States Tesla couldn’t open a store in (but now it doesn’t matter)
#46
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Originally Posted by tex2670
Says who?
Why should Tesla have an independent dealer network just because "that's how it's always been done"? Apple doesn't franchise their stores--they've done ok in the free market enterprise. There's plenty of successful companies that don't franchise, and "micro manage" from a corporate level. And guess what--there's plenty of franchises that "micro manage" at a corporate level.
I don't understand the protectionism for franchised dealers.
Why should Tesla have an independent dealer network just because "that's how it's always been done"? Apple doesn't franchise their stores--they've done ok in the free market enterprise. There's plenty of successful companies that don't franchise, and "micro manage" from a corporate level. And guess what--there's plenty of franchises that "micro manage" at a corporate level.
I don't understand the protectionism for franchised dealers.
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#47
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Says who?
Why should Tesla have an independent dealer network just because "that's how it's always been done"? Apple doesn't franchise their stores--they've done ok in the free market enterprise. There's plenty of successful companies that don't franchise, and "micro manage" from a corporate level. And guess what--there's plenty of franchises that "micro manage" at a corporate level.
I don't understand the protectionism for franchised dealers.
Why should Tesla have an independent dealer network just because "that's how it's always been done"? Apple doesn't franchise their stores--they've done ok in the free market enterprise. There's plenty of successful companies that don't franchise, and "micro manage" from a corporate level. And guess what--there's plenty of franchises that "micro manage" at a corporate level.
I don't understand the protectionism for franchised dealers.
That being said, I have no issues with Tesla operating without dealers. I couldn't care less as long as the experience is good. Does anyone really have good experiences when buying a car at a dealer?
#48
Lexus Champion
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Apple isn't really a great analogy since they sell through a lot of retailers from Best Buy, Target, etc. It's not like you can only buy Apple from Apple stores which is how Tesla currently operates. The one good thing is that at retailers, they will sometimes have sales on Apple stuff where the Apple store won't and sometimes the return policy is better which is why I typically buy Apple stuff at Best Buy.
That being said, I have no issues with Tesla operating without dealers. I couldn't care less as long as the experience is good. Does anyone really have good experiences when buying a car at a dealer?
That being said, I have no issues with Tesla operating without dealers. I couldn't care less as long as the experience is good. Does anyone really have good experiences when buying a car at a dealer?
Is Apple prohibited in any state from direct sales to customers? Or Starbucks? Or McDonald's? Or The Gap? What other industry has state legislatures that prohibit a business from selling their products directly to customers?
#49
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Of course it's not a great analogy. There's nothing analogous.
Is Apple prohibited in any state from direct sales to customers? Or Starbucks? Or McDonald's? Or The Gap? What other industry has state legislatures that prohibit a business from selling their products directly to customers?
Is Apple prohibited in any state from direct sales to customers? Or Starbucks? Or McDonald's? Or The Gap? What other industry has state legislatures that prohibit a business from selling their products directly to customers?
#50
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Apple isn't really a great analogy since they sell through a lot of retailers from Best Buy, Target, etc. It's not like you can only buy Apple from Apple stores which is how Tesla currently operates. The one good thing is that at retailers, they will sometimes have sales on Apple stuff where the Apple store won't and sometimes the return policy is better which is why I typically buy Apple stuff at Best Buy.
?
?
Last edited by Toys4RJill; 07-29-19 at 10:33 AM.
#51
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Says an whole century+ of experience in the auto industry. Independent franchise-dealers became the norm for a reason...it was simply the system that worked best.
I don't see it as protectionism. I myself couldn't care less how auto manufacturers operate their dealerships...but, if I'm going to buy a Tesla, I want a system that works, and is not going to drive the company out of business.
I don't understand the protectionism for franchised dealers.
#52
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Anyhow, folks, I checked out our local Tesla dealership and did a Model 3 test-drive today. I'll post it in a new thread, since this one doesn't deal with Tesla test-drives.
#53
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Last edited by bitkahuna; 07-29-19 at 10:44 AM.
#54
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In the states that Tesla can sell direct, they cannot franchise out at the same time. Neither can the other manufacturers. Toyota could sell direct if they close all franchise dealers. For those stares that don’t allow direct, that is just too bad. I think there are just a handful anyways.
#55
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#56
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https://en.wikipedia.org/wiki/Tesla_...rship_disputes
In the states that Tesla can sell direct, they cannot franchise out at the same time. Neither can the other manufacturers. Toyota could sell direct if they close all franchise dealers. For those stares that don’t allow direct, that is just too bad. I think there are just a handful anyways.
Last edited by tex2670; 07-29-19 at 11:03 AM.
#57
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Tesla doesn't have franchise locations.
https://en.wikipedia.org/wiki/Tesla_...rship_disputes
Tesla isn't looking to have a franchise network of dealers. Direct sales is their model. Period.
https://en.wikipedia.org/wiki/Tesla_...rship_disputes
Tesla isn't looking to have a franchise network of dealers. Direct sales is their model. Period.
Last edited by Toys4RJill; 07-29-19 at 11:29 AM.
#58
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the laws are there to prevent independent new car dealer businesses from having to compete with company owned locations where the latter could always undercut the former.
the tesla situation is DIFFERENT but dealers in states are using their clout to stop tesla using any company owned locations to sell vehicles, even though they're not competing with independent tesla dealers (because there aren't any).
so what tesla's done is made their locations for demo/service only, you can see one, get a test drive, but you have to then order a vehicle online yourself.
#59
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how many times do we have to repeat it, they don't have franchise locations, and the term "their own franchise locations" is a contradiction in terms. a franchise is an independent business location with a contract to represent a brand. tesla does not have or want these. what it wants is to be able to sell through ITS OWN stores, and it cannot do that either in the states mentioned because those dealer lobbies don't like a manufacturer owning its own 'dealers' or more correctly, retail locations.
the laws are there to prevent independent new car dealer businesses from having to compete with company owned locations where the latter could always undercut the former.
the tesla situation is DIFFERENT but dealers in states are using their clout to stop tesla using any company owned locations to sell vehicles, even though they're not competing with independent tesla dealers (because there aren't any).
so what tesla's done is made their locations for demo/service only, you can see one, get a test drive, but you have to then order a vehicle online yourself.
the laws are there to prevent independent new car dealer businesses from having to compete with company owned locations where the latter could always undercut the former.
the tesla situation is DIFFERENT but dealers in states are using their clout to stop tesla using any company owned locations to sell vehicles, even though they're not competing with independent tesla dealers (because there aren't any).
so what tesla's done is made their locations for demo/service only, you can see one, get a test drive, but you have to then order a vehicle online yourself.
It is what it is. It makes no difference to me. Sucks to be Tesla as they are beheld to the large powerful dealer lobbies.
#60
Lexus Champion
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I think we are not seeing each other’s POV. I am saying that the law prevents Tesla from selling direct and franchising at the same time. This is the same law that applies to all the other brands. Other brands could sell direct if they wanted too as well. I don’t care either way if Tesla sells direct, I just hope they are not allowed to compete with franchisees if they change their mind at some point to thus franchise out.
I'm not sure you did.