2008 Articles
February 01, 2008
Integrated Solutions: "Uncover Untapped Revenue With Improved Service Parts Pricing"
These days, more science and less art is needed when it comes to service parts pricing.
Integrated Solutions, February 2008
Written by: Mike Landry, Founder and Chief Technology Officer for Servigistics
A few months ago, my wife and I decided to tackle that nefarious task of cleaning out the basement for a garage sale. “Honey, how much for this?” my wife asked as she held up a stainless steel boat propeller that I’d purchased years ago. How much indeed. I bought that propeller for over $500 and never used it. What is it worth now? “Oh, just list it for 50 bucks,” I said. Maybe I’d get $25 for it. Which made me wonder, would I be making $25 or losing $475? And at the end of the garage sale, when our cash box is clinking with quarters, nickels, and dimes, will we be making money by selling these items at such low prices, or should we mark the prices higher based on their current market values?
So it goes with the pricing of service parts, which has been more of an art than a science, a reactive process rather than a proactive one, a tactical process rather than a strategic one.
To read the complete article on the magazine website, please click here.
