Why premium brands are increasingly launching budget models
In the battle against new manufacturers, established brands are increasingly launching competitively priced entry-level models. But what does this mean for durability, construction, and total cost?
By Stefan Staes
Introduction
Anyone looking at the catalogs of major brands in material handling today will notice a striking evolution. Electric pallet trucks and stackers are increasingly appearing on the market at prices that would have been unthinkable for established brands just a few years ago.
For many users, that seems like good news: the reputation of a premium brand combined with the price of an entry-level machine.
But anyone who works with these devices daily will find the story is often more complex. Behind the low purchase price usually lies a different construction, different warranty terms, or a different product positioning.
The question is therefore not only how much a machine costs at the time of purchase, but especially what it actually costs during its lifespan.
Why premium brands are increasingly launching budget models
The rise of affordable entry-level models from established brands is no coincidence. It's the result of a structural change in the global material handling market.
Over the past fifteen years, new manufacturers, particularly from Asia, have significantly raised their technological level. While these machines once competed primarily on price, they now often offer surprisingly solid quality at a significantly lower cost.
This creates a dilemma for traditional market leaders. Their industrial machines are built to very high standards, but their cost structure doesn't allow them to compete directly with the lower price segments.
At the same time, another evolution is taking place. The true value of a modern electric forklift lies less and less in the mechanical aspects of the machine. Just as in the automotive industry, the focus is shifting increasingly toward energy and electronics .
The battery is quickly becoming the new engine of the logistics industry — and it is precisely in this area that many Asian manufacturers currently have a clear lead.
That's why we're seeing many premium brands adopt a new strategy: launching simplified entry-level models. These devices allow them to maintain a presence in the lower price range without repositioning their industrial product lines.
At the same time, we see some specialized Asian manufacturers consciously pursuing a different strategy. They develop their machines from the ground up for the mid-market segment, with a strong focus on robust construction and a transparent cost structure.
For the user, this means that the logo on the machine no longer always offers the same guarantee in terms of construction, service or lifespan as with the traditional industrial models of that brand.
Three points to consider when choosing affordable entry-level models
1. Warranty conditions
For some entry-level models, the warranty is limited to the replacement of defective parts. In that case, the user is responsible for the technician's labor and travel expenses.
That might seem like a minor detail, but it can quickly add up. With a relatively inexpensive machine, a single intervention can represent a significant portion of the original purchase price.
In practice, some dealers try to limit this risk for their customers by temporarily providing a replacement unit during the warranty period in the event of a breakdown. This allows operational continuity in the warehouse to be maintained while the machine is being repaired.
2. Construction and choice of materials
To achieve a lower price, materials are sometimes used sparingly. Plastic covers and lighter construction are more common in entry-level models.
However, in warehouses where pallets are used on a daily basis, a robust steel chassis can play an important role in the durability of the machine.
3. Capacity and deployability
The technical specifications also deserve attention. Many entry-level models, for example, have a capacity of around 1300 or 1500 kg . A 2000 kg model, which generally has a wider range of applications, often finds itself in a significantly higher price range.
For many applications, a capacity of 1300 or 1500 kg is perfectly sufficient. It also means machines can be used at their maximum load more quickly. In some situations, a model with a slightly higher capacity can prove to be a better investment in the long run, as the machine will need to operate at its limit less often.
An evolution we saw before in the automotive industry
What's happening today in the world of internal transport is reminiscent of an evolution the automotive industry underwent about fifteen years ago. There, too, premium brands began launching entry-level models to counter competition from new players and lower-cost manufacturers.
The result was a clear market segmentation: simple entry-level models, a strong mid-range segment, and high-tech flagship models. At the same time, for many users, the brand name was no longer the only determining factor, but rather the total cost of ownership and the product's practicality .
A similar dynamic seems to be emerging in internal transport today.
Conclusion: look at the Total Cost of Ownership
The purchase price of a machine only tells part of the story.
For companies that depend on their internal transport equipment on a daily basis, it is often wiser to look at the Total Cost of Ownership : the total cost of a machine over several years of use.
Not only the purchase price, but also reliability, construction and warranty conditions play an important role.
Sometimes it turns out that the most economical choice is not the machine with the lowest price, but the machine that remains most reliable and transparent in use in the long term.
Just as in other industrial sectors, a new reality seems to be emerging in internal transport: not the logo on the machine, but the economic logic behind the machine increasingly determines the user's choice.