manufacturers: create a winning aftermarket strategy
TRANSCRIPT
Create A Winning Aftermarket Strategy
Presented by: Scott Lombard
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Founded in 2010GenAlpha History
Deep parts and service experience
Founding team all come from a large OEM
Born from the aftermarket
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What is your current strategy?
Email campaigns
Are you Inbound? Are you Inbound?
Phone Rooms
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More on your current strategy…
• Selling in cycles
• Do you have dedicated staff?
• In the field
• Reacting to your competition
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What drives your current strategy?
• Pricing to move inventory
• Do you sell consumables?
• What’s your margin?
• What do you want your margin to be?
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Own a patentProprietary to you
What % of parts do you manufacture?
Sole source Build to order %
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What is % of parts you sell?
• Only propriety to you?
• Consumables
• Do you sell vendor parts?
• What is the Parts / per machine value?
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What is the B10 life of the parts sole?
What is the % of available parts sold?
Total installed base = 10,000
What do you sell on average per machine?
What should your % of parts be?
Total sales/installed base = avg. per machine
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Start to build the strategy
• Bases in B10 and industry information, each machine consumes $25,000 / per year
• Total installed base = 10,000• Market value is $250,000,000
• How are you accounting for that?
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• Each machine consumes $25,000.00 / per year
• Total installed base = 10,000
• Market value is $250,000,000
• You sell 30% of the available parts
• Your sales are $50,000,000
• If you captured 100% of all parts you currently sell, your sales should be $75,000,000
Build the strategy using data
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Build your strategy with facts
• Machine base
• Actual available parts market
• Shoot for 80% of available parts on machine• $200,000,000 in sales
• $150,000,000 in growth over X time period
• Start with your best customer relationships
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Get ”buy-in” at the top…you’ll need it.
• Show what you’re selling today and what you’ve traditionally sold
• Show machine population as compared to overall sales
• 10,000 machines at 30% of parts sold = $50,000,000
• Explain B10 life to parts sold ratio • each machine should consume “X” per year = $25,000
• market value of $75,000,000 (at 30% of parts sold)
• Explain the parts that you’re losing to competition • we are only getting “Y” per year = $25,000,000
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Explain the opportunity
• Explain parts that you’ve been losing that you will pick up now under new strategy
• Explain how you will tie the B10 lifecycle to your selling strategy
• Show what targeting 80% of the available parts of a machine will bring• $250,000,000 available market / 80% target gives $200,000,000 market value
• Selling more consumables, vendor parts and high value/mission critical components
• Show the projected growth with a change of how you view your machines• 10,000 machines at 80% of available parts = $150,000,000 in growth over “X” amount of time
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Reminder
Next webinar ” The Top 5 Ways Manufacturers Can Increase Revenue in the Aftermarket”
– September 3rd
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GET IN TOUCH
Ready to grow your aftermarket sales?
• Schedule 1:1 consultation today
• Contact: [email protected]• Cell: +1-612-293-8130