Alternative Dealer Network

[2ndrew]

Just read this article about Costco being a huge seller of cars, and a great alternative to traditional dealers. Since I'm an Elio'er, I usually read articles like these and think about how they could apply to the Elio.

http://finance.yahoo.com/news/costco-becoming-huge-threat-car-140141652.html

Costco has stores in 43 states. They also probably have an extremely efficient logistics system in place. Instead of building Elio stores, I wonder if they have ever considered partnerships like this to sell cars. You could still have a in-store representative and kiosk to order any options you would want, and then ship it from the marshaling center to the Costco. Idk, I'm bored any I want an Elio, add this to the list of good ideas.

 

[HHH]

Just read this article about Costco being a huge seller of cars, and a great alternative to traditional dealers. Since I'm an Elio'er, I usually read articles like these and think about how they could apply to the Elio.

http://finance.yahoo.com/news/costco-becoming-huge-threat-car-140141652.html

Costco has stores in 43 states. They also probably have an extremely efficient logistics system in place. Instead of building Elio stores, I wonder if they have ever considered partnerships like this to sell cars. You could still have a in-store representative and kiosk to order any options you would want, and then ship it from the marshaling center to the Costco. Idk, I'm bored any I want an Elio, add this to the list of good ideas.

It's an interesting arrangement, and could be an alternative arrangement to the Elio stores. It would exchange the creation of a dedicated sales space location in a strip shopping center for a shopping space within someone else's store. Comparative costs would be an issue, as Costco would look at how much sales space was being relinquished to Elio (unless they were limited to outdoor only).

One of the big pluses, according to the article, is no price haggling. Since this is already a given, no advantage. Also, Costco has struck this arrangement with local dealers. It's more like an alternative marketing strategy for existing dealers, like internet marketing.

The simplicity of the arrangement is similar to the agreement with Pep Boys; you hit the ground with wide geographic coverage and minimal start up costs, and a single contract for all locations. A consideration would be those persons who aren't Costco members. With EM already discounting the first year's production, margins may be squeezed to offer membership reductions. If all cars were only sold through Costco could you see and drive without being a member? Remember, currently car shoppers can check out the cars at dealers, and then run to Costco to shop a deal.

As I said earlier, an interesting arrangement, and if push comes to shove, this could remain a possibility if money is tight.

 

[Dustman]

Costco still goes through a regular dealership. The difference is that they have an exclusive arrangement with typically one dealership for each brand. You arrange an appointment through Costco, go to the dealership, and they provide you with the special Costco price - take it or leave it - no haggling required. As evidenced by the popularity of the program, the prices must not be too bad.

 

[Rickb]

I think the better partner for Elio Store Locations would be Enterprise or similar.