Maximize profit margins in a changing market with automated price management

Plagued primarily by inflation and supply chain disruptions in recent years, the heavy-duty industry has experienced a host of price management challenges. Now, research firm MacKay & Company predicts that the price of aftermarket parts for heavy-duty trucks will increase by 2% in 2025 and beyond, normalizing prices after the parts shortages that upset the industry in 2022. 

On the downside, heavy-duty aftermarket sales have been declining. MacKay & Company’s most recent survey indicates year-over-year parts sales reported for aftermarket distributors down 1.1% with a pessimistic outlook for 2025. That means pricing strategies for independent heavy-duty parts and service businesses, while still responding to inflation, should focus more heavily on maximizing margins when sales are soft. 

Fortunately, AutoPower’s powerful built-in pricing module provides the means to adapt strategically to market volatility. Seamlessly integrated with AutoPower’s sales, inventory, and accounting modules, it is one of the most powerful profit tools in the industry. It uses a logical and flexible pricing matrix to manage complex and tailored cost scenarios and automatically updates pricing in promotions, quotes, sales orders and contracts. The price creation process unites defined pricing rules and assigns pricing actions and designated pricing controls across various sales scenarios and inventory conditions. An array of automated price management methods is included in the module, six of which we feature below: 

• Customer Pricing Matrix – defines one of 10 possible price levels to be assigned to a product line, line category, and sub-category. Attached to each customer’s master file, the Customer Pricing Matrix contains product line entries having the preferred price level with a +/- discount. For companies with a service shop, a Shop Price Matrix can be established for the customer with price levels slightly higher than counter pricing.
• Contract Pricing – designates unique pricing for select customers. This negotiated price can be assigned based on a pledged quantity of part purchases over a specific date range and the purchase activity monitored to advise if the contract price should be renewed or allowed to expire.
• Quantity Volume Pricing – establishes specific pricing for a product with volume-related discounts. Order Entry leverages designated brackets to advise counter personnel to encourage larger purchase quantities, creating a mutually beneficial sale. 
• Promotional Pricing – assigns discounted product pricing for a limited date range. Similar to Contract Pricing, promotional pricing can be assigned to a part number and active over an assigned date range, such as a weekend, holiday, or other special event. Then, once the promotion expires, the system reverts to its everyday part pricing.
• Velocity Pricing – aligns pricing based on speed of sales. When inventory is ranked by classification, slower-moving inventory can be priced to attract purchase.
• Gross Margin Manager – applies minimum margins to pricing overrides. To control the potential erosion of gross margin when sales personnel, for example, adjust pricing, up to three tiers of minimum margin percentages can be utilized: company-wide, product line, and part number.  

Additional pricing features include Product Pricing Updates, Price Field Percentage Updates, Price Field Matrix Updates, Work Order Pricing Matrix, Line-Item Price Change and Price Change Watchdog Report. 

The strength of AutoPower’s Pricing Module will empower you to automatically optimize your product pricing to adapt to a variety of market conditions and boost the effectiveness of your sales and inventory management strategies. 

For a firsthand look at the total solution designed for independent heavy-duty aftermarket companies, contact us to schedule a demo of the AutoPower system.