PRICING SOFTWARE

Efficient Pricing in Machine Manufacturing: Spare Parts Pricing Software

In today's competitive landscape, relying solely on cost-plus pricing is no longer sufficient. The key to staying ahead lies in adopting efficient and innovative software solutions.

Our comprehensive guide outlines the essential elements of a modern spare parts pricing software tailored specifically for the machine manufacturing industry. Discover how leveraging pricing software can significantly enhance your competitiveness and excel your business.

SERVICE 4.0

Spare parts business is undergoing change

The days of simple spreadsheets and simple price calculations in the spare parts business are long over: pricing software for spare parts are becoming more and more sophisticated: With the increasing dynamics of the market, pricing is also becoming more complex. A pricing software is the solution in this case, enabling digitalization not only to pave the way to Industry 4.0, with the right software it can also pave the way to Service 4.0.

HERE'S HOW IT WORKS

A pricing software analyzes, manages and sorts price information and thus, simplifies pricing.

By pricing software, we mean adaptable software that machine manufacturing companies use to define and manage their own prices for spare parts, for example. This is then usually used to forecast, optimize and implement a company's pricing strategies. The flexibility of a pricing software also allows companies to set individual prices for specific markets and discount promotions and adjust them accordingly. Pricing software helps companies in the mechanical and plant engineering sector to make short and long-term pricing decisions that have a lasting effect on the company's sales and margins to optimize pricing processes.

PRICING SOFTWARE FOR SPARE PARTS

Implementing Pricing Strategies in the Spare Parts Business With a Pricing Software

An efficient pricing strategy is crucial for success in after-sales for machine manufacturing, particularly when it comes to spare parts. It serves as a valuable pricing guide and plays a vital role in determining the pricing software to be used.

However, the pricing strategy extends beyond the mere utilization of pricing software . It encompasses the objectives established for after-sales and aids machine manufacturers in determining the sales prices for spare parts. Moreover, it takes into consideration several relevant factors that influence the decision-making process for setting the optimal price.

By employing pricing software in a targeted manner, these pricing strategies can be effectively implemented, leading to maximum profitability in the spare parts business and the attainment of competitive advantages.

Pricing software for successful price management

An exceptional pricing tool for spare parts should prioritize enhancing operational efficiency and optimizing business success. In an era of rising transparency and an expanding array of comparison options, pricing complexities have surged. Thus, it has become vital to incorporate market awareness, including third-party offers and prices. By integrating these factors, our innovative pricing tool streamlines processes, fosters transparency, and empowers businesses to achieve maximum profitability.

Our must-have features at a glance:

Market data in the software
Dashboard and forecast
Flexibility
Audit history
Expansion possibilities

The optimal software therefore presents not only its own market information, but also the relevant information of competitors.

An ideal pricing software should include features that enable sales staff to generate customized prices for individual customers or customer groups. These functions should consider various factors such as volume, payment terms, contract terms, customer value, and objectives. Furthermore, pricing solutions should provide analytical capabilities that assist in implementing the defined pricing strategy based on the mentioned criteria. By simplifying and digitizing the pricing process, a pricing software becomes valuable as it enhances efficiency.

Secure competitive stance in the market

In a marketplace where competition is fierce, getting the pricing right is key to success. Prices mainly determine whether a product becomes a slow seller or a best seller. Pricing software helps to understand demand and price elasticity, make informed pricing decisions and map the current market. The tools provide information about competing price points in the market.

Increase profit margins

In situations where a company struggles to assess the value of its product, there is a risk of financial losses or compromising profit margins. Pricing software plays a crucial role in enabling companies to comprehend the true value of their products and establish an optimal price point. By leveraging insights from current pricing and lead time data, pricing software empowers companies to justify higher prices when appropriate or effectively market lower prices, particularly if the product delivers superior value compared to competitors.

A pricing software serves as a centralized hub for all pricing data, streamlining the time-consuming and manual process of data evaluation. It facilitates the implementation of diverse pricing strategies and forms the foundation for swift responses to market fluctuations. It's important to note that the effectiveness of any software, including pricing tools, hinges on the quality of data it is provided with, as it significantly influences the final outcomes.

What do you have to look for in a spare parts pricing strategy?

"In the end, prices have to be competitive and able to survive in the market in order to maximize sales and company success. For this, the right pricing tool is a crucial factor. Especially in the key account area, it is important to have a stable data situation and market overview. A market-based pricing strategy for spare parts provides important negotiating advantages here."

What features must a good pricing tool have?

"A good pricing tool must be able to take into account prices researched on the market. Regular price research and collection of market data are important to be able to determine prices correctly. For most machine manufacturers, the spare parts business is the key to corporate success and sales increases. Relying solely on overhead costing is no longer enough to survive in the market and operate the spare parts business profitably."

Automated market price research provides mechanical engineering companies with all the information on prices and delivery times for their spare parts in one overview, enabling them to act accordingly and establish market-oriented pricing. With spare parts prices that are based on current and sound data and are fairly aligned with the market, companies gain the trust of (new) customers and counteract the price sensitivity of buyers.

PRICE-RADAR enables data-based and intelligent pricing decisions thanks to first-time transparency on competitors, prices and lead times:

Assistance in implementing the market price information.
Carrying out a risk analysis by considering critical value drivers
Defining a parameter by which to measure the confidence level of pricing decisions.
Minimizing manual effort to arrive at a successful pricing decision across a larger number of parts.
Making revenue and margin visible and predictable - revenue simulation.

Simple Implementation

Ready to use in less than 30 minutes. No integration or training required.

Accurate Results

PRICE-RADAR takes over market price research for spare parts and delivers validated results through a 1:1 comparison.

> 4,000 Suppliers Searched

Automated market insight: PRICE-RADAR searches more than 4,000 suppliers and compares prices and delivery times of all spare parts.

OPTIMA Packaging Group

Proactive spare parts sales only functions with market data

KÄRCHER Municipal

KÄRCHER introduces a market-based spare parts pricing strategy

HOLMER Maschinenbau

More sales and more customer satisfaction simultaneously

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