The relation between automobile companies and automobile dealerships is a complicated one. At one hand the cut and on the other, compete each other. The relationships has both its advantages and disadvantages. Read on to learn more…
One thing that haunts most people while buying a new car is that why doesn’t the company sell on its own and why does it have to supply through dealers. The reason being it would reduce costs, build up better company consumer relations and also ensure that the benefits being provided by the company reach the consumer directly. But is it really that simple? Let’s find out. AUTOMOBILE DEALERS AND AUTOMOBILE COMPANIES: It comes as no surprise that the auto company stands to lose the most in automobile dealerships becoming the middlemen . NO CONTROL OVER CUSTOMER DEALERSHIP RELATIONS – In the hand of bad dealers the company and more importantly the customer may suffer. The dealer could end up setting its own customer service policies, or engage in marketing practices that devalue the brand in general and pursue sales tactics that don’t connect with the consumer.
NEED FOR AUTOMOBILE DEALERS: As discussed above, there are many disadvantages a manufacturing company faces while dealing with dealers. So the question arises, why do they do it? Well, here is why:
So there you have it. The automobile dealerships are an entity that the manufacturer can’t avoid and vice versa. So at the end of it all, is consumer really the winner?
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September 2016
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