Likely taking a que from Tesla, Apple, and others, BMW has announced plans to move MINI sales in Europe to the standardized-pricing, no-haggle-or-dealer-add-ons, “direct sales” model. The model, also called the “agency model,” has buyers contracting their car purchase directly from BMW Group, with the dealership serving as a showroom, information resource, and purchase facilitator.
Oh, and they plan to move BMW sales in Europe to that model in the not-so-far future.
According to BMW’s press release, “The new sales model will benefit customers, retail partners and the BMW Group alike. Standard nationwide pricing for identical vehicle models will ensure price transparency for customers. In addition, as the transition to the agency model progresses, the BMW Group will digitalize the entire purchase process, giving customers a choice between online and physical purchase experiences – and switching seamlessly between the two. It will all be made possible by an end-to-end, integrated IT system landscape – plus full access to the familiar close-knit retail network.”
So when you buy a new MINI, you’re buying it directly from BMW Group, not the dealership. Prices will be fixed and consistent across locations. The blurred lines between online and in-person purchases will become more indistinct. And dealerships will have less flexibility for some aspects of the sales process.
The press release states, “When the new sales model is in place, the BMW Group will continue to depend on its existing retail network, capitalising on one of its key strengths as a company: a highly functional and established sales structure. The new sales model was created in a lengthy process in which retail partners were actively involved. “I would like to say a big thank-you to our retailers for their constructive cooperation and the very positive feedback they have given us by signing 100% of our MINI agency contracts. That’s clear confirmation of our plans to move forward together,” said Pieter Nota. The BMW Group expects demand for personal customer contact to continue in the future, with retail partners playing a key role.”
The existing retail network in Europe won’t be going away, but it will begin to look a bit more like the Tesla showrooms, or even an Apple Store. According to the release, “In addition, the new sales model allows them to focus on providing the best possible customer consultations and care and offers them access to the BMW Group’s entire stock of vehicles. Their feedback on the new sales model has been very positive, and all European retailers have already signed contracts for MINI.”
No mention was made regarding U.S. dealerships, but we’ll keep an eye out.
Read BMW’s full press release here.
Tags: direct sales mini
