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CEO's Success Agenda 2024:
Scaling the Parts Business

The competitive landscape of today's business world requires leaders to constantly seek new and existing avenues for growth and success as well as shaping the strategic direction of a company. As we approach 2024, one key objective has emerged on the CEO's radar: scaling the parts business.

SUCCESS AGENDA 2024

Turn Your Parts Business into a Profit Center

The after sales and parts business in the machine manufacturing industry can be regarded as a potential gold mine. While the initial sale of machines generates revenue, the aftermarket presents a great opportunity for sustained profitability.

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SUCCESS AGENDA 2024

Prioritizing Your Parts Business for 2024

These are the three key insights that every CEO in the manufacturing industry should note when preparing their parts business for 2024:

01 Opportunites in the Life Cycle Business with AI →

All about AI in machine manfacturing. Begin leveraging existing opportunites in Life Cycle Business with AI. 

02 Parts Business as a Potential Mine →

Your parts business is a potential mine: Learn how to realize this potential in your company.

03 Gain Profitability in 2024 →

Forecast and outcomes: Learn how to gain market share, profitability & future resilience in 2024.

SUCESS AGENDA 2024

01 Opportunities in the Life Cycle Business with AI

Begin leveraging existing opportunities in the life cycle business with AI. It holds significant potential in machine manufacturing and scaling the parts business, both in 2024 and beyond.

With advancements in AI technology, manufacturers can leverage its capabilities to optimize various aspects of the parts business and drive growth:

AI and Parts Pricing

Harnessing the power of AI, machine manufacturers can leverage market dynamics, competitor pricing and more to gain valuable insights into optimal pricing opportunities for their parts. This empowers businesses to achieve a competitive edge by setting prices that strike the perfect balance between attracting customers and maximizing profitability.

AI and Increased Efficiency

By utilizing AI, manufacturers can analyze vast amounts of data related to market trends, customer behavior and competitor pricing, enabling them to quickly determine the optimal prices for parts. This not only saves time and effort traditionally spent on manual pricing research but also ensures competitive pricing strategies that are data-informed.

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News & blog articles about parts management

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CEO'S SUCCESS AGENDA 2024: Scaling Your Parts Business

Get our free whitepaper and learn how to gain profitability and relevance in 2024 in after sales.

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SUCCESS AGENDA 2024

02 Parts Business as a Potential Mine

The after sales and parts business in the machine manufacturing industry is a potential gold mine: manufacturers generate 40-50% of their overall profits from services. Still, there is opportunity to generate even more.

The main potential in the parts business lies in parts pricing. 

Implementing innovative technologies and solutions is crucial to stay competitive in today's ever-growing digital landscape. Staying open to these types of solutions, especially when centered around the parts business must become a priority. Your  a market-based parts pricing strategy is of utmost importance as it enables machine manufacturers to accurately reflect market dynamics in their parts pricing. By aligning prices with the perceived value of parts in the market, businesses optimize revenue, increase profitability and gain a strong competitive advantage.  

230512_Infographic OEM increases parts revenue
PROVEN RESULTS

$4MM accumulated new revenue within 2 years using market-based pricing

Aftermarket parts can generate significant revenue and profits, are you doing all you can to capitalize on the opportunity? Lower effort with a compelling return on investment and benefit from $4MM accumulated revenue in under 24 months.

WHY SCALE YOUR PARTS BUSINESS?

Manufacturers leave money on the table for 73% of their purchased parts

The biggest challenge in spare parts pricing? Nailing the perfect selling price.

The solution? A market-based spare parts pricing strategy. Shockingly, only 4.1 % of all spare parts are priced in line with the market - use your potential and maximize sales, profit and customer satisfaction.

Analyzed parts pricing potentials show: most OEMs miss out on potential revenue on their parts business
SUCCESS AGENDA 2024

03 Gain Profitability in 2024

Achieving market share, profitability & future resilience. When you dedicate effort to scaling your parts business, you reap the positive results.

  • 620f76106de2236f6c54f317_60510e73b926f4775b98450b_vollert

    "With MARKT-PILOT's solution, we sustainably evaluate our potential in parts pricing. PRICE-RADAR makes it easy with clear reporting and exports. The service offers an enormous value for us, due to the market insight they provide. "

    220912 VOLLERT Marcel Pfahler_Kreis
    MARCEL PFAHLER Vice President Service, VOLLERT Anlagenbau
  • Dieffenbacher_Logo

    “The partnership is a complete success. The MARKT-PILOT solution not only performs reliably - the team supports us with any of our questions and tailors the software to our requirements.”

     
    Ralf_Schmidt_Dieffenbacher_Kreis
    RALF SCHMIDT Head of Global Service Wood & Recycling, DIEFFENBACHER GmbH
  • Optima Packaging Group

    "MARKT-PILOT succeeds in providing a trusted solution to a crucial issue within the engineering sector, mapping the quintessence and benefits in their software. The added value for OPTIMA is massive - thanks to newly acquired insights, we can align our prices with the market and optimize our supply chain. MARKT-PILOT speaks the language of machine manufacturers!" 

     
    Pascal Wolf OPTIMA_Kreis
    PASCAL WOLF Team Lead Spare Parts, OPTIMA packaging group

Outcomes and Findings for Your Business in 2024

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Gain Market Share

By offering a comprehensive range of high-quality spare parts and ensuring that they are priced fairly according to the market, manufacturers become a preferred choice for customers. This increased market share can be achieved through improving innovation, excellent customer service and a reputation for reliable and strong pricing, establishing the manufacturer as a trusted and go-to source for spare parts.

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Increase Profitability

Manufacturers can leverage higher profit margins associated with spare parts and strategically price them to maximize profitability. By providing reliable parts, value-added services, and cultivating customer loyalty, manufacturers can differentiate themselves and generate repeat business, leading to sustained revenue streams and improved profitability.

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Stay Competitive & Relevant

Access to market insight on spare parts pricing enables manufacturers to optimize their pricing strategies, analyze costs and manage their product portfolio effectively. By understanding market trends and competitor pricing, manufacturers position themselves strongly in the market while simultaneously maximizing profitability.

SUCCESS STORIES AND USE CASES

Proven Results

Explore the amazing success stories of our customers and discover how PRICE-RADAR is allowing machine manufacturers to gain a competitive advantage and unlock their full potential.

REAL-WORLD RESULTS

Our Customers Strengthen their Parts Business with Market Intelligence 

Our 150+ customers have seen great success with a market-based parts pricing strategy. For HOLMER Maschinenbau GmbH, before working with MARKT-PILOT, they used a cost-plus pricing strategy, where additional research to check the price positioning could only be carried out for two to three larger components and involved a lot of effort. The market remained a black box. Now, with MARKT-PILOT's PRICE-RADAR and easily implementing a market-based pricing strategy, HOLMER sees the potential for price reductions, price increases and exclusivity positions, and spare parts prices can be adjusted to the current market in a fact-based and competitive manner.