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.
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.
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:
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 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.
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 |
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.
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.
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.
Overview of Parts Pricing Strategies
In this article, we review a few of the most common parts pricing strategies for OEMs.
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.
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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.
Take a deep dive into what is the top pricing strategy for OEMs and discover how it can greatly increase your revenue.
Transform your aftermarket strategy. Discover AI-driven pricing tactics and actionable insights from our expert-led webinar.
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