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re: Benson vs Bowers shows insanity of car dealership business
Posted on 6/1/26 at 3:43 pm to lsunutinno
Posted on 6/1/26 at 3:43 pm to lsunutinno
quote:
If auto manufactures take over the point of sale part of the business, they (and their shareholders) will be looking to profit off of that part of the business.
OEM—>Dealer—>customer
OEM—>customer
Cost to serve that customer can be prohibitive for OEM (especially in more rural parts of big countries).
1
Posted on 6/1/26 at 4:09 pm to Harvey Vortac
quote:
Considering the protectionism in Louisiana it’s not that surprising— just read up on St. Joseph’s Abbey fight with the Louisiana state board of funeral directors and embalmers over making affordable caskets
My grandfather was the one who taught them how to make the caskets and urns.
Posted on 6/1/26 at 4:13 pm to TigersSEC2010
quote:
Dealerships need to collapse. Their use is gone. Set up maintenance shops where they stood and be done.
Dealers always say they barely make anything off selling a car so fine, just become a service center then and sell direct. Watch the thieves all scream and yell to make their "$100 a car."
This post was edited on 6/1/26 at 4:14 pm
Posted on 6/1/26 at 4:13 pm to Everyday Is Saturday
quote:
OEM—>Dealer—>customer
OEM—>customer
Cost to serve that customer can be prohibitive for OEM (especially in more rural parts of big countries).
What you're suggesting isn't happening without MASSIVE buy outs.
I'm not fan of dealerships. But they have hundreds of billions of dollars invested across the country over decades of ownership.
It ain't happening.
This post was edited on 6/1/26 at 4:16 pm
Posted on 6/1/26 at 4:20 pm to BeepBopBoop
quote:
Dealers always say they barely make anything off selling a car so fine, just become a service center then and sell direct. Watch the thieves all scream and yell to make their "$100 a car."
Exactly. And this is why the barrier to entry in the automobile industry is so brutally difficult. Easy to find video of Elon talking about it.
Selling parts is a massive part of manufacturers revenue and profit. So getting into the game is almost impossible.
And dealers make a lion's share of their profit (75%) on parts and service.
Posted on 6/1/26 at 4:25 pm to Cosmo
quote:
Service is where dealerships have better margins anyway
Yeah, who da thunk marking up 500% could be profitable lol
Posted on 6/1/26 at 5:51 pm to lsunutinno
quote:
What you're suggesting
Not suggesting. Just the opposite. The millions in distribution network is prohibitive for OEM. And anti trust issues competing against your own network in some markets if there were ever a transition.
Posted on 6/1/26 at 5:51 pm to TheBoogeyman
quote:
My grandfather was the one who taught them how to make the caskets and urns.
That’s fantastic
Posted on 6/1/26 at 7:13 pm to LSUFanHouston
quote:
I’ve never purchased a vehicle from any of these three people. But the protectionism and entitlement in the dealership world is insane.
One of the top advantages of franchising is marketing zone or territory control. Not sure how each of these is delineated in their contracts but that is the issue for a court, violation of existing territory contracts.
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