Optimizing Returns with Smarter Product Segmentation – Part Three

Welcome back to the final installment in this series on price segmentation, optimizing returns. If you missed part one and part two, be sure to read them first to get up to speed. (We’ll wait.) Picking up where we left off last time, we covered the three most common ways to structure segmentation. Now let’s […]

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Optimizing Returns with Smarter Product Segmentation – Part Two

Welcome back to our three-part series on using product segmentation to increase returns. In the first post of this series, we covered the basics – why we use segmentation and which pricing methods work best for different parts categories. Let’s pick it up where we left off, looking at opportunities to differentiate. How can we […]

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Optimizing Returns with Smarter Product Segmentation – Part One

It’s no secret that accurately segmenting your service parts will produce the best results when setting prices. However, doing spare parts segmentation “right” is another thing altogether, especially when pre-determined categories created by engineering and product development tend to shape much of the strategy. So, while product segmentation is a popular pricing method that’s commonly […]

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The Uniqueness of Service Parts Pricing: Why After-Sales Service Focus is Key

With an after-sales service focus becoming an increasingly important and strategic focus area for manufacturers around the world, why is it that so many organizations are resisting investing in solutions dedicated solely to its optimization? Original equipment manufacturers (OEMs) that continue to rely on homegrown pricing solutions, or solutions that are too broadly focused on […]

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Bringing Your I.T. Team Along on Your Pricing Journey

Implementing a new pricing solution isn’t something that happens overnight, and it’s not a decision that’s made lightly – especially for original equipment manufacturers (OEMs) that have been running manual processes for decades. That’s why one of the key components of a pricing project’s success is partnering with a provider that is equipped to handle […]

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Leveraging Pricing Technology to Empower Talented Pricers

When blending the art and science of pricing, intelligent pricing technology is needed to tackle the true automation side of the pricing process. Take a traditional, spreadsheet-based pricing environment, for example: common activities include managing documents, managing data and making sure systems are running without error. In fact, in our experience, nearly 80% of manual […]

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Blending Behavior with Automation Through the Art and Science of Pricing

When designing the future state of service parts pricing, there’s a series of advanced pricing methodologies available. But, as OEMs mature in each level of price method, more information will be required of them. From deeper business intelligence, to higher skillsets within the workforce and more, OEMs need to have a realistic understanding of what […]

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Finding Your Place on the Service Parts Pricing Maturity Curve

After-sales service is an increasingly important aspect of manufacturers’ success – and achieving service parts pricing maturity is a critical way for manufacturers to meet margin and revenue goals in a new servitization-driven environment. However, the complexity of service parts planning, as well as the many locations, channels and distribution levels at which those parts […]

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Are Your Spreadsheets “Too Basic” for the New Basics of Pricing?

Strategic pricing is at the foundation of the new basics of pricing – proactively developing a structure (such as a price segmentation and defined pricing rules) where the best possible outcome of margin and revenue – as defined by the company’s business objectives – occurs as a natural result of the structure. According to Gartner, […]

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9 Reasons Why Your ERP Can’t Handle Global Price Management (Part 2)

Part 2: Does your solution have the key elements to support your organization’s pricing process? Information gathering, price decision making, price execution, and price evaluation and adjustment are key activities in a successful pricing process. Here, ERP systems will be able to execute, but the other elements are missing for an efficient process. ERP systems […]

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