Manufacturers and distributors across Europe are feeling the pressure: rising costs, growing competition, and increasingly complex product portfolios are squeezing margins in ways traditional pricing models can’t keep up with. Here’s what to do about it.
During our recent event in Milan, Vendavo and and a partner brought together leaders from across the aftermarket to explore how modern pricing strategies and intelligent technology can drive stronger, more resilient profitability.
Here are five high-level insights that resonated strongly with the audience and continue to shape how aftermarket organizations approach pricing today.
1. Cost-plus pricing is holding businesses back
One theme emerged loud and clear: Cost-plus is too blunt for today’s aftermarket. It ignores customer value, competitive dynamics, and product differentiation and, ultimately, leaves significant margin on the table.
Leaders are moving toward a more balanced pricing mix that blends cost-based, value-based, peer-based, and competitive insights. This shift helps organizations capture the true worth of their products while staying responsive to market realities.
2. Pricing complexity is increasing, but it can be
managed
Aftermarket businesses deal with enormous pricing complexity: thousands of SKUs, diverse customer segments, varying market conditions, and discount structures that can quickly become unwieldy.
The takeaway? Complexity isn’t the enemy. Unmanaged complexity is. Organizations that invest in structured rule sets, clear pricing hierarchies, and consistent governance can turn what feels overwhelming into a scalable advantage.
3. Local market dynamics matter more than ever
Pricing alignment across regions is a perennial challenge. One insight from the session was the growing importance of local market factors, including currency, competition, demand patterns, and regional willingness to pay.
Leading companies are building frameworks that balance central guidance with local flexibility, enabling each market to adapt prices without losing strategic cohesion.
4. Discounts need more discipline and
transparency
Many organizations still rely on discounting as a “quick fix,” but that approach often masks deeper pricing issues and erodes margin.
Attendees aligned around a few universal truths:
- Discounts should follow clear logic, not gut instinct.
- Customer hierarchies, product families, and deal sizes must be treated consistently.
- Sales teams need structure and visibility, not more manual work.
A disciplined discount framework helps protect margin without slowing down the sales process.
5. AI is becoming a force multiplier for lean pricing
teams
Pricing teams everywhere face the same challenge: too much data, not enough time. AI-driven assistance, especially when built with industry context, transparency, and human oversight. This helps teams move faster, make better decisions, and focus on strategic work instead of wrangling spreadsheets.
Leaders showed strong interest in how AI can:
- Surface insights faster
- Simplify analysis
- Recommend pricing actions
- Automate routine decisions
- Keep humans in control where it counts
These themes all point to the same conclusion: Aftermarket businesses are ready to modernize, but they need the right strategy and the right partners to guide the way. That’s where we come in.
Let’s Talk About What’s Possible
If you’d like to explore any of the ideas discussed during the Milan event, including whether it’s modernizing your pricing approach, streamlining discount logic, or putting AI to work for your team, we’re here to help.
Reach out to start the conversation today.