Quote:
Originally Posted by cfm56d7b
This is a slippery slope. The only way for BMW and other manufacturers to charge for something continuously is to offer something which provides continuous value above and beyond the basic standard.
Basic standards evolve. Rear view cameras are now standard. Blind spot warning feature might be next.
Imagine a local dealer offering a 3 year lease special for $399 per month.
With all the added monthly subscriptions that a consumer cannot live without, the monthly payment is now $699 per month. Truth in advertising debate will now extend to cars just like the hotels and airlines adding practically mandatory fees.
How to define continuous value above and beyond the basic standard is what the issue is.
Monetizing individual elements of basic standards by creating monthly subscriptions is a tempting approach for manufacturers which consumers are too intelligent to accept. Voting with their purchasing power will send a powerful message.
I wish I could echo everyone's great examples.
Charging a monthly fee for ...
- Drying function in a dishwasher. My favorite.
- Ice maker in the refrigerator
- Nutritional values on a label. Purchase one year pass to determine caloric content from one manufacturer. But it can be free if you send in 100 UPC labels
- Speedometer showing speeds above 75 miles per hour. If you want to speed on public roads or track your vehicle, it ought to cost more
- Ability to connect 2 monitors to your laptop. Those USB-C ports are working overtime after all
- $21.88 for all brakes with blue calipers
- $23.98 for all brakes with red calipers
- Market price for all brakes with yellow calipers determined on the daily closing price of a to-be-issued derivative by BMW Financial Services
- Market price for access to sophisticated trading software which will allow discerning drivers to hedge their monthly expense for yellow brakes.
It's a slippery slope.
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My fear is those poor leasing consumers saying "well, $40/month for 3 years for iDrive is just $1440 which is less than the $2200 price tag" without realizing they only pay on the residual amount.
This is a potentially dangerous approach where I feel manufactures will just prey on consumers.