Increase Parts & Service Profits with UCC Data

When new sales drop and the market shows little sign of improving, how do you compete and continue to make a profit?  The answer lies in your used equipment market.  As you can see in EDA’s Industry Charts, as the economy has declined, used equipment sales have been on the rise, in some industries – such as Construction, Woodworking, and Trucking – surpassing new equipment sales.

When most users begin working with UCC data, they get excited for the opportunity to increase their new equipment sales.  And while that’s the most obvious application for our data, it’s not the only one.  Parts and Service can have as much of a financial impact, if not more, than new machinery sales – especially when the market turns south.

For many of your customers, equipment acquisition cost is their single biggest expense.  Your customers, therefore, are highly motivated to extend the life of their equipment to avoid having to purchase new equipment as long as possible.  When the economy is suffering, this idea becomes even more important.  You now have customers who don’t just want to keep their equipment running smoothly, it’s essential to their survival.   And unlike new equipment sales, parts and service now becomes a built-in demand for those buyers that any dealer can supply.

Consider also, that more and more, product support has become a primary determination amongst buyers.  Quality support is valued and rewarded, and can provide you with a powerful competitive advantage.  Likewise, customers who are disappointed with parts, service, and support will be vocal about how unhappy they are. 

You can aggressively and realistically increase your aftermarket profit by using your UCC data to:

• Monitor potential warranty expirations for increased service opportunity
• Stay on top of used equipment sales and actively pursue their service business
• Maintain a fix on equipment owners due for regular maintenance or parts replacement
• Plan inventory by staying on top of best-selling models in your territory
• Easily divide data by sales regions to filter leads and look for opportunity within dealer or aftermarket sales rep territories.

Think about how much of a profit you currently receive from parts and service revenue.  According to MHEDA (the Material Handling Equipment Distributors Association), high performance forklift distributors make certain they are getting at least 40% of their overall sales from parts and service.  This idea translates to other industries as well.  Are you receiving that kind of profit from your aftermarket business?  If you’re not bringing in the revenue, it’s likely because you aren’t focusing on it.  The opportunity is there.  Realize the potential with your UCC data.

If you'd like to learn more on this topic, join us May 4th at 1 PM ET for a webinar entitled, "Boosting Parts, Service, and Aftermarket Sales with UCC Data."
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Jennefer Pizza is a Customer Experience Account Manager at EDA
jpizza@edadata.com | 704-814-1411