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How long will Tesla's current retail model be feasible?

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Good thread with great points all around. I like the idea of the Tesla sales model. I think that it's important to remember that the stores themselves are in their infancy. I imagine that, in 6 months or so, all the stores will have at least one tester vehicle that will be available in the parking lot for scheduled drives (do it like the Apple Stores do the Genius Bar reservations, on a computer in the store). That way, prospective buyers can go in, learn about the car, schedule a no-stress test drive and then order the car from the comfort of their own homes. They wait a few weeks (3-4) and the car shows up.

Obviously I'm glossing over some issues here. Trade in appraisal, Multiple models needing to be tested, etc, but I think that it's a much better model than what we have now. I recently went into a Chevy dealer to buy a Suburban (okay, you can whip me later, but I use it to tow something heavy while I carry around four people and two dogs). I was planning on ordering the thing so that FOR ONCE I could get the thing specced EXACTLY as I wanted to (not too much to ask when dropping $50,000 on something, right?) They said, "no problem, what would you like?" So I told them. That was when I found out that they were sold out of nav units for this model year and I would have to wait until the 2013 model year if I wanted on with a nav unit. Okay, so now they're scouring the "dealer network" trying to find me something that's close to what I want. The short of it is that I compromised on color (Silver, ugh, but it matches the Airstream) and got the options I wanted.

Basically it pisses me off that I can go online to almost ANY car manufacturer's website and "build" a car to my specifications but that there's no flippen way that I'll ever actually get that car. What's worse is that they give me some BS suggested price that everyone knows is basically just a jumping off point for harassment from the dealer to try and squeeze an extra couple of grand out of me because he's got overhead and slim margins...

I guess that this turned into more of a rant than I intended and I apologize for it. I guess reliving my recent vehicle purchase got my ire up.

Anywho, I also agree that they're going to have to get the service issue figured out. The mass market is NOT going to tolerate leaving some individually defined comfort zone in order to get service. I, for one, am willing to drive 100 miles to get out Land Rover or Audi serviced but my mom pitched a fit because the dealer for her Acura is across town (think 15 minutes with traffic). Here's what worries me about the Model S and service: If my Land Rover craps out (not an unimaginable happening) I can have it towed to an independent shop in town and they will very likely be able to get it up an running for me (ditto for the Audi). If my Model S craps out I'm pretty much stuck until I can a) get a Ranger to my house to fix it or, b) flat-bed it to the nearest service station.

For the first few years I may be upgrading my AAA to the one with the 200 mile towing range.
 
Saw a store just like Tesla's in a mall. It had five Fiat 500s inside.

500 mall photo.jpg
 
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It looks like the general concensus is that the retail (sales) model is favored, but the service side of things is going to need much thought, planning, and forsight.

I am still curious how the current retail model will pan out when the Bluestar is out with 100,000 or so units being produced (and presumably sold) each year. When you aren't dropping 50k on a vehicle (to Lyons point), most car buyers are willing to make the compromise to get a vehicle "now" without it making a negative impact on their overall buying experience. Can Tesla make the current Sales model work in this scenario? If not, what kind of changes/adjustments are they going to need to make to adapt?
 
Here is sunny California the mall car sales just are not done. Weather has to be pat of this thinking. We have AutoMalls with clumps of every major manufacture with the standard outdoor spreads of land all next to each other. These are every 50 miles or so on the major freeways. A car dealer in a shopping mall is new ground (for me anyway)

I'll note the Tesla stores are wildly high tech with the ordering screens while the Fiat walls are pretty bare.

I should have asked how they do test drives. The local Chrysler Fiat AutoMall dealer is only about 5 miles down the road so this just may be a satellite store to them like selling cellphones at Costco...
 
This article in the SF chronicle (and originally on Bloomberg) should have mentioned Tesla but didn't.

Luxury carmaker BMW tries Apple approach to sales


Borrowing an idea from Apple's stores, BMW plans to add tablet-toting product experts to the staff of its 3,000 dealers worldwide.

The strategy kicked off last week when BMW opened a new store near the Champs-Elysees in Paris. The site is the first of a series of shops that focus on showcasing the brand to casual shoppers to broaden its appeal. Audi is joining BMW in introducing less-pushy sales tactics, which include a focus on urban buyers and better integration of showrooms with the Web and smart-phone presentations.

"The traditional showroom model, where you've got a sales hustler closing deals, doesn't work well in the luxury segment," said TNS' Turton. "Customers in this space are looking for an experience."

Mercedes, which is seeking to retake the luxury-car sales lead from BMW by the end of the decade, sparked the retail battle after opening a store focused on promoting the brand more than selling cars in March 2009 in central Munich, BMW's hometown. That was followed in June last year by a $220 million dealership in Manhattan, a few blocks from BMW's new store.

Audi is upgrading its store concept to target high-end neighborhoods in large cities, said Moritz Drechsel, a spokesman for the Ingolstadt, Germany, brand. The focus of the approach is on the combination of Web-based services with the personal touch and know-how of a dealer, he said.
 
Which reminds me that when I go to buy just about anything I know more than the salespersons. The Apple geniuses turns that "ignorant sales person" on it's ear.

Does anyone think that car sales will get any better if the sales team is walking around with tablets? (which Tesla was doing at the Fashion Island store BTW)

Wouldn't it be great if dangerous gasoline cars were banned from malls?
 
Looks like Tesla might start selling cars from their showrooms in the future to buyers who don't want to wait.

"There may be some cars that we might put at our facilities and have people come in and buy the car because they don't want to wait. We want to start offering that feature." - Ahuja

Page 2 - How Tesla Plans to Revolutionize the Electric Car - TheStreet
That was in speaking about Gen3 though or at least in the context of shipping 100k vehicles a year. I wouldn't expect to see it any time soon.
 
From what I understand (and was true when I lived there), most of the high end cars in Europe are sold by ordering the car. They do not have stacks of cars sitting on a lot as they do here in the US. It is the norm, and people are used to ordering exactly what they want, and waiting for it to be built.
 
From what I understand (and was true when I lived there), most of the high end cars in Europe are sold by ordering the car. They do not have stacks of cars sitting on a lot as they do here in the US. It is the norm, and people are used to ordering exactly what they want, and waiting for it to be built.

Absolutely right. I always find it amazing to see the lots full of cars in the dealerships in the US. I've never seen that anywhere in the EU.

There are occasionally a few stockpiled examples that dealers buy to reach quota and then sell at discount, but those are point examples, not the norm. I suppose for lower cost cars things are different, but in the case of BMW, Audi, Lexus and Jaguar it has always been order and wait. Audi even email you status updates of where your car is in the production line.

Every time I have bought a car I have ordered it and waited months, as have all my friends. In fact the *one time* I didn't have to do that was when I bought the Roadster! I wanted Lightning Green and they had one in Denmark on display. They changed the wheels, updated the firmware and shipped it down here a week later.
 
I think the dealerships could work long term. You can keep extra cars in the parking lot. Granted not a lot of car but still. If they have a 4 car model range, 2 in the showroom and 2 in the parking lot. (Probably put the Roadster in the parking lot cause its not an everyday car
 
Absolutely right. I always find it amazing to see the lots full of cars in the dealerships in the US. I've never seen that anywhere in the EU.

The reason for that is that the U.S. dealer marketing plan is to maximize the profit on each sale, rather than have a fixed mark up with prices clearly marked. The quicker the dealer can get the car off the lot, the less chance the buyer will have to do any comparison shopping. And whether you get a "good deal" or no, you go away feeling like you have been taken to the cleaners. This is why almost everyone in the U.S. hates the dealer purchasing experience. Then there's the dealer service experience, but that's another rant.
 
What's the upside of the Tesla stores? When I read the forums many people get different information for the same subject at Tesla events and different stores. When I asked people at tesla 2 years ago, what I should include in my new home to be ready for a tesla car, I got no real answer. So for me the best source of Tesla informations are the forums and the people on it. The own shops don't seem to make the qualety any better from whatsoever dealership around.

Tesla is also compaired to Apple because they too have those fancy shops. True, but hell you can buy apple products practically everywhere. Especially the gadgets around it like covers and so on. And this is one of the greatest adventeges apple as. Not their fancy shops but that everybody seems to take some stuff for Iphones and Ipads in their stock. If I want to buy something for my Samsung I have to go online...

With one houre away from Zürich I'm not too far away from a Store, but if I want to test drive I'd have to take half a day off. For any other Car I drop by after work. To service the car it's the same. Sure there are the Rangers wich also get cheaper, but really? Everyone here wants at least to get rid of the oil and gas dependency and the you let people drive in a big heavy car towing all the material to your place?

I like Tesla but the store and service model they have isn't my favorite and I don't see any adventages in it.
 
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One of the major things that I noticed when I walked into the store in Seattle WA was the education factor. Part of the purpose (at least that I saw) was that Tesla is trying to educate the public about the general awesome-ness of electric vehicles. They are simply planting seeds for the future. Everybody that walks by the store goes, "Wow" and who knows in 2015-2016 how many of those initial contacts being made now will convert into sales for the company once the most affordable models come out? I think putting the stores in high-traffic areas in order to educate the public was a stroke of genius. On the other side, Telsa still hasn't made a profit......