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New Sales/Production Strategy Suggestion

Discussion in 'Model S: Ordering, Production, Delivery' started by walla2, Apr 25, 2013.

  1. walla2

    walla2 Member

    Jul 15, 2012
    I want Tesla to succeed. I keep seeing posts about changes to cars on the line (fog lights, alacantra, etc.) and also Elon's new thoughts about production being too complex with too many steps. By subtracting lamps and headliner options, the line can accelerate, and I think the the line changes and rate of production Tesla is seeking are directly related. I'm not certain I buy the whole it doesn't work, delete it. I think it's more likely that it slows things down even more, delete it.

    I have to think that the reason Ford can make 20,000 cars in a week or two is because Ford can make 20,000 exactly or nearly exactly the same with variations only in color.

    I would propose Tesla create a few fairly standard model S configurations. They have data on what most people want now. Make a Car A (Tech, tan leather, 85), Car B option (No Tech, black leather, 85), . . . , and a Custom car. I would suggest if you order a Car A or Car B you can get a small discount on something like service over custom everything. Then, the line can have more cars with the same features moving on the line and this should be faster. People would likely go for $1,000 off service discount or something for a less custom car. A mild cut in margin to increase the rate would not hurt the bottom line, it would likely help it. Tesla would get a plus to sell service plans (people cashing in the service discount) and would be able to accelerate the line. Also, if you ordered a Car A, you could get it quicker. If you wanted a Custom, you could pay a bit more and wait a bit longer.

    In the end for Tesla to win, production rate must increase, and production costs must decrease. This simple solution works for both problems and eventually will need to be the way you order an X or Gen III car so that they can optimize and accelerate the line(s).
  2. AnOutsider

    AnOutsider S532 # XS27

    Apr 3, 2009
    You're probably right re: future sales (gen 3). We saw tesla go from ala carte with the roadster, to packages with the S, and it's probably going to move further into bundling, as you suggest, with gen 3.
  3. mlemke

    mlemke Member

    Mar 14, 2013
    Henderson, NV
    Respectfully disagree. Keep breaking the paradigms Tesla.....
  4. kendallpb

    kendallpb Model S: P 8061

    Oct 29, 2010
    MD, USA
    Agreed. They're not making cars to sell to dealers to sit on a lot and become obsolete. Build to order is good, and once the backlog is done, the wait for a car will not be very long anyway. I especially disagree with "discount for picking some 'standard' combo." I think Tesla's way is working fine and will just work even better once any current backlog is done.
  5. Doug Martoccia

    Jan 5, 2013
    Hermosa Beach, California, United States
    Providing made-to-order automobiles is a profit maximizing strategy. It allows maximum pricing differentiation, the ability to sell high margin options to customers with little or no price sensitivity. The "base" Model S, BMW750, Mercedes S Class are almost certainly sold with modest margins, However, in a fully loaded Model S, many customers are adding up to $52,000 in very high margin options and services.

    It's not that hard to build cars with different options one right after the other. In South Carolina, I saw BMW building Z4s and X3s on the same assembly line.
  6. SuperCoug

    SuperCoug Model S Res #7734

    Mar 16, 2012
    Bothell, WA

    Hate to pile on but I agree with my fellow detractors. Mass production of standard configurations only makes sense when you are trying to anticipate the needs/wants of a fickle public. Pre-sold and made to order makes much more sense.

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