WHY DO TESLA ADHERE TO THE DIRECT BUSINESS MODEL?

Tesla through the direct mode, fully grasp the rich data of a user. This is the most valuable for Tesla, and it will never let go to the dealer to complete the core reasons.
This year, more and more domestic auto repair company released its own development of the model or concept models, but also in cooperation with the local government to build their own car factory. With the next year to the car's pure electric 7 SUV ES8 listed on sale, the next few years there will be more and more new brands of electric Coilovers vehicles listed. There is no doubt that they have adopted the standard Tesla sales model - Direct.
Why should the car be sold directly? Why does Tesla use the Direct mode?
I'll tell you the story of an Apple Store.
In 2001, Apple was about to launch a new design, expensive new products - pod. At that time the market environment in the doldrums, a look like a block of white tiles MP3 player sold 399 US dollars, which is three or four times the price of similar products. At that time, most people only saw the iPod in the price and other products are different, but do not understand the unique behind it. At that time most of the MP3 player can only store more than a dozen songs, and iPod can put thousands of songs into your jeans fart pocket. It also brings a new way of human-computer interaction, such as the new turntable control, connect iTunes software to manage music files and so on. For the general public, Apple's MP3 player brings too many new things, which makes them know what to do.
Any truly innovative technology or product, need to give users a period of time to understand it, master it. So, Apple uses a retail store that has a huge flow of the store, the iPod in front of the customer, showing what it is, how to use. Then people find "Oh, that's really cool."
Let the user realize the charm of the iPod, the sales on the out of control. Sales amazing, iPod allows users to get used to Apple-style human-computer interaction design, training users to manage music, buy music habits. All this is significant for Apple.
Tesla face the situation and Apple is very similar. The original production model it is only a price of about $ 70,000 pure electric luxury sedan Model S, to today only a luxury electric SUV Model X. In addition to the price of luxury cars, Tesla need to educate users to help them understand the technology of electric vehicles, safe and how to use.
Traditional car dealers usually put the store in a remote location. In contrast, Tesla is more willing to shop in the people often go out of the busy lot, as part of their daily life. Such as a large shopping center, or downtown downtown. Tesla experience shop area than the traditional car dealership space smaller, placed more closely.
Tesla's potential users need to understand Tesla, also need to understand the electric car. Electric car is a new technology products, so Tesla's outlets are both to become education and training center, but also geographical location. When Apple built his own retail store, Steve Jobs is the same reason, he wanted to educate users, so that they understand Apple's unusual adjustable coilovers electronic products.
To the traditional car dealership customers, the purpose is to get the cheapest price. And Tesla provides a standard price system, there is no discount promotions, potential users to Tesla experience store no way to bargain, they are more to understand the electric car technology. Tesla's sales representative will take tens of minutes to tell customers where they can charge electric vehicles, electric cars can get much government subsidies, you can enjoy what incentives, electric car car costs and gasoline vehicles What is the difference. Of course, all this patience to explain the goal is still selling electric cars.
Tesla reason why not use the dealer sales model for another reason, it is to do things, the dealer will not dry, do not want to dry.
Dealers are almost impossible to make money by selling Tesla electric cars. The traditional model of the dealer is from the car manufacturer where the wholesale to the car, and then increase the price to sell customers to make money. Customers buy a car the price is opaque, and everyone should sell bargain, and hot models have to increase. Tesla does not allow this to happen. It strictly stipulates the standard price system, does not allow the price to float at will. In the Tesla official website, or line of the store, the user can use the same price to buy electric cars.
Inventory sales are a very important part of the traditional dealer business. Once the car is shipped to the store, the Exhaust Manifold dealer will sell it as fast as possible. But Tesla's electric car, whether it is manufactured or sold, is completely different. Usually, Tesla users will be based on their own needs, matching a different configuration combination, select your favorite color. Users usually have to wait a few months after the order to get their own that Tesla electric car.
Tesla's business model is simple: selling electric cars to profit. But the traditional car dealers are different, more by selling boutique or accessories, car decoration, after-sales service to make money. But compared with the gasoline car, electric cars do not need anything like oil for maintenance. Therefore, the dealer model is difficult to rely on selling Tesla electric car to make money.
Tesla CEO Maske hope to firmly grasp the control of the brand, does not allow such a new brand of brand image discount, the user experience is not good enough. Maske resolutely use the Direct mode, there is an important reason - to master user data.
The traditional car market, car manufacturers do not directly sell the car to the final user, but wholesale to the dealer, the dealer and then sold the car to the user. This means that car manufacturers are almost ignorant of who bought their own cars. And Tesla through the direct mode, first mastered the complete user information, after the targeted can provide products and services for him. And these user information and he purchased the electric car tightly tied together, Tesla through the account system, you can start from the car to the daily use, full control of a user's rich data. This is the most valuable for Tesi, and it will never let go to the dealer to complete the core reasons.