CRS Jet Spares reports a 25-percent decrease in customer additional billings (billbacks) over the past 18 months as a result of its Option 2 pricing program.
When an operator needs a part, an exchange transaction is the common method of handling the purchase. The problem with that type of transaction is there’s the chance of a billback to the operator at a later date based upon the actual condition of the core.
CRS has provided flat-rate exchange prices contingent on the condition of the returned core. The company attributes the billback reduction to several factors, which include more detailed information provided by operators at the time of each transaction, the customer advocacy program provided by CRS to support positive customer and vendor relationships and providing Option 2 pricing for exchange transactions. Under the Option 2 program the customer pays a slightly higher cost with a no-billback guarantee.