Dassault Falcon has decided to embark on what it calls a completely different approach to pricing in an effort to counter customer perceptions that spare parts cost too much. The new approach, called “Rightsized Pricing,” takes into account customer expectations of the worth of a particular part rather than basing the price strictly on manufacturing costs.
The new pricing formula will involve conducting a detailed analysis of customer expectations using sophisticated software tools and processes that take into account key criteria of individual spare parts, such as size, weight, complexity and function and other pertinent parameters.
The plan, said the company, will lead to numerous price adjustments and new pricing benchmarks, giving customers what Dassault Falcon characterizes as more perceived value for money and helping them cut operating costs.
Over the last 10 years, Dassault Falcon has overhauled its pricing for parts at least three times. In 2012, the process reduced the price of more than 14,000 parts, said Dassault, while plans call for pricing adjustments for another 18,500 parts this year.
“These moves have had a positive effect but they’re still not enough to meet our exacting standards of customer satisfaction,” said Dassault Falcon senior v-p of customer service Jacques Chauvet. “As much as we’ve reduced prices, the perception is still that in some instances they remain too high. Nearly everyone has an example of a part whose size, technology or material of construction suggests one level of price but the invoice turns out to be quite expensive, leaving the customer perplexed.”