Aftermarket

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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.

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.

Aftermarket service includes product support for warranties, contracts, and parts sales.^[1]

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

Notes and references

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