States Tesla couldn’t open a store in (but now it doesn’t matter)
07-29-19 | 12:53 PM
#61
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From: ON/NY
I guess I did not. Hopefully we can see eye to eye now?
There are some links on the subject:
https://en.wikipedia.org/wiki/Tesla_...rship_disputes
Quite interesting.
Last edited by Toys4RJill; 07-29-19 at 12:58 PM.
07-29-19 | 01:03 PM
#62
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Joined: Apr 2007
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From: Southeastern PA
Sounds like we are the bottom of the miscommunications. I got yeah now. Makes no difference to me if they are blocked or not blocked. It is what it is, the lobby groups are powerful.
I guess I did not. Hopefully we can see eye to eye now?
There are some links on the subject:
https://en.wikipedia.org/wiki/Tesla_...rship_disputes
Quite interesting.
I guess I did not. Hopefully we can see eye to eye now?
There are some links on the subject:
https://en.wikipedia.org/wiki/Tesla_...rship_disputes
Quite interesting.
Sales model
Tesla operates more than 200 stores and galleries around the world, 120 of which are outside the USA. It owns the stores and sells directly to customers via the internet and in non-US stores.[12][13]
[14][[i]better source needed]
Tesla has a low budget for marketing, and uses a referral program and word of mouth to attract buyers.[15]
Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the US vehicle marketplace.[25] Tesla is the only manufacturer that currently sells cars directly to customers; all other automakers use independently owned dealerships[26]
[27] (partly due to earlier conflict),[28]
[29]
[30] although some automakers provide online configuration and financing.[31]
[32]
[33] 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers,[34]
[35]
[36] and although Tesla has no independent dealerships, dealership associations in multiple states have filed numerous lawsuits against Tesla, to prevent the company from selling cars.
07-29-19 | 01:12 PM
#63
Lexus Fanatic
Joined: Nov 2011
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From: ON/NY
... Let's move on then.https://ca.finance.yahoo.com/news/ca...161318245.html
Here is some more on the topic:
Existing franchise dealers have a fundamental conflict of interest between selling gasoline cars, which constitute the vast majority of their business, and selling the new technology of electric cars,” CEO Elon Musk writes on Tesla’s site. “It is impossible for them to explain the advantages of going electric without simultaneously undermining their traditional business.”
Tesla also points out that its prices are fixed, and its salespeople are paid primarily on salary, not commission. “Customers will never be rushed into a purchase, haggle over the price of the car, wonder if they could get a better deal across town, or puzzle over confusing add-on products, like GAP insurance or rust-proofing.”
“We think that it’s absolutely critical that we have a direct relationship with our customers,” Todd Maron, Tesla general counsel, told me. “We look at our stores as educational centers. There are all these questions people have; we view our salespeople as teachers who can patiently answer them.”
Back in the 1930s, the car companies established this system so that they could worry about making cars, and the franchises could worry about selling and repairing them.
Early on, though, the franchisees lobbied their state governments for protection. They feared, among other things, that the giant car companies could open up their own stores across the street, cut prices, and crush the franchise like a bug.
Tesla also points out that its prices are fixed, and its salespeople are paid primarily on salary, not commission. “Customers will never be rushed into a purchase, haggle over the price of the car, wonder if they could get a better deal across town, or puzzle over confusing add-on products, like GAP insurance or rust-proofing.”
“We think that it’s absolutely critical that we have a direct relationship with our customers,” Todd Maron, Tesla general counsel, told me. “We look at our stores as educational centers. There are all these questions people have; we view our salespeople as teachers who can patiently answer them.”
Back in the 1930s, the car companies established this system so that they could worry about making cars, and the franchises could worry about selling and repairing them.
Early on, though, the franchisees lobbied their state governments for protection. They feared, among other things, that the giant car companies could open up their own stores across the street, cut prices, and crush the franchise like a bug.
Last edited by Toys4RJill; 07-29-19 at 01:16 PM.
07-29-19 | 01:27 PM
#64
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Joined: Apr 2007
Posts: 10,166
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From: Southeastern PA
... Let's move on then.https://ca.finance.yahoo.com/news/ca...161318245.html
Here is some more on the topic:
07-29-19 | 01:33 PM
#65
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Joined: Nov 2011
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From: ON/NY
Thank you for posting more information supporting posts by me and @bitkahuna.
07-29-19 | 01:52 PM
#66
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Joined: Jan 2007
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From: CA
Originally Posted by LexsCTJill
For sure.. I see the issue, all 50 states should just let Telsa sell direct.
07-29-19 | 02:15 PM
#67
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but traditional dealers are afraid that if tesla is successful, other car brands will want to go direct too, so i understand their fear, but as usual they do nothing to improve the AWFUL experience most people endure purchasing or leasing a car. i expect most people look forward to the dentist more than going to a car dealer.
anyway, tesla's way 'around it' in those states blocking direct sales through stores is that their stores do demo/service, but if the consumer wants to buy one, they have to do it themselves through the website. it's kinda splitting hairs because, and i don't know if this is 'allowed' but the consumer could just do the website ordering while at the tesla store, with the store's help. at that point, what difference does it make?
07-29-19 | 02:20 PM
#68
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From: ON/NY
but traditional dealers are afraid that if tesla is successful, other car brands will want to go direct too, so i understand their fear, but as usual they do nothing to improve the AWFUL experience most people endure purchasing or leasing a car. i expect most people look forward to the dentist more than going to a car dealer.
If buying Tesla direct is good, then why are there examples out there:
https://teslamotorsclub.com/tmc/thre...uld-be.132855/
https://teslamotorsclub.com/tmc/thre...rience.136360/
IMO, a car buying experience is usually thought of to be a bad experience, it is because you are giving away so much to someone else. Its the parting of the money which most people do not love to do which I think is a bigger issue...On the other hand, if you go and just pay the MSRP, there is no longer any issue, you could walk into any dealer, sit down, not even 5 minutes and you are done.
The last two weeks. We have been car shopping for a new car. We have always gone the fixed, no haggle route via buying agency. There are no fees. I know the invoice, the markup...and then the PDI is discounted (in some instances) and accessories are either discounted or sometimes full price....I contrast that with one visit to a different dealer to compare....that is it..I have no complaints. Then even have an interesting way of assessing top value for your trade-in.
Dealerships always get bad rap..but IMO customers can be just as dirty. I think buyers just need to have a better awareness.
Last edited by Toys4RJill; 07-29-19 at 04:59 PM.
07-29-19 | 06:14 PM
#72
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From: Virginia/D.C. suburbs
Many franchise-dealerships don't (or didn't) operate that way. Saturn and Scion, for example (and for a couple of years, Oldsmobile as well) all had a list-price, no-dicker system that many customers loved, as it made deals much easier and simpler. (Saturn also had a money-back guarantee for the first 30 days if not fully-satisfied). Those companies went out of business, not because of their customer-pricing policies, but because of gross product-mismanagement on the part of their parent corporations.
And, today, many franchises have also gotten away from the classic bargain/bazzar-atmosphere, because neither the salespeople nor the customers want it...it's a PITA for everyone involved. Many dealerships have a Internet-discount price that is usually no-dicker, and sometimes a slightly higher price you want a little extra free-service with it. One local group of dealerships, in suburban MD near D.C., (the Fitzgerald group), actually pioneered that system in this area (The "Fitz" Way). I've always liked the way they do business.
Last edited by mmarshall; 07-29-19 at 06:24 PM.
07-29-19 | 06:20 PM
#73
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From: Virginia/D.C. suburbs
There are a lot of customers who either think the world is a free lunch, that salespeople don't have families to support and bills to pay just like they themselves do, or who are never satisfied no matter how good (or bad) a deal the dealership gives them.
07-29-19 | 06:33 PM
#74
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From: ON/NY
^^^^^ Absolutely, Jill. You hit the nail on the head. There are a lot of customers who either think the world is a free lunch, that salespeople don't have families to support and bills to pay just like they themselves do, or who are never satisfied no matter how good (or bad) a deal the dealership gives them.
There are a lot of customers who either think the world is a free lunch, that salespeople don't have families to support and bills to pay just like they themselves do, or who are never satisfied no matter how good (or bad) a deal the dealership gives them.Last edited by Toys4RJill; 07-29-19 at 06:38 PM.
07-29-19 | 07:22 PM
#75
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From: Virginia/D.C. suburbs
Thanks. I appreciate the post. While I don’t agree with you on the previous post where you mentioned Saturn, in the case of buyers and salesman, it’s up to the buyer to make their decision. Nobody says you have to buy a car from a crappy dealer or salesperson, you can move on...but as it applies to Tesla, I just see it as wrong for the buyer to just have one price, and one source to buy any particular Tesla product.
With Tesla, BTW, private-franchises would not necessarily mean a lack of source-choosing for the customer. Don't forget, franchises compete with each other.....unless you are like Mitsubishi, with a very thinly-scattered dealer-network.
Last edited by mmarshall; 07-29-19 at 07:25 PM.