Lexus Offers Up To $50K For Suggestions, What Are Yours?

Because Lexus rules. ;-)

i was thinking the same s!@t, lexus this lexus that, what about MB? is there any news on the new 7-series? SMH

Well Lexus is a great experience at the dealership. Would make sense to make sure it stays that way... maybe offer up like an espresso bar or something while you wait : )

Actually Atomic even the Honda dealership near me already has the coffee bar and more amenities than small resort.

The Lexus dealers near me have everything just short of a spa. Go in for an oil change get and a massage, while the wife get a manicure.

My Lexus dealer has a Starbucks area.
Most appreciated!

Actually XeroKOOL you have stumbled on to the key.

Make the service so enjoyable that the owner doesn't mind bringing it in for any issue. Most dealerships are spartan and offer nothing other than a few old magazines to thumb through.

If you don't mind the wait time you will be more than likely take it in.

It would take an awesome exotic massage for to me to almost forget about those half ass nondriver oriented things that Lexus calls automobiles.

Why give away $50K when my suggestion is free: get rid of dealer sales staff and take factory orders directly from the customer without the usual hassle and B.S. Better still, write full brochures with complete technical detail and less marketing hype and allow customers to purchase directly from the factory over the Internet at slightly above wholesale price, and specify which dealer should be assigned as the broker on the basis of a small commission. You would be surprised how quickly new innovations in customer service will be discovered as dealers scramble to be designated as the broker for customer orders. What customers really want is reliable service in the rare event that a reliable and durable car breaks down. Also, they want the sales process to be as convenient as possible with the customer in control of the sales process.

Those are the suggestions I would have for EVERY dealership!

I differ with you on that. The trend is to pamper your customer with perks right now.

009,

That is true, but in terms of service, EnnNorak was referring to the sales side of things, which I really agree with him on. You'll still have to have the service side no matter what. So really your statements are complimentary to each other.

Ford tried that 10 or 15 yrs ago. Lexus isn't stupid man.

So let me get this straight.

You want the dealer to offer all of these kick ass, over the top pampering services for free. Take away the profit they would normally get from selling new cars in exchange for a "small brokers commission". Service your car in the supposedly rare instance of it ever breaking or need routine maintenance. (sounds like a real money maker).

How are dealers supposed to pay for these $10-20M palaces for you to visit and do all of this?

Stop making and installing the stupid dealer license plate frames.

My Opinions:

1. Create onsite workshops next to the accessory store for existing Lexus owners to get the best use of their cars. By way of an experienced driver giving seminars. Mostly in 15-30 minute intervals between each workshop.

2. Step up the brochure section with free DVD's. Supplement the end of each service visit with a free DVD notifying the buyer of updated product features in the Lexus lineup. Owners usually feel emptyhanded when walking away from a dealership, especially when paying a service invoice.

3. Alongside the complementary postcard, phone calls or phone messages should also be left to the customer. Especially on certain personal events like Birthdays. Or a free complimentary gift via mail. Like a key chain, etc.

4. Also, maybe quarterly DVD's can be sent as most buyers don't have time to read the quarterly magazines most companies give. I don't.

5. Forget the spas, add a theatre style section next to the cafe lounges with 15 minute movies about Lexus products. Marketing events like mini-films will help while customers sip on their coffees, etc.

6. Establish a joint-venture with Starbucks for example, and incorporate a mini-bar in the dealerships, only customers coming in with service will get a free beverage to their liking by showing them their stub or reciept they get from the service desk upon entering the dealership. I see alot of these 'mini-starbucks' places everywhere, on college campuses, etc.

Making these suggestions are fun. Its so easy, I have more, its not that difficult, and they're all totally feasible.

I have heard Newport Beach Lexus has a Wolfgang Puck Express. Flecher Johns has a Starbucks (i believe). Yet, I always end up at Tustin Lexus or Crown. I dont care about all of the goodies. I love the fact that Crown picks my car up from work, does whatever they need to do, and drops it off. I want my car dealership to be the best car dealership, not the best resort. I would hate Lexus dealerships to take on so many other ammenities that they forget to return my car promptly.

Lexus should focus on one thing if you ask me. They need to have smart, intelligent people answer the phones (doesnt always happen) and they need to focus on pleasing the customer. Say it will take 2 hours for a oil change, great. Give me a loner car and get my car done in 30 mins. That way i can get on with my life. If i want my care back, ill come pick it up in 30 mins, or ill come the next day. Thats customer service. That is the only reason i can think of paying $200 for an oil change ez lub would charge $40 and finish in 10 mins.

$50k ($300K total) for a great idea? From one of the most profitable auto makers? A little cheap no? I would want a tleast six figures...wouldn't be worth my brain power if I owned a dealership.

I have suggestions for every one of my local luxury dealerships, except Infiniti (it was just redesigned):

Lexus- my Lexus dealer is at least ten years old, without all of the pampering features mentioned above. Completely redesign it, making it bigger and more luxurious; add an indoor courtyard when you walk in, with a hallway to sales, a hallway to service and a showroom. The showroom should incorporate almost every model in their lineup, an interactive car builder, coffee, and a concierge.

Audi- my Audi dealer is only about two years old, but there are still some improvements needed. It's very airy and modern on the inside, like most new Audi dealerships, and it does have a café with plasma television, but there should also be an "Audi Exclusive" lounge for owners of higher end models... all S/RS vehicles, as well as all A8 and R8 models.

BMW- my BMW dealer has inattentive service. This should be addressed. It should also be more comfortable on the inside, with less of a "car dealership" feel and more of a "resort" feel. Look at Lexus dealer suggestions to see what I mean.

Mercedes-Benz- although it's relatively new, being three or four years old, the Mercedes dealer is bland on the inside. If the beautiful cars weren't in there, it might as well be a gloomy Ford dealer or something. There needs to be a lounge, as in the Audi dealer, but it should be open to all M-B owners and it should have comfortable furniture, a home theater, etc... there should also be more new models and less used models in the showroom. It's about a 60/40 split towards new cars; they should only have about one used car shown.

There you go.

Oh and... the Porsche dealership doesn't need anything. I've spent a lot of time there driving Cayennes, and it's quite nice.

I don't own a Cayenne. Last year, over Spring break, my son and I went to the Porsche Exchange to drive a Cayenne V6 and a Cayenne S. I was more impressed with the Range Rover Sport and E350, so I crossed the grossly overpriced Porsche off the list. Now that we're not getting her new car until next year, I've postponed the driving. I'm a bit surprised that you think I'm always lying. You think I pull new things out of my @ss every day? I'm sure you've been to the Porsche dealer, too!

Some biscuits, sandwiches, cookies, and other fine snacks should be present at these showrooms accompanied by some good beverages. Making a customer comfortable with their surroundings could really give them a positive feeling. In turn they may buy from that dealership because of the great service they provide. Or even have short films to show how the Hybrid technology is used in a car to those new comers who don't know too much about it. Any service to enhance a buyers experience will leave an impression in their minds which may lead to potential future buys.

I'll just come right out and say it: Offer Free Maintenance

Thats the only reason I enjoy taking my BMW in for service (The fact that it doesnt cost me a thing)

It's also nice getting a loaner for the day that doesnt come from Enterprise and stink of Febreeze.

I feel like every dealership is already offering coffee bar/internet/lounge etc.

Yes that as well. Being given a loner for the day or for few hours while your car is being serviced. I know that in my city Lexus/MB/BMW/Audi/Jaguar they all do dealership to home service. Which means if your care needs repairs or something is wrong with it. They will send people out to pickup your car and drop it off with a courtesy vehicle to use. Once finished repairs they deliver the car and take back the loaner. That is great service IMO. One that should be neccesary for all luxury dealers.

I’d like to see service "convenience stores." Small, Jiffy Lube size stations (which is basically just a two to three oil change car garage with a small waiting area for those who don’t have one) for routine maintenance. Or in the event a mysterious check engine light appears (gasp), I could have everything setup and waiting for me, should I need to make the dreaded trip to the dealership. In essence, what a 7-11 is to a grocery store.

The small size means more locations, and therefore much less crowded, much closer to home and theoretically more personalized service; but with Lexus trained mechanics, and Lexus grade waiting room amenities. Most important is being comfortable that you’re handing your precious investment over to someone competent, who knows your car’s brand inside and out. This is why the dealership is preferred even for oil changes for most luxury car owners (unless, of course you own a BMW, in which case the motive is 'free'); but they tend to be located in dealer "clumps" which are rarely close to home and usually crowded.

I’m sure the logistics and cost behind this are exorbitantly prohibitive… and it’s not really a dealer upgrade, per se; but it would be nice. Perhaps partnering with an existing oil shop, and "certifying" them if they live up to training, service and environment standards. All of them that I’ve seen would need upgrades; but Lexus and Mercedes, in particular, keep a tight lock on standards at their dealers. I’m sure they could pull this off.

Smart Lexus, uses small money to get a lot of press coverage and let people come to know its good customer services.

totally agree, their doing this to show how much they care about their customers.

Here is a suggestion. All dealerships should model their service centers after the Ray Catena Benz service center in NJ. Pool tables, Internet cafe, breakfast, lunch, snacks, Big screen TV's, Lounge, Golf simulators, etc. Just incredible.

Ray Catena's new Lexus dealership in Freehold is nice with great amenities but could use the same as the Benz service center.

I was to a Lexus dealer and I was really disappointed about the guys over there. All I wanted was to test drive nicely some of their cars, the brand new lexus cars. I didn't plan on buying any, but just to see how they drive for a couple miles. I didn't tell them I wanna buy or not. They looked so ... bored that the whole experience was ruined. And don't think I gave them reasons, I was in a nice suit and my Audi is more expensive than those Lx. Not than all of them, of course, but .. I mean I could easily afford a Lexus if I wanted.
In short... the cars where ok, no big deal on ride experience, didn't impressed me to much. But the dealer did ... negatively.

i wish the $50k could be given to the best idea from the consumer. after all its called customer service, not dealership service....

I'm still amazed at how much customers expect from a dealership experience. These businesses are usually family owned. They are not the result of factory money. Some entrepreneur invested several million dollars to acquire the franchise, buy the land, and construct a building in the hopes of making a profit.

Customers still believe that because they are spending $50K+ on a car that the dealer somehow gets to keep all of the money. That is far from the truth.

A properly run dealership after paying all expenses, gets to keep about 3 cents for every dollar it takes in. That's right, 3 CENTS! Some are operating on much less than that. Remember, I said a properly run dealership makes about 3 cents on the dollar.

We expect customer service in the form of a nice building located near home or work that's really easy to get to. Hmmmmm....where do most of you live or work? I'm sure realestate is really cheap in those areas. Oh, and by the way, whereever the dealership decides to build, make sure it's not too close to home as they might make too much noise or inflate rubber gorillas in the front lawn and that would just not work.

Customers really expect a service loaner of the latest model year with all the options in order to play with the all latest technology. Hmmm.....how many do you think they'll need? 50,60,100? Where will they park them? If they change them every 6 months to a year, how much does that car depreciate in that time? Who will pay for that?

It would be great to offer service pick up and delivery. Some dealers actually offer this practice. It may work in some markets but many large cities only have 2-3 franchises present. Some customers live 25 miles or more away from the dealership. So lets pay some 20 yr old kid to drive your $50K car through traffic for all of those miles, then try to track you down while you sit in meetings, court or surgery all day. How many of kids do you think we'll need? 20, 30, 40? I assume you want all of them to be drug tested, bonded, and insured right? How much do you think all that will cost?

See what I mean? All of these little ideas are great, but who is going to pay for them? You certainly don't want the dealer to make any money when you buy or service a car, yet you still expect the best trained people to be present when you stop by for all of your free s**t?

Lexus customer service should simply provide their customers with proper German automobiles.

If they provided their customers with German automobiles - they would be in the repair shop all the time.

That's like saying you've just bought a nice T-Bone Steak - here let's offer you some cold cuts.

Lexus is the epitome of a GREAT company. The vast majority of companies like BMW, Audi and Mercedes for instance never become great, precisely because the vast majority become quite good – and that is their problem. It all comes down to the "hedgehog concept" if you don't know what I'm talking about read "Good to Great" by author Jim Collins and you'll understand.
The German car companies are the like the "fox" and Lexus is like the "hedgehog". The fox knows many things, but the hedgehog knows one big thing.

Toyota may be a "great company" but I don't agree that Lexus is. Lexus is a moderately successful marketing company selling average cars to average people mostly in the US.

In the Phoenix metro market period beginning September 2006 and ending February 2007 the year on year percent change for select Luxury brands is as follows:

Audi +32.5%
Lexus +7.2%
Mercedes +5.5%
Cadillac -1.4%
BMW -4.3%
Porsche -8.2%
Acura -18.3%
Infiniti -20.1%
Jaguar -23.1%

And just for fun:

Hummer -50.7%

Source: Valley Auto Outlook published by Valley Auto Dealer's Association.

How did you come to the conclusion that Lexus sells "inferior" cars?

Seems to me that a lot of German car fans on this site seem to have the same superior complex mentality of the Germans of the 1940's.

The "if it's German it must be superior" mentality...

The dealer experience brings up the question:
How is Hyundai going to give its new upscale customers buying the upcoming Genesis the "proper" treatment when their car pulls up next to an Excel in the shop area?

If it's German, it is superior!

When a German engineer sits down to design a vehicle, what conditions does he have to account for? Autobahn speeds, 600yr old Cobble stone streets, tight turning circles for the narrow streets they have, parallel parking, treacherous mountain passes, etc. etc.

When an Asian or American designer sits down to design a vehicle, what conditions do they typically take into account? Hmmmm, lets see. Americans don't typically drive faster than 85mph so aerodynamics are primarily for fuel economy and not safety. Brakes certainly don't need to be as large as they won't be used for slowing down from 150mph+ speeds as in Europe. They don't typically have cobble stone streets that beat cars to death as in the US. Parking lots are fairly prevalent making parallel a rarety thus making the turning radius less important. Finally, Americans only tend to hold onto cars an average of 3.2yrs, so long term use by an original owner is virtually non existant.

In a sense, German cars are wayyy over built for how we use them in the US. Your typical American driver will only use about 30% of the performance potential of the car. An enthusiast driver will use about 60%, but it takes someone with a lot of experience and/or track time to take one to its absolute limits and live to tell about it.

What about Saab, Volvo, Citroen and the others? Nowhere near the budget for platform development that the Germans have, and perhaps a little less passion. The exceptions here of course, are the Italians.