Two More Cents

[eddie66]

Here is a new google alert. I hope this is a mis-print and they didn't kick the production date back to 2016
http://airherald.com/elio-motors-ceo-america-still-the-best-place-to-build-a-vehicle/5192/



Elio Motors
As-it-happens update ⋅
Air Herald
Elio Motors CEO: America Still the Best Place to Build a Vehicle

Flag as irrelevant

 

[goofyone]

Here is a new google alert. I hope this is a mis-print and they didn't kick the production date back to 2016
http://airherald.com/elio-motors-ceo-america-still-the-best-place-to-build-a-vehicle/5192/

This is the press release the article says it is sourced from and matches the tone of the article. The press release clearly says production expected in 2015 so to me the 2016 date is very likely to be a mis-print.

http://www.prweb.com/releases/2014/07/prweb12023917.htm

 

[tazairforce]

As we have found out Elio Motors has not made up their minds about charging or not charging the delivery fee and things may be different for reservation holders than for normal buyers as even the delivery methods will change.

I have no doubt Elio Motors will negotiate rates with transport companies just like any other automaker. The rates will be substantially less than the listed retail rates as EM would pay wholesale rates and receive volume discounts. I have found out from shipping vehicles as part of my business that transport broker fees account for about 25% of the retail cost of shipping vehicles.

For reservation holders Elio Motors will likely not have the retail stores available as standardized delivery points. During this phase it would likely benefit them to have no charge or very little charge for factory pickup as this is much easier for them than arranging home delivery for this many vehicles. It is also possible they will offer some variations like delivery to Pep Boy locations which would likely be easier on the drivers and transport companies. Elio Motors could also use some rail shipping to get groups of cars headed to the same general area across the country cheaper.

Once the distribution/retail network is up and running the plan is to deliver the majority of these vehicles from the factory to a network of distribution centers around the country which actually finish the vehicles. For this type of transport they can use rail as much as possible as the Shreveport plant has a rail loading facility formerly used by GM. Using dollies on this first leg would also be relatively easy as the dollies could be easily put on at the assembly plant. After unloading at the distribution center the dollies could be removed as part of the finishing process so it would be transparent to the transport drivers. In this case the fleet of special transport trailers needed would be greatly reduced as they would only be needed for the regular relatively close circuit of deliveries between the distribution centers and retail stores.

I believe all straight shift Elios will come off the assembly line created equal at 6800$. Park all the factory pick-up units in a lot by the accessory installation facility. Park all the units destined for shipping, to the hubs,
in the shipping lot then ship them out. My Elio goes into the add-on shop for a Sun Roof and cruise then it is ready for my visit to pick it up. I'll gladly pay the 6800$ plus my addons and ride home.
What I'm leading up to is, I Have a Real Problem with being charged a delivery fee after I have traveled 600 miles to pick it up.
My Elio will not be loaded on a truck, nor hauled 1/10 th of a mile, has not become a liability for any trucking company. If they charge a delivery fee for factory pick-up, I'd be Very Upset, (pissed).
The bean counters had better rethink this one and go along with Paul. (quote from earlier post). 'Paul Elio was fighting for no charge for pick up at plant... but accounting wanted the even pay program for shipping the Elio's'.
Let the buyer that do not want to pick theirs up pay the full cost of shipping, I don't want to share their cost.

 

[Jim H]

Paul Elio made the 'ridiculous' statement (IMO) on a radio program, to the effect; 'You can order your Elio at an Elio Store by closing time (9:00pm).... and pick it up the next day..... with ALL options installed". His plan was to have 7 regional 'marshaling centers' (within 'overnight' driving distance of a group of Elio Stores), with several vehicles in all colors and transmissions, and 'stocked' with ALL the available 'Upgrade Options'. Local workers would 'modify' the vehicle overnight, load it on a truck, and have it delivered to your Elio Store the NEXT day (I believe he even said, 'by the time the store opens'). Sounded 'interesting', BUT seemed more a 'pipe dream' than a serious, thought out, BUSINESS plan. JMO

Not many reasonable people expect that on day one that Elio will be able to deliver the Elio vehicle within 24-hours. I feel confident that when Elio contacts me for all the specifics of my Elio that I will be able to take delivery within the appropriate timelines and as business volume changes they will be able to achieve that goal.

 

[goofyone]

I believe all straight shift Elios will come off the assembly line created equal at 6800$. Park all the factory pick-up units in a lot by the accessory installation facility. Park all the units destined for shipping, to the hubs,
in the shipping lot then ship them out. My Elio goes into the add-on shop for a Sun Roof and cruise then it is ready for my visit to pick it up. I'll gladly pay the 6800$ plus my addons and ride home.
What I'm leading up to is, I Have a Real Problem with being charged a delivery fee after I have traveled 600 miles to pick it up.
My Elio will not be loaded on a truck, nor hauled 1/10 th of a mile, has not become a liability for any trucking company. If they charge a delivery fee for factory pick-up, I'd be Very Upset, (pissed).
The bean counters had better rethink this one and go along with Paul. (quote from earlier post). 'Paul Elio was fighting for no charge for pick up at plant... but accounting wanted the even pay program for shipping the Elio's'.
Let the buyer that do not want to pick theirs up pay the full cost of shipping, I don't want to share their cost.

I agree with you that from the point of view of the buyers doing factory pickup being charged for this would not be good. FYI, I myself want to pick up my Elio #3185 from the factory and would appreciate not having to pay for the privilege.

However from EM's point of view all vehicles picked up from the factory for no charge can't be averaged into the delivery charge pool which actually makes the delivery charges, and total vehicle cost, more expensive for everyone else not doing factory pickup. Unfortunately for us the auto industry norm in the US is to charge the full amount regardless of factory pickup. Some companies will include some nice extras, such as in depth tours and hotel stays, when you do factory pickup however they still charge you the fee so you end up paying for these extras. The only exceptions I know are for picking up vehicles from certain manufacturers overseas as they basically pass on savings they receive. From what I understand exporting and importing a new unsold car is subject to more duties and fees than a car which has been sold and the new owner has already taken possession before shipping it home.

What I can see EM doing as a compromise is that they make factory pickup free only for advance reservation holders. Then once the full retail and distribution network is up and running they do like every other automaker and charge retail customers the fee even if picked up at the factory.

We will have to see how this play out as from what we know EM has yet to make a final decision on this. The reality is they don't have to until about 90 days before production begins when they have to finalize all the costs in advance of our final vehicle orders.

 

[Buckeyejake]

These first recipients will be the ambassadors of the Elio. Having them drive away from the factory with a bad taste in their mouths is counterproductive.

Do they spread the word of the great and newest addition to your automotive choices or do they talk about the cheapskates ? Time will tell.

 

[Rickb]

I'm giving Elio Motors the benefit of the doubt on 'assumed' no shipping charges for factory pickups......since Elio is proving to be way outside the auto industry norm. Time will tell.

Cheapskates? That could describe me for buying a $6800 vehicle + shipping? Elio isn't a cheapskate.........only working on very close margins in keeping the Elio within the target price point. However he does it is fine with me.

 

[Lil4X]

After thinking this over, I believe there may be a "distributor issue" here. The "delivery fee" is not just for transport, but covers a number of charges dealers may take as "revenue enhancement". I don't know how distributors will be compensated, through wholesale or other back end charges, but I do know you mess with a retailer's margins and you're in for a fight.

I sold a line of products that could range over $1M each (with installation), and my supply stores who stocked our "pig iron products" (those with few if any moving parts) screamed bloody murder that we wouldn't give them the usual 15-20% discount that represented their profit earned by stocking and packaging our products. The difference was that this product would never pass through their warehouse, never enter their books, and would not be delivered or installed, and never be serviced by them. Their business model wasn't calibrated to maintaining sophisticated technical tooling. Without a service department, they didn't have a dog in the fight. And they wanted $150K each because what, they were good guys?

I see EM may have a lot of head-scratching to do over their distributor chain. With the looming possibility of on-line ordering (similar to Amazon) there isn't much a local "dealer" can offer - other than turn a hose on it and process the tax papers before delivery. OK, they're going to install some aftermarket accessories, maybe offer you a free latte in the showroom, but unless they get a flat commission on sales, there's not a whole lot of margin in it for them. They're going to see factory delivery as cutting into their profits, no matter how EM supports them by maintaining retail pricing even from the factory. It's just human (business) nature.

 

[Rickb]

Distributors? Dealers? It's all Elio Motors "revenue enhancement" except for servicing.....and I think Elio is missing out on that profit margin unless Pep Boys is paying a premium as a servicing partner.

Perhaps Elio is partnering with an established vehicle transport delivery firm..........overnight air express to local Pep Boys or Elio Stores would be ideal. I am certain of 2 things: 1. Elio has a distribution and delivery plan and 2. we will pay the fees, but should be more reasonable since there are no dealership middlemen.

 

[outsydthebox]

Distributors? Dealers? It's all Elio Motors "revenue enhancement" except for servicing.....and I think Elio is missing out on that profit margin unless Pep Boys is paying a premium as a servicing partner.

Perhaps Elio is partnering with an established vehicle transport delivery firm..........overnight air express to local Pep Boys or Elio Stores would be ideal. I am certain of 2 things: 1. Elio has a distribution and delivery plan and 2. we will pay the fees, but should be more reasonable since there are no dealership middlemen.

I think that is the point. Every "link in the chain" expects a return on their investment. But, If all of the dealerships, and distribution centers are owned by EM, then there would be no commissions or "profit margins" expected. They would all be employees, either hourly or salaried. Who knows, they may even buy their own transport vehicles.