What are aftermarket services?
In response, CEOs at industrial OEMs are increasing their focus on aftermarket services—the provision of parts, repair, maintenance, and digital services for the equipment they sold. The appeal of this strategy is simple: services provide stable revenue—and often higher margins—than sales of new equipment.
What is an aftermarket manufacturer?
Aftermarket parts, also called generic parts, are made by a company other than your vehicle’s original manufacturer. They’re brand new replacement parts—not used parts. They’re made by a third-party manufacturer, so they might not be a perfect fit the same way OEM parts are.
How do you grow an aftermarket business?
Some Simple First Steps to Aftermarket Growth
- Offer maintenance contracts.
- Implement consignment part stocking at your larger customers.
- Begin selling wear-part replacement kits.
- Begin looking at your products as a “whole” and capture “all” the parts sold.
What does aftermarket mean in business?
The definition of aftermarket refers to the buying and selling of parts or equipment for a product after the initial product was manufactured and sold. The supply and demand for replacement ink cartridges for a printer is an example of an aftermarket.
Does aftermarket mean used?
What are Aftermarket Parts? Aftermarket parts are replacement parts that are not made by the original equipment manufacturer. Aftermarket parts are used to replace damaged parts in automobiles and other equipment, but their use may alter the coverage of an insured item.
What is an aftermarket strategy?
A very simple aftermarket strategy is to deeply discount the primary product in order to entice new customers into the installed base. The idea is, even if the primary product is unprofitable, a profitable business can evolve in the long-term through aftermarket sales.
What is aftermarket growth?
Size of the U.S. Automotive Aftermarket. The US light-duty automotive aftermarket is a $324 billion industry (2021) with a compound annual growth rate of nearly 4% projected through 2024.
What is another name for aftermarket?
In this page you can discover 3 synonyms, antonyms, idiomatic expressions, and related words for aftermarket, like: oem, auto-parts and null.
What are after-sales services?
After-sales service is any support provided to a customer after the product or service has already been purchased. Companies use after-sales support as a business strategy as it typically leads to higher customer satisfaction, brand loyalty, and even word-of-mouth-marketing.
Do you need a dedicated services organization for aftermarket services?
Other manufacturers may believe that success in aftermarket services requires a strategic reboot, or that companies need to create a dedicated services organization. Our experience suggests that these are all myths. On the contrary, success in aftermarket services can come regardless of a company’s strategy or organizational structure. Why?
What are industrial aftermarket services?
Industrial aftermarket services comprise a wide range of offerings, from spare parts to software to field operations, end-of-life services, and guaranteed up-time (also known as “power-by-the-hour” arrangements).
How can aftermarket services help your business grow?
Companies easily spend years, and millions of dollars, on R&D, prototyping, customer research, and marketing before finding out whether the new offering will resonate with customers. In contrast, growth through aftermarket services offers a comparatively short and straight path to new revenue streams.
Can You monetize industrial aftermarket services?
And it can be quickly monetized, within just weeks in some cases. Industrial aftermarket services comprise a wide range of offerings, from spare parts to software to field operations, end-of-life services, and guaranteed up-time (also known as “power-by-the-hour” arrangements).