Know-How Exchange : Other

I am a Product Manager for an Electronics Distribution Company, and i've seen 3 or 4 'Trade-In' programs of late in which they offer a discount of anywhere between 10%-25% for the trade-in of an old unit, whether it's the same or a competitive product. There is very little a competitor can do, as you merely publish the promotion details as part trading in an old unit for a new. It's like with car dealers/garages; you can part trade a ford for a vauxhall - there is nothing that Ford could or would say to this arrangement.

The results of these promotions in my experience are always very good. The two product lines we've seen the best repsonses from are Thermal Imaging Cameras and Oscilloscopes. The customer either trades-in and old one from the same manufacturer or a competitive one, irrespective of whether it's functional or not. The aim here is to increase brand awareness and convert customers to your products, so even if you're taking back a non-functional product, it does not matter. At the very worst, you've sold one of your products to them. Better still, you could have the unit repaired and sell it as a refurbished or reconditioned unit (if financially viable) or sell it for spare parts for example.

Regarding the element of larger competitors; in my experience, they would consider your competition insignificant in terms of the market share you are likely to take. If you sell 4-5 units on the trade-in program for example, that might be some significant incremental business, but may not dent your competitor's market share at all, so i wouldn;t worry about it. Try it, and if there is a reaction, cross that bridge when you come to it.

Any questions, please just ask. Best of luck!