Profitability
Service can offer higher gross margins
In times of economic uncertainty, many customers will reduce new product purchases and invest in maintaining existing ones.
How Service Secures Profitability
How We Help Companies Drive Service Profitability
Service Plans
Conduct a proper Voice of Customer (VoC) and Validation specifically for service ensures services are priced correctly. What a specific customer group values is not necessarily the same as what a different group does. We have developed a service plan methodology that not only identifies the key attributes customers values, but most importantly, how much they are willing to pay for it.
Spare & Consumable Parts
Most companies approach pricing for spare and consumables just like they do products. Typically the Finance and/or parts logistics departments deploy a cost-plus method that applies a percent increase to all parts annually. Our approach to pricing spare and consumable parts involve multiple variables to optimize spare and consumable pricing. When we optimize spare and consumable parts pricing, customers stay loyal, and competitors have little room to undercut with lower prices.
Value-Added Services
As a Service organization evolves, value-added services like applications support, product or service training, remote services, or even predictive services become a much more important aspect of the business. Each one of these services has its value, and in some cases, can actually be the key to also selling the product. This also the reason why many product managers and commercial teams want to give them away for free. We help companies monetize these services and ensure that they are a highly profitable part of their business.
Time and Material (T&M) Services
T&M Services are essential services customers buy on a pay-as-you-go basis. The most common is a field service visit. Still, it could be a factory/depot repair event, a technical support call (if already monetized), application support, and so on.
Our expertise in every aspect of the Service business will ensure that T&M services are profitable and properly positioned versus bundled services.
