How OEMs Can Manage Different Price Issues At Different Geographies?
by Intellinet Oct 17, 2019
In a marketing strategy, when an OEM decides to roll out a spare part in market, the conclusion part of the strategy is wrapped up with pricing of that part. As an element is rolled out to generate revenue for the OEM, pricing foretells the fortune of the organization. The price of a specific spare part is decided by various factors involved in facilitating the business to earn more and more revenue.
Factors Implicated In Pricing
Price of a specific spare part may vary at two different locations. This is because of the leverage spent by OEMs to distribute the product to their dealerships in different locations. Price of a spare part sold in the same location may also fluctuate from time to time. Some of the reason of pricing difference may be- logistics cost, tax, demand of product, transportation cost and competition in the market.
For example, a brake spring manufacturing company based in location A, sells brake springs to dealers at Rs. 40 per piece. But when company exports the same product to a distant location, the price of the product goes up to Rs. 50 per piece.
Role Of Geographical Feature In Pricing
This increase in price is due to the huge cost of transportation. There are two ways of transportation from location A to B– by road or by air.
In this transportation process, first of all company will remove the product from warehouse and then it will be allocated to distributors outside location A. Whenever, logistic vehicle will cross border of other state or territory, they need to pay tax. Moreover, they can also face other issues like – road block due to weather, landslide or flood and many more. To avoid such obstacles, OEM will choose air way to transport product to location B and airway is no doubt expensive then the road transport. Therefore, cost of product will increase for sure.
Pricing Problem Due To Traditional Catalogs
OEMs publish separate catalogues for authorized dealers and retailer in regional market, but publishing separate catalog every-time cost a lot to the company and it also takes a lot of time. Moreover, employees of the organization need to travel a lot for distributing these manual catalogs. And the most important hassle in publishing of manual catalogue is, every-time a new product is launched OEMs need to print new copy, as they can’t make changes in the old one.
How Digital Catalog Can Make Pricing Easy?
Online parts catalog covers all kinds of perceptions in catalog generating. With this digital catalog, OEMs can customize the settings, can add or remove fields. Moreover, OEMs can easily arrange the set of products and prices for different dealers at different location through single dashboard.
E-catalog allows OEMs to digitally manage spare parts list, add pricing, image and other specifications. Also, the software comes with e-commerce feature, so that dealers can directly add the product to the cart if they liked it. With this online spare parts catalogue, OEMs and dealers can manage part search process, warehouse management and order management process digitally and save a lot of physical workforce and valuable time, that can be used in other revenue generating areas.
Share E-catalog With Dealers
With digital catalog OEMs can manage their authorized dealers globally. OEMs can also offer them the accessibility of the catalog and eliminate the communication gap. Instant coordination between OEMs and dealers will increase productivity of an organization that will ultimately benefit the OEM.
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