ATLAS COPCO/ EPIROC SPARE PARTS PRICING - 2
Swecon works to understand the market and thinks that if some of their spare parts are priced wrong the organization will get a reputation of being expensive. Besides that it creates rumours explaining how expensive the brand is and bad-will, Delvator believes that wrongly priced product is an invitation for competitors. The right price levels can only be reached through knowledge and understanding of the market. This is not a simple task.
The most challenging issue with pricing of spare parts is to find the right level for every part and to differentiate the prices. Atlas Copco has the same approach and mentioning the greatest challenge with spare parts is to set competitive prices. Further explained this is extra hard with products that is not Atlas Copco unique and has greater competition. The toughest challenge is to find the right market level where customers are satisfied and where competition is met.
Other Brands on the market is better in differentiating their prices and is working on addressing different customer segments with offers. Swecon collect market information to have a good basis for strategic decisions and adapt their pricing accordingly. They price their spare parts according to the competition that they face. This means that a unique product is priced in a different way compared to a product that has many potential replacements. Delvator also believes that to be competitive it is necessary to have a price that is representative for the competition it is up against. Filters and GETs are priced in-line with the market since those segments face great competition and customers are price sensitive. More Hitachi unique designs are priced in an own category since they have little competition and customers can be charged accordingly. Atlas Copco also categorizes their product after what competition a certain part has. The most important factors are what value the part brings the customers and how price sensitive those customer segments are. Even though Delvator is not selling spare parts to the end customers they have found a way of differentiate their prices. In order for them to be able to do planned purchases from the OEM and get better prices they want their customer to do planned purchases. If the part is bought in advance in such way that Delvator in their turn can have a planned purchase the transaction price will be lower.