{"id":63143,"date":"2023-10-16T08:49:20","date_gmt":"2023-10-16T14:49:20","guid":{"rendered":"https:\/\/www.vendavo.com\/?p=63143"},"modified":"2024-09-23T15:47:01","modified_gmt":"2024-09-23T21:47:01","slug":"new-report-annual-aftermarket-benchmark-study-2023","status":"publish","type":"post","link":"https:\/\/www.vendavo.com\/news-releases\/new-report-annual-aftermarket-benchmark-study-2023\/","title":{"rendered":"Vendavo Reveals Aftermarket Business Generates 50% or More of Total Income for A Growing Number of Manufacturers: New Report"},"content":{"rendered":"\n

But Most Still Generate Only One-third of Total Income from Aftermarket, According to New 2023 State of the Aftermarket Report from Vendavo and Copperberg<\/em><\/p>\n\n\n\n

DENVER, October 16, 2023<\/em> \u2013 More B2B companies are generating 50% or more of their total income from aftermarket sales and service, according to the new 2023 State of the Aftermarket Business report from Vendavo<\/a>, the global market leader in B2B pricing, selling and rebate solutions. But while aftermarket business is a proven strategy for growing company margin, the number of companies who generate less than one-third of their annual revenue from aftermarket has remained nearly the same since 2019. <\/p>\n\n\n\n

Implementing an aftermarket sales and service business grows margins. They offer stability during economic uncertainties, foster customer loyalty through added value, and provide differentiation and unique selling points in a competitive market. In 2023, 32% of responding manufacturers say they now generate over 50% of their total income via aftermarket. This is an increase of 7% over 2022 which likely illustrates a move out of the category below it, 30%-49%. <\/p>\n\n\n\n

While the shift is good news, also noteworthy is that since the start of this study in 2019, the largest group of respondents remains those who generate one-third or less of their total income from aftermarket. <\/p>\n\n\n\n

\u201cThose that have figured out the secret sauce of aftermarket sales and service are running with it \u2013 and growing profits along the way,\u201d says Mitch Lee, Profit Evangelist at Vendavo. \u201cThe reason why more companies aren\u2019t yet adopting aftermarket strategies or implementing them minimally is pretty apparent\u2013 most consider it a complex, difficult initiative.\u201d<\/p>\n\n\n\n

Roadblocks to establishing an aftermarket sales initiative identified in the report include internal alignment and collaboration (41%), lack of understanding customer value drivers (30%), conflicting internal strategies (29%), and increased global competition (28%).<\/p>\n\n\n\n

Data collection and a skilled labor shortage are both key to a strong aftermarket services organization and predictive service models and these areas are also considered challenging. Just 10 percent say their organization is well-prepared for data collection and analysis and 67 percent identify a need for more talent.<\/p>\n\n\n\n

\u201cAftermarket sales and value proposition can play a significant role in helping increase top-line revenue and profitability,\u201d says Lisa Hellqvist, Managing Director at Copperberg. \u201cManufacturers will be well-served to focus on offering more comprehensive service offerings, competitive prices, and easy-to-purchase services and parts.\u201d<\/p>\n\n\n\n

Download the 2023 State of the Aftermarket Business Report<\/a>\u00a0here.<\/p>\n\n\n\n

##<\/p>\n\n\n\n

About Vendavo<\/strong><\/p>\n\n\n\n

Vendavo empowers global manufacturers and distributors to accelerate growth, profitability, and revenue with leading pricing, selling, and rebate management solutions. Enterprises like Ford, Emerson, Medtronic, GAF, and AmerisourceBergen rely on Vendavo to manage, optimize, and digitize their end-to-end commercial processes. Vendavo’s SaaS solutions, team of pricing and selling experts, and proven, repeatable process accelerates value and outcomes that are not only predictable, but unrivaled. With Vendavo, the world’s most ambitious B2B organizations can develop dynamic customer insights and execute optimal pricing strategies that maximize margin, boost sales effectiveness, and improve the customer experience.\u200b<\/p>\n\n\n\n

Vendavo is headquartered in Denver, with offices in Czech Republic, India, and Sweden. For more information, please visit https:\/\/www.vendavo.com<\/a><\/p>\n\n\n\n

About Copperberg<\/strong><\/p>\n\n\n\n

Herbert Spencer once said: \u201cThe great aim of education is not knowledge, but action\u201d. Copperberg creates physical and digital platforms bringing together the manufacturing community in order to grow and build relationships globally. During the recent global pandemic, we have been focusing on virtual events and digital content \u2013 ensuring our community remains connected. So, how do we actually do that? On a daily basis, we work hard to improve, develop and innovate our concepts and original content in order to ensure the best hands-on, real-life strategies for all our community members. Our ambition is to provide ideas, networking, and industry exchange between peers, that inspires and leads to action. <\/p>\n\n\n\n

Contact <\/strong><\/p>\n\n\n\n

Morgan Short 
Director of Content and Web Strategy 
press@wordpress-1234677-4410313.cloudwaysapps.com <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

More B2B companies are generating 50% or more of their total income from aftermarket sales and service, according to the new 2023 State of the Aftermarket Business report from\u00a0Vendavo, the global market leader in B2B pricing, selling and rebate solutions. But while aftermarket business is a proven strategy for growing company margin, the number of companies who generate less than one-third of their annual revenue from aftermarket has remained nearly the same since 2019.<\/p>\n","protected":false},"author":24,"featured_media":63149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1237],"tags":[1440],"class_list":["post-63143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-releases","tag-aftermarket-report"],"acf":[],"yoast_head":"\nReport: Aftermarket Business Generates 50% or More of Total Income for A Number of Manufacturers | Vendavo<\/title>\n<meta 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