Fleet News

Aggressive pricing vital in maintaining aftermarket contracts

PRICE is set to become the crucial factor in fleet service providers' ability to maintain existing contracts and win a bigger share of the £1.4 billion market. So important will aggressive pricing become that it will replace the fleet aftermarket service's determination to win custom by developing innovative and customer-led products and services.

The claims are made in the latest survey by market analystsDatamonitor, formerly MarketLine, entitled Opportunities in the Fleet Aftermarket. It asserts that the standardisation of aftermarket products will lead to price becoming the crucial factor. Company car drivers demand unparalleled levels of service. Critical factors in a company's choice of fleet maintenance service provider are its ability to minimise vehicle downtime and disruption in the working lives of employees.

According to Datamonitor, these two factors underline the proliferation of tailored services. But as competitors emulate the success and innovative ideas of their rivals, so differences between individual fleet aftermarket players will diminish - and pricing will take its place as the leading concern. When this happens, the larger fleet maintenance and management companies will be at a distinct advantage to smaller players because they will be able to benefit from economies of scale and significant buying power.

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