Pricing for Service Parts

Service parts organizations enjoy healthy margins because they are complex businesses. They have unique challenges because of the high volume of part numbers they are required to manage, and the ever changing sales demands and competitive landscape.

These business characteristics have profound implications on pricing and result in a number of pricing challenges. For example, most organizations are unable to optimally price all parts effectively due to the sheer volume of both information and parts. There is a heavy reliance on the conventional pricing approaches that use historical ‘cost plus’ methods and there is little, if any, overriding strategy and minimal analysis of past pricing actions.

The Vendavo Enterprise Pricing Suite is a comprehensive solution that helps service parts companies manage their inherent pricing complexities and realize dramatic improvements in profitability. The Vendavo Enterprise Pricing Suite addresses the price and margin improvement requirements of service parts companies, focusing on four key solution areas:

1. Efficient and accurate price management and administration
2. Segmentation of parts to optimize pricing
3. A closed loop system for the analysis of price and margin performance
4. Management of customer specific pricing via discounts and rebates to optimize customer-specific revenue

Vendavo facilitates efficient, proactive management of prices and margins, which is ideal for tackling the complexities inherent in the typical service parts business. Despite high volumes of parts with ever changing sales demands, Vendavo provides the capabilities and processes to ensure that prices and margins are continually optimized.