61–70 of 111 posts
Earlier quoted context omitted.
Maybe I'm too naive to see why manufactures having their own showrooms would be such a problem?
Imagine that Ford only allows maintenance at company owned stores, because they don't sell replacement parts to dealers, then they charge $500 for a fan belt, etc.
Earlier quoted context omitted.
It certainly is, quote from the article: "Let's say consumers really liked buying from a factory store. That would put dealers in a tough spot because they've been saying for years that the franchise system is actually good for customers," [Jeremy Anwyl] says. I think he hit the nail on the head. I would say the franchise system is only good for the franchise owners, not the customers.
Has anyone ever had a good experience at a car dealership? I remember getting my first car when I was 16. I was so excited, I drove the thing home and didn't realize the car mats weren't in it. I called the next day: "Sorry sir, Car mats don't come with used Vehicles. We do sell them though ($350!!!)" The thought of car dealerships going out of business and being replaced by a better business model feels nearly too g…
Earlier quoted context omitted.
If the only choice for dealerships in the classic phrase "innovate or die" is to die, why even say that the dealership industry needs to innovate?
The alternative is to 'bail them out' -- either through strong and enforced-by-guns legislation in their favor, or the monetary kind to 'create jobs.' I'm fairly certain we're all sick of private-industry and government colluding together in the name of state-sponsored profit. No industry deserves a guaranteed profit margin.
Earlier quoted context omitted.
Imagine that Ford only allows maintenance at company owned stores, because they don't sell replacement parts to dealers, then they charge $500 for a fan belt, etc.
Except that if I knew that was their way of business I would simply avoid buying their products. Isn't this a case where the free market actually would account for that scenario? It's not like they have a car monopoly.
Earlier quoted context omitted.
Maybe I'm too naive to see why manufactures having their own showrooms would be such a problem?
Imagine that Ford only allows maintenance at company owned stores, because they don't sell replacement parts to dealers, then they charge $500 for a fan belt, etc.
Earlier quoted context omitted.
No, go out of business and look for a real job.
If the only choice for dealerships in the classic phrase "innovate or die" is to die, why even say that the dealership industry needs to innovate?
It's certainly possible for a business dedicated to distribution and sales to provide an experience superior to that of a manufacturer doing sales on the side. It's tougher in this case because cars are a big-ticket item, so manufacturers have an easier time justifying their own distribution and sales network than somebody who makes a trinket you need to sell at Walmart. However, the bigger problem is that car dealerships today are in no way optimized for providing an experience superior to anything.
Earlier quoted context omitted.
Maybe I'm too naive to see why manufactures having their own showrooms would be such a problem?
Imagine that Ford only allows maintenance at company owned stores, because they don't sell replacement parts to dealers, then they charge $500 for a fan belt, etc.
Earlier quoted context omitted.
No, go out of business and look for a real job.
If the only choice for dealerships in the classic phrase "innovate or die" is to die, why even say that the dealership industry needs to innovate?
You've misplaced the emphasis. It's the people working in the industry that need to innovate (by finding something else to do). The industry itself seems to be obsolete.
Every now and then we see old laws being used by dying industries take a plunge at stopping innovation. Uber & Air B'n'B are two others that come to mind. The bigger problem for the dying industries is that they're taking on companies that at their core solve problems and disrupt. As opposed to being pathetic and continuing to prolonge the inevitable, they should focus their efforts on product development/sales chann…
Its easy to say that at the macro scale, but what are you suggesting car dealerships do on the micro scale? Learn how to build their own cars and sell them in defiance of the current laws on the contingency that the judge rules in Tesla's favor?
Every now and then we see old laws being used by dying industries take a plunge at stopping innovation. Uber & Air B'n'B are two others that come to mind. The bigger problem for the dying industries is that they're taking on companies that at their core solve problems and disrupt. As opposed to being pathetic and continuing to prolonge the inevitable, they should focus their efforts on product development/sales chann…