Genie is taking a new approach to its used equipment strategy.
The company has launched the new Genie Certified Pre-Owned Program, alongside its Certified Reconditioned Equipment. Both programs are currently only available in North America.
“In the past, when we’ve handled used equipment, it was more from the fact of moving inventory. Once we brought it in we just wanted to get rid of it,” said Mitch Ely, Genie’s director of customer service and reconditioning.
“We’ve used auction markets, but what we’ve found is it has residual impact on the value of the equipment in the marketplace.”
The Certified Pre-Owned Program targets machines that are three to six years old and will reenter the market with a 24-month warranty.
As well, the machines are sold with a multi-point inspection report that includes an in-depth structural assessment, full function test results, a guarantee the machine meets and passes annual inspection criteria and a list of items that have been replaced.
The pre-owned program is designed to allow customers with smaller budgets, like an independent rental store, expand their fleet into new equipment categories.
“They may not want to play in the space because of the upfront cost, so this allows us to sell them a guaranteed product with a warranty,” Ely said. “They get to dip their toes in the water and get a feel for it.”
Certified Reconditioned Equipment targets machines that are six to 11 years old.
Each machine is thoroughly inspected to determine the service requirements.
Then, components are repaired, rebuilt or replaced to original machine specifications.
This process includes everything from the hydraulic, mechanical and electrical systems, engine components, decals and manuals.
“It goes into a shop and has extensive repairs done to it,” Ely said.
It also includes warranty work and updates issued in product bulletins and safety recalls, as well as an annual inspection completed to the manufacturer’s recommended guidelines for the specific unit. The machines are resold with 36-month, 3,000-hour powertrain warranties.
“Customers have a high thirst for recon product. They can buy more equipment, they have warranties and it allows them to maintain their return on investment,” Ely said.
Over time, the used equipment programs are expected to increase the residual values of Genie machines in the market. In turn, the strategy gives Genie customers an advantage when trading in, purchasing or reconditioning equipment.
“We want to provide advanced products and solutions to our customer base,” Ely said.
‘And we want to maintain and protect our residual values in the market place.”