Parts Classification
group 11, are parts that are exposed to high competition because they are easy
accessible parts or have a low complexity, low perceived value, low proprietary
position, elastic demand, and high price sensitivity.
Group 13, is the complete opposite, these parts are exposed to low competition
because they are hard to access/ Atlet unique parts or have a high complexity, high
perceived value, high proprietary position, inelastic demand, and low price
sensitivity.
The medium accessible parts or group 12 are positioned in the middle between the
two other groups. Each group have its own matrix where the parts that are more
Parts Matrix
High
Complexity
Low
Low
Competition
High
Parts Matrix
High
Perceived
Value
Low
Low
Competition
High
Parts Matrix
High
Elasticity
Low
Low
Velocity
High
Parts Matrix
High
Price
sensitivity
Low
Low
Volume
High
Volume Price Sensitivity Matrix
Price Sensitivity
1.
2.
3.
4.
Low Volume Low Price
Sensitivity
High Volume Low Price
Sensitivity
Low Volume High Price
Sensitivity
High Volume High Price
Sensitivity
Volume
Cost Analysis
Pricing Formula
•
•
•
•
Vd*CAP*Life Cycle*Price
Vd = Value Drivers
CAP = Captivity (proprietary parts)
Key Vd = Speed, Shop Profit, Quality or
warranty and returns and a substantial
component of OEM price competition
Contact us
PartsCheck Systems
877-315-1008 ext. 2002