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Trucking: Aftersales & Pricing 

Trucking: Aftersales & Pricing 

Trucking: Aftersales & Pricing 

The importance of the truck aftersales market has expanded significantly in recent years, as has the demand for quality to realize its full potential. Because margins on new truck sales are falling, aftersales is becoming increasingly important for profit. At the same time, competitors such as Volvo, MAN, IVECO, Renault, GMC, Mercedes, and independent shops have entered the industry, increasing competition. OEMs for Trucking respond by requiring three pillars of excellence in aftersales: know your customer, unlock your present potential, and exploit the new potential.

 

What Is the Importance of Aftersales in The Trucking Industry?

 

For various industries, aftersales care and support might encompass a variety of items, such as warranties, repairs, and troubleshooting assistance. For the transportation business, this entails providing a variety of post-purchase truck support services to customers, whether they have just a truck or a large fleet.  After-sales service is as important as the truck itself. In the consumer’s case, aftersales care and assistance—for instance, in the extended warranties form and after-hours check-up and servicing—helps save money over the long run by decreasing breakdown and breakdown costs. In addition, customers can keep their trucks in the highest condition and quality by getting them serviced regularly, which helps them avoid downtime and boost business productivity.

 

Aftersales assistance is a worthwhile addition to your vehicle purchase if you want to be sure you’ll be supported. Importance of aftersales in the trucking industry include:

 

Dealer network as a support base

An extensive dealership network to provide repairs, service, and other aftersales assistance to consumers is the foundation of a solid aftersales support and care experience, especially in large countries, Australia. Besides, what good is after-sales service if you can’t reach it? You want to know that if you have downtime—or even if you need routine maintenance—you can obtain the care you require where and when it is needed.

 

The various sorts of support  

What kind of after-sales service should you seek when buying a car? Here are several options for after-sales service.

Warranty

Just as you know, a warranty assures that any defective goods can be fixed or replaced within the stated time frame. Under The Consumer Law in Australia, every product is covered by a guarantee. Extended warranties, on the other hand, are something you should consider. An extended form of warranty might provide additional coverage, assuring that you’ll be covered if something goes wrong.

 

Assist on the road

All good vehicles would never be involved in an accident that left you stranded in an ideal world. However, there are methods we could take to fix these issues. When you get roadside assistance, you can be covered in the event of a malfunction or a breakdown while taking a ride. These malfunctions may include an empty tank, key troubles, or a flat battery or tire.

After-hours maintenance

With a developing freight task on the national level, it’s no surprise that the transport industry’s tasks are increasing alongside the workload of enterprises that use road transportation. Therefore, it’s critical to have free access to servicing after-hours so that your day-to-day isn’t disrupted. This way, you can get your routine truck maintenance taken care of without disrupting your workplace.

Availability of parts and accessories

Whether for service, add-ons, or repairs, the availability of accessories and parts is another important aspect of aftersales support and care. Finally, we must be confident that if a vehicle accessory or part, such as a bullbar, requires replacement or repair, we will be capable of doing so quickly.

 

Assistance is available at all times and in any location.

Another intriguing component of the care involved in aftersales to consider before purchasing your company/ personal truck is whether or not customer help is available over the phone.

Being on the move and putting your vehicle (truck) through its paces will inevitably lead to circumstances where professional assistance is required. Unfortunately, however, roadside help isn’t available at all times or the first option—and that’s when a freephone service that connects you to skilled truck technicians comes in useful.

 

This type of service can aid in helping you relax by assisting you in resolving minor questions and easily resolving concerns, allowing you to get back on the move faster and safer.

 

Yes, without a doubt. Purchasing a new truck is a large commitment, and adding options to your regular purchase might be intimidating. On the other hand, aftersales coverage should be discussed with your dealer to determine the support level you’ll require for your application and business. With time, such aftersales care and assistance can help you lower your vehicle’s total cost of ownership by ensuring that repairs or mishaps are covered or that your truck is in its top form, maintained when it’s comfortable for you.

How Intensive Is the Aftersales for The Trucking?

The aftersales for European trucks are enormously profitable, and OEMs for Trucking have traditionally controlled it. However, changes are happening as new players and technology compete to serve customers’ demands better than OEMs for Trucking, eroding markets and margin dominance.

 

For truck manufacturers (Renault, Volvo, MAN, IVECO, GMC), the aftersales of the European truck is a profitable segment of business (original manufacturers of equipment). However, the maintenance, spare parts, and customer service market has witnessed growing competition in recent years as more wholesalers, workshops, suppliers, and outside companies try to break into the trucking industry with modern business models.

 

Profit margins on after-sales services

Compared to the new sale of trucks, aftersales generates a little portion of income; yet, the gross margins for the two segments are vastly different. Unit margins for the sale of basic trucks range from 0% to 5%, while aftersales margins range from 25% to 50.

 

However, several changes in the market are putting pressure on margins. The digitalization of repair and maintenance operations is one of them. Furthermore, comprehensive transparency puts ever-increasing pressure on margins, and the advent of new processing methods, like service factories, results in the workshop environment of today being replaced. Furthermore, developing disruptive technologies, like autonomous trucks, provide extremely high standards of safety, lowering the need for collision repairs and, as a result, affecting parts and service sales as well as insurance products.

2040 vision of a service scenario

OEMs for Trucking are concerned about frequent changes in the landscape due to technological advancements and growing rivalry within the trucking market as more firms enter to accrue profit. Customers with large fleets of trucks place a premium on keeping their trucks on the move. As a result, quick maintenance and repair turnaround is critical, which competitors will be able to provide more effectively through different market access and business models.

Competition

Different suppliers gain business relevance due to forwarding integration and direct access to the client interface. They may bundle their know-how in workshop systems, granting a one-stop premium solution for a huge range of models and makes on a 24/7 basis. On the other hand, independent wholesalers benefit from consolidation by pooling purchasing power establishing their workshop models, which are backed by private finance. Finally, independent workshops are transforming into true competitors to OEMs for Trucking because of their tremendous flexibility and reasonable repair costs.

 

 

 

Which Ones Holds More Importance: Service or Products?

Customers today have more expectations than ever before, making it more difficult for businesses to differentiate themselves by offering courteous and consistent consumer service. Consumers expect a high service level from every business they engage with, and the competition has changed to see who can deliver the best service in the shortest amount of time.

 

We’ll discuss why the service has become one of this piece’s most significant Trucking customer KPIs. Then we’ll end the dispute and tell you which is more important: Service or Products.

 

What impact does service play?

The time it takes to accomplish a customer care action is measured by the speed of service. It is employed differently based on the organization, product, and industry and can be deployed numerous times in the customer experience. Unlike response time, speed of service considers more than how long it takes your customer support team to respond. Instead, it tracks how long it takes them to respond to a customer’s support request and complete it.

For example, we could track the time it takes to complete a pricing inquiry of a truck over the phone. We’d check at how long the consumer was on hold waiting for a response from your customer service team and how long the conversation took once they were connected with a representative. If there is any follow-up, continuous contact would be counted as part of the service speed.

 

Why Is Service Important?

Speed of service is becoming a crucial indicator in improving the customer experience as people expect more from customer care personnel. According to IVECO, 54% of customers have higher expectations for customer support teams than a year ago. Furthermore, 72% of customers expect your employees to recognize them when they call, know what they’ve purchased, and have knowledge of their previous encounters with your firm

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It’s simple to recall this information if your customer support team uses a CRM. If they don’t have one, they waste time looking for data and risk losing customers since they don’t meet their expectations. Customers don’t appreciate waiting for answers, and if your service team appears to be frantically gathering information, they’ll lose faith in your company’s ability to give effective help.

 

On social media, speed of service is equally vital. 85 percent of customers expect a corporation to respond within six hours on Facebook. Sixty-four percent of Twitter users expect a response within an hour. Customers will continue to use these platforms for service needs. Thus, firms must be prepared to satisfy their reaction time expectations.

Now that we’ve covered a few scenarios in which speed of service is critical let’s settle the issue over which your company should prioritize: product quality or speed of service.

 

Comparing the Impact of Products and Service

Both are the easy — and cop-out — answer. Both are crucial when offering an exceptional client experience, and in an ideal world, any firm would have great product quality and quick service. However, if you must choose between the two, you should begin by evaluating your product, company, and industry. What you offer, where you sell it, and who you sell it to all impact whether your customers value product quality over service speed. For example, if you’re in charge of a quick-service restaurant, you might wish to prioritize service speed over product quality. Customers that enter your drive-thru want to be served quickly, and most would prefer to obtain their food quickly than ensure that all of their French fries are cooked to perfection.

 

If you were selling trucks, however, you might be more concerned with the quality of your product than with how quickly it could be delivered. Take, for example, the IVECO Trucks. Only a few of these Trucks are produced each year, yet each one is worth around $50,000. So, IVECO needs to produce a truck that will wow its customers and keeps them satisfied overtime for that price.

 

The term “high head” refers to how much critical thinking a customer must perform before purchasing a product. The more thinking they put into it, the more it involves a higher head. The term “high heart” alludes to the customer’s emotional investment. For example, buying a car is a big decision, and we either feel terrific or experience buyer’s remorse afterward.

Knowing where your brand stands on this graph will help you decide if the speed of service or product quality should be prioritized at your company. Of course, you want to improve both, but knowing how customers feel and think when they buy your product can help you personalize the customer experience to their preferences. Your clients should decide whether you favor speed or quality.

 

How Is Pricing Done in The Aftersales of The Trucking Industry?

However, the truck industry’s future will likely be more profitable and competitive. Analysis shows that high-margin and mature markets will continue to be important profit sources for the heavy-duty and medium truck sector (huge trucks weighing more than five tons) until 2040. Truck industry trends will continue to elevate the impact of the aftersales business for Trucking.

The worldwide truck sector is predicted to be profitable, with aftersales becoming increasingly significant. Every effort is made by the right authorities to ensure that people with disabilities have equal access to our website.

 

Let’s Study some illustrations evaluating pricing and profiting in trucking

 

North America and Western Europe continue to be profitable regions, accounting for roughly 65 percent of the total profit pool. Markets emerging, particularly those in Asia–Pacific, South America, and India, are expected to be less profitable than developed markets. Eastern and Central Europe are likely to be the region to pull together relatively high with a unit volume growth above-average. Russia’s predicted robust rebound will mostly drive this success.

Trucking: Aftersales & Pricing 

Related Articles part of our Product Life Cycle Series 

https://www.theconsultants.eu/pricing-strategy-across-a-product-life-cycle/

https://www.theconsultants.eu/how-to-forecast-sales-across-your-product-life-cycle/

https://www.theconsultants.eu/value-proposition-across-your-product-life-cycle/

https://www.theconsultants.eu/strategic-initiatives-to-generate-more-value-across-your-product-life-cycle/

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