Aftermarket Should Not Be an Afterthought!
January 13, 2024
Aftermarket is a profit center that many global manufacturing companies are seeking to develop due to its high returns. According to Deloitte, companies with aftermarket revenue below 24% of total revenue are likely missing out on a highly profitable opportunity. In fact, aftermarket margins are on average 2.5 times those of new sales.
At Bellevue International, our goal is to accelerate aftermarket and service revenue and margin growth by focusing on six key areas:
Aftermarket product portfolio: We help our clients develop Good-Better-Best tiered solutions, kit strategies, remanufacturing, digitalization, and other services.
Pricing optimization: We employ a range of pricing strategies, including list vs.net pricing, level pricing, annual adjustments, and pricing optimization.
Go-to-market strategies: We advise on a variety of go-to-market strategies, including Original Equipment Manufacturer (OEM) vs. Independent Aftermarket (IAM), distribution and service center channels, and eCommerce.
Promotional initiatives: We offer a range of promotional initiatives, including sales strategies, support programs, promotions, incentives, and rebates.
Process improvements: We recommend process improvements regarding Key Performance Indicators (KPIs), reporting, forecasting, and business reviews.
Talent development: We support the development of our clients’ commercial organizations to improve their sales skills, customer service, and upselling abilities.
At Bellevue International, we are committed to accelerating aftermarket and service revenue and margin growth for our clients. If you have any questions about how we can help your aftermarket business, please do not hesitate to reach out to Bellevue International.