Want to move aging inventory faster? Deep discounts and auctions aren’t your only options. A well-timed approach, compelling buyer incentives, and the strategic use of an often-overlooked tactic, extended service coverage, can significantly boost your results:
Extended Coverage Moves Iron
Sells 2x faster Boosts resale value
Builds buyer confidence Drives repeat revenue
Here are proven ways to breathe new life into aging inventory — with a few strategic tweaks that put extended protection front and center:
- Bundle with Value-Added Services Offering maintenance packages, extended coverage, or training can make older equipment more attractive. These extras inspire buyer confidence and foster loyalty, which also boosts service and parts absorption down the line.
- Provide Lease Options Leasing helps overcome price hesitation and cash-flow hurdles. Just be sure the machine is backed by extended warranty. If it comes back, the coverage helps preserve resale value—and gives buyers peace of mind.
- Showcase Maintenance Records A documented service history builds trust and helps older machines stand out. Equipment that’s been covered is usually better maintained, so ensure machines are traded in while still under protection to maximize appeal and value.
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Stand Out Online with Confidence Tools Most dealers list online—but to cut through the noise, lead with benefits that matter. Extended coverage signals that a unit has been cared for and offers added reassurance, especially to distant buyers. It also delivers:
- Peace of Mind: Coverage cushions against costly surprises.
- Speedier Sales: Units sell twice as fast when covered.
- Higher Trade-in Value: Coverage enhances perceived reliability.
- Better Negotiating Power: Use it to justify your price—or sweeten the deal by removing it.
- Marketing Edge: Even stating that equipment “qualifies” for coverage can spark buyer interest.
- Run Creative Promotions From flash sales to “buy-one-get” deals, urgency drives action. Pair these with basic extended coverage and you increase close rates while creating opportunities to upsell a more comprehensive plan that is a better fit for customer’s operation.
- Build Long-Term Loyalty Farmers count on their machines. Offering service contracts builds trust and keeps them returning for maintenance and repairs—setting you up as their go-to dealer for future purchases.
- Unlock Recurring Revenue Extended coverage isn’t just a closing tool—it’s a long-term profit stream. It generates income from service work and parts well after the sale.
- Weather Sales Slowdowns When new purchases stall, extended protection helps keep customers engaged and your business stable. It encourages ongoing interaction even without new-equipment commitments.
So why don’t more ag dealers lean into extended coverage, even with all these proven benefits? One reason: baggage. The poor reputation of some automotive warranty programs has unfairly spilled into agriculture. But here’s the reality—reputable providers in the ag space understand the unique values of this industry, and shady operators don’t last here.
The rare negative experiences usually stem from mismatched expectations. That’s why education is essential: help your buyer understand what’s covered, and you build not only a better deal—but a long-term relationship.
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At Ag Guard, we’ve partnered exclusively with dealers for 25 years—never selling direct. We’re proud to be the trusted, independent provider of extended service contracts for the ag industry, and we’re committed to helping producers succeed and dealers thrive. To learn more about Ag Guard products, reach out to us at [email protected], 816-223-1978 or AgGuard.com.
