From the Editors

What’s the best way to move that noncurrent unit?

If you’re trying to move noncurrent major unit inventory, do you discount it, or add value to it? Of course, you can try both, but what’s really going to move the needle in terms of consumer behavior?

Honestly with the amount of discounts I saw thrown about during the holidays, I would have probably sided with the “discount it” option. It seems we’re conditioning consumers even more now to spend only when we discount.

However, one recent, successful promotion has swayed my opinion.

In the fourth quarter, Genuine Scooter Co., the Chicago-based distributor of Taiwanese scooters, put together a sales package called “Dressed for the holidays!” The sales promotion provided up to $500 in bolt-on accessories for a new scooter.

Genuine used a combination of marketing approaches for the promotion, from advertising in consumer magazines, on dealer Web sites and via industry-specific blogs.

The result? Genuine saw a 23 percent increase in vehicle registrations in November and December compared to the previous year.

Meaning, maybe simply taking another 10 percent off the MSRP of the new unit may not get the consumer reaction you’re expecting.

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  1. So, how can you say Genuine didn’t discount when they offered up to $500 in accessories to close the deal? Isn’t that discounting the value of the accessories? Or, do you consider that as “value added.” In my opinion, value added and discount are interchangeable. Sounds like what you meant to say is Genuine didn’t discount the unit price in their promotion.

  2. Noncurrent is soon to be a thing of the past. We are so low on Suzuki motorcycles, and Yamaha is starting to show signs of becoming less available. With dealers stretching to give product away for almost no profit, and expect it to help their current situation, they too will soon have nothing to sell used bike prices are climbing as well.

    A solid value based sales presentation, with excellent sales skills have more over benefitted us in moving noncurrent bikes, spending extra time with the customer and fitting the bike into their lifestyle and focusing on what the product will do rather than price, and age moves the old units out with out panic selling, also hire a few new salespeople everything is new to them they seem to always sell the stuff your staff views as aged!

  3. What’s old to you is still “new ” to the customer. Don’t panic when a new customer shows interest in an aged unit. We all get desperate in these times – I have been able to get full retail for a majority of our aged inventory. Not all sales go easy. You still have the shop till I drop guys. But we work every deal for every dollar.

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