{
  "id": 19098678,
  "title": "Extended Service Agreements, Not Right to Repair, Are the Real Aftermarket Story",
  "url": "https://urgent.news/2026/11/09/extended-service-agreements-not-right-to-repair-are-the-real",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-09T05:00:00.000Z",
  "source": {
    "name": "Supply Chain Brain",
    "slug": "supply-chain-brain",
    "url": "https://www.supplychainbrain.com/general-scm/customer-relationship-management/blog/15883271/extended-service-agreements-not-right-to-repair-are-the-real-aftermarket-story"
  },
  "original_language": "en",
  "account": "The aftermarket service landscape is undergoing significant transformation, with extended service agreements emerging as a dominant trend. While the right to repair has garnered much attention due to its legislative and adversarial nature, manufacturers should recognize that it is just one component of a broader shift in control over the aftermarket relationship.\n\nFactors such as increased price transparency, greater sourcing options, and digital capabilities are eroding manufacturers' pricing power. Additionally, the dealer channel now faces heightened competition for the same purchases, with buyers increasingly seeking alternatives to the convenience of defaulting to dealerships. Digital tools, including real-time parts data and predictive service, have become essential for all players rather than a competitive differentiator.\n\nPerhaps the most crucial shift is the erosion of proprietary control over diagnostic and parts data. As right to repair regulations progress differently across industries, manufacturers must prioritize access to this data to maintain a competitive edge. However, simply obtaining the data is not enough; manufacturers must also ensure they have the necessary parts, capacity, and visibility to meet service commitments.\n\nExtended service agreements, including multi-year service contracts and preventive maintenance plans, are proving to be a more reliable revenue stream than new equipment sales. With gross margins twice that of equipment sales, these contracts provide predictable cost and coverage for equipment owners while safeguarding manufacturers' service networks. However, pricing these contracts requires accurate reflection of real costs, as static assumptions can lead to significant margin losses.\n\nUltimately, OEMs should view right to repair not as a loss of advantage, but as an opportunity to strengthen their service relationships. By offering comprehensive extended service agreements, manufacturers can protect their revenue streams, maintain control over the aftermarket, and adapt to the evolving demands of their customers.",
  "summary": "Right to repair is forcing part of this conversation, but the pressure was already there from three other directions.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}