Product and process innovation is no longer enough for today’s manufacturers of engineered parts and equipment.
Download our Service Growth Accelerator fact sheet today to find out how leading manufacturers are now generating 50% to 80% of their profits from services, locking out competitors and enjoying closer customer relationships!
Why smart manufacturers are evolving their business model
It’s a fact that today’s customers don’t want to buy and own your engineered products any longer. Don’t get me wrong – they like your products. It’s just that:
they don’t want to own them
or maintain them
or buy spare parts for them
or insure them
or have the bother of selling them when they want to access the latest technology.
And they especially don’t like financing the upfront capital purchase of your products or the expensive lumpy maintenance bills or the surprise repair costs or the ever-growing insurance premiums. Quite frankly, owning your product is like having a chronic pain in their proverbial!
No wonder manufacturers are developing their service capabilities
What today’s businesses and consumers do want is the capability that your product gives them. They also want it available to them when they need it. And they are happy to pay for having that capability and availability. They just don’t want the pain, inconvenience and financial commitment that comes with ownership of your product. In short, the product ownership model is extinct (or soon will be).
But there’s no law that says a manufacturing business can’t offer services too. In fact, today’s leading Original Equipment Manufacturers (OEM) and Tier 1 parts suppliers are making more than 50% of their total revenues from services rather than products:
Their service revenues and profits are accelerating.
They are out-competing their peers.
Their customers are staying with them for longer.
They enjoy longer-term, stable and predictable cash flows.
And their equity to earnings multiple has risen as a result.
At Servispart Consulting, we have developed a comprehensive “Service Growth Accelerator” programme to help you grow your service business faster, leapfrog your low-cost competitors and retain your customers for life without cutting your prices, moving your manufacturing operations overseas or chaining up your customers!
What can you expect?
Whilst results vary and are entirely dependent on your own business situation and your willingness to implement our recommendations, some of the likely outcomes include:
Increased service revenues
Increased service profits
Greater predictability of earnings and cash flows
Enhanced competitive advantage
Increased customer loyalty
Greater business longevity
How it works
Our “Service Profit Accelerator Programme“ consists of three key phases: