Unveiling Five Key Insights From Syncron Pricing Days

On September 13 and 14, Syncron hosted its Pricing Days event in Chicago. What an insightful couple of days we had! At this one-of-a-kind aftermarket price strategy event focusing on service parts and contract pricing, we learned, laughed, networked, talked openly about problems pricing professionals face today, and tackled topics like AI. But most importantly, we had a great time doing it.

It’s remarkable how vastly diverse industries—from aerospace to automotive—can unite to discuss similar pricing challenges. Syncron Pricing Days brought together professionals from various sectors to dive deep into the world of aftermarket pricing. Here are some of the key highlights and insights from the event:

The AI/ML pricing revolution

AI/ML is top of mind for almost everyone. We surveyed our attendees and found that over 50% of the audience identified AI/ML in pricing as the number one topic they wanted to discuss. AI is undoubtedly a hot-button issue, and many leaders are grappling with where to start their digitalization journey.

Sean Geraghty, director of value engineering at Syncron, engaged with attendees and shared our approach to top-down price optimization. Geraghty introduced innovative ideas to streamline the modeling process, making technical concepts like the efficient frontier curve truly exciting!

Mitigating challenges with service contract pricing

Service contract pricing is such an interesting, nuanced topic, and our attendees shared this sentiment as they explored its challenges and complexities. For instance, imagine pricing parts or whole products without clear visibility into the underlying costs. Syncron mitigates this challenge by harnessing historical warranty claims data on similar contracts. This data-driven approach allows us to determine the cost of servicing OEM contracts effectively.

The lingering impact of inflationary pricing

Even though we’re several years out from the start of COVID-19, inflationary pricing is still a problem for many service leaders. This challenge has evolved, with many prices decreasing, and the focus has shifted to preserving market share for highly competitive parts. Additionally, there is a stronger emphasis on identifying market-captive parts, which can typically withstand small price increases.

Knowing your value is key

At the event, one of our valued partners, Ducker Carlisle, introduced several fascinating ways to identify a part’s value in the market. Participants delved into the Van Westendrop analysis and conjoint analysis to systematically determine which part attributes are valued in the market. Ultimately, these value-determination approaches serve as powerful practitioner tools in the ongoing battle against inflationary pressures and the need for price adjustments.

A celebration of pricing

I’m humbled by the event attendees’ commitment to pricing and attention to the topics introduced throughout Syncron Pricing Days. I couldn’t be happier with the discussions and networking opportunities we shared. Pricing is not just a profession—it’s a passion. Syncron Pricing Days was a testament to the dedication of our attendees and our collective enthusiasm for exploring the nuances of pricing strategies.

Syncron Pricing Days speaks to the ever-evolving world of aftermarket pricing. As we move forward, the pricing landscape will undoubtedly continue evolving—and Syncron will lead the way.

Let’s continue to make pricing fun!