• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
File - Novi Cat Rack
File - Novi Cat Rack

... Section 25.2 • Four factors affect pricing: costs and expenses, supply and demand, consumer perceptions, and competition. • The law of supply and demand means that, in general, demand goes up when price goes down and demand goes down when price goes up. continued ...
ch.6
ch.6

Marketing
Marketing

... Market-research companies keep records of the typical consumer in a given area. They can then provide statistics based on Age, Annual Income, Ethnic or ...
Marketing and promotion in travel and tourism
Marketing and promotion in travel and tourism

... Many people are against advertising, partly because it adds to the cost of a product. People also say that the influence of advertising is too great, and that children especially want every product they see advertised. The marketing process in tourism Every day of our lives we can see examples of tr ...
Are you smarter than a 5th grader - STUDIOUS
Are you smarter than a 5th grader - STUDIOUS

Price
Price

Product Services Marketing
Product Services Marketing

... • Break-even point is the quantity where total revenue equals total costs. • Contribution point= ...
Informatika
Informatika

... industry. These units typically "break even", generating barely enough cash to maintain the business's market share. ...
Making Startup Effec..
Making Startup Effec..

... Businesses can survive if they do not have customers False To be successful a business must sell their product at a price that a customer is willing to pay True A business needs to carry out market research to find out what their customer needs are. True A consumer is someone who buys a product. Fal ...
Market Research Process
Market Research Process

... – Example: Identify most important attributes (price, warranty, service and brand) and tradeoffs involved for end-users of a laptop computer manufacturer ...
Market Research Process
Market Research Process

... – Example: Identify most important attributes (price, warranty, service and brand) and tradeoffs involved for end-users of a laptop computer manufacturer ...
File - Colbourne College
File - Colbourne College

Ch 2 - International Business courses
Ch 2 - International Business courses

... Step 1: Define the Business Mission ...
Marketing Flash Cards
Marketing Flash Cards

... customer relationship management ...
developing pricing strategies
developing pricing strategies

... • How should a company set prices initially for products or services? • How should a company adapt prices to meet varying circumstances and opportunities? • When should a company initiate a price change? • How should a company respond to a competitor’s price challenge? Copyright © 2009 Pearson Educa ...
You may not recognize our name, but you know our products.
You may not recognize our name, but you know our products.

... ASO has become the market leader in producing high-quality consumer wound and health care products which are now the preferred choice for consumers in the USA and abroad. ASO products are primarily sold under the brand name of mass merchandisers, food & grocery retailers, drug store chains, as well ...
Chapter 12 Dimensions of Marketing Strategy
Chapter 12 Dimensions of Marketing Strategy

... True / False Questions ...
What is Marketing?
What is Marketing?

...  What are a few things that keep price levels fair? ...
Marketing Mix Handout
Marketing Mix Handout

... target market and influence them to buy the product. Marketing mix decisions also affect each other. For example, the decision to make the price of the car as low as possible affects the product decision. The car will have to be made as inexpensively as possible so that the price can be as low as po ...
Marketing is…
Marketing is…

... are driven to attain purchasing power to buy ______ & ______. ...
Blank Jeopardy
Blank Jeopardy

... marketing manager is a part of top management, success is based on customer satisfaction, and marketing personnel work with other people in the business. ...
the impact of price-endings on the customers perception and
the impact of price-endings on the customers perception and

... keep them sustainable and progressive with leveraged sales and profit. The price-ending or psychological pricing is the pricing strategy which has been keeping the organizations sustainable with augmented sales and profitability for more than a century, especially in the retail sector. The price-end ...
Market Plan – Outline
Market Plan – Outline

... product or service at first and then reduces the price overtime  Market Penetration Pricing – is a pricing strategy used by marketers when the price of a product or service is initially set low in order to rapidly reach a wide fraction of the marketplace. This strategy works best in a market with g ...
WEEK 1 Marketing Marketing
WEEK 1 Marketing Marketing

... one  selling   4) Market  orientation  (mid  to  late  1900s):  too  many  ranges  of  products  =  determine  what  potential   customers  wanted  and  made  products  to  suit  !  responded  to  market’s  needs  and  wants   5) Societal ...
Monopolistic competition
Monopolistic competition

... products are as a result of differentiation so that the product will look different in the names but all of them are similar. Prices of this brands are usually higher and consumer are forced to pay more for a product that he/she could have bought it cheaply. Normally, the brand names are registered ...
< 1 ... 142 143 144 145 146 147 148 149 150 ... 202 >

Service parts pricing



Service Parts Pricing refers to the aspect of Service Lifecycle Management that deals with setting prices for service parts in the after-sales market. Like other streams of Pricing, Service Parts Pricing is a scientific pursuit aimed at aligning service part prices internally to be logical and consistent, and at the same time aligning them externally with the market. This is done with the overarching aim of extracting the maximum possible price from service parts and thus maximize the profit margins. Pricing analysts have to be cognizant of possible repercussions of pricing their parts too high or too low in the after-sales market; they constantly have to strive to get the prices just right towards achieving maximum margins and maximum possible volumes.The after-sales market consists of service part and after-sales service. These areas often account for a low share in total sales, but for a relatively high share in total profits. It is important to understand that the after-sales supply chain is very different from the manufacturing supply chain, and hence rules that apply to pricing manufacturing parts do not hold good for pricing service parts. Service Parts Pricing requires a different outlook and approach.Service networks deal with a considerably higher number of SKUs and a heterogeneous product portfolio, are more complex, have a sporadic nature of demand AND have minimal response times and strict SLAs. Companies have traditionally been content with outsourcing the after-sales side of their business and have encouraged third-party parts and service providers in the market. The result has been a bevy of these operators in the market with strict price competition and low margins.Increasingly, however, companies are realizing the importance of the after-sales market and its impact on customer retention and loyalty. Increasingly, also, companies have realized that they can extract higher profit margins from the after-sales services market due to the intangible nature of services. Companies are investing in their after-sales service networks to deliver high levels of customer service and in return command higher prices for their parts and services. Customers are being sold the concept of total cost of ownership (TCO) and are being made to realize that buying from OEMs comes packaged with better distribution channels, shorter response times, better knowledge on products, and ultimately higher product uptime.The challenge for companies is to provide reliable service levels in an environment of uncertainty. Unlike factories, businesses can’t produce services in advance of demand. They can manufacture them only when an unpredictable event, such as a product failure, triggers a need. The challenge for Service Parts Pricing is to put a value to this customer need. Parts that are critical, for example, can command higher prices. So can parts that only the OEM provides in the market. Parts that are readily available in the market cannot, and must not, be priced to high. Another problem with after-sales market is that demand cannot be stimulated with price discounts, customers do not stock up service parts just because they are on discount. On the up-side, the fact that most service parts are inelastic means pricing analysts can raise prices without the adverse effects that manufacturing or retail networks witness.These and other characteristics of the after-sales market give Service Parts Pricing a life of its own. Companies are realizing that they can use the lever of service part pricing to increase profitability and don't have to take prices as market determined. Understanding customer needs and expectations, along with the company's internal strengths and weaknesses, goes a long way in designing an effective service part pricing strategy.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report