MB dealerships fire sale

DrFeelgood

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Why wouldn't they pull out?

People buy new cars via brokers on some kind of finance/lease.

The money is in the finance.

Look at other consumer finance industries, 70%+ of new business is via the broker market.

Consumers are whining *******s so the answer is to outsource the process so someone else takes the blame.

Makes sense at some levels.
 

StuartK

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Why wouldn't they pull out?

People buy new cars via brokers on some kind of finance/lease.

The money is in the finance.

Look at other consumer finance industries, 70%+ of new business is via the broker market.

Consumers are whining *******s so the answer is to outsource the process so someone else takes the blame.

Makes sense at some levels.
For once I have to say lewyboy talks sense.
 

isleaiw

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For once I have to say lewyboy talks sense.
Unfortunately if everyone thought the same there would be no one to deal with the whining punter....

However, they should stick to what they are good at and leave retailing to retailers....
 

wongl

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Manufacturers often do no make good money from distribution. Partly due to a conflict of interest and partly because they are often not hungry enough. As distribution is not their core business, they often waste money on the wrong things and also pay their staff rather better than their meaner competitors (who distribute their products and often rely on upselling 3rd party products to make up for lesser pay and margins) which eats into their margins.

So unless for flag ship stores, the business model for distributing one's own product often doesn't work out so well in reality.
 

DrFeelgood

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Manufacturers often do no make good money from distribution. Partly due to a conflict of interest and partly because they are often not hungry enough. As distribution is not their core business, they often waste money on the wrong things and also pay their staff rather better than their meaner competitors (who distribute their products and often rely on upselling 3rd party products to make up for lesser pay and margins) which eats into their margins.

So unless for flag ship stores, the business model for distributing one's own product often doesn't work out so well in reality.
This is my experience also although not necessarily in the motor trade.

If you believe the main dealer experiences reported on this forum you will have all the evidence that you need to show that in-house isn't the perfect sales process.
 

Rory

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Manufacturers often do no make good money from distribution. Partly due to a conflict of interest and partly because they are often not hungry enough.
Going back a few years, I got my car from what was then called MB Direct, Birmingham (Bromford Lane).

After visiting a couple of local dealers I have to say it was a revalation to deal with someone who actually seemed to want to sell me a car.
 

markjay

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Around 15 years ago MB UK brought in-house almost all UK dealerships, saying that this step will improve customer service (that's when Alan Day lost their MB dealership....).

15 years down the line.... customer service has NOT improved... I suppose they just gave-up and decided to sell.
 

DrFeelgood

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Going back a few years, I got my car from what was then called MB Direct, Birmingham (Bromford Lane).

After visiting a couple of local dealers I have to say it was a revalation to deal with someone who actually seemed to want to sell me a car.
I bought a car from MB Direct in Birmingham, Balsall Common, and they were very keen to do business.

Sadly within a few years their pricing went a bit wonky so that buying from a glas palace became cheaper.
 

Tiim533

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Dealerships are only as good as the salesman you're dealing with. Just like Banks are only as good as your Bank Manager.

I bank with RBS (business). My bank manager has been "poached" by another bank. I'm moving banks. No loans or anything else, I just like dealing with him.
 

Mercland

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I bought a car from MB Direct in Birmingham, Balsall Common, and they were very keen to do business.

Sadly within a few years their pricing went a bit wonky so that buying from a glas palace became cheaper.
Now closed and gone....
 

DrFeelgood

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Dealerships are only as good as the salesman you're dealing with. Just like Banks are only as good as your Bank Manager.

I bank with RBS (business). My bank manager has been "poached" by another bank. I'm moving banks. No loans or anything else, I just like dealing with him.
I understand your loyalty but your man may be compromised by his new employer's regime which he will have no control over and this is what I've been talking about when I mention sales process and retailing by the supplier rather than an independent.

However, of course, when it comes to bank accounts you have no choice.

Good luck with the move.
 

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