Dassault Falcon undertakes “Rightsized Pricing” spare parts pricing overhaul

Posted on 27, May 2013 by | This entry was posted in Aviation & Aerospace, Business, Switzerland and tagged , , , , . Bookmark the permalink.

Geneva, Switzerland, 27-5-2013 — /europawire.eu/ — Spare parts service has always been at the forefront of Dassault Falcon’s efforts to provide top quality customer support.

 These efforts have long focused on ensuring the ready availability and timely shipment of parts, and the company now sets the industry benchmark in spares dispatch. Most of the focus has since shifted to pricing, with the aim of reducing or realigning the prices of some items that customers may still perceive to be too high.
Over the last ten years, Dassault Falcon has overhauled its pricing for parts at least three different times. In 2012 alone, the process reduced the price of over 14,000 parts. For 2013, another 18,500 parts are on their way to being re-priced.
“These moves have had a positive effect but they’re still not enough to meet our exacting standards of customer satisfaction,” said Jacques Chauvet, Senior Vice President of Customer Service for Dassault Falcon. “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.”
As a result, Dassault Falcon has decided to embark on a completely different approach for pricing, starting with the most commonly used parts. Dassault terms the new approach “Rightsized Pricing.” “Up to now,” remarked Guillaume Landrivon, Vice President of Worldwide Spares for Dassault Falcon, “company pricing methodologies have been linked to the cost of manufacturing or purchasing spare parts, without taking into account how much the customer perceives the parts to be worth.”
Rightsized Pricing will put perceived value at the center of the equation. It will involve a review and realignment of pricing for a certain number of Dassault Falcon parts references to eliminate inconsistencies and make the process more transparent to customers. “The goal,” said Landrivon, “is to align thousands of parts we provide to our customers with a price that meets their perception of value.”

Aligning prices with perceptions is a process that was started in the automobile industry but will be new to the aircraft sector. It entails the 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.

Introducing Right Pricing will lead to numerous price readjustments and new pricing benchmarks that Dassault Falcon is convinced will give customers more perceived value for money and help them significantly reduce their operating costs.
Falcon Spares levels at all-time high. Dispatch for AOG — under 60 Minutes.
While reducing parts prices has always been a key goal at Dassault, getting parts to the worldwide customer base as quickly as possible has had an even higher priority. The company has as many as 300,000 different parts to support current and legacy Falcon aircraft, which go back to the 1960s. Having the right parts in the right places to be able to satisfy AOG needs is a logistical challenge.
This process is facilitated by having key depots — such as Teterboro, New Jersey, Paris-Le Bourget, France and Singapore — adjacent to major transportation hubs. Ten other spare parts depots are spread around the world. Virtually all AOG parts are picked, packed and in the shipper’s hands in less than 60 minutes. Of course, the worldwide service network and its many satellites are also tapped for parts when they are closer to the customer.
Dassault is the market leader in spare parts availability and shipping timeliness and has maintained a 98% spares service level for all shipments for several years running. In the first half of 2013, Dassault further reinforced spares inventory in strategic regions such as China and India.

Dassault Falcon is responsible for selling and supporting Falcon business jets throughout the world. It is part of Dassault Aviation, a leading aerospace company with a presence in over 70 countries across five continents. Dassault Aviation produces the Rafale fighter jet as well as the complete line of Falcon business jets. The company has assembly and production plants in both France and the United States and service facilities on multiple continents. It employs a total workforce of over 12,000. Since the rollout of the first Falcon 20 in 1963, over 2,250 Falcon jets have been delivered to 81 countries worldwide. The family of Falcon jets currently in production includes the tri-jets—the Falcon 900LX, and the 7X—as well as the twin-engine 2000LXS, 2000LX and Falcon 2000S.
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U.S.: Andrew Ponzoni +1 201 541 4588 or Grant Kielczewski +1 201 541 4679
Dassault Falcon Teterboro Airport, Box 2000 South Hackensack, NJ 07606

FRANCE: Vadim Feldzer +33 1 47 11 44 13 or Marie-Alexandrine Fouillard +33 1 47 11 64 23
Dassault Aviation 78, Quai Marcel Dassault 92552 Saint-Cloud Cedex 300 – FRANCE

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