Cars range from simple machines with minimal details to stellar cars full of equipment and systems. In the last two decades, technology has advanced more than in the entire last century. Digitization and the appearance of electronic switchboards have opened an era that allows you to enjoy resources never seen before. However, brands are noticing a new way of doing business with technology. Subscription use is common in our lives, but BMW is suffering the consequences of a bad policy.
Profit when selling a car is always important. Earning more money for each unit is important. Tight margins activate the imagination. Netflix, Amazon and Spotify have made a format a lifestyle. Payment by subscription is common in our daily life. We watch movies, series and listen to music by paying a small monthly fee, but the car industry is struggling to adapt this format to its business model. Drivers are not willing to pay a monthly extra to enjoy the extra features of their car.
It should be noted that paying for a streaming television system is not the same as paying for a car. In order to speed up the assembly, many years ago Tesla had the idea to include, from the factory, all the necessary equipment in its electric cars. Later, when the purchase is configured, the software activates them. An option that allows not only to buy, for example, the improved Autopilot after the fact, but also for it to be an element of removed.
In BMW, the prices are not very low and if the customers have to pay more amount every month, the sales goal will be difficult to achieve. Last year BMW launched the use of heated seats for monthly payments. A measure received with some expectation. Now, that option disappeared from the catalog of the German company. It lasted only one winter on the market. Customers, directly, don’t want or need it.
This is the new trend within the industry and, above all, although it may seem unbelievable, in premium brands. Some manufacturers such as Mercedes have long bet on this strategy. The most obvious example is the turning capacity of the rear wheels of the Mercedes EQS. The service is simple. The car comes from the factory with many options already installed, but there is no connection while waiting to receive the monthly payment registration to enjoy it. Activation is done remotely via an external connection to the car. An update like any other multimedia system. The famous OTA updates.
BMW will change its strategy due to what they consider to be poor perception on the part of the customer. In an interview with Autocar, Pieter Nota, member of the Sales and Marketing Board of Directors of the house, commented: “We thought we would provide an additional service to the customer by offering the possibility to activate it later, but the acceptance of the user is not so “People feel that they have paid twice as much, which in fact is not true. So we stopped the program. “We don’t know what action the Germans will take in the future, but what is Of course, they need to rethink their strategy if they really want to offer a different product.
