Goodbye to traditional Mercedes dealerships. The star brand will implement a new model in 2023, initially in Germany and will also continue in the rest of Europe, including Spain. The authorized concessions will be transformed into agencies of the manufacturer, a model that will reduce costs and increase the profits of the units sold.
The traditional Mercedes dealership concept is about to expire. The star brand will implement a new model from 2023, converting authorized distributors into agencies. The new concept will start in Germany in two years, but it will also be extended to Europe, including Spain. A system that will allow save significant costs and increase the profit of each unit sold.
Currently, when we buy a new car, the dealer orders the car from the factory, it is received and the documentation remains in the bank until we pay for the vehicle, an amount that the dealer immediately transfers to pay for the car to the brand. This purchase between the two parties has a margin of 13%, influencing sales prices the different dealerships so as not to lose the sale. Because the letter is clear, use this margin so as not to lose a sale.
Also, if any of the models did not sell due to lack of appeal, the star offered special discounts to get rid of the models. With the new agencies, prices and discounts are controlled directly by the manufacturer, for everyone equally, and being purchased vehicles owned by Mercedes until paid for by the customer, so the Stuttgart house will enter a commission for each unit sold to the agencies.
Dealers will continue earning your fair share of after-sales service, but they will also avoid staying with completely new units and ordered on demand from customers that, for different reasons, then fail to be delivered to customers and have to lower the price to become a unique opportunity, loaded with equipment to the top. The new agency model will not only focus on passenger cars, but also on commercial vehicles.
Jörg Heinermann, Director of Sales for Mercedes-Benz Cars in Germany, said that “We are delighted and grateful for the great approval of our partners for our agency model. With the new agency contracts, we offer retailers the opportunity to better meet customer needs and care, walking a new path in the industry that marks an important milestone in a new era of sales. We have reached a partnership agreement with our dealers in Germany -98-, and therefore continue the success story of Mercedes-Benz Sales Germany ».