Stop Ridiculous Market Adjustment
It is past time to remind them that the customer is king!
Last edited by Vyper340vb; Sep 30, 2022 at 10:48 PM.




It is past time to remind them that the customer is king!








MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model
Last edited by Wolfman; Oct 1, 2022 at 02:33 PM.




MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model
Now they have found that buyers are willing to order and wait, so the Industry seems to be lowering their "days supply" to 30 - 40 days.
Germany is okay with factory ownership of dealers and inventories, but the US has franchise protection (personal property).
Porsche tried bypassing dealers' franchises in the early 80s, but failed. Court rulings.
The result of that was several States passed laws requiring manufacturers to have actual Dealership locations in the states where they do business. Right now this is affecting Tesla.
The pandemic has affected, and will continue to affect, many industries. These effects are far from over.
The Best of Mercedes & AMG
I was shopping around for a few months and there are three MB dealers within driving distance of me, all owned by the same dealer. There was one GLE I was eye balling and I started the process. This dealer, at the time, had 7 GLE 53’s on their lot. I was working directly with their “internet sales manager,” and of course we went through the usual nonsense. They wanted $7k over MSRP. I laughed, but he knew I was a serious buyer. I offered MSRP and held my ground. After two weeks of negotiations he finally came clean and said he wanted to offer that but the GM and greedy owner overruled him. I expanded by search and found a dealer 100 miles away that offered MSRP. The car I wanted to buy is still sitting on their lot three months later…
MB is changing the dealer model to an agency model in other countries. Germany is such an example. Dealers do not own their inventory anymore; only Mercedes does. No more flooring costs but also less incentive to move metal...
https://europe.autonews.com/automake...ew-sales-model
Times are a changing! Feel free to message me if dealer names are desired.
btw - to the post about “days of supply”, while it’s partially true it is not ever the real goal of any of the manufacturers to have inventory because it is a “waste” and costs money that reduces profit. The goal is and has always been to reduce inventory even though zero is not attainable when the customer wants its when they want it. The customer drives the model and their business, NOT the other way around. Any real attempt to change this results in an opportunity for the competition to gain market share. It’s the immutable law of the customer supplier relationship. The pandemic drove many issues which is not for debate here but it certainly created an unnatural ripple that has resonated. Make no mistake, the slow moving process of vehicle design, manufacture and delivery combined with the multitude of reasons from the pandemic caused what we all are feeling but that curve is changing as it always does. Change is inevitable and the speed of it only increases over time.
Last edited by Vyper340vb; Oct 2, 2022 at 12:10 PM.
Times are a changing!
btw - to the post about “days of supply”, while it’s partially true it is not ever the real goal of any of the manufacturers to have inventory because it is a “waste” and costs money that reduces profit. The goal is and has always been to reduce inventory even though zero is not attainable when the customer wants its when they want it. The customer drives the model and their business, NOT the other way around. Any real attempt to change this results in an opportunity for the competition to gain market share. It’s the immutable law of the customer supplier relationship. The pandemic drove many issues which is not for debate here but it certainly created an unnatural ripple that has resonated. Make no mistake, the slow moving process of vehicle design, manufacture and delivery combined with the multitude of reasons from the pandemic caused what we all at feeling but that curve is changing as it always does. Change is inevitable and the speed of it only increases over time.





