If you’re managing parts contracts at your Cat dealership, you know the "pricing dance" all too well. Caterpillar updates a price, and suddenly your contract rates are out of alignment. If you don't catch it fast, your margins shrink. If you catch it too late and update without notice, your customer trust takes a hit.
In a world where manufacturer pricing is constantly shifting, manual contract management isn't just a headache—it’s a financial risk.
At FDC Solutions, we designed the Dynamic Contracts functionality within our Parts Pricing application to turn this manual grind into a streamlined, automated workflow. Here is how it helps you stay ahead of the curve.
Set It and Forget It
Traditional contracts are often static. You set a price for a list of parts, and it stays there until someone remembers to audit the spreadsheet. Dynamic Contracts change the game by allowing you to link contract pricing directly to Caterpillar’s price updates.
When Caterpillar moves the needle, your contract follows. This ensures that your agreements remain profitable and accurate without requiring a team of analysts to monitor every SKU.
The "Living" Contract: Automatic Part Addition
One of the most powerful—and often overlooked—features of the Dynamic Contracts feature is its ability to grow with your customer’s needs using the Auto-Add feature.
If a customer on a Dynamic Contract purchases a part that isn't currently listed on their contract, the system doesn't just process it at standard rates. Upon invoicing, that part is automatically added to the Dynamic Contract.
This means your contracts "learn" your customers' buying habits in real-time, ensuring that future purchases of that item are handled according to the contract's logic.
Transparency Through Automation
The biggest fear in changing prices is the "Invoice Shock" a customer feels when they see a new number. Our system solves this through the Update/Email function.
Instead of updating in "real-time" (which can lead to confusion during a busy day), the system batches the necessary updates. When you—or a scheduled batch job—trigger the update:
Prices are updated across all specified contracts.
An email is generated by the software and sent directly to the customer.
This gives your customers a clear record of change, maintaining transparency and preventing those awkward "why did my price go up?" phone calls.
Efficiency at Scale: Manual vs. Scheduled
We know every dealership operates differently. That’s why we’ve built flexibility into the execution.
Manual Control. Use the Maintenance function to set up the rules and the Update/Email function to push updates whenever you're ready.
Total Automation. When you set up the Update/Email job in your batch scheduled to run at a specific time (e.g., 2:00am), you wake up to synchronized pricing and customers who are already informed.
The Bottom Line
Managing dynamic customer contracts shouldn't be a full-time job. By leveraging the Parts Pricing application from FDC Solutions, you can protect your margins, capture new parts automatically, and keep your customers informed.