Aftermarket (merchandise)

Aftermarket (also after-market) refers to any market where the customers who purchase one product or service are likely to purchase a related, follow-on product^[1] The concept of a secondary market for merchandise, is related, but not the same. Where an aftermarket refers to a potential follow-on product sale, a secondary market refers to an availability of products due to their re-sale by the end customer.

The existence of an after-market is often a persuasive argument for manufacturers to stay in direct contact with end users. Manufacturers will use postage-paid guarantee cards, for example, to keep track of the address of end-users.

In many industries--automotive, consumer electronics, home appliances--the after-sales servicemarket has ballooned to four to five times the size of the original equipment business.^[1]

—Harvard Business Review, 2006

Aftermarket service includes product support for warranties, contracts, and parts sales.^[2]

Success of the razor and blades business model relies entirely on profits from aftermarket merchandise.

Examples

• Customers who install a software package will constitute the aftermarket for software support services.
• Buyers of single-lens reflex cameras are an aftermarket for lenses and flashes.

See also

• Complementary good
• Aftermarket (disambiguation)

Notes and references