Lexus Pushes For Stores To Become More Hotel Like And Become Hangouts

In the coming years, Lexus will add stores, but not dealers, said Mark Templin, Lexus general manager.

Lexus has enough dealers at 178, he said. Those dealers own and operate 224 outlets across the country, Templin told the Automotive News World Congress this morning.

Lexus will stick with dealers who have made a commitment to continuously improving the buying experience of customers, he said.

In the past three years, Lexus dealers have spent $1 billion on new stores and upgrades, Templin said. " We're trying to create a feeling in our car dealerships more of a luxury hotel than a car dealership," Templin said after his presentation.

The dealerships also want to have creature comforts so that buyers and prospective buyers can " hang out" if they like, Templin said.

Almost all stores have a price menu for repairs and maintenance so customers can feel assured they're paying the same as everybody else for service, Templin said.

M35MT - 1/22/2008 4:36:54 PM

+10 Boost

Customer Service works, so if you have the money in your marketing budget, that's where it should be spent.

EnnNorak - 1/22/2008 6:28:44 PM

-4 Boost

Customer Service works for me but excessive pricing does not. I refuse to pay for the badge.

r15mohd - 1/23/2008 10:13:32 AM

+4 Boost

pay for a badge,seriously??? this isn't BMW where talking about here...

enthusiastx11 - 1/22/2008 4:41:46 PM

+2 Boost

a 'hangout?' seriously?

i guess i'm out of touch with what 60 year old car buyers are looking for....

EnnNorak - 1/22/2008 6:31:02 PM

+1 Boost

I'm almost 70 and I want comfort above all, especially seat comfort. Reliability and durability are also high on my list and let's not forget technical excellence.

Agent009 - 1/23/2008 10:06:59 AM

0 Boost

It works for Starbucks and Barnes and Noble

enthusiastx11 - 1/23/2008 12:17:32 PM

-3 Boost

obama:

"Lexus said in 10 years their average buyer will be between 30-40. You don't have a lot of time left."

they can SAY whatever they want. their two best selling cars (over 50% of sales) are the RX (average buyer in 50s) and ES (average buyer in 60s). that a generation off from 30-40.

it's lexus who doesn't have a lot of time left. in the near future, half of their loyal customers will be dead.

enthusiastx11 - 1/23/2008 12:20:11 PM

-2 Boost

furthermore obama...

if you'd like to compare to mercedes, let's compare LS to S-class. S-class buyers are YOUNGER and WEALTHIER than LS buyers. S-class buyers in their 50s, LS buyers in their 60s. and S-class buyers have the highest income of any car in the class.

Anthony - 1/23/2008 5:11:43 PM

+1 Boost

Lexus makes no bones about making many of their models to appeal to a more traditional crowd. However, they also are reaching both ends of the spectrum. Among the "youthful" models that are marketed as such, the IS has more younger buyers than C-Class buyers.

RealitySmack - 1/23/2008 9:13:56 PM

+1 Boost

"it's lexus who doesn't have a lot of time left. in the near future, half of their loyal customers will be dead."

WTF kinda logic is that?!? So, you're saying young people won't get old in the future?

silver1 - 1/24/2008 1:50:43 PM

0 Boost

enthusiastx11

S-CLASS HAS THE HIGHEST INCOME IN IT'S CLASS?????
PLEASE SHOW PROOF....

TO MY UNDERSTANDING IT WAS THE AUDI A8....TILL YOU YOU PROVE ME WRONG I'M RIGHT!

zorbeeze - 1/25/2008 1:40:23 PM

+2 Boost

"TO MY UNDERSTANDING IT WAS THE AUDI A8....TILL YOU YOU PROVE ME WRONG I'M RIGHT!"

And what makes you right? How about you show us some proof?
Until then shut you a-hole.

zorbeeze - 1/25/2008 1:41:16 PM

+1 Boost

I meant your a-hole.

And there's such a thing called CAPS LOCK. Look it up.

aeyjay - 1/22/2008 4:45:33 PM

+5 Boost

Marketing is powerful isn't it.* *(Not intended to be negative - just something to ponder)

enthusiastx11 - 1/23/2008 12:21:20 PM

+3 Boost

extremely influential. if people hear something enough they start to believe it. lexus understands this better than any luxury car brand.

zorbeeze - 1/25/2008 1:45:07 PM

0 Boost

Indeed it is. And BMW and Lexus know this more than anyone.

PlanB - 1/22/2008 5:03:44 PM

+5 Boost

I guess it'd be nice to have a cappuccino, wifi hotspot and live band playing while I'm getting a wheel alignment and tires rotated...

XYZZ - 1/23/2008 4:40:23 AM

0 Boost

we've established in the past few days where Rosko the Klown's brain really is.

so what normally comes out the mouths/keyboards of us normal folk, in Rosko's case always comes out just as farts! lol!

theoptimisticpessimist - 1/22/2008 5:41:01 PM

+12 Boost

I think this is a great idea. Lexus all ready has arguably the best dealer facilities, Why not make it a gathering place.

EnnNorak - 1/22/2008 6:39:10 PM

-5 Boost

I'd rather see Lexus cars sold over the Internet at close to dealer cost with the delivering dealer designated by the customer. The dealer can work on a small commission. I don't want all you auto execs asking me stupid questions like what do you do with trade-ins. That is your problem to fix (not mine) and this whole idea has been seriously considered within the auto industry before -- so don't tell me it's a stupid idea even if you are a overcome with fear and resistant to change. If the industry is serious about making it easy to do business, then honest Internet sales with full disclosure and no marketing gimmicks is the answer.

0to60 - 1/22/2008 6:44:22 PM

+8 Boost

Do I watch someone test drive the car as well over the internet so that I can let them tell me if the car is right for me?

LexSucks - 1/23/2008 9:35:22 AM

0 Boost

If you do you homework. You shouldn't have to do a test drive. I've never test driven a car. Every car I purchased was exactly what I thought it would be because of research. And besides they dont offer test rides for sportbikes (in the US). I don't see them strugling for sales.

chilipalmer - 1/23/2008 12:38:24 PM

+1 Boost

@ EnnNorak

You sound like that person who had an ex-boyfriend/girlfriend who hurt you badly, and now you won't let anyone get close enough to treat you right.

We all understand that one of the many bad car dealers got a hold of you and as many in the industry call it "ripped your lips off" or "took your head off" if you spent half of the time that you spend crying about how to fix the auto industry looking for an honest car dealership (yes there is such a thing) you would probably be a much happier person.

sigmabody - 1/22/2008 6:19:17 PM

+7 Boost

You might be surprised at how appealing this can be to customers, and not just old ones. It's really a departure from the typical car dealership feel, and it really works imho.

0to60 - 1/22/2008 6:42:21 PM

+5 Boost

I agree

EL34 - 1/22/2008 6:21:36 PM

-12 Boost

Lexus wants copy what the German, Italian and Brits have been doing for decades in their own unique ways.

I will have to say, monkey see, monkey doo!

BTW, what Lexus needs to do is add a dozen handicap parking spaces in front of every ToyLex dealership.

;-)

theoptimisticpessimist - 1/22/2008 6:39:00 PM

+8 Boost

WOW, this has been a banner day for Autospies, I've read racism, sexism, ageism, and now let's make fun of the handicapped. Helluva a day.

EL34 - 1/22/2008 7:08:46 PM

-1 Boost

Hey CarGuy1, go scratch!

autopro - 1/23/2008 1:28:49 PM

0 Boost

This is part of the master plan.Wait and see the new models comming out for 2009.Lexus didn't want service to suffer when sales increase,so all dealers have been building massive service departments(houston)or brand new buildings.Is been part of a major investment to take Lexus dealers to the next level.

xj13 - 1/25/2008 1:22:06 AM

+1 Boost

SPOT ON.

EL34 - 1/22/2008 7:09:51 PM

-1 Boost

lol

VISO - 1/24/2008 4:40:41 PM

+1 Boost

Downwards! I guess Lexus has to create these posh palaces for its customer so the customer doesn't notice the actual product. It's like dressing up a pig, but in the long run it's still a pig.

Porschinator - 1/22/2008 7:28:05 PM

+2 Boost

I agree with Ennorak. Thinking out side of the Box is a good thing (within reason). If Lexus wants to attract young buyers what better tactic than a LCd ladened hangout. Throw in PS3s or coffee shops and bingo. Interesting....

SixxFive - 1/22/2008 7:49:11 PM

-4 Boost

Lexus needs the hotel/hang out at the million dollar + dealership being that the new LS, as noted in Car & Driver, requires servicing every 5,000 miles. Perhaps this was engineered as such to help pay for the hotel concept.

LexusKindaGuy12 - 1/23/2008 12:34:05 AM

+1 Boost

all lexus cars have service intervals "if your drive it rigorously". its 7,500 for regular driving

Valvebender - 1/22/2008 8:07:24 PM

+7 Boost

I found my used 2002 Lexus ES300 on the website of our local Lexus dealer for sale at about the going rate. When we got there, we found it grandiose.

My wife and I appreciated the family room with children's table/legos/coloring books/PS2/DVDs. Were it not for that room to keep our little ones happy, we would not have stayed and purchased the car that day.

The great reliability of the car voiced by other owners on the Internet and our dealer experience makes me feel like they care about the customer.

Remember when Saturn used to care about the dealer experience? That was the only reason a friend of mine only bought Saturn.

ghosthunter - 1/22/2008 8:33:08 PM

+5 Boost

customer experience is important. of course, everyone cares about bargains to a certain extend. some people care more on the price and less on the buying experience, other people care less on price but more on buying experience. when was the last time you go to Walmart to buy a pack of gum just because you can save 1 dollar compared to a local continence store? i never do that, but i am sure somebody will.

lexus, on the other hand, is trying to target people who value service. for all your bargain hunters, you can laugh all you want, but for groups that truly buys( not just be able to afford, but buy) luxury cars, those bargains hunters are as ridiculous as people who going to Walmart and stand in line for 20 min just to save 1 dollar on a pack of gum.

I95SPEEDINGTICKETS - 1/23/2008 6:10:49 AM

+1 Boost

Makes Sense

KZ258 - 1/22/2008 10:16:30 PM

+1 Boost

hey i remember when i suggested that lexus should add like hotel rooms to their dealerships or something along those lines :)

LexusKindaGuy12 - 1/23/2008 12:35:07 AM

+1 Boost

the lexus dealership about 40 miles away from me has a salon parlor and a cafe. go figure

LexusKindaGuy12 - 1/23/2008 12:35:22 AM

+2 Boost

add a massage chair lounge as well.

XYZZ - 1/23/2008 4:50:01 AM

+1 Boost

if they had massage TABLES and real massuesses, i'd go visit EVERY WEEK. like when i had a real cutie of a massuesse.

if i bot one lexus every 52nd visit (or even ever 104th), i'm sure the lexus dealer would be happy having provided the service. ;)

soopakrn - 1/23/2008 2:08:48 AM

+1 Boost

I guess we should expect to see the costs being passed down to the consumer by raising the prices on the vehicles.

nascardude - 1/25/2008 2:32:08 AM

+1 Boost

Not really. Have you been to a Saturn dealership dude? They look pretty nice all clean and shit. And Satruns are still pretty damn cheap depending on the model. My girlfriend just got her a Saturn Yan pretty loaded. She got a big rebate too.

ceric - 1/23/2008 3:18:26 AM

+2 Boost

That is why the 7,500 service costs $189
for an oil change and tire rotation (and X points inspection, I didn't forget). Ask any
Lexus owners.... How about a $2,000 60K service?
I can give you an LS as a loaner. No problem.

XYZZ - 1/23/2008 5:05:06 AM

0 Boost

toyota has only just STARTED training lexus dealers on what customer service really can be, and how they can boost sales.

in japan, car salesmen will visit you AT HOME or in your OFFICE with brochures and order forms. they'll arrange for financing, insurance, registration and EVEN DELIVER your new car to you.

LexSucks - 1/23/2008 9:43:10 AM

+1 Boost

Sounds like annoying over-attentive waiter to me. If some salesman was hounding me to sell a car I'd begin to get suspicious.

LexSucks - 1/23/2008 9:38:37 AM

0 Boost

All I'm interested in at a car dealership is cars. If this is what certian folks need to make them feel good about their cars, then lexus is the perfect brand for them.

chuck717 - 1/23/2008 11:19:12 AM

+2 Boost

Stay at a Four Seasons hotel and get a picture of a Lexus in every suite, i wonder if you can make a offer to buy one thru the Plasma TV i can see it now,room check out on the TV and add a Lexus to be picked up at the front door?

Obliv - 1/23/2008 1:38:33 PM

+2 Boost

Im 21. And even as a person who isnt really a lexus fan, I think this is a great idea. People who love cars I think would be all over this.

Dr550 - 1/23/2008 4:22:45 PM

+1 Boost

Crevier BMW has cafe bar, tv, Internet,etc. Showroom has 60's/70's autos such as 635csi, 2002's, BMW motorcycles, Formula One posters,etc. Favorite is one with rally car that is off the ground. Similar to McKenna Porsche. Now thats exciting to see the evolution of a car you are driving today.

EL34 - 1/23/2008 8:18:29 PM

0 Boost

I've been there many times ;-)

xj13 - 1/25/2008 1:23:58 AM

+1 Boost

LEXUS CAN'T SELL THEIR CARS SO THEY SELL THE PLACE WHERE THEY SELL THEIR CARS.

XYZZ - 1/25/2008 4:00:37 AM

+1 Boost

yah, sure.

how many jags get sold for every 100 lexi sold?

silver1 - 3/23/2008 5:23:13 PM

+1 Boost

INteresting