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This approach reduces dependence on infrequent capital-equipment orders without abandoning equipment sales. It turns the installed base into a sequence of customer-value opportunities across the asset life, with each offer tested for demand, margin, operational readiness and risk.
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What diversification beyond large contracts means
A large equipment sale is usually episodic: revenue arrives when a customer approves a capital project, while the manufacturer carries the cost of engineering, production and project delivery. A lifecycle portfolio creates additional purchase occasions before, between and after those projects. The customer may need a replacement component, a consumable, an emergency repair, a planned shutdown, a retrofit, operator training or a commitment that keeps an asset available.
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These offers are not interchangeable. A replacement part is a transaction; a maintenance agreement is a recurring contract; an outcome-based arrangement may make payment depend on an agreed level of uptime, throughput or another measurable result. The right mix depends on the equipment’s failure modes, operating environment, buying process and the manufacturer’s ability to deliver.
#1 Best Overall
- Read Before You Buy — No Video Output: These adapters support charging and USB 2.0 data transfer, but cannot transmit video signals. Except for standard USB webcams (which use USB data only), they are not compatible with HDMI/DisplayPort cables, video-capable USB-C hubs, or docking stations with video output.
- Convert USB-A Ports to USB-C: Designed to connect USB-C earphones, cables, flash drives, card readers, and other USB-C accessories to standard USB-A ports. Plug-and-play with no drivers or software required.
- Aluminum Alloy Housing: Built with a sturdy aluminum alloy shell that aids in heat dissipation and protects against daily wear and scratches. Designed to maintain a stable and secure connection.
- Compact & Travel-Friendly: The ultra-compact design allows the adapter to stay plugged into your device without blocking adjacent ports or adding bulk, reducing wear and tear on your original USB ports.
- 12-Month Warranty: Backed by a 12-month manufacturer warranty for peace of mind. Designed to meet strict quality control standards for reliable everyday performance.
BCG’s 2025 services benchmark reports that service growth exceeded new-equipment growth for most companies surveyed. It also reports an average gross margin of 50% on spare parts and consumables. That figure is a benchmark across the article’s sample, not a promise for every component or manufacturer. Historical cross-industry evidence from McKinsey found average EBIT margins of 25% for aftermarket services versus 10% for new equipment across 30 industries in 2017; EBIT and gross margin are different measures, and the comparison is not a current forecast.
Build the portfolio from the installed base
The installed base is the set of machines, systems and components a manufacturer has sold or supports. It is the natural starting point because the company already understands the design, approved parts and common service procedures. Customers also have a reason to buy: keeping a productive asset running usually costs less than an unplanned outage or premature replacement.
| Offer | Customer problem addressed | Typical revenue pattern | What must be ready |
|---|---|---|---|
| Spare parts and consumables | Wear, replenishment and failed components | One-time or repeat purchases | Accurate part identification, inventory and delivery channels |
| Repair and field service | Restoring operation after a fault | Per job, time and materials or quoted repair | Technicians, diagnostic procedures, dispatch and safety controls |
| Planned maintenance | Reducing avoidable failures and extending asset life | Scheduled visits or an annual plan | Service intervals, labor capacity and customer scheduling |
| Service agreement | Predictable support, parts and response | Recurring fee, sometimes with usage charges | Contract scope, response standards, coverage and renewal process |
| Retrofit, upgrade or conversion kit | More capacity, compliance, efficiency or compatibility | Project or staged purchase | Engineering validation, installation capability and lifecycle support |
| Training and remanufacturing | Operator capability or lower-cost component replacement | Course, exchange or refurbishment transaction | Curriculum, certified instructors, testing and reverse logistics |
| Remote monitoring and diagnostics | Earlier fault detection and better maintenance planning | Subscription, bundled service or support tier | Connectivity, secure data, analytics and a response operation |
| Usage- or outcome-linked service | Access to a defined availability, output or result | Per use, output or agreed outcome | Reliable measurement, clear responsibilities and risk controls |
An example of how broad this portfolio can become appears in Epiroc’s 2025 annual report. The company reported that 66% of group revenue came from aftermarket activities, made up of 42% from service and digitalization and 24% from tools and attachments. Its disclosed portfolio also includes training, remanufacturing, midlife services and conversion kits. This is a single-company example, not an industry average or a target that every manufacturer should copy.
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Start with parts, consumables, repair and maintenance
Make parts easier to identify and buy
Parts revenue is lost when customers cannot determine the correct revision, lead time or approved substitute. Create an equipment-to-part map using serial numbers, bills of material and supersession rules. Publish clear ordering information for distributors and direct customers, then measure quote-to-order conversion, fill rate, on-time delivery and returns caused by misidentification.
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- 5-in-1 USB-C Hub: Experience comprehensive connectivity featuring a Power Delivery input, two USB-A 2.0 ports, a USB-A 3.0 port, and an HDMI port. (Note: The USB-C power delivery input port is only for connecting an external wall charger to power your laptop and cannot power peripheral devices.)
- 90W Pass-Through Charging: Achieve optimal charging with 90W pass-through power to your laptop, supported by a total input of 100W, with the hub reserving 10W for operational efficiency. (Note: Wall charger not included.)
- Quick Data Transfers: Accelerate your productivity with rapid data transfers using a high-speed 5Gbps USB 3.0 port and two 480Mbps USB 2.0 ports.
- 4K HDMI Display: Enhance your visual experience with a hub capable of delivering 4K resolution at 30Hz in both mirror and extend modes. Please note that this hub is compatible with MacBook (macOS 12 and newer), Windows 10 and 11, ChromeOS, and laptops equipped with DP Alt Mode and Power Delivery. Note: This device is not compatible with Linux.
- What You Get: Anker USB-C Hub (5-in-1, 4K HDMI), welcome guide, 18-month warranty, and our friendly customer service.
Consumables can create a predictable replenishment rhythm. Filters, cutting tools, lubricants, wear components and other items should be packaged around the customer’s operating cycle rather than sold only as isolated stock-keeping units. Volume breaks, scheduled shipments or a maintenance kit can simplify purchasing without requiring a complex digital product.
Turn repairs into planned work
Capture failure codes, replaced components, labor hours and the conditions surrounding each repair. Use that history to define inspection intervals and recommended spares. A planned visit can combine inspection, calibration, software or firmware updates and replacement of known wear items. The customer gets fewer surprises; the manufacturer gets scheduled labor and a better chance to sell the parts required for the job.
Package support in service agreements
An agreement can combine preventive maintenance, priority response, selected parts, remote help and reporting. Write the scope precisely: covered assets, service hours, response time, exclusions, travel, consumables, customer access and renewal terms. Start with a tier that the existing field organization can deliver, then add options such as extended coverage or a defined availability commitment after performance data is reliable.
Use upgrades, training and remanufacturing to extend asset life
Customers often want more from an existing machine before they are ready to buy a replacement. Retrofit controls, safety packages, efficiency improvements, conversion kits and capacity upgrades can solve that need while creating engineering and installation revenue. The business case should show the expected operational benefit, installation downtime, compatibility limits and remaining support life.
Rank #3
- Sleek 7-in-1 USB-C Hub: Features an HDMI port, two USB-A 3.0 ports, and a USB-C data port, each providing 5Gbps transfer speeds. It also includes a USB-C PD input port for charging up to 100W and dual SD and TF card slots, all in a compact design.
- Flawless 4K@60Hz Video with HDMI: Delivers exceptional clarity and smoothness with its 4K@60Hz HDMI port, making it ideal for high-definition presentations and entertainment. (Note: Only the HDMI port supports video projection; the USB-C port is for data transfer only.)
- Double Up on Efficiency: The two USB-A 3.0 ports and a USB-C port support a fast 5Gbps data rate, significantly boosting your transfer speeds and improving productivity.
- Fast and Reliable 85W Charging: Offers high-capacity, speedy charging for laptops up to 85W, so you spend less time tethered to an outlet and more time being productive.
- What You Get: Anker USB-C Hub (7-in-1), welcome guide, 18-month warranty, and our friendly customer service.
Training is a service when it changes customer capability: operator qualification, maintenance instruction, troubleshooting or commissioning. Offer it at installation and again when staff turnover or a process change creates demand. Remanufactured or exchange components can provide a lower-cost alternative where testing, traceability and warranty controls make quality demonstrable. These offers also generate information about asset condition that can improve future service planning.
Consider digital services only when they solve a measurable problem
Connectivity can support remote monitoring, diagnostics, maintenance planning and efficiency or uptime services. It is not, by itself, a business model. BCG reports that 28% of new machines featured remote connectivity, while only 4% of surveyed companies said they had succeeded in generating recurring revenue from digital services linked to their equipment. The gap shows why a connected machine should be treated as an enabling capability, not proof of monetization.
Define the customer job before selecting technology
- Early warning: detect a condition that gives the customer enough time to plan a repair.
- Root-cause support: provide technicians with operating data that shortens diagnosis.
- Maintenance planning: combine runtime, condition and service history to schedule work and parts.
- Efficiency or uptime management: show a baseline, a controllable intervention and a reportable result.
For each use case, specify the data source, sampling or reporting interval, alert owner, response time and customer action. Price the service around a delivered benefit—such as monitored assets, diagnostic support or a scheduled intervention—not around connectivity alone. Security, permissions, data retention and integration with the customer’s systems must be part of the offer.
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Advanced service models can charge by machine use or tie payment to an agreed outcome. A manufacturer might provide equipment access with maintenance included, or commit to a defined availability level. These structures shift some operational risk from customer to provider, so the contract must make measurement and responsibility explicit.
Rank #4
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- Next-Level 10Gbps & 3A Charging: No more slow 480Mbps, this usb to usb c adapter has a transfer speed of up to 10Gbps, allowing you to do more transferring in less time. This usb adapter fits both USB A and USB C charger, supporting up to 3A fast charging
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- Broad Compatible: The usb c to usb adapter widely supports all USB C/ USB A devices like laptops, tablets, cellphones, car chargers, and phone chargers. Such as compatible with MacBook Pro/Air 2023/2022, Thunderbolt 4/3 Devices,Apple MagSafe Watch 9/8/7/SE/Ultra, iPad Pro 2022/2021, Samsung Galaxy S23/S20/S10, and iPhone 17/16/15 Pro. Plug and play
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- Name the outcome. Define uptime, throughput, quality, energy intensity or another metric in operational terms.
- Set the measurement method. Identify sensors, records, calculation windows, exclusions and audit rights.
- Separate controllable from uncontrollable events. State how customer misuse, upstream supply, utilities, planned shutdowns and force majeure affect the result.
- Assign the work. List who supplies parts, permits access, operates the asset, performs maintenance and approves interventions.
- Model the downside. Estimate service cost variability, spare capacity, penalties, replacement assets and the cash impact of delayed payment.
- Pilot on a bounded asset group. Use a contract whose baseline and operating conditions are well understood before expanding.
An eight-company peer-reviewed study published in 2024 found traditional product-oriented services—spare and wear parts, upgrades, repair and maintenance—dominant in the service revenue it examined, with digital product-service systems less mature. Its cases indicate that companies can develop service models along different, sometimes parallel paths rather than follow one mandatory ladder. A practical guide to advanced servitization and customer outcomes is available from Palgrave Macmillan.
Make installed-base data usable before adding sales capacity
A manufacturer cannot reliably target or deliver lifecycle services without knowing which assets exist, where they operate, their configuration, condition, usage and service history. Reconcile ERP, warranty, dealer, field-service and customer records into an asset register with a stable equipment identifier. Record ownership or operating site separately from the original buyer so service teams can reach the actual user.
Prioritize customers by service propensity
Rank accounts using signals such as asset age, operating intensity, prior repairs, parts purchases, warranty status, geographic coverage and known downtime sensitivity. Give sales and service teams a specific next action—an inspection, maintenance proposal, retrofit assessment or parts review—rather than a generic campaign.
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Best Value
- 5-in-1 Connectivity: Equipped with a 4K HDMI port, a 5 Gbps USB-C data port, two 5 Gbps USB-A ports, and a USB C 100W PD-IN port. Note: The USB C 100W PD-IN port supports only charging and does not support data transfer devices such as headphones or speakers.
- Powerful Pass-Through Charging: Supports up to 85W pass-through charging so you can power up your laptop while you use the hub. Note: Pass-through charging requires a charger (not included). Note: To achieve full power for iPad, we recommend using a 45W wall charger.
- Transfer Files in Seconds: Move files to and from your laptop at speeds of up to 5 Gbps via the USB-C and USB-A data ports. Note: The USB C 5Gbps Data port does not support video output.
- HD Display: Connect to the HDMI port to stream or mirror content to an external monitor in resolutions of up to 4K@30Hz. Note: The USB-C ports do not support video output.
- What You Get: Anker 332 USB-C Hub (5-in-1), welcome guide, our worry-free 18-month warranty, and friendly customer service.
Give the service organization a feedback loop
After every job, capture the asset condition, work performed, parts used, time to restore operation and follow-up opportunity. Review quote win rate, first-time fix rate, response-time performance, contract renewal, parts availability and customer-reported downtime. Data quality improves when technicians can enter information quickly and see how it changes scheduling or inventory decisions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Compare diversification options with one decision framework
Use a common scorecard rather than choosing the most fashionable model. The following dimensions reflect the service-execution, customer-information and business-model issues identified in industrial-services analyses by BCG, McKinsey and the 2024 academic study.
| Dimension | Questions to answer |
|---|---|
| Revenue pattern | Is income one-time, repeat, annual, usage-based or outcome-based? How often can the customer buy? |
| Customer value | Does the offer improve parts availability, uptime, downtime, asset life, productivity or a measurable output? |
| Delivery capability | Can the company provide inventory, technicians, remote support, partner coverage and the response promised? |
| Data requirement | Are equipment identity, location, condition, usage and history accurate enough for quoting and delivery? |
| Risk and economics | What investment, service-cost variability, price potential and performance risk are accepted? |
| Customer relationship | Does the manufacturer reach the end user directly, or must distributors and integrators provide access and delivery? |
Score each candidate with evidence from a small customer set. A parts program may score high on readiness but lower on differentiation. A performance contract may offer recurring revenue and strong customer value but require better data, more working capital and greater downside protection. There is no universally best model.
Implement diversification in stages
- Map the opportunity. List installed assets, owners, configurations, age, failure modes, parts demand, service coverage and customer economics.
- Choose one urgent customer problem. Select a use case where downtime, safety, compliance, labor or asset-life costs are visible and measurable.
- Launch an adjacent offer. Begin with parts, repair, maintenance, an upgrade or a service agreement that existing teams can fulfill.
- Set operating standards. Define inventory levels, technician skills, dispatch rules, response times, contract exclusions and escalation paths.
- Instrument the economics. Track contribution by offer, labor utilization, parts margin, travel, warranty cost, renewal and cash collection rather than revenue alone.
- Test targeted selling. Select accounts by asset and need, equip sellers with a specific proposition and compare conversion with the prior approach.
- Add digital layers selectively. Connect assets where alerts or diagnostics change a maintenance decision, then charge for a service customers can understand.
- Pilot performance commitments last. Use a narrow scope, a trustworthy baseline and explicit risk allocation before offering broad outcome guarantees.
Common failure modes and fixes
- Launching an app without a service response: assign an owner, alert thresholds and technician workflow before selling monitoring.
- Promising uptime without controlling maintenance: define customer duties, exclusions and measurement, or sell a less risky support tier.
- Ignoring channel ownership: give distributors and service partners clear roles, data access and compensation for renewals and referrals.
- Using incomplete asset records: reconcile serial numbers and service history, then label uncertainty instead of quoting with false precision.
- Confusing connectivity with recurring revenue: validate willingness to pay for a solved problem through a paid pilot.
- Chasing every possible service: select offers that match the installed base, customer economics and delivery footprint.
- Measuring sales but not cost to serve: include travel, emergency labor, parts logistics, warranty exposure and contract penalties in the offer model.
How to judge progress
Report the portfolio by revenue quality and customer result. Useful measures include aftermarket share, repeat-purchase rate, service-agreement renewal, parts fill rate, first-time fix, response-time attainment, contract gross margin, technician utilization, digital-service adoption and verified customer downtime avoided. Keep survey expectations, company examples and case results in their proper scope: BCG’s article reported 10% service-revenue growth in 2023 and a surveyed expectation of another 8% in 2024; the latter was an expectation reported in 2025, not a confirmed industry outcome.
Review the mix quarterly by asset class and customer segment. An offer that grows revenue but consumes scarce technicians or creates unpriced performance risk may weaken the portfolio. Conversely, a modest parts or maintenance program can be strategically valuable if it improves customer access, asset knowledge and the renewal opportunity for higher-value services.
Further reading
For benchmark context, see BCG’s 2025 aftermarket-services analysis, McKinsey’s cross-industry aftermarket analysis, and McKinsey’s 2024 discussion of why aftermarket and service matter to OEMs. For targeting methods, see the McKinsey customer-targeting case. Epiroc’s company-specific figures are in its 2025 annual and sustainability report, and the peer-reviewed service-model study is available at doi.org/10.1016/j.indmarman.2024.01.009.
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