WHITEPAPER

Three Tips to Generate More Sales and Profit with Spare Parts

Machine Manufacturers undersell almost a quarter of their spare parts. Increase the profit of your spare parts business using our 3 tips!
Whitepaper zu 3 Tipps für mehr Umsatz und höhere Margen mit Ersatzteilen

What you'll get out of it

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Market Situation in the Spare Parts Industry

Increase Prices

Sales Tips and Tricks to Optimize Pricing Strategies

Marktpreisrecherche

Analysis of the Parts Portfolio and Identification of Exclusive Potential

Parts Revenue Increase

Automation in Pricing Strategies

OPPORTUNITIES FOR PRICE INCREASES

Establishing an Effective Pricing Strategy That Boosts Sales and Service Quality in the Spare Parts Business

The whitepaper examines why there are opportunities for price increases in the spare parts business and how to effectively utilize them to boost sales and increase revenue and margins. After-sales managers receive practical tips for establishing a pricing strategy that aligns to the company goals.

Key Content:

  • Price increases as a low-risk method to increase turnover in the short term
  • Identification of parts with potential for price increases and exclusivity
  • The role of valid market data and automated market price research in developing best spare parts sales strategies
  • Use case: Achieving sales growth in just six months at Kardex Mlog
Pricing strategies and trends for success-1
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FOR WHOM THIS WHITEPAPER IS

Make the most of your parts business

This whitepaper is primarily aimed towards managers and decision makers in the after-sales departments of machine manufacturers (OEMs) with an annual turnover of more than five million euros in the spare parts business and over 500k pruchased parts revenue.

This includes companies primarily located in: Germany, Austria and Switzerland (GSA); USA & Canada; Norway, Sweden & Finnland and Italy.

The whitepaper benefits OEMs from all sub-sectors of the mechanical engineering industry, excluding the automotive industry. The background is that all machine manufacturers face the same challenge: with declining margins in new sales, spare parts pricing has a high impact in the revenue and profitability of the entire company.

The Spare Parts Pricing Software for Machine Manufacturing

  • Proven Industry Expertise: 100% focus on mechanical and plant engineering
  • Market Leadership: in IT-supported, data-driven spare parts pricing in mechanical engineering
  • Over 150 customers worldwide
  • Simple Implementation: our SaaS software requires no training or integration into existing systems
  • Average 20% sales increases after just six months.
  • PRICERADAR and PRICEGUIDE: fully automated market price research, precise price recommendations and detailed sales simulations for > 4,000 spare parts suppliers worldwide

 

Ersatzteil-Pricing Software PRICERADAR
WHAT OTHERS SAY

Discover Why We're Your Perfect Choice

"In just six months, we increased turnover by 28% and the profit margins by nearly 20%. With the software developed by MARKT-PILOT, we are also able to adjust spare parts prices multiple times per month according to market conditions”

Head of Lifecycle Service, Kardex Mlog Logistics Andreas Rupp
FAQ

What Else You Should Know

How do spare parts sales specifically enhance revenue and improve margins?

Spare parts sales are crucial for boosting revenue and profit margins due to their impact on overall sales strategy and profitability. Machine manufacturers undersell almost a quarter of their spare parts, compared to third-party suppliers. For every underpriced part, they lose valuable turnover and profit.

As a spare parts pricing software, we can provide OEMs with detailed data and automated price suggestions. Check out our solutions to find the one tailored to your needs!

How do traditional pricing strategies like cost-plus contribute to spare parts frequently being priced below market levels?

raditional pricing methods such as cost-plus can lead to spare parts often being set under the market price, as they are primarily based on costs and the desired profit mark-up. Market dynamics and competitive prices are not taken into account.

Find out more about Parts Pricing Stragies for OEMs here!

How can machine manufacturers better price spare parts to align with market trends and maximize revenue potential?

They first need to understand the structure of their parts portfolio and identify which parts are currently underpriced, especially if they are looking at a large portfolio with many part numbers (1,000+).

But this is only the first step. Up-to-date market data is crucial in order to really identify all undervalued parts in the portfolio.

Learn more on how to master this practice for your portfolio in our blog:
Mastering Dynamic Pricing Strategies and Identifying Trends for Success (markt-pilot.com)

How can market price research help increase sales in the spare parts industry?

High inflation rates and cost increases due to volatile supply chains cause constant price changes. Third-party suppliers are increasing the prices of spare parts at a rapid pace. It is therefore essential for machine manufacturers to keep up with this price trend and not lose sales and increase profit margins.

However, this requires up-to-date market data in order to be able to react quickly to dynamic price changes at all times.

Software solutions such as PRICERADAR and PRICEGUIDE provide this transparency: on the basis of valid market data that is continuously updated, pricing managers and after-sales managers can run through how each price increase will affect sales at individual part level.

If you want to learn more about how to sell spare parts, our colleages are happy to assist. Book your free consultancy here!

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THE Solution For Market Based Pricing

  • Proven Industry Expertise: 100% focus on mechanical and plant engineering ensuring solutions tailored to the industry needs.

  • Market Leadership: in IT-supported, data-driven spare parts pricing in mechanical engineering, serving over 150 customers wordlwide.

  • Simple Implementation: our SaaS software requires no training or integration into existing systems, ensuring a smooth adoption.

  • Fast Return on Investment (RoI): average 20% sales increases after just six months.

  • PRICERADAR and PRICEGUIDE: fully automated market price research, precise price recommendations and detailed sales simulations for > 4,000 spare parts suppliers worldwide

  • MARKT-PILOT streamlines after-sales operations by automating time-consuming, manual price research and calculations, transforming the spare parts business into a sales driver and revenue generator for machine manufacturers

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