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Saab should rethink it's dealer model
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Posted by No Snaab (more from No Snaab) on Mon, 28 Feb 2011 13:38:04 Share Post by Email
In Reply to: A better service solution..., Noel, Mon, 28 Feb 2011 10:11:51
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Saturn tried something different with their dealers and it really resounded with their customers. The typical "Tajmahal" dealer model that prevals these days costs a fortune--and selling cars is a tough, up and down business even in good times. Since it's hard to make money on new cars, dealers try to make it up in the service dept, which is a big reason they tend to be such wiesels. Anyone with half a brain knows when they walk into a dealer like that, the customer is paying for that big fancy building one way or another. I can remember in the sixties and early seventies when small brands had very small, no frills dealerships. The local Toyota dealer was basically a converted gas station and had been a used car dealer. Maybe they could try smaller, less ostentaous dealerships in locations away from "dealership rows". Service departments could be priced closer to independants, parts could have less markup. I think most people would actually prefer getting service at the dealership if it wasn't so much more money. They could even use it in their advertising--"our dealerships aren't fancy, nether are their prices." It would play into being a "different" kind of brand. A car for thinkers. And they could have a lot more dealers that way rather than a handful on big dealers. They certainly need to add dealers, now would be a good time to give some though to how they go about it.

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