GM, Chevy putting cafes, beauty salons in dealerships
Last week, when we picked up a news story that GM was offering a year’s worth of free car insurance to anyone that bought or leased a new car, few were thrilled.
Would this entice you to buy a new GM, we asked? “No way!” said John S. Added reader Steve, “Whatever it takes to sell junk!!!!”
Well, then. Yet domestic car dealers, after the great humbling of the recession, are desperate, and they’re not going to stop trying to get you into their vehicles.
They’ll try promos like free car insurance, and they’ll try anything else. Like, as the Detroit News reports they are now, spending millions to spruce up their dealerships.
According to the newspaper, car dealers are doing anything they can to reinvent the dealership as a place of business. Salesmen for brands like Chrysler, Dodge, Jeep, GM and Buick have been investigating the retail atmosphere of other stores like Target and Starbucks, hoping for some inspiration.
It appears they’ve found it.
In some U.S. dealerships now, the News reports, gone are the “images of burnt coffee in paper cups and snowy waiting-room TVs.” They’ve been replaced by million-dollar renovations to install cafés, boutiques and even hair salons to attract customers.
“We’re making (the dealership) a place you want to be, instead of a place where chairs are piled on top of each other and you’re watching Jerry Springer,” said Con Ahearn, a GM exec with no qualms about taking a dig at his own company.
While each dealer is having to subsidize the costs of any facility upgrades they do, General Motors is offering quarterly payouts for salesmen that perform renovations and hit certain sales targets. Though they’re by no means flush with cash, it’s a good bet that many dealers will take this bait, for fear that they could be wiped out as many American car lots have been in the Great Ongoing Dealership Purge.
Though what’s for the customer to decide is, once again, if all the bells and whistles are enough to bring them back to a domestic car.
One dealership, for instance, now hosts an espresso bar, while another holds a beauty salon. Car owners can get a latté or their nails done while their vehicle is in service.
The big picture question, of course, is back where we started: is this a backward approach? Improved customer service is nice, but is it going about things the wrong way?
Was it poor customer service, subpar dealerships and sleazy salesmen that drove you away from domestic cars, or was it problems with vehicle quality, price and performance instead?
By Jason Buckland, MSN Money
Posted by: Chip | Jul 15, 2021 12:48:17 PM
Obviously catering to the female consumer... who will probably... actually fall for this kind of crap. Throw in a "designer" boutique selling costume jewellry or tupperware and they've got it made.
Posted by: Route66 | Jul 16, 2021 12:49:46 AM
If they are willing to give thousands of dollars in "cash back" why not a free cup of coffee or a piece of merchandise? Whatever brings people into the dealership makes sense. If you have coffee everyday with a car salesman, when it's time to buy you will probably think of them.
Posted by: Barb | Jul 16, 2021 3:36:10 PM
It's enought that car dealerships get people in there showrooms that just
want to spend time trying to test deive cars but don't buy now they will have evrybody hanging out having coffee and waiating the salesmens time. Probably have alot of kids hanging around too as the mothers gather at starbucks to have coffee and talk. Bad idea
Posted by: John S. | Jul 16, 2021 4:38:57 PM
I would like to weigh in again. I said "No way" to buying a new GM, not because I think GM makes poor quality cars, etc. I just do not like any GM product, and this is a matter of personal freedom of choice. On the other hand, I also do not like any import either, at least not in my price range. I only buy domestic, and no "gimmicks" at dealerships will entice me into buying a car that I have no interest in. Everyone has different needs and tastes. I decide on THE car I want at home, then go to the dealership and order it. I personally only buy Mustangs. When I was 16, my first car was a 1966 Mustang convertible. I am now 53 and still drive it (not winter driven). Over the years, I have accumulated a 1990 Mustang GT, 2004 SVT Cobra, and 2009 Shelby GT500. I do a lot of business travel, and have the opportunity to drive many, many different cars, all of which I have hated. Although I am not a Ford employee, I get their employee discount; but that to me is just a bouns, and not any factor in my decision to the product.
Posted by: Lei-Anne | Jul 16, 2021 5:54:23 PM
My husband and I have owned GM vehicles for over 30 years. I can honestly say that we haven't had one single vehicle that was bad enough to turn us off of purchasing GM branded products. As a matter of fact, we have later regretted having traded in a vehicleon a new one. But that goes away. We don't buy based on "what are you going to give me". We check out the vehicle beforehand and then go to the dealer and order or buy off the lot. Our most common complaint over the years has been the service staff at our dealerships. We were fortunate at one time to have an AWESOME mechanic, but unfortunately he left the dealership to pursue other offers. For the last 15 years we have had an amazing salesman that we deal with, no one else. Other than that we take our vehicle to a licensed garage to perform regular maintenance and use the dealership only for warranty work. In the matter of having the opportunity to drive other brands of vehicles, we too have had that opportunity and still return to GM. As far as I am concerned, our dealership has refreshments, television, fireplace, newspapers/reading materials available to customers anyway without pressure from salesmen so what difference would it make to include a cafe on the premises? I think it is a good idea that may actually bring in new customers that might catch a glimpse of an affordable price sign or see a vehicle that catches their fancy. The nail salon is a bit over the op though. When all is said and done, in my opinion, keep up the good work GM, just have a chat with your dealers about their service.
Posted by: Brian Webb | Jul 16, 2021 10:31:04 PM
I drive a Pontiac Montana SV6. I love the vehicle but the dealership here in Moose Jaw has greatly disappointed us. We will go anywhere else for warranty work. We will certainly not be buying another car from Murray Chevrolet in Moose Jaw no matter how many lattes you can buy!!!
Posted by: Robot Man | Jul 18, 2021 10:24:54 PM
I think that is the best idea in a long time you can now look as good as your car.
Posted by: Jane | Jul 20, 2021 12:44:59 PM
Ah Chip, you have now given me insight into your problems. With your derrogatory comments relating to women, you are all alone. No woman would have anything to do with you. Tell me, does it curve to the left or right?
Posted by: Robot Man | Jul 20, 2021 11:24:07 PM
If you can't make it with your own business take some one else's and get Harper to pay for it
Posted by: Jess | Jul 22, 2021 2:23:37 AM
We almost purchased a new 2011 Cruz from a GM dealership but didn't because they first said the price with tax and everything was less than 17 K. Good deal - I thought. Then we came back two days later (we said we would come back and purchase) and they said the deal was off and the price was now 23,000 + tax ..etc. Really? Two days the price went up like that..mm. So we just left and somewhere else gave us a good deal. And no it wasn't a GM car.
I think they should try lowering the prices on their cars. They aren't top of the line vehicles, or even middle of the line. If they lowered, but still found the right profit margin, they could sell more cars, and make more in revenues.
I think this is silly about having salons, and cafes in a dealership. Why would anyone (especially a women) want to hangout at a dealership with men? And pay for it (the consumer pays). Epic fail idea.
Just lower the price to where it belongs. I would have purchased but you screwed up (to the dealership that doesn't care.) God, I even care more, I'm writing this long essay because I don't want GM to go under, but if it treats people like this and executes stupid ideas after it just had a bailout, it will go under. People will resent having to pay for these "perks" for a car that have nothing to do with the actual car which has reliability issues.