As I’ve said many times before, Electric vehicle sales are “educational sales,” much like what occurs in Apple stores. That’s why we created “Electric Avenue” at Classic Chevrolet, when I worked there, and why most traditional auto salespeople don’t like selling EVs. The commission is not worth the effort, in their eyes. They can make more money in a shorter time, selling a pickup or SUV.
On the other hand, auto manufacturers are realizing EVs are the future, starting now. If they can’t get their dealers or their dealers’ salespeople on board, we may see other “traditional” automakers mimic the Apple Store experience, bypassing the dealership channel entirely. In fact, the first traditional manufacturer may be inching that way now (click on link above for more).
EVs could bring about the end of car sales, as we now know it (i.e. commissioned salespeople, negotiating on price, perhaps even the practice of driving your new car home immediately, instead of ordering).
“Just-in-time” manufacturing has been used on the supply side of the auto business for decades now. A shift to using it, on the demand side (buyers ordering a vehicle instead of selecting from available inventory) would reduce inventory costs as well as some current detrimental practices, such as dealerships trading vehicles with one another, in order to get exactly what the customer wants or selling below cost, when the vehicles ordered aren’t what the public wants.
If dealers and salespeople resist what the manufacturers see as inevitable, it could be their undoing. Dealerships may morph into service centers and stores/boutiques/experience centers may replace the dealerships as the center of new vehicle education, test drives and sales.
If the rumors are true about Tesla breaking below the $100 per kWh price barrier, on their new battery design and that this will result in making their EVs less expensive than comparable gasoline-powered vehicles, this change will occur VERY quickly.
NOW is the time for dealers & salespeople to get behind EVs, instead of actively selling against them, even when it’s their brand’s product. Failure to do so will only jeopardize their existence.
P.S. In case you didn’t get the cheese reference, read this.
