Accept Trade-Ins - Often customers will use a durable product until it fails. Until then, the prospect may be a desire to make a purchase, but rationalizes that is often not an immediate or urgent customer need. Accepting trade in's allows to counter that objection or plan. Your customer can dispose of their current product without liability, while acquiring a replacement or upgrade from you.
One key to the business' is to have a system in place to take the unit and channel it for a productive use once traded in. This can include auctioning off items with useful life still with them, recycling products down to scrap or disposal by a qualified vendor.
Trade-in marketing helps consumers to obtain lower prices by exchanging something the customer possess, such as an older product that the new purchase will replace. While the idea of gaining price breaks for trading in another product is most frequently seen with automobile sales, such promotions are used in other industries, such as computers and golf equipment, where the customer’s exchanged product can be resold by the marketer in order to extract value.
In fact, the US government’s Car Allowance Rebate System (CARS), better known as “Cash for Clunkers,” was wildly successful with consumers and has boosted recent auto sales. Sadly, fewer than half (45%) of cars purchased under the program are American brands, according to statistics from the US Department of Transportation (via US News & World Report). Hey, I was born, raised and live in a suburb of Detroit and morally can't drive a foreign car.
The automotive business is great at using trade-in to generate new car sales. It works becasue of all the time it takes for a car owner to sell a used car himself. It's juest easire to trade it in at the dealer or used car lot for another vehicle.
In today paper I read that Home Depot will let customers trade-in used or broken power drills for 15 percent off a new lithium-ion drill. This is the first time the company is inviting drill trade-ins.
The trade-ins are an example of ways retailers are trying to spur sales as consumers hold tightly to their wallets due to high unemployment and the credit crunch.
I think the large appliance business would profit greatly by offering money for used trade-ins. People would be more likley to purchase from a supplier who is giving something back rather than just offering to haul away the old appliance. Now-a-days there is a huge market for used large appliances and they could be refurbished and resold at a profit.
Budget: $250 - $750 monthly