As I was reading classmates’ blogs, I came across Zhenzhen Wang’s post in which she praised Tesla’s sales method. I agree that the company’s approach is very innovative and would like to further comment on it.

Most car manufacturers have dealerships that sell their cars, whereas Tesla wants to have a part in both manufacturing and selling. This is similar to the Apple Store approach. The beauty in Tesla’s approach is that they have eliminated the painful process a buyer goes through at a dealership: sales people are very aggressive, negotiating is an intimidating process, and you never really know if you paid a fair price. It makes the whole experience a general nuisance.

With Tesla, you pay for the vehicle online, pick it up at a showroom, and you’re gone in ten minutes. This guarantees you paid a fair price since everyone pays the same amount. Though there are some trade offs, such as a necessary down payment to have a test drive, this sales method adds to the overall experience of being a Tesla owner. Tesla provides customer service that adds value to their product and brand. It is one of many reasons why I expect to see the company continue to grow in years to come.

Sources: http://www.forbes.com/sites/quora/2013/06/04/why-doesnt-tesla-use-dealerships-to-sell-their-vehicles/