Price-volume elasticity is a concept about demand elasticity that’s commonly taught in B-school. The key word here is concept — it isn’t a law (like the law of gravity) — and the entire precept of price-volume elasticity doesn’t apply to the service parts industry. The reason for this is that price-volume elasticity is a retail-focused…
With the economic downturn clearly in the aerospace industry’s jet wash, executives are hopeful about its future. Forecasts show that the industry is taking off with nothing but clear skies ahead. The sector is expected to grow at a greater than 5% 5-year CAGR, with a predicted market value of over $1 trillion by the…
The worldwide service parts original equipment and aftermarket industries remain an economic force, and companies continue to search for ways to positively influence margins. To become leaner and more efficient, these organizations capitalize heavily in enterprise application software to automate, improve and measure their business functions and processes. There is little doubt that these investments…
Even in a tough economy, organisations still face the same challenge each year: hitting bigger quotas. For service parts manufacturers and distributors dealing with multiple channels, thousands of customers and millions of products, achieving sales growth can be like finding that proverbial needle in the haystack. Then there are additional forces to contend with, such…
… but Superman does not use avionics, why should I? It can be said that a pilot flying without avionics is similar to aftermarket service part companies trying to achieve pricing excellence without pricing software. It’s just something you don’t do! After attending the webinar, The Case for Pricing Software in the Service Parts Industry…
Before compact discs, iPods and the Zune, Pandora and Spotify, vinyl records were the way to play music. And to any “real” music lover, over the past two decades we experienced a slow painful death of vinyl, only to see a resurgence during the last five years with the music industry taking a step back…
This is the second entry of a two-part series on pricing in the service parts industry. Question: What is supersession pricing and why is it important? Answer: Supersession pricing links prices between Part-B and Part-A, where Part-B does the same job as Part-A. The primary concept surrounding supersession pricing is why the part was superseded: …
This is the first of a two-part series on pricing for the service parts industry. Question: Is it important to consider a part’s lifecycle when pricing the part? Answer: Lifecycle has to do with a part’s stage of life. In my opinion, it really isn’t a clear concept. The term is derived from a consumer…
You hear a lot about big data but do you really know how to use it? With so much being written about big data topics in virtually every communications realm, sales and business executives are looking for ways to apply innovation with their big data applications to drive sales growth and to increase their profitability….
Last month I attended Europe’s Aftermarket Business Platform 2012 in Copenhagen for the first time, and I must say I was very impressed with this event. It was very well attended, and the atmosphere was buzzing from the beginning to end. PROS was proud to be a gold partner and to evangelise the power of…
Jacqueline Davis says:
Hi Siva,
Thanks! I couldn’t agree with you more on the...
Jacqueline Davis says:
Hi Rikhath,
The question of why your company needs a pricing team...
Siva Ram Yellapragada says:
Simply awesome !!
We have a strong pricing team in our global...
Rikhath says:
Also in enterprise products world do you think Product operations would...
Rikhath says:
Hi Jacqueline,
We fighting the same battle and I out...
