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New Ok, Beep
Wherever or whatever you are, I was wrong.

http://money.cnn.com...s-audi/index.html

Tesla is kicking ass.
New WTF?
Representatives of the National Automobile Dealers Association also balked at the idea of Tesla owning dealerships.

"The business model that works best is having the manufacturers focus on building quality products and the dealers focused on selling and serving the vehicles," NADA said in a statement.

Well they would say that, wouldn't they? But they left out a few words.
"The business model that works best for us ..."

And this jackass:
So far, no outside auto dealers have taken action against Tesla's stores on this basis, Bellavia [an attorney who specializes in working with auto dealers] said, but they should.

They "should" take action? Really? Why?
While traditional dealers may not feel threatened because Tesla sells "niche" products, their stores could set a dangerous precedent should a major automaker decide to try the idea.

Meanwhile, Bellavia insisted, Tesla's idea is doomed to failure. He agrees with the NADA that car companies know how to make cars, but dealers know how to sell them. In the end, he said, Tesla will go back to the old ways, he insisted.

"The idea that they're reinventing automotive retailing is somewhat laughable," he said.

So letting them do this sets a dangerous precedent. And it's doomed to failure anyway. (No, that's not a contradiction.) And they're going to stop on their own because it won't work. And they're not really changing anything. So someone needs to sue them to make them stop.

Is that about the size of it?
--

Drew
New That lawyer needs to go after Apple as well.
After all they run Apple stores.

And then there's Starbucks! I know I've seen their coffee beans and K-cups in grocery stores.

That lawyer can become a wealthy man in no time.

Where is that sign again?
Alex
New +5, Humorous, Insightful, Interesting.
Just Add Story http://justaddstory.wordpress.com/
New Not the best reasoning, but he's got a point.
http://boards.straig...read.php?t=462928 The whole thread is pretty good, but note this:

Inventory management is the reason car dealerships were first introduced. State laws now prevent manufacturers from selling cars directly to customers. Here is an article about the laws in Colorado http://coloradostate...-work-car-dealers
Here is a study from the DOJ about the costs of the franchise laws to consumers. http://www.justice.g...ic/eag/246374.htm
Here is a much longer study on how franchise laws hurt consumers (pdf) http://www.consumerf...rnetautosales.pdf


IOW, there were good reasons why the system of factory-authorized dealers was created, but a legal framework has arisen over time to protect existing dealers. So it's difficult for new selling arrangements to be created (laws to navigate, existing monopolies to overcome).

While dealerships can be a golden goose, they can be an expensive anchor too. http://www.caranddri...carmakers-feature

I don't know if it makes (sense for the customer) for Tesla to own its dealerships. I do know I get pissed off that there's usually only about a $5 price variation on any current Macs I might be interested in from any authorized dealer. In cars, there's a bit more competition in prices than that. Presumably there wouldn't be as much, if any, variation from the factory stores.

Tesla may regret not being able to have independent dealers hold inventory for them, etc. But presumably they could set up a separate dealer company (that they still control) to handle issues like that. Elon's a pretty sharp cookie, so I'm sure he's looked at the issues.

FWIW.

Cheers,
Scott.
Expand Edited by Another Scott May 17, 2013, 11:58:10 PM EDT
New Re: Macs prices:
B&H Photo. I've seen machines on there for $800 off retail. They're a reputable dealer too; I've bought several other electronics items from them.
Regards,
-scott
Welcome to Rivendell, Mr. Anderson.
New Funniest thing yet . . .
The board of directors of JCPenny & Co. hired an Apple exec to run their retail business.

With no retail experience outside the Apple "reality distortion field", he had the store chain near bankruptcy in less than a year.

He hated their customer base - not upscale enough - and he hated discounts, sales, specials and affordable merchandise. Banned them all.

New That guy was an idiot.
The first time I heard his plan I thought, "wow, JC Penney will be dead in 6 months".
Regards,
-scott
Welcome to Rivendell, Mr. Anderson.
New That's like...
...Timex hiring a Rolex executive to sell watches.

Never going to end well.
New Not quite.
He'd know what a watch is.
New On the other hand, he was smart enough NOT to move...
and weekly commuted to Plano, TX. :) [No offense, Chris]
Alex
New Someone missed a class on causality
Apple makes things people love. As a *result* they never have to have a sale. People then perceive this "no sales" policy as proving their excellence.

This dumbass thought he could skip the first two steps. Which *might* not be stupid if you aren't mostly selling other brands ... the same brands your competitors are selling.
--

Drew
New yea, he's just "insanely stupid" . . .
. . but how do you explain the morons who put him in that position and paid him all that money?
New B&H is very good. They often seem to be the exception.
New Yeah, I get their dead tree catalog . . .
. . (457 pages) and have checked some prices - they are reasonable.
     Ok, Beep - (crazy) - (14)
         WTF? - (drook) - (13)
             That lawyer needs to go after Apple as well. - (a6l6e6x) - (1)
                 +5, Humorous, Insightful, Interesting. -NT - (static)
             Not the best reasoning, but he's got a point. - (Another Scott) - (10)
                 Re: Macs prices: - (malraux) - (9)
                     Funniest thing yet . . . - (Andrew Grygus) - (6)
                         That guy was an idiot. - (malraux)
                         That's like... - (pwhysall) - (2)
                             Not quite. - (Andrew Grygus) - (1)
                                 On the other hand, he was smart enough NOT to move... - (a6l6e6x)
                         Someone missed a class on causality - (drook) - (1)
                             yea, he's just "insanely stupid" . . . - (Andrew Grygus)
                     B&H is very good. They often seem to be the exception. -NT - (Another Scott) - (1)
                         Yeah, I get their dead tree catalog . . . - (Andrew Grygus)

Let Us Now Braise Famous Men, those who in their salad days.. imagined that they were of the Caesar variety.
65 ms