Audi's take on why all inclusive maintenance is going away in 2007
02-16-2006, 06:29 PM
#2
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didn't read too much in that article about pleasing the customer......
addressing the quality problems, the dealership staff & performance, and the overall depreciation issue which plagues the brand.
As long as Audi feels it can pull in new customers to replace the ones that it has dissatisfied (it's core base), that's great for them.
As long as Audi feels it can pull in new customers to replace the ones that it has dissatisfied (it's core base), that's great for them.
02-16-2006, 07:13 PM
#5
I would have thought that when prices increased over the last few years, margins went up too...
...since Audi's margins were too low for the industry. Guess not. It makes a bunch of sense. Our company owns a handful of car dealerships. No way we'd do an Audi dealership with those kinds of economics.
02-16-2006, 07:34 PM
#6
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Our 2003 A6, bought new, was $35K. The identical replacement in 2006...
... is nearly $50K. But it's all in Euro/Dollar devaluation, I believe. In fact, it would appear Audi has taken a bite in the margins just to sell them as low as they do.
Still, it's little comfort.
Still, it's little comfort.
02-16-2006, 08:06 PM
#7
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Ultimately it's all about pleasing the customer - which the dealer can't do
if they don't have the budget. For too long the dealers have been sub-par thanks to no competition. Time for a change.
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02-16-2006, 11:41 PM
#8
They are saying that the value/price ratio will fall - this is good how?
There has to be some reason why a person would buy an Audi. Sure the Q is a big factor but less so today.
BMW make better cars and MB more prestigious models. If Audi will cost the same as a BMW or MB how will sales benefit?
If they made better cars they could charge more but they don't.
BMW make better cars and MB more prestigious models. If Audi will cost the same as a BMW or MB how will sales benefit?
If they made better cars they could charge more but they don't.
02-16-2006, 11:52 PM
#9
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The hub distribution makes sense, but why not change things to make the dealer AND the buyer happy?
One way to do that would be for AoA to reward dealers that provide Lexus-equivalent service above the profitable base return. With added incentive, dealers would strive to reach the higher profit level, which would result in better customer service and loyality. For example, my local dealer in Tacoma, WA (Larson Porsche-Audi) doesn't have service loaners. University Audi in Seattle does. Given a choice, which do you think a customer would use?
02-17-2006, 05:03 AM
#10
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the product is essentially good....going back to it's niche market...
this is a management problem through the entire organization. From zee Germans, to the dealer owners, to the workforce.
Major overhaul.
Major overhaul.
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