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When it comes to purchasing or leasing heavy equipment, the model year plays a crucial role in determining the machine’s age, value, and technology. For buyers and operators of Komatsu equipment, however, understanding the “model year” can be confusing. The term “marketing model year” doesn’t always align with the actual manufacturing year, which can lead to misunderstandings about the equipment’s age and condition.
This article will explore how Komatsu markets their equipment and the implications of the marketing model year, how it compares to the actual manufacturing year, and what buyers need to know when considering a Komatsu machine.
What is the Marketing Model Year?
The marketing model year is a term used by manufacturers like Komatsu to denote a particular model's sales period, which often does not coincide with the actual production date. The marketing model year can be thought of as the model year used for marketing purposes to align with the typical fiscal or sales cycle.
For example, Komatsu may release a new model in the middle of a calendar year, but market it under the following year’s label. This is especially common when new machines are introduced late in the year but are marketed as part of the next model year to align with sales goals or industry norms. As a result, machines built in late 2020 could be sold as part of the 2021 model year.
Why Does Komatsu Use the Marketing Model Year?
1. Sales and Market Strategy
One reason for this discrepancy is the sales cycle. The construction industry, like many others, follows a specific sales cycle that often begins with fiscal years or calendar years. Manufacturers, including Komatsu, align their machines with these cycles for easier marketing, inventory management, and overall sales strategy.
The use of a marketing model year allows Komatsu to streamline their sales efforts, promote newer models more effectively, and ensure that machines are marketed when demand is typically high, such as at the start of the year.
2. Perception of Newness
Another reason is customer perception. The model year is often associated with the newness and technological advancements of a machine. By marketing a piece of equipment under a new model year, even if it’s manufactured in the previous year, Komatsu ensures that potential buyers see it as a fresh and modern machine, even though it may have already been produced months earlier. This is particularly important when selling high-cost equipment where buyers are looking for the latest innovations and features.
Marketing Model Year vs. Manufacturing Year
It’s essential to differentiate between the marketing model year and the manufacturing year of a Komatsu machine, as they often don’t align.
In some cases, Komatsu might release a machine at the tail end of 2020, but the machine is marketed as part of the 2021 model year. Buyers may assume they’re purchasing a 2021 model, when in fact, the machine may have been manufactured in late 2020. This can create confusion for those looking for the latest technology or features, as they may not be fully aware that the machine’s model year and actual production year are different.
Implications for Buyers
1. Resale Value and Depreciation
Understanding the difference between marketing and manufacturing years is important for anyone considering purchasing a Komatsu machine, particularly when it comes to resale value. When reselling a machine, the model year can significantly affect its perceived value. If you purchase a 2020 model marketed as 2021 and decide to sell it in the future, potential buyers might be confused about the actual age of the equipment.
The resale value of equipment can be influenced by its actual production year rather than the marketing model year. Machines with older manufacturing dates may be worth less than newer units, even if they are marketed as newer models.
2. Warranty and Support
Another consideration is the warranty. Manufacturers often base warranty periods on the marketing model year. So, a 2020 machine marketed as a 2021 model might have a shorter warranty than the same machine sold as a 2020 model, even though it’s effectively the same machine. Buyers should pay close attention to warranty details and ensure they understand the specific terms, especially if the equipment is already close to the end of its warranty period.
3. Features and Upgrades
In some cases, newer models marketed under a different model year might come with enhanced features or upgrades. If a buyer mistakenly believes they are purchasing a 2021 model but is actually getting a 2020 machine, they could miss out on upgrades or technological improvements that may be available in the new model year. It’s important for buyers to cross-check the manufacturing year to ensure they are receiving the latest technology.
What Should Buyers Do?
To avoid confusion when buying Komatsu equipment, here are some tips:
A construction company in Texas purchased a Komatsu D61PX-24 bulldozer marketed as a 2021 model. However, upon further inspection, the company realized that the machine was actually manufactured in late 2020. Although the machine came with the advertised features of a 2021 model, the company felt that the machine’s value was slightly lower than expected because it was closer in age to the 2020 model. This led them to negotiate a better price, ultimately saving a significant amount on the purchase.
Conclusion: Understanding Komatsu’s Marketing Model Year
Komatsu’s use of a marketing model year often creates confusion about the age and features of their machines. While the model year plays a key role in sales and marketing, understanding the difference between the marketing year and the actual manufacturing year is essential for buyers, contractors, and equipment owners. By verifying the manufacturing year, checking warranty terms, and staying informed about the latest technological upgrades, buyers can ensure they make an informed decision when purchasing a Komatsu machine.
This article will explore how Komatsu markets their equipment and the implications of the marketing model year, how it compares to the actual manufacturing year, and what buyers need to know when considering a Komatsu machine.
What is the Marketing Model Year?
The marketing model year is a term used by manufacturers like Komatsu to denote a particular model's sales period, which often does not coincide with the actual production date. The marketing model year can be thought of as the model year used for marketing purposes to align with the typical fiscal or sales cycle.
For example, Komatsu may release a new model in the middle of a calendar year, but market it under the following year’s label. This is especially common when new machines are introduced late in the year but are marketed as part of the next model year to align with sales goals or industry norms. As a result, machines built in late 2020 could be sold as part of the 2021 model year.
Why Does Komatsu Use the Marketing Model Year?
1. Sales and Market Strategy
One reason for this discrepancy is the sales cycle. The construction industry, like many others, follows a specific sales cycle that often begins with fiscal years or calendar years. Manufacturers, including Komatsu, align their machines with these cycles for easier marketing, inventory management, and overall sales strategy.
The use of a marketing model year allows Komatsu to streamline their sales efforts, promote newer models more effectively, and ensure that machines are marketed when demand is typically high, such as at the start of the year.
2. Perception of Newness
Another reason is customer perception. The model year is often associated with the newness and technological advancements of a machine. By marketing a piece of equipment under a new model year, even if it’s manufactured in the previous year, Komatsu ensures that potential buyers see it as a fresh and modern machine, even though it may have already been produced months earlier. This is particularly important when selling high-cost equipment where buyers are looking for the latest innovations and features.
Marketing Model Year vs. Manufacturing Year
It’s essential to differentiate between the marketing model year and the manufacturing year of a Komatsu machine, as they often don’t align.
- The manufacturing year is when the machine is actually built, and it can vary depending on production schedules. For example, a machine manufactured in December 2020 could be sold in 2021 but marketed as a 2021 model year machine.
- The marketing model year, as explained, reflects the year in which the product is being sold or promoted, often to create a sense of newness and align with the sales cycle.
In some cases, Komatsu might release a machine at the tail end of 2020, but the machine is marketed as part of the 2021 model year. Buyers may assume they’re purchasing a 2021 model, when in fact, the machine may have been manufactured in late 2020. This can create confusion for those looking for the latest technology or features, as they may not be fully aware that the machine’s model year and actual production year are different.
Implications for Buyers
1. Resale Value and Depreciation
Understanding the difference between marketing and manufacturing years is important for anyone considering purchasing a Komatsu machine, particularly when it comes to resale value. When reselling a machine, the model year can significantly affect its perceived value. If you purchase a 2020 model marketed as 2021 and decide to sell it in the future, potential buyers might be confused about the actual age of the equipment.
The resale value of equipment can be influenced by its actual production year rather than the marketing model year. Machines with older manufacturing dates may be worth less than newer units, even if they are marketed as newer models.
2. Warranty and Support
Another consideration is the warranty. Manufacturers often base warranty periods on the marketing model year. So, a 2020 machine marketed as a 2021 model might have a shorter warranty than the same machine sold as a 2020 model, even though it’s effectively the same machine. Buyers should pay close attention to warranty details and ensure they understand the specific terms, especially if the equipment is already close to the end of its warranty period.
3. Features and Upgrades
In some cases, newer models marketed under a different model year might come with enhanced features or upgrades. If a buyer mistakenly believes they are purchasing a 2021 model but is actually getting a 2020 machine, they could miss out on upgrades or technological improvements that may be available in the new model year. It’s important for buyers to cross-check the manufacturing year to ensure they are receiving the latest technology.
What Should Buyers Do?
To avoid confusion when buying Komatsu equipment, here are some tips:
- Verify the Manufacturing Year: Always check the serial number or production code on the machine to confirm its actual manufacturing year. This can often be done through the dealer or by accessing Komatsu's online service tools.
- Consult with the Dealer: Speak with the dealer about any discrepancies between the marketing model year and manufacturing year. They can clarify which features or upgrades have been made to the equipment.
- Review Warranty Information: Ensure you understand the terms of the warranty, as it may be based on the marketing model year. If you're unsure, request a written explanation of the warranty terms.
- Know the Market Trends: Be aware that marketing practices can influence how equipment is priced and perceived. Do some research to understand how newer model years might impact the overall pricing of used machines.
A construction company in Texas purchased a Komatsu D61PX-24 bulldozer marketed as a 2021 model. However, upon further inspection, the company realized that the machine was actually manufactured in late 2020. Although the machine came with the advertised features of a 2021 model, the company felt that the machine’s value was slightly lower than expected because it was closer in age to the 2020 model. This led them to negotiate a better price, ultimately saving a significant amount on the purchase.
Conclusion: Understanding Komatsu’s Marketing Model Year
Komatsu’s use of a marketing model year often creates confusion about the age and features of their machines. While the model year plays a key role in sales and marketing, understanding the difference between the marketing year and the actual manufacturing year is essential for buyers, contractors, and equipment owners. By verifying the manufacturing year, checking warranty terms, and staying informed about the latest technological upgrades, buyers can ensure they make an informed decision when purchasing a Komatsu machine.
