Why I’ve Stopped Treating Parts as a Cost Center (And Started Treating Them as a Brand Investment)

I was wrong. For years, I treated our parts budget like a simple expense line to be minimized.

Honestly, it felt like the right move. When I started managing procurement for our fleet of Volvo excavators and loaders, my mandate was clear: cut costs. So I did. I dug into the world of used Volvo parts, dealer vs. independent, OEM vs. aftermarket. I negotiated hard. And I saved us money—on paper.

But here’s the thing no one tells you: the way your equipment performs in the field is a direct reflection of your company's brand. When that used Volvo part you saved $50 on fails on a Tuesday morning, it doesn’t just stop a machine. It stops a job. It stops a deadline. And it tells your customer, loud and clear, that you cut corners.

So here’s my hard-won opinion: Stop treating your parts spend as a cost center. Start treating it as a brand investment.

I manage the budget for a 180-person heavy civil construction company. We run a mixed fleet of Volvo, Cat, and Komatsu equipment. For the last 7 years, I’ve been tracking every single dollar we spend on parts, service, and downtime. I’ve analyzed over $1.4 million in cumulative spending. And I can tell you definitively: the cheapest path is almost never the least expensive one. (Note to self: I really should turn this analysis into a proper white paper for our team.)

Argument #1: The 'Cheap' Used Volvo Part Costs You More Than Just Money

In Q3 of 2023, we had a 2017 Volvo L120G wheel loader go down. The hydraulic pump was bad. The quote from our local Volvo dealer for a remanufactured unit was $4,800. I found a 'used Volvo parts' supplier online—a smaller independent shop—quoting a salvage unit for $2,900. I went with the cheaper option.

That pump lasted 14 weeks. The replacement cost us another $2,900, plus a $750 emergency service call, plus 3 days of lost production on a job that had a $12,000/day liquidated damages clause. That 'great deal' ended up costing us nearly $45,000 in total, including the downtime penalty. (This was back in late 2023, before we updated our TCO model.)

What most people don’t realize is that 'used' doesn't always mean 'tested.' A salvage part from a machine with 12,000 hours may not have undergone the same tear-down and inspection as a Volvo- certified remanufactured part. The price difference is built on that risk transfer. You’re effectively gambling your schedule on a supplier who isn't sharing your risk.

Argument #2: Your Equipment Fleet Is Your Most Visible 'Product'

Think about this: when your customer visits a job site, what do they see first? They see your iron. They see a Volvo EC480 excavator sitting idle because you’re waiting on a part. Or they see a machine leaking hydraulic fluid because a gasket from a non-OEM kit didn't seal properly. (I learned that lesson with a $150 gasket that caused a $3,000 hydraulic system flush.)

To the client, that broken machine isn't just a machine. It’s a symbol. It says: This contractor doesn't have their act together. It erodes trust. And trust, in a B2B relationship that revolves around millions of dollars of work, is more valuable than anything you can save on a discount bin of used parts.

Sure, the Volvo OEM part costs more. But the bolt holes line up perfectly. The piston seals are correct for the serial number. You don't have a 50% chance of getting a 'compatible' part that actually takes two hours of grinding to fit. That certainty—that your equipment will start on time—is part of your brand promise to your customer.

Argument #3: The Real Value of the Volvo Dealer Network (And Why You Should Use It)

One of Volvo’s key advantages is its comprehensive parts and service network. When I first started in this role, I saw the Volvo dealer portal as a 'default tax'—a place you went when you had no other choice. I couldn’t have been more wrong.

Sure, you can buy a 'used volvo parts' set from a non-dealer source for a few hundred less. But the dealer gives you traceability. They give you a warranty that's backed by a publicly traded company. They give you a part that has a spec sheet and a certification. Plus, their inventory system is integrated with the factory in Sweden. If a part isn't on the shelf, they can tell you when it will be, not just a vague 'next shipment sometime.'

I get why people say no to the dealer. The upfront price is higher. Budgets are tight—especially for a smaller contractor who’s looking at a turbine or a rolling compactor for a niche job. That said, the risk profile is completely different. For a $4,200 annual contract for scheduled maintenance parts? I want the peace of mind. For a critical component on a machine making $500 an hour? I can't afford not to use the dealer.

But Wait—Isn't Quality Always Just 'More Expensive'? (Let Me Answer That)

The most common counter-argument I hear is this: 'Not everyone can afford to pay the Volvo tax on everything. What about the small guy?' To be fair, that’s a real point. Not every job requires a brand-new OEM part. Not every machine is on a critical path.

Here’s my framework for knowing the difference: Ask yourself what the 'smell test' is for your client. If a potential client sees a machine with a mismatched hydraulic line or a part that was clearly patched together, will that affect their perception of your company? If the answer is yes, then you can't afford the cheap part. This is about quality perception applied to your equipment, not your brochure.

I’m not saying you should never buy used. We do it all the time for secondary equipment—for parts on a machine that’s a backup or a smaller unit. But I’ve built a cost calculator into our procurement policy. We now require a minimum of three quotes—usually two from independent suppliers and one from the dealer. But we also have a rule: if the cost difference between the cheapest 'used' part and the dealer part is less than 20% of the potential downtime cost, we go with the dealer. Period. It’s saved us from at least two major failures in the past 18 months. (Mental note: audit this rule at the end of Q3.)

Bottom Line: Your Parts Spend is a Signal

I’ll leave you with this: your equipment is your walking advertisement. It’s the most tangible proof of your capability that you have. When you invest in the right parts—even the seemingly boring ones like seals or filters—you are investing in the story your equipment tells. It tells clients you are reliable, professional, and that you value the long game over the quick buck.

So stop trying to win the game on the price of a used Volvo part. Start trying to win the game on the reputation of your fleet. The $1,000 you 'save' on a bargain-bin part is not profit—it’s a loan against your brand’s future credibility.

About the author: I’m a senior procurement manager for a mid-sized heavy civil construction company in the Midwest. I’ve managed our fleet parts and service budget for over 7 years, negotiating with over a dozen vendors and documenting every order in our system. The views expressed are my own, based on two audits of our total cost of ownership data conducted in 2023 and 2024.