In a recent episode of the Service Council’s inService™ podcast, Cole Sutter, Syncron’s VP of Global Customer Success, sat down with Gerardo Pelayo to unpack how service parts strategy can unlock real business value, from margin expansion to stronger customer relationships and a more empowered frontline.
We’ve picked three key moments that highlight just how critical service parts are, not only to operational success but to your bottom line. Scroll down for more or watch the full episode on YouTube.
1. Service Parts: Putting the ‘P’ in P&L
Forget the myth that profitability ends at the point of sale. In many industries, service parts and aftermarket services outperform new equipment sales when it comes to margin and long-term revenue.
“Aftermarket services typically achieve margins at least 2x those of new product sales… and in some cases up to 10x. Many manufacturers earn 40–50% of their total profits from services, while the new equipment sale may only break even.”
By getting the right part to the right place, at the right time (and at the right price), OEMs can unlock new revenue streams, improve loyalty, and even offer premium services like uptime guarantees.
2. No Part, No Fix: What It Really Costs
When a part is unavailable, the consequences are immediate—lost revenue, missed SLAs, and frustrated customers. And in industries like trucking or agriculture, the ripple effects can be huge.
“One of our customers, a major auto OEM, guarantees part delivery to the dealer in under 30 minutes. That started as a customer service initiative and has turned into a huge competitive advantage for them.”
It’s simple: service quality depends on parts availability. Every delay chips away at customer trust and your brand reputation.
3. Equip the Frontline, Empower the Business
Technicians are the face of your service operation. But even the best talent can’t succeed without the right tools, and that includes parts.
“Nobody wants to feel like they don’t know how to do their job. You have to enable them to be successful, so they can make the customer successful.”
When frontline workers are properly equipped, it doesn’t just improve fix rates. It improves morale, reduces turnover, and boosts your brand promise.
Want More?
These clips only scratch the surface.
Check out the full conversation to hear Cole’s take on data strategy, service contract design, and how top OEMs are evolving their aftermarket operations.