The tachometer you bought is for a gas engine to work off the distributor. You need a tach that works off generator impulses. And even so, generator tachs are notorious for being off. The best tach is another one that works off the crankshaft pulley or cam pulley using magnets for the impulse readings. I use an Isspro tachometer with a pickup off the crankshaft pulley with two magnets 180 degrees apart. The tach on the dash is set to 2:1. I get a perfect rpm reading. There are also tachs that work off the flywheel teeth sensor, but you probably don't have that setup.
--Geoff