win in the aftermarket

This month Blue Canyon will publish a new research paper titled "Equipment and Aftermarket Growth Strategy." Our goal was to ask: Can a supplier effectively link its equipment and aftermarket strategies to capture a potential stream of untapped profitable revenue?

In this research, we identified a fascinating array of successful equipment and aftermarket business models. Some of these models are:

• Use Aftermarket Superiority to Sell Equipment. These are suppliers who provide best-in-industry warranties to prove the case that their equipment outperforms the competitors’ equipment. A longer, extended warranty period and comprehensive coverage can help a supplier validate and reinforce its claims that its equipment has a longer service life and lower-cost maintenance.
• Bundle Aftermarket Support into the Original Equipment Sale. Other models involve suppliers who create a relationship with their customers over the life of the equipment by bundling more aftermarket benefits into the offer, such as preventive maintenance services, regular upgrades, and remote monitoring services. These offerings enable companies to remain close, familiar, and engaged with their customers long after the original equipment sale. As a result, suppliers are also able to reap rewards when the customer is contemplating a complete replacement of equipment.
• Address Flawed Customer Chains. Suppliers who are involved in development, construction, or other front-end projects understand that new equipment purchase decisions are often not aligned with the needs of life cycle operations. In this case, suppliers need to have a coordinated response to the price pressures from the third-party project managers involved in the project development and construction, and also be able to emphasize reliability and performance to the operations team that focuses on uptime and maintenance costs during subsequent years.

To get a copy of this research publication when it is released this fall, email Blue Canyon at newsletters@bluecanyonpartners.com. Our website www.bluecanyonpartners.com, makes numerous research papers available for immediate download.