Opinion: Why car dealerships are turning into coffee shops
#1
Opinion: Why car dealerships are turning into coffee shops
Why car dealerships are turning into coffee shops
Need a recommendation for the trendiest eatery around? If you are looking for the latest in gourmet treats, then look no further than your local car dealership. I live on the Upper West Side of this little village called Manhattan, just a donut's throw away from the avenue of automotive dreams, 11th between 40th and 61st. Here you can breakfast with Fiat, lunch with Mercedes-Benz and round off the day with afternoon tea at Jaguar – all free and very tasty as the dealers compete to provide the latest in customer care and satisfaction for the potential car buyer of the future.
But what makes any of us buy a car? Good gas mileage? Zippy 0 to 60 times? Increasingly, car company executives believe the sale lies in a smoother, more robust Arabica bean. They believe a good espresso machine is as important as a hydraulic lift. And when outfitting a new dealership, free wifi is more enticing than a free oil change. Dealerships are getting facelifts to keep them young and attractive.
As your car showroom becomes more Ethan Allen than Honest Ed's, those executives might just be forgetting that substance always wins out over style. I want my dealer to know about cars not coffee, someone who knows the difference between a Buick and a barista.
Across this land of ours, dealers are spending billion of dollars this year on new or upgraded facilities all designed to turn the old car lot into a palace of experiential delight. The current theory is that the buildings should have fancier chrome work than the car itself, indulgent sofas to relax and unwind on and more TV screens than even Elvis had in Graceland. But what the dealers are forgetting is that the customer – you and me, by the way – is more interested in spending a few hours in an airline lounge than a greasy car showroom. But I get it – deals keep getting harder and harder to seal, so the dealers are desperate to try new things to win new customers.
This is never truer than when selling the most elusive and prized of all customers, the Gen Y-er. As much as we all appreciate a mini cupcake, it is this age group that all this investment is designed to attract.
Since our darling little Gen Y babies will soon become the largest economically viable part of our population, businesses are desperately seeking ways to engage and capture this dollar-rich power group. Since millions of them are also acquiring driving licenses on an annual basis, car companies are amongst the worst offenders in slapping on some blush to tart up their act and attract these techno savvy twinks into the old-banger boudoir. That's why they are rushing to refurbish old dealerships and roll out the red carpet for these cash cows born between 1977 and 1995.
The trouble is, most car executives and dealer owners are Baby Boomers (or older), and so in the time honored fashion of father unable to understand son, we have the potential for a classic, "Geez, you're so embarrassing dad, leave me alone!" situation on the forecourt.
I have sat in many meetings where the subject was: "Gen Y – How To Sell Our Cars To Them." These meetings involve a bunch of older white guys trying to fathom how to make their car brand relevant to a younger, more diverse demographic. It's not unlike a certain bunch of Congressman telling women how to run their "shop," and we can all see how well that has worked out for the electoral appeal of those "wise men."
Not that I'm saying only the like-minded know how to read each other's minds, not at all. There are thousands of articles about the generation gaps and how to bridge them by putting yourself in the other generation's shoes, but to my mind, the real truth is we all like wearing the same shoes.
Facebook has made Millenials of us all. My 62-year-old brother spends more time on social media than his 29-year-old son. I'll answer a text 100 times quicker than returning a missed phone call. The trouble with the car-buying process is not in the age difference or the lack of youthful appeal. It's in the lack of understanding what we all want from the sales process. So, back to the dealership where my iced latte is getting warm.
The dealership of the future isn't about bigger and brighter bricks and mortar, it should be about brighter salespeople and bigger opportunities to get my bum in the seat of the car I want. I bet everyone reading this will know 10 times more about the car they want to buy than the person whose job it is to sell it to them.
I was speaking to a business colleague last week, and he told me how he never met a salesman or even visited the dealership to buy his new car. He researched online, phoned for a deal and had the car delivered to his home. Seamless. I'd like my dealership to have more inventory than iPads so I can feel the car out and get my choice faster. Look at that, impatience is not the preserve of the young. At the end of the day it's about, and really always has been, getting the best result at the best price in the best way. It's what the best dealers already knew, give them what they want, when they want it. Hold the chai tea.
Perhaps some of those billions of dollars of investment in real estate would be wiser spent on training talent to help customers get what they want and need from their car. Money better used on building more intuitive and interactive commerce technology rather than temples of testicular grandstanding.
#2
Lexus Fanatic
The trouble is, most car executives and dealer owners are Baby Boomers (or older),
And, never mind the dealerships.....in Europe, Fiat actually puts an Expresso coffee-machine IN some of its vehicles as a package-option, but we don't get that in their U.S. models, probably for liability reasons.
#3
Lexus Test Driver
I much rather have discounted inventory and servicing than gourmet coffee and internet. A dealership should be about cars and the business surrounding them.
#4
Lexus Test Driver
It is a niche productions and services. I dont know about you, but here the lexus dealer ship have a coffee shop in it, and it is just awesome.
I come in for service, listening to music while waiting, can also talk to other Lexus fan, or surf webs. I got my interior detail is 130 instead of a shop closer to my house where i have to drop off, and charge 150.
I come in for service, listening to music while waiting, can also talk to other Lexus fan, or surf webs. I got my interior detail is 130 instead of a shop closer to my house where i have to drop off, and charge 150.
#5
Lexus Fanatic
What a dealership WILL need, of course, if they do have regular (not decaffinated) coffee is nice rest rooms. The high concentration of caffiene in coffee stimulates urine production almost like a diuretic.
Last edited by mmarshall; 02-07-14 at 06:45 PM.
#7
Lexus Fanatic
I'm not sure about Lexus, but I can remember some Infiniti and Saturn dealerships, here in the D.C. area, having coffee as far back as the early 1990s.....20 or more years ago. Infiniti dealerships, back then, spent a lot of money on their buildings, and Saturn, of course, built its early reputation on unequalled customer service for a low-priced auto manufacturer.
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#9
Lexus Fanatic
Originally Posted by Fizzboy7
I much rather have discounted inventory and servicing than gourmet coffee and internet. A dealership should be about cars and the business surrounding them.
#10
Pole Position
They're just not dealerships anymore. The owner of our dealership also owns Lexus of North Miami. Let's be clear, it's a spa, cafe, nail salon, sushi bar, massage parlor, department store, and oh yea, they also sell a few cars. It's getting out of control.
#11
Out of Warranty
It is only good marketing sense to provide these amenities BOTH in the showroom and the service waiting room. Particularly in the waiting room where customers may spend an hour or two, it's considered bare minimum to have a coffee bar, maybe a few snacks, a lounge and clean restrooms.
My Lexus dealer has always provided separate waiting areas with comfortable seating and a selection of current magazines, A TV lounge with a big screen, and a separate area of cubicles with Wifi, electrical outlets and desks for those of us who need to conduct their regular business day from our laptops and mobile devices. A concierge desk has an attendant ready to help with any needs and who will call you when your car is ready. Restrooms are spacious and well maintained to the point of being absolutely spotless.
Compare that with so many dealerships in the past for which customer amenities consisted of a burned-out coffee pot, a dirty old vinyl sofa with magazines that must have been handed down from your dentist's office, and a restroom that is only a couple of flies short of an outhouse. I'm surprised some of these are still in business.
Considering the minimal cost of operating a proper customer-oriented experience, it's only good business to treat your patrons with the respect they deserve and make their buying or service visit as pleasant as possible. Lexus has pioneered customer service and many other dealerships are finally catching on.
My Lexus dealer has always provided separate waiting areas with comfortable seating and a selection of current magazines, A TV lounge with a big screen, and a separate area of cubicles with Wifi, electrical outlets and desks for those of us who need to conduct their regular business day from our laptops and mobile devices. A concierge desk has an attendant ready to help with any needs and who will call you when your car is ready. Restrooms are spacious and well maintained to the point of being absolutely spotless.
Compare that with so many dealerships in the past for which customer amenities consisted of a burned-out coffee pot, a dirty old vinyl sofa with magazines that must have been handed down from your dentist's office, and a restroom that is only a couple of flies short of an outhouse. I'm surprised some of these are still in business.
Considering the minimal cost of operating a proper customer-oriented experience, it's only good business to treat your patrons with the respect they deserve and make their buying or service visit as pleasant as possible. Lexus has pioneered customer service and many other dealerships are finally catching on.
#12
Lexus Fanatic
Agreed. That is clearly overkill....although I'll assume that the massage parlor is legitimate and not simply a front for....well, you know.
#13
Guest
Posts: n/a
I could have swore I posted here too….
http://www.lexus-int.com/intersect/
That is the future of Lexus right now with the first Intersect in Tokyo with NYC and Dubai next…A "home away from home" for Lexus owners. It is an amazing space to relax and have a drink, some food and chat in.
Dude, we are close by!
http://www.lexus-int.com/intersect/
That is the future of Lexus right now with the first Intersect in Tokyo with NYC and Dubai next…A "home away from home" for Lexus owners. It is an amazing space to relax and have a drink, some food and chat in.
Dude, we are close by!
#14
Lexus Test Driver
Join Date: Jul 2013
Location: NSW
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Well a distraction is always needed to lift the focus away from the actual cars.
If I'm spending big money on a car I don't care about coffee, I don't need a sandwich or a sofa.
If I'm spending big money on a car I don't care about coffee, I don't need a sandwich or a sofa.
#15
Guest
Posts: n/a
Also it was in the news recently Lexus will be upgrading dealerships again, dropping stucco for glass and the gold emblems for white/black/silver.