimized spare parts pricing with MARKT-PILOT can create new opportunities for your company in the machine manufacturing industry. 

A man and a woman looking at a big screen showing a dashboard
WIKI

Parts Busi­ness: Key to Success in Machine Manu­facturing

The parts business is key to profitability, with demand for spare parts staying steady even during economic downturns.

Learn more
market intelligence whitepaper mockup
WHITEPAPER

Market Intelligence in Machine Manufacturing  

Learn more about the role of market intelligence and AI in machine manufacturing, specifically in the parts business.

Learn more
Blog Essential KPIs in the Parts Business
BLOG

The Essential KPIs for Success in the Parts Business

Discover essential KPIs to boost revenue, profitability, and efficiency in the parts business.

Learn more

About MARKT-PILOT

MARKT-PILOT is a leading provider of software for market-based spare parts pricing in machine manufacturing. The solutions enable OEMs to conduct precise market price research, automated price recommendations and optimized strategies. Customers benefit from increased sales, margins and customer satisfaction in their parts business.

LEARN MORE
PRICERADAR The SaaS solution for market-based spare parts pricing & lead time intelligence
The Top Parts Pricing Strategies for OEMs

The Top Parts Pricing Strategy for OEMs

Take a deep dive into what is the top pricing strategy for OEMs and discover how it can greatly increase your revenue. 

You Might Be Interested in Our Resources

Spare Parts Pricing

Back to Growth: Smart Pricing Strategies to Boost Aftermarket Business

Transform your aftermarket strategy. Discover AI-driven pricing tactics and actionable insights from our expert-led webinar.

Machine Manufacturing

Don’t Get Priced Out: How to Communicate Price Adjustments Without Losing Your Customers

Master price communication for spare parts! Learn strategies to navigate price adjustments & build trust. Retain customers now!

Information Security

Machine Manufacturing: MARKT-PILOT with Top Security Standard

ISO 27001 Certified: MARKT-PILOT, your trusted partner for secure spare parts pricing. Rely on our certified data security to protect your business.