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Without decoration or selling cars, these Mercedes-Benz dealers make crazy money just with decoration.

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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I believe that many people have a feeling when they buy a car in a 4S store. The 4S store has a lot of tricks, such as insurance, licensing, compulsory decoration, and so on. It is clear that a more favorable car price is negotiated, and many other extra fees are added at last. The landing price still feels a little high. Even very common situation, if you want to buy a car at a better price, you must match the store decoration, without decoration, you can not enjoy the price discount.

In the final analysis, buying a car forced by 4S stores to add a variety of services or decoration is mainly profitable, even more profitable than selling a new car, and car sales must complete the corresponding decoration tasks every month. Therefore, the behavior of adding various services or decoration has long been an unspoken rule in the industry, and it is a disguised way for 4S stores to increase prices or increase profits.

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So, how high is the profit of adding decoration? Take a dealer group based in Suzhou, which has four licensed 4S stores in Jiangsu and Ningbo, Zhejiang province.

In 2018, four Mercedes-Benz dealers under the dealer group partnered with a supplier of automotive boutique and beauty products in Ningbo, which provided the above-mentioned Mercedes-Benz dealers with the boutique and beauty products they needed. Popular, that is, film, pedals, footmats, surround kits, reversing images, special headlights, seat ventilation and so on, almost all services that can be installed and upgraded can be provided.

According to the quotation given by the supplier to Mercedes-Benz dealers, the purchase prices of thermal insulation film for 3M series of Mercedes-Benz cars range from 2200 yuan to 4480 yuan, 6800 yuan for electric rear doors, 8000 yuan for a set of panoramic auxiliary system, 2900 yuan for reversing images, 1500 yuan for driving recorder, 2500 yuan for pedals, and so on.

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As we all know, buying a car in a 4S store is very difficult to take away the naked car directly, it must be matched with the store decoration, from collective purchase to selling to consumers, how big is the price difference in the middle?

From the sales contract of the above-mentioned Mercedes-Benz 4S store, we found that a Mercedes-Benz E300L 3M film-coated 4S store quoted price of 11000 yuan, while the purchasing cost was 2200 yuan, the price difference reached 8800 yuan, and the profit was four times the cost.

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With the three items selected in the contract, the 4S store gives customers a discount of 13800 yuan, while the total purchase cost is 4700 yuan and the profit is 9100 yuan.

For example, the purchase price of the electric tail door is 6800 yuan, while the 4S store quotes 16000 yuan, earning 9200 yuan directly from the customer. While the driving recorder quotes 4800 yuan, the 4S store earns 3300 yuan.

If the group's four Mercedes-Benz dealers sell a total of 3000 Mercedes-Benz E-Class cars a year, the profit on bicycles plus decoration is 10, 000 yuan, or 30 million a year. Of course, this is only part of it, licensing and other service fees, in-store insurance, accessories and so on are big profits.

Some people may ask, are the decorative accessories provided by the 4S store original? In general, it is not easy to purchase original parts in the market, but what is easy to obtain in the market is likely to be non-original factory, and the original cost of non-original factory is lower. The above Mercedes-Benz 4S store, a supplier with a registered capital of only 2 million yuan, is providing the original parts?

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Some voices have pointed out that "price increase in disguise" has long become an unspoken rule in the industry, and forced matching of decoration, forced tie-in sale of services, compulsory insurance in stores, and so on are all disguised sales methods to ensure maximum profits for dealers, but often decoration and insurance profits are large but easy to be ignored.

According to the auto industry concerned to verify with the relevant people, the source said that in spite of this, the purchase price of this group is already 20% higher than the purchase price of the same brand.

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