Value-Based Pricing Through the Service Part Lifecycle

Price is a key success factor in service, particularly in after-sales, but the best pricing approach uses a value-based pricing methodology that considers the unique aspects of service parts. A McKinsey study recently recommended expanding OEM after-sales lifetime value by re-pricing spare parts more dynamically. With this data-based approach, OEMs can achieve 3-10 percent EBIT […]

Service Pricing: The Key Success Factor in After-Sales Service

People inherently understand the value of good service. Who can forget a trip to Disney or a stay at a world class hotel – their first truly outstanding experience where customer service went above and beyond? But who also remembers a truly bad service experience – whether it was heard from a friend or seen […]

Amazon and The eCommerce Effect on Manufacturing Today

The Amazon Effect: By serving up goods at an almost laughably competitive price difference than most storefronts, along with a delivery time and tracking experience that resembles the perfect blend of Jimmy Johns sandwich delivery and Uber ride share combined, ecommerce is waging war on the consumable goods market, with service parts serving as their one […]

Changing Customers and the Evolution of Service Expectations

A large part of our changing world is the continuation of emerging technologies that are affecting after-sales services. From drones, to augmented reality, IoT, autonomous vehicles, 3D printing, and more, it’s clear that after-sales service needs to adapt alongside with these changes. But what’s changing the most rapidly? Customer service expectations. In this constantly connected world, customers […]