Used 2009 Skid Steer, 2000hrs, Cab/ Heat/ AC, Joysticks, $29,900
Is there anything that you can do to make your listing “pop out” to a potential buyer? Can you offer a feature or service your competition can’t?
Machinery Scope has exactly what you need to increase interest in your listing, and at the same time provide two services that increase confidence in the units you are selling!
In this ultra competitive marketplace, you need every edge that you can get. Making the title and description of your unit stand out from the rest, can make or break your opportunity to sell your wares. In this two-part blog series, we will take a look at how advertising with a warranty and/or an advanced inspection can drive people to pay attention to your online and print listings.
In this first article, we will take a close look at advertising with a warranty. In the second post, we will examine the value of advertising with an inspection and also how combining the two can add even more value to your marketing campaign.
Advertising With a Warranty
No one has ever complained about having base warranty on new equipment that they are purchasing. But will turn down the extended warranty because they have to purchase it themselves. So why not take the same approach with used equipment? Instead of extended warranty as an add-on option try including the extended warranty up front in the price of the unit.
Purchasers are reluctant to pay to have additional features added on to the price that was advertised. They are less reluctant if it is an included feature and part of the advertised listing price. They can always negotiate the extended warranty out of the deal if they want to bring the price down. That rarely happens because warranty brings peace of mind, and adds real value to the equipment.
One of the most effective ways to move older equipment or equipment that has hours is to reduce the inherent risk involved with buying used. By adding warranty coverage to a unit before you list it with your favorite publications, you are providing a risk management solution to your customer that in the past was only available when purchasing new equipment. This makes buying used more palatable, and in this market, any way you can move used equipment is a win.
It’s even better if you can sell a unit at a premium, adding warranty to a used machine can do just that. How? Adding warranty to equipment provides a way for your customers to fix costs by protecting them from having to pay for major repairs. Having to pay out for a bad transmission or a blown head gasket can make the difference between having a good year and just an OK or bad year. Warranty on used equipment allows you to pay a small amount up front, and can even be financed into the purchase. This eliminates the worry of paying for a catastrophic failure that will affect the producer’s bottom line and is well worth the added value.
Up until now, if you were trying to sell competitors’ equipment, or units that were either too old or had to many hours, there was no way to do this through the manufacturer offered programs. But with Machinery Scope, we have options to cover units of every make and model up to 10 years old and up to 5,000 engine hours by providing a warranty that is built right into the price of the unit.
Including a warranty in the original asking price also protects you or your dealership from having to pay for expensive breakdowns to keep a customer happy. Let’s lay out a couple of examples to illustrate this.
Let’s say you are a green dealer and you sell a used red combine to a local producer whom you have never done business with before. Let’s say the warranty was not included in the original asking price, but was offered to the producer as an add-on. He decides that he wants the lowest price he can get, and chooses to pass on the extended warranty that was offered to him. He leaves happy that he got the best price.
But lets say 100 hours into his fall harvest the transmission goes out. This producer is not happy and comes into your store spitting fire, and accusing you of selling him a garbage combine. You kindly remind him that you offered him the extended warranty as an option that he refused. The producer argument is quickly pulled out from under him, but that does not change the fact that he is upset and feels like he was sold a lemon. You may have saved yourself from having to foot the bill for the expensive labor and parts but, you still have an unsatisfied local customer who spreads the word that you did not take care of him.
Now let’s change the story up and say a 1 year, 500 hour, warranty was included in the original advertised price. He comes back to you with the same issue. You happily take his unit in to be serviced knowing that you will be reimbursed at your full shop rate for labor and MSRP for parts. If your dealership is uncomfortable working on a competitors unit, it’s no problem. He can take it to the local red dealer and have it serviced there. The warranty will still be honored. Either way, he leaves satisfied, because he is being taken care of and spreads the good word about buying from your dealership.
An Extended Warranty from Machinery Scope is a valuable marketing tool. For more information on how to utilize a Machinery Scope warranty to market your equipment, please give us a call at 701-793-4005, or fill out one of the forms on our website. One of our account reps will get in touch with you as soon as possible.
Stay tuned for the continuation of this two-part series. We will tackle both how to use an inspection to advertise your listings as well as the benefits of combining a warranty with the inspection to accomplish your marketing goals.