"Courtesy delivery" question
05-01-2018, 05:11 PM
#21
Dealerships have to create a business model that works as the business world evolves, i.e. Amazon; or they will wind up like Toys-R-Us! I know the large Chevy/BMW/Mercedes dealer in town makes money with 16 service bays, parts and they have just build a new very impressive body shop on the same site where they put the Nissan dealership they just bought!
Yep, just bought our new BMW SUV from them for my wife but they were not eager to do courtesy delivery on the Grand Sport! It was my fault as I did not approach the finance manager first, asked the salesman we bought our BMW's from! Good guy. Should not have expected he would give me a positive answer! The controller is who I contacted at the small dealership 30 miles away that did Courtesy Delivery for a flat $250! Went there for my MRC update two weeks ago because the service manager and C7 Tech were great!
Must admit, it doesn't help the salesman or sales manager or the kickback they get (or not in my case) from the finance company. But that is the dealers decision, make the sales manger and salesman happy or develop a viable business model that fits today's environment.
Sorry car salesman and don't like to say it but self check out is replacing cashiers!
What will change the game will be self driving cars. The average person will have no reason to own a vehicle and driving on public roads by an individually operated vehicle will be banned.
05-01-2018, 07:03 PM
#22
Team Owner
Member Since: Jun 2005
Location: Northern, VA
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St. Jude Donor '15
"In honor of jpee"
If I owned a dealership and was asked to do a courtesy delivery, I would set a price that had a fair profit for the work involved in the delivery and count my self lucky to have the extra revenue. No carrying cost, no inventory cost, don't even have to share the profit with a salesman. I want to be your competition in the same town and do all the courtesy deliveries.
Since I treated a customer well, perhaps they'll even remember it and let my service department do the service on the car for them. I'll probably never be able to beat McMulkin or the other huge corvette clearing houses on a corvette, but I'm sure they won't be going there for that new car for their kid......
Since I treated a customer well, perhaps they'll even remember it and let my service department do the service on the car for them. I'll probably never be able to beat McMulkin or the other huge corvette clearing houses on a corvette, but I'm sure they won't be going there for that new car for their kid......
I always recall the "restaurant scenario." If I eat at a place say 3 times per month (or buy a car every year) and they treat me badly----what do you think I'll do? Right. Instead of 3 times per month I may only go once per month when someone drags me there. That means, they've just "lost" 2/3 or 67% of MY REVENUE! Plus, what do you think I've said in the interim about the way I was treated, why I'd rather not eat there (or buy a car there), etc.? Right---nothing positive, that's for sure.
Last edited by AORoads; 05-01-2018 at 07:04 PM.
05-01-2018, 08:22 PM
#23
Le Mans Master
Member Since: Apr 2001
Location: Ex-SF Bay Area; now happily Denver area
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By the way, I understand your point of view and some dealers won't do courtesy deliveries for that exact reason. Others just give a high quote but that's the price of purchasing online.