26 years back, I read few pricing strategies at the university i:e 1) Skim the Cream, 2) Penetration Strategy. Skim the Cream is basically offering a higher price at the initial stage and as the market grows, the price can be lowered gradually. While as Penetrating strategy pertains to offering lower price to enter the existing competitive market.

Considering the current tough competition in the Heavy Equipment Spare Parts business, I would prefer Penetration strategy over Skim the Cream at this point in time. Reason being that selling product to more customers at reduced price and lower margin can return the same profits as oppose to selling it to fewer customers at a higher price. Moreover, selling product to wider segment of the market and having more customers can lead to generating new sales leads through referrals.

Similarly, increasing the number of the customer will also give you the opportunity to sell other related and associated products to them as well.

One can argue that increasing the number of customers will increase the cost of handling those customers. Moreover, this may increase the inventory cost. For example, one may need more employees to handle more customers. In my opinion, this might not be the case if roles and responsibilities of employees are designed using lean management practices. You can still get better results from fewer employees if productivity is focused on efficiency and effectiveness.