Today I would like to share some of the mistakes I have made during my years in aftermarket pricing. I hope that by reading this material, you will be able to avoid as many of them as possible. I guess I’m trying to write the text which would have helped me when I did my first aftermarket pricing project about ten years ago.
To keep it simple, I decided to make a list of criteria which I think are important if a pricing strategy is to last for a long time. I will zoom into attribute-based pricing strategies. The reason is that those usually give the best return but are also the most difficult to manage.
Before we get into this, just a short reminder that when I write “attribute-based pricing strategies”, I refer to price logic, where physical attributes, such as weight, length, power, brand, etc. are used to set the price. In a nutshell, you create groups of similar parts, and in each group you define which attributes should be used. Then you create the price equation based on those attributes. So here it is, the list of what you should try to avoid if you want your pricing strategy to pass the test of time. My hope is that you will be able to avoid most of these mistakes. Enjoy 😊