Businesses thrive on innovation and Pak Suzuki Motors is doing just the same. As a part of its latest marketing initiative, titled "Suzuki Certified Used Car Program", PSMC is selling new cars for old - offering consumers to replace up to five year old models with new ones.
Under this refreshingly new concept in Pakistan, consumers will be offered, after due inspection, market price for their cars that suits its condition and model year, following which they can drive away with their new machine, after paying the price differential, of course. On top of this convenience, PSMC is also wooing consumers with a price discount - now averaging 5 percent since the start of this year.
The exchange program offered on all Suzuki brands, however, is more than just symbolic, as the company hopes to clear out its new vehicle inventory, while reconditioning its existing cars in the market. Perhaps the most promising outcome of this scheme has already started, and is reflected in their rising sales numbers.
The companys sales volume increased by 34 percent ever since the scheme started in May. Even the sale of Liana - with its shockingly jaywalking pattern - nearly doubled during the period reflecting the dramatic effects of the firms latest sales marketing tactic.
The replacement offer does not just bode well for PSMCs top-line, but it also provides a cushion to consumers who are constrained by the falling number of car financing products across the banking sector, after many lenders became reluctant over the past 18 - 24 months.
But given that PSMCs scheme is also available for cars that have been purchased through bank loans; the problem of finding fresh financing is resolved to an extent, with the hassle of loan transfer to be borne by the company.
Selling new lamps for old may be an old trick with origins going as far back as the famous Aladdin fable, but when a recession grinds businesses to halt, it often pays to get back to basics. PSMC has already taken an initiative and it is hoped that others will follow suit.
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