BMW Starts Charging Subscription Fees (In Some Countries) To Use Already Installed Hardware
https://www.thetruthaboutcars.com/2022/07/bmw-starts-chargin…
Because the name of the game is extracting more money from customers. Escalating the ATP isn’t enough. Charge people a monthly fee to use the hardware they already paid for in the escalating purchase price.
Steve
I saw that today. It’s like BMW is going out of their way to kill sales.
intercst
(“subscription revenue” is just another name for “the skim”.)
Because the name of the game is extracting more money from customers.
The name of the game is extracting higher salaries from employers!
The Captain
The name of the game is extracting higher salaries from employers!
Or accumulating sufficient investment capital so as to make the employer optional.
intercst
I would not want to do business with a company that did this.
OTOH, for someone who thinks they aren’t sure if a feature is needed, or is needed only a couple of months a year it might make sense. And (if they offer this) after you have used the feature you can buy it outright, then it makes sense.
I’m sure that they are doing this as a trial for more than seat heaters.
how about selling faster acceleration? Or self driving? Or map updates…wait they have been doing this for more than a decade.
Mike
I’m sure that they are doing this as a trial for more than seat heaters.
The linked article in the OP shows the different services BMW is offering, with prices in GBP. There are several. Some of which might be worth something. Some, like the seat heaters, and automatic headlights, come off as abusive, features that are fully installed in the car, which the company obstructs, unless you pay the subscription fee.
I would not want to do business with a company that did this.
There is a high degree of group think in the auto industry. We see useless styling cues spread across the industry like an STD in a retirement home. Several years ago, it was the fake air vents in the side of the front fender, which graced cars as divergent at a Range Rover and a Chevy Aveo. Now, it’s fake front brake air ducts and fake exhaust tips. In the 70s it was opera windows and coach lights. Every automaker now is trying to squeeze more money out of customers. One path is to escalate ATP and GP. Anther path is offering features that used to be included for the life of the car on a subscription basis, to keep that cash flowing in, regardless how old a car is. You can buy a car today and actually own all the features, but when you go back for a new sled in 5 years, probably every brand you look at will be requiring “subscription” payments.
Steve
I thought that money is no object to BMW owners. Those cars are notoriously expensive to maintain and repair. The poor reliability ensures that they will need lots of repairs.
If you’re not part of “the 1%”, then you have no business owning a BMW.
Didn’t people get by just fine for many years without heated seats? I normally wear long johns in winter. Also, the heat in the car is strong enough to warm it up in just a few minutes. Even though I live in the Twin Cities, MN, I never have to crank up the heat. The lowest fan speed is enough, and once I’ve warmed up, I have to turn the temperature dial down somewhat (to the 50% to 75% position) so I don’t overheat.
If you’re not part of “the 1%”, then you have no business owning a BMW.
There are lots if BMWs in Portugal and I doubt most belong to the 1%. Also tons of Mercedes which look a lot better.
The Captain
There are lots if BMWs in Portugal and I doubt most belong to the 1%. Also tons of Mercedes which look a lot better.
The parts are cheaper and more abundant in Europe than in America. Also, more mechanics in Europe know BMWs and Mercedes Benzes. On the other hand, many Detroit brand vehicles that are common here in the US are exotic in Europe.
The parts are cheaper and more abundant in Europe than in America. Also, more mechanics in Europe know BMWs and Mercedes Benzes. On the other hand, many Detroit brand vehicles that are common here in the US are exotic in Europe.
Sorry, I didn’t realize you were talking solely about the American market. Geography and mercantilism do affect outcomes.
The Captain