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What are Agency Sales? – New models, and More

Agency Sales

Agency Sales

The current economic state has made it clear that moving to a sustainable agency sales model is no longer just an option for original equipment manufacturers (OEMs) and dealers but rather a must.

Though, there is not much time left for the implementation.

New models for sale in the fast lane

In the B2C segment, market participants such as Tesla have relied from the start on the concept of offering online sales with strategically located showrooms.

In dissimilarity, many established OEMs still rely heavily on traditional three-tier sales, but this is no longer sufficient because:

A dealer-focused, margin-based price war leads to lengthy price negotiations by the customer.

However, in the short term, the goal should not be to replace the dealer network that has developed over time with a direct online sales channel.

But instead to run different sales models in parallel to balance organizational and technical challenges and use the existing dealer assets.

A solution for the upcoming agency sales model:

Time to be brave:

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