Joeker88
Elio Addict
what do you guys think of Elio's Retail store strategy?
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Elio's Retail Strategy
- Thread starter Joeker88
- Start date
booboo
Elio Addict
I think Elio is thinking big, like, 250,000 Units Per Year ? | Elio Owners
IMHO. Elio needs to concentrate all efforts on the product, and funding to get 'r' done. The retail centers should be secondary to production. Some Tesla's are still delivered in parking lots right off the car carrier when there is no Tesla store around.
There are many order and delivery options. I could secure 8 Elio's on my property. If Elio asked me I would be happy to deal Elio's from my home.
I was thinking we would see a True Blue Unveil in LA this month, but am changing my vote to Licorice since it is more popular among Elio enthusiasts.
La Auto Show 2016 - Guess The Color. | Page 4 | Elio Owners
Oop's, that pole is closed, so I have to stay True Blue.
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TheAsterisk!
Elio Aficionado
I'm pretty sure they will initially deliver the vehicles ordered/reserved by fleet customers and reservation holders, possibly using that revenue directly (or likely as leverage for the capital needed- loans) to further the retail strategy. As such, I doubt anyone need fret that the almost back-of-the-napkin plans for retail will take anything away from the immediate drive to production design finalization and initial deliveries.
I don't foresee 250K units per year being reached readily without some sort of a retail presence. Additionally: (1) I doubt they can keep to the targeted price points without high production volumes, though that may or may not be the same as their 250K/year aims (that number might be more about the potential return for investors), but they'll need fairly high volumes, nonetheless. It'd still be a pretty thrifty machine, but not so much as has been projected, if significantly lower production volumes are realized. (2) They've used this 250K/year number enough that I'd bet at least some investors want to see EM at least approach those figures. (3) Retail centers, even if they had to back off from their proposed number of locations and more modestly focused on high-density population centers, should help significantly with brand recognition and consumer interest.
Recall how few people actually seem to be aware of the Elio trike design, proportionate to the potential market, and consider how much more brand awareness and interest can usually be generated by a physical presence, be it a product presence (say, in/at another retail venue or dealership, or even just a prototype at a show or event) or a branded company presence. The retail centers they propose would have both, and it makes sense to target limited locations primarily in more populous areas or well-traveled corridors given limited initial capital. In broad strokes, this is precisely what they purport to aim for.
Many of these plans are also stated for the benefit of prospective investors, aiming to show long-term growth and revenue potential. The mere statement of a plan does not necessarily mean that resources will be diverted from elsewhere in the company now, to the detriment of vehicle and production engineering and preparation. It's wholly necessary, as a business move, to state the plan in rough overview now, regardless of when resources actually can or will be dedicated to that plan.
That, and the same rough overview for retail and/or showroom locations has been up on eliomotors.com for some time; they simply featured it (Again? Can't remember...) in their blog.
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Back of the envelope plan is an excellent term for it. I was still shocked when I talked to an Elio crew member when I saw the P4. He said he had never thought of delivering Elios on a flatbed to customers directly. The idea of the stores is great, but not day one. You don't want to have the stores set up on day one. People that walk into a store want to be able to buy something. It would be close to a year before you could get your Elio. I can see having the stores ~6-9 months after the first Elios are shipped.
Ty
Elio Addict
...except Elio said it was going to be Licorice.I think Elio is thinking big, like, 250,000 Units Per Year ? | Elio Owners
IMHO. Elio needs to concentrate all efforts on the product, and funding to get 'r' done. The retail centers should be secondary to production. Some Tesla's are still delivered in parking lots right off the car carrier when there is no Tesla store around.
There are many order and delivery options. I could secure 8 Elio's on my property. If Elio asked me I would be happy to deal Elio's from my home.
I was thinking we would see a True Blue Unveil in LA this month, but am changing my vote to Licorice since it is more popular among Elio enthusiasts.
La Auto Show 2016 - Guess The Color. | Page 4 | Elio Owners
Oop's, that pole is closed, so I have to stay True Blue.
Ty
Elio Addict
You are correct. There will not be Elio stores on day one. Elio has said as much. Stores will come later and they don't make sense to have them open much before Elio builds the 60,000 or so that are already ordered. It's possible that internet orders could keep Elio busy for the entire first year without having to open any retail stores. However, knowing that they can produce 500 per day, I would suspect that they will at least have to have the marshaling centers open as they begin shipping. I don't think they'll want to have to option out all 250,000 there at Shreveport. They'll want to spread that piece around a bit more.
RUCRAYZE
Elio Addict
Just getting them off the factory parking lot will be the challenge.
Just an aside, I never realized how poorly I spell!! Thank you G_D for inventing spell checker
Just an aside, I never realized how poorly I spell!! Thank you G_D for inventing spell checker
EM already has a partner signed on that is in charge of transportation and the people in the initial locations.
Remember this place? Adesa
They have changed the map they had on their site, but it was identical to the map that is on the EM site.
They already have a transportation network established; their main lot is pretty much across the road from the Elio factory.
EM mentioned that they would handle the "stores" when they first opened; and had a tie in to the Marshalling Centers.
Since you will only be able to order online (no matter if it's from home, work or a Retail Center) the method is all the same.
In the store you would be able to do a test drive, see and touch accessories, and they'll have people there that can answer questions.
Remember this place? Adesa
They have changed the map they had on their site, but it was identical to the map that is on the EM site.
They already have a transportation network established; their main lot is pretty much across the road from the Elio factory.
EM mentioned that they would handle the "stores" when they first opened; and had a tie in to the Marshalling Centers.
Since you will only be able to order online (no matter if it's from home, work or a Retail Center) the method is all the same.
In the store you would be able to do a test drive, see and touch accessories, and they'll have people there that can answer questions.
RUCRAYZE
Elio Addict
That all I get, but the actual logistics of shipping (eventually 100,000- 250,000 units per year seems a major block)
rounding off on the lowest numbers--
200,000 @50 weeks =2,000 per week= 400 per day
from one manufacturing center to 8,9,10 staging areas (rounding off) scattered over the country= 40 each Staging areas no matter the size will need replenishing to meet the various orders, and finishing up extras
we need how many trucks on the road daily delivering to staging areas?? 10 loaded per truck (rounding off)= 4 trucks delivering, no problem? out and back empty locally- how about to Seattle? 4 out-4 back daily?, rounding off low
how many trucks/day do we need daily delivering to stores? (can be as far as 900 miles each way?)
The big guys use the railroads, deliver a variety of models can drop-off, and pick-up from dealers (never dead-ended) - Have you Ever bought a car to find out the dealer you are visiting doesn't have it in stock? will take a few days?
In summary, we have 8 staging areas ( 9, one on site) that will need to have their stock replenished daily with the 14 models, if they sold, five Y_ _ ll _w with auto in one store another overnight delivery problem.
Amazon uses ALL shippers, nothing as big as an autocycle, and most small, light orders (with priority 2 day shipping) Bigger stuff not eligible for 2 days.
So EM will do it with one shipping Company, 14 items?
When I ride the interstates I see Walmart trucks and Yellow Freight (none of which can carry 10 autocycles. )
This will require a sh_t load of trucks on the road daily. AND that -all is based on just 200,000 units per year.
Not to forget, snow,fog,rain,construction, sick-call-ins, break-downs, accidents and giving10 units per transporter. Trains- ?? may reduce the shipping costs, but time is still against us
NO WAY can PE keep the concept of overnight ordering with next day delivery. , , with all the other initial outlines P.M was offering--, 84mpg, 5 star crash rating ,and for $6800, this too will be added to the list, when the reality bites.
Anyway- go hawks,
thanks I feel a bit better- bring it on- please go easy (:-(.
Personally, with my grand-daughter and her family moving to Vashon Island last month (20 minutes from Seattle), and motorcyles moving to the fron of the line paying much less than a car (especially with senior rider) The new Sparrow (CRS) is only a few hours test drive away (with low border traffic)
When my tractor was delivered it was only 3 that would fit on the flatbed. Clearly, for 10 you are looking at car carriers. Can you really fit 10 Elios on one. You are correct to point out that this is a HUGE logistics challenge. I'm expecting the delivery charge to be in the $500-$900 range. I don't see "volume" changing that much.