Once, it was travel agencies and airlines. Now, it’s auto dealers and Tesla.
The March 11 Business section article “Tesla’s direct sales to public upsets dealers” highlights a situation very similar to what the travel agency business went through in former years. That industry saw its “partners,” the airlines, opening direct Internet sales while cutting commissions. The travel agency business model was changing for good.
Tesla is an out-of-the-box, forward-thinking business. It has broken the mold on electric vehicles and is setting a very high bar for other automakers. Travel agencies have survived because they had to reinvent themselves and start charging fees for the services they provide. Maybe the auto dealerships should look at this example and start thinking of what they can do to survive into the future. Certainly, the whining and pending legal action referenced in the article will do them no good in the long run. There are customers who always want to opt for services and who are willing to pay for them. There are also those who prefer going directly to the source for products.
Gail Hanson, Brooklyn Park
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