I think that's an excellent question. But, I think the answer might be dependent on, "what is the business model?" The Tesla dealers drama likely affects any future considerations, and it's still not 100% concluded. I'm not even sure if Elio is doing this as directly owned, Franchised, or some form of contracted.
I live in an area that would make the Elio super popular. But because it's a satellite community there will not be any Elio stores right there. There WILL be Elio showrooms halfway to Phoenix. But I think there's a lot to be said for being right in our community. And at my location Saturday would be the Mother of all sales days, provided a test drive, or at least an example is on location. For my part I could maybe try to Partner with the 'Halfway' dealer and run an outreach activity on Saturdays. The question is, how-what am I paid for my participation?
As far as a formal dealer, that's a territory thing and likely as a franchise you likely would pay an amount for the exclusive rights. Probably there's no competing interest if your location were very remote. I believe the Smart Car exclusive dealer contracts were something like 120k in 2005, but covered a whole metro area or even a larger region. If Elio could garner that as a franchise from all proposed outlets, 60x100k = 60mil, or a good bit toward the extra cash they need to begin full production.
A SmartCar was more profitable in 2005 per vehicle than an Elio. But the volumes were lower (45-80 units/month), and the onsite facilities investment were lower too, but included show rooms for up to 6 cars, and no test drives. I have no idea how that would translate into Elio franchise contracts.
I live in an area that would make the Elio super popular. But because it's a satellite community there will not be any Elio stores right there. There WILL be Elio showrooms halfway to Phoenix. But I think there's a lot to be said for being right in our community. And at my location Saturday would be the Mother of all sales days, provided a test drive, or at least an example is on location. For my part I could maybe try to Partner with the 'Halfway' dealer and run an outreach activity on Saturdays. The question is, how-what am I paid for my participation?
As far as a formal dealer, that's a territory thing and likely as a franchise you likely would pay an amount for the exclusive rights. Probably there's no competing interest if your location were very remote. I believe the Smart Car exclusive dealer contracts were something like 120k in 2005, but covered a whole metro area or even a larger region. If Elio could garner that as a franchise from all proposed outlets, 60x100k = 60mil, or a good bit toward the extra cash they need to begin full production.
A SmartCar was more profitable in 2005 per vehicle than an Elio. But the volumes were lower (45-80 units/month), and the onsite facilities investment were lower too, but included show rooms for up to 6 cars, and no test drives. I have no idea how that would translate into Elio franchise contracts.
