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PARTS FORUM 2024: After Sales Knowledge Powerhouse for OEMS in the USA

The industry event was a pioneering knowledge forum for service managers and pricing specialists in the USA. Discover the focus topics OEMs should miss out.

"Community Building" was the theme of the PARTS FORUM for machine manufacturing organized by MARKT-PILOT on June 13 in Chicago, marking its second edition following last year's debut. Approximately 50 after-sales experts from U.S. machine manufacturers (OEMs) participated in the forum, which focused on networking to discuss current trends, challenges, and technological innovations. The event was marked by a constructive atmosphere evident in the presentations, discussions, and interactions among participants. There was a keen interest among attendees in exchanging ideas with industry experts and peers on effective strategies to optimize service operations. It was widely agreed that, amid declining margins in the new machine business, the after-sales sector is increasingly crucial for driving revenue growth and enhancing customer satisfaction. 

Tim Geyer from Markt-PILOT outlined the current industry situation on the North American market right at the start of the event. Although demand for new machines is slowly picking up again, it has not yet returned to the “pre-corona era" levels.  

Overall, the economic situation continues to be characterized by uncertainties such as inflation and reluctance to invest on the part of end customers, said the Managing Director North America in his welcoming speech. Added to this is the increasing competition in the service and spare parts business from online platforms and offline dealers, which is putting machine manufacturers under additional pressure. "There will no longer be business as usual," said Tim Geyer. New business models are required in after-sales, with the spare parts business playing a key role.  

Tim Geyer MP BG-1

Tim Geyer, Managing Director North America at MARKT-PILOT: "Business as usual will no longer exist in after sales. Machine manufacturers must expand their service business with innovative services, and spare parts sales will play a special role as a sales driver." 

 

PARTS FORUM - a "Powerhouse of Knowledge and Expertise" (Tim Geyer) 

The two discussion panels, moderated by Tim Geyer (MARKT-PILOT) and Rick Clare from the consulting firm Clare and Company, focused on proactive strategies to shape the spare parts business. The panel participants referred to the role of market-oriented pricing and its impact on company profitability.  

Also in focus: the benefits of installed base management (customer loyalty, market share). Drawing from the experiences of the discussion participants, it was examined how this can be used to identify customer needs, what data needs to be collected for this, and how insights into the structure, operation, and history of the machine at the customer's site can be better linked with market-oriented pricing. 

Pricing 2.0 - Data-driven Pricing is becoming the Norm (Keynote) 

In this context, Nikolas Spatz from management consultancy Horváth + Partner spoke of spare parts pricing 2.0. In his keynote speech, the Senior Project Manager emphasized that traditional pricing strategies for spare parts such as Cost-Plus, etc. are no longer sufficient to achieve competitive advantages in today’s volatile market environment. Instead, modern spare parts pricing must be based on valid market data to not only be able to react to price fluctuations, but also to proactively shape the spare parts business. Spatz highlighted that margins in this sector can be two to ten times higher than in new business, with after-sales contributing up to 25 percent of total sales, according to industry insights. 

Against this backdrop, Nikolas Spatz outlined four important trends for future pricing in after-sales (Pricing 2.0): 

  • Decision-making will be completely data-driven. An analysis-based strategy will be the new normal. 
  • Methods of software-supported price analysis will become the standard in pricing. 
  • The increasing internal and external complexity of pricing can only be mastered with intelligent algorithms and AI functions. 
  • A new understanding of costs beyond traditional calculation mechanisms is increasingly gaining ground. 

20240613_192054321_iOS (1)Using specific examples, the speaker displayed the potential of analytical IT solutions and methods to enhance service quality and boost revenue in the spare parts business (including cost accuracy/transparency, automated market price research, long-tail pricing).

Based on extensive project experience in various industries, Nikolas Spatz emphasized the integration of advanced data analysis tools as well as innovative pricing models and customer-oriented approaches for developing cost-efficient and adaptable pricing strategies. 

 

MP becomes the "Data Powerhouse" in the Service and Spare Parts Business (MARKT-PILOT Roadmap) 

Clemens Komorek from MARKT-PILOT then made it concrete. The Global Head of Growth gave an overview of the development of the two software solutions PRICERADAR (automated market price research) and PRICEGUIDE (automated, market-oriented price recommendations) and previewed the innovations that can be expected in the future. Over the next few months, these tools will evolve into a platform allowing machine manufacturers to price their entire parts portfolio dynamically, using value-based pricing strategies as alternatives to conventional methods like Cost-Plus. "MARKT-PILOT will be your home for pricing your entire portfolio" Clemens Komorek announced to the audience, making it clear where the journey is heading: MARKT-PILOT provides the basis for an all-encompassing "data powerhouse" in the service and spare parts business.  

Clemens Komorek, Global Head of Growth at MARKT-PILOT speaking at PARTS FORUM 2024

Clemens Komorek, Global Head of Growth at MARKT-PILOT: "We provide the foundations for a powerful data powerhouse in the service and spare parts business of machine and plant manufacturers.” 

 

The lively discussions and intensive networking demonstrated that MARKT-PILOT hit the nail on the head with this event: the need for after-sales managers to exchange information and ideas with colleagues and experts in a setting tailored specifically to their requirements could not be overlooked. The drive to enhance service, including the spare parts business, with a new, data-analytical foundation resonated strongly with the attendees. They gratefully embraced the insights, suggestions, and food for thought provided.  

Tim Geyer: "PARTS FORUM is not just any conference - it is a powerhouse of knowledge and expertise with high-level OEMs willing to share their knowledge, strategies and best practices. With this event, MARKT-PILOT has established a platform for innovative service in machine manufacturing."  

Look forward to the next edition of the PARTS FORUM in 2025! 

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