Tesla’s influence in the automotive world has been nothing short of phenomenal, to say the least. Tesla has changed our perspective relating cars with their high-tech EVs. The 2021 Tesla Model X and the 2021 Tesla Model 3 have become a part of our daily lives now. However, Tesla’s impact goes far beyond just introducing the world to mass automobile electrification.
Tesla has also redefined the way we buy cars, by introducing an all-new dealership concept, the Tesla Store. In this article, we shift our focus towards the growing influence of the Tesla Store on worldwide car dealerships.
The Traditional Car Dealership
The traditional car dealership that you may visit in your locality is often owned by an individual entity and not the company itself. The owner has a connection with the respective manufacturer that he is selling cars for. The manufacturer supplies the dealership with all the necessary car models and inventory for sales. The profit made by the dealership directly depends on the number of cars they sell, as per the manufacturer’s guidelines.
Many states have implemented legislation regarding car sales to be carried out exactly this way. Still, customers are reluctant to go to a car dealership to this day. The feeling of being nagged around by a car sales employee trying to portray their product in the best possible way may be simply too much to handle for some buyers. The Tesla Store aims to discard that notorious reputation regarding car dealerships and portray itself as a friendly retail store instead.
Tesla Store: The new car marketing strategy?
Elon Musk introduces us to a totally new version of a car dealership in the form of a Tesla Store. The Tesla Store can’t be called a true car dealership either, as you can’t purchase cars through the Store. Instead, all Tesla cars have to be booked online and the manufacturer ships the car straight to your doorsteps.
The Tesla Stores are usually integrated into a popular mall or shopping complex. This way, Tesla maintains an intimate connection with the American shoppers within the heart of populated areas. This smart move helps Tesla to cater its product to the majority of the audience, especially in heavy traffic areas like malls. Basically, Tesla Stores are franchised dealerships. However, because of the stringent franchise laws, Tesla cannot sell cars directly to you in-person.
The main goal of Tesla Stores
Tesla’s vision to integrate every individual with the power of electric cars begins with the Tesla Store itself. The Tesla Store serves the main purpose, to educate potential Tesla buyers with all the equipment, technology, gimmicks, and statistics through the sample cars on display in the store. This removes the hassle of performing a sales pitch.
The Tesla Store employees are well-acquainted with all of Tesla’s marketing strategies. They play a crucial role to educate consumers about the ever-changing automotive industry and the quality of life changes associated with an EV. The main goal here is to not sell the car, but rather educate the masses.
Like a regular dealership, Tesla Stores also allow you to test drive their display cars on the road. If you are inclined to buy a Tesla, the Store also provides provisions to book your car online through their in-store computers.
Tesla Stores vs Regular Car Dealerships
Tesla’s new business model has already created a lot of stir in the automotive industry. Automotive manufacturers have constantly expressed their backlash regarding Tesla’s out-of-the-box methods. Still, Tesla relieves some of the tension by making a direct statement regarding the US franchise laws. Tesla reinstates that they aren’t here to break the rules that have been in place for over 100 years.
Tesla firmly believes in its business model, saying that they cater to a completely different-minded audience than the ones you would find in a conventional dealership. When you step into any dealership, 90% of the time you have already made up your mind on which car you want to purchase. Tesla reaches out to the remaining 10%, who still haven’t made up their minds.
Thus, Tesla’s presence in high-populated areas helps them to reach out to more people who fit that 10 % criterion. This way, buyers would obtain all the valuable knowledge regarding electric and hybrid cars. This way Tesla marketizes its own reputed car models like the Model S and the Model 3 in a more efficient way than a regular car dealership.
Can other car manufacturers adopt a similar approach to Tesla?
When a customer first steps into a traditional dealership, the first thing that will cross his mind is whether he will receive a fair deal or not. The constant fear of being ripped off by the money-hungry salesmen is always lingering in the customer’s thoughts. Tesla’s business model eliminates that skepticism by educating the customers rather than compelling them to buy their product.
We believe that car dealerships should inform the potential buyers about all the attributes of their said car. For example, a salesman should know things beforehand like gas mileage, features, and brand reputation. This is a welcome change for the salesmen who are instead used to babbling various prices or deals. Likewise, the salesman should also be open to an alternative suggestion in case the said car doesn’t meet the customer’s preferences.
Likewise, to boost sales, the manufacturer could build a large-scale digital image to appeal to customers as Tesla does. If the manufacturer can woo a customer’s mind even before he sets foot in a dealership, they win half the battle then and there. This way, they don’t have to worry about losing out on their sales to Tesla.
Tesla’s terrific business proposition, the Tesla Store is already making waves in the automotive industry. This may put Tesla at loggerheads with other established car manufacturers. Still, Tesla’s rivals can take cues to modify their car-selling process. We still believe that conventional car dealerships are here to stay. We only crave a more consumer-oriented business philosophy like Tesla’s, for the good sake of the automotive industry.