PTC Case Studies JLG Industries Revamps Service Parts Pricing Strategy with PTC’s Solution

	JLG Industries Revamps Service Parts Pricing Strategy with PTC’s Solution PTC

JLG Industries Revamps Service Parts Pricing Strategy with PTC’s Solution

PTC

Technology Category	Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Equipment & Machinery
Applicable Functions	Sales & Marketing Business Operation
Services	Cloud Planning, Design & Implementation Services
Challenge	JLG Industries, a renowned manufacturer of aerial work platforms and telehandlers, was facing increasing competitive pressures on its replacement parts business. The company was using a cost-plus pricing strategy for its service parts, which was proving ineffective. This approach created a 'blind spot' and lacked market adaptation. Customers were seeking more cost-effective solutions and started buying non-OEM replacement parts from competitors, compromising quality for lower pricing. This trend signaled to JLG the need for a new approach to parts pricing. The challenge was to optimize pricing for 140,000 service parts with a department of one. Read More
About Customer	JLG Industries, Inc. is a globally recognized company that has been earning customer confidence and trust through innovation since 1969. The company manufactures JLG® aerial work platforms and JLG and SkyTrak® telehandlers. JLG’s customers are their greatest priority, and the company remains steadfast in its commitment to understanding customer challenges. The company was facing competitive pressures on its replacement parts business and needed a solution that enabled more strategic service parts pricing to meet mission-critical goals to increase profit, increase revenue, and improve data integrity to better compete in the marketplace. Read More
Solution	JLG Industries adopted PTC’s Service Parts Pricing (SPP) solution to revamp their pricing strategy. The SPP solution allowed JLG to organize and develop their strategy and assess their competitive environment. The solution was presented to JLG’s leadership team by the JLG IT department and Dali Ribeiro, Parts Pricing Manager at JLG. The value analysis of SPP, along with a commitment to closely monitoring and tracking SPP’s impact on service parts revenue and profit, led to SPP being adopted as a strategic initiative for JLG. The implementation of SPP moved JLG away from managing pricing strategy through an extensive array of spreadsheets. The solution was hosted on PTC's servers, alleviating the burden of maintaining an on-site solution by JLG’s IT department. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Equipment & Machinery

Applicable Functions

Sales & Marketing

Business Operation

Services

Cloud Planning, Design & Implementation Services

Challenge

JLG Industries, a renowned manufacturer of aerial work platforms and telehandlers, was facing increasing competitive pressures on its replacement parts business. The company was using a cost-plus pricing strategy for its service parts, which was proving ineffective. This approach created a 'blind spot' and lacked market adaptation. Customers were seeking more cost-effective solutions and started buying non-OEM replacement parts from competitors, compromising quality for lower pricing. This trend signaled to JLG the need for a new approach to parts pricing. The challenge was to optimize pricing for 140,000 service parts with a department of one.

About Customer

JLG Industries, Inc. is a globally recognized company that has been earning customer confidence and trust through innovation since 1969. The company manufactures JLG® aerial work platforms and JLG and SkyTrak® telehandlers. JLG’s customers are their greatest priority, and the company remains steadfast in its commitment to understanding customer challenges. The company was facing competitive pressures on its replacement parts business and needed a solution that enabled more strategic service parts pricing to meet mission-critical goals to increase profit, increase revenue, and improve data integrity to better compete in the marketplace.

Solution

JLG Industries adopted PTC’s Service Parts Pricing (SPP) solution to revamp their pricing strategy. The SPP solution allowed JLG to organize and develop their strategy and assess their competitive environment. The solution was presented to JLG’s leadership team by the JLG IT department and Dali Ribeiro, Parts Pricing Manager at JLG. The value analysis of SPP, along with a commitment to closely monitoring and tracking SPP’s impact on service parts revenue and profit, led to SPP being adopted as a strategic initiative for JLG. The implementation of SPP moved JLG away from managing pricing strategy through an extensive array of spreadsheets. The solution was hosted on PTC's servers, alleviating the burden of maintaining an on-site solution by JLG’s IT department.

Impact #1	JLG was able to communicate their pricing strategy to their customers and show them that in many cases, they were able to offer a lower price with OEM commitment to quality and service support.
Impact #2	The implementation of SPP improved data integrity at JLG, and they gained visibility into cost changes coming from their suppliers.
Impact #3	The solution was simpler to adopt and teach, making it easier to bring people on board.

Impact #1

JLG was able to communicate their pricing strategy to their customers and show them that in many cases, they were able to offer a lower price with OEM commitment to quality and service support.

Impact #2

The implementation of SPP improved data integrity at JLG, and they gained visibility into cost changes coming from their suppliers.

Impact #3

The solution was simpler to adopt and teach, making it easier to bring people on board.

Benefit #1	The tool paid for itself in less than 12 months.
Benefit #2	After one year, a follow-up analysis concluded that the three-year cumulative value to JLG would be 60% higher than originally projected.
Benefit #3	Revenue growth continues to outpace the rest of the legacy-managed parts, while the growth of gross margin contribution outstrips the field by even greater margins.

Benefit #1

The tool paid for itself in less than 12 months.

Benefit #2

After one year, a follow-up analysis concluded that the three-year cumulative value to JLG would be 60% higher than originally projected.

Benefit #3

Revenue growth continues to outpace the rest of the legacy-managed parts, while the growth of gross margin contribution outstrips the field by even greater margins.

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Overview

JLG Industries Revamps Service Parts Pricing Strategy with PTC’s Solution

Operational Impact

Quantitative Benefit