Posted by
Steeroid
Or is it that he is more interested in a definite sale of a lower value than a doubtful upgrade sale of a higher value?
Steeroid, I think you hit the nail on the head with that one. I have sold VW's in Canada and it can get extemely difficult to convince 'safe' buyers to go in for a 'risky' product. Answering questions on reliablity, spares, service back up, maintainence costs, fuel efficiency can really bog you down. I am sure even first time Fiat buyer's must be asking sales staff about these questions before deciding on the Linea and Grande Punto. Since the sales persons earns money only if he sells, he will push the buyer to a Vista or Indigo if he senses that the prospect is a bit uncomfortable with a Fiat. All that is the Uno, Siena and Palio legacy which the Linea and Grande Punto cannot change in 10 months no matter how good they are. Better to sell the partner's car then to see him walk away to a Hyundai or Maruti showroom.Now of course, it's far easier to sell Tata cars for the sales guys as all they have to say is 'Sir, go for the Vista, same engine as the Grande Punto but no issues with spares etc"
I will quote from a personal expereince I had when I was looking to buy the Punto. This was at the Fortune, Powai showroom. A red Emotion PK Grande Punto and Vista Quadrajet are in the same showroom. An average Indian car buyer is there. He asks the salesman, why is the Punto more expensive then Vista? Sales man says, Punto has ABS, Airbags, blue&me. That's it. He stops. What are these things and what do they do? Nothing about that! I butt in and tell the guy the Punto also comes with ACC, 15" alloys to give better stability, extensive MY CAR features that help you track mileage, 15,000 kms service intervals, nifty features like coming home lights etc.
Any product that you sell, you have to build value in it. Just saying x car has ABS and Airbags compared to car y will not convince the buyer about the higher cost of car x because most buyers don't know what ABS is. For most it's just some fancy term. Even if a product is 1 rupee more then another product, the buyer will find it expensive if you don't tell him why it's 1 rupee more expensive. You have to tell the buyer what ABS does and why it's better then non-ABS cars.
There are some people that ask what if Tata walks away from this JV tomorrow? Clearly, the fear is that the JV may not last beyond a couple of years and when that happens Fiat will be left hanging nowhere. Such questions only come when people are not aware of the JV terms. If Tata walks away tomorrow, their own production will come to a grinding halt. Tata's best selling cars now come with Fiat engine's and gearboxes. Besides, Tata have put in Rs.2,000 crores in this partnership. How easy is it to walk away from Rs.2,000 crores? That's big money even for a major industrial house like the Tata's.
Eventually, I feel Tata-Fiat should look at making showrooms the way VW-Audi showrooms are in North America. Many of these showrooms are in the same building but have separate enterences giving customers the feel of entering and being in separate showrooms. Of course, internally these places are the same with staff moving from VW to Audi side easily but customer's don't know that.
Lack of Fiat exclusive showrooms and service centers is a big block against better Fiat sales. It does make you feel safe to know that the car you own has it's own exlusive showroom and service center. Tata-Fiat need to understand that cars are the second most expensive investment people make after a house (most expensive if you consider the fact that car's depreciate while houses don't) and they should give the people what they want.