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.