Mercedes To Reduce Options On Passenger Vehicles?
Posted by www.eMercedesBenz.com on March 6, 2006 Automotive News has run a story today apparently based on an interview with Dieter Zetsche, in which they state that Mercedes will soon start offering less options to customers in an effort to boost manufacturing productivity. In the article, Zetsche was quoted as saying "We will surely continue to offer greater variety than a brand such as Hyundai," but then went on to say that they will reduce overlapping offers, such as two sport options on the same model. I'm not going to read too much into the story, because the story is based on one direct quote from Dieter, but I am going to use this opportunity to share my view on Mercedes' options. I hate them. I completely and utterly hate them. For example, let's look at the 2007 Mercedes S-Class. As you already know, it's a technological wonder: Night View Assist, Distronic PLUS, Active Body Control, all are amazing features Mercedes has implemented in their latest flagship sedan, and all are options not included in the $86,175 price tag. Then you look at some of the other options. Wood on the steering wheel - $900. Chrome door handle inserts - $79. Trunk handle - $19. Are you kidding me? I'm spending $85,000+ on Mercedes' flagship sedan, and I'm going to be charged $19 for a trunk handle? Now, let me paint a different picture for you. Imagine you've seen the all-new 2007 S-Class, and you've read about all its amazing features. Then imagine you go to Mercedes' website, and the price you see includes everything you've read about. There's no need to go through and spec your own model, because it's all included with the price. It would be a miracle. Obviously, there's limitations to this method. An S-Class with every conceivable option would cost well over $100,000, and the sticker shock in and of itself would lead to lost sales. But I'm not asking for every available option to be included, here instead is what I'd like to see: 1. All main options included. If 90% of all customers add a specific option, it should be included in the price. You already know everyone wants it, so why force us to endure watching the S-Class' base price rise with every added option. Spare us the pains, please, and just include them. 2. Stupid options included. Trunk handle, chrome surrounds around the headlights, chrome-plated tire valve stem caps - save us the additional $200, include all of them, and have us specify whether or not we want them with a simple yes/no checklist. Simple. 3. Keep Less Popular Options Optional. Obviously with Mercedes, there will be some options the majority of customers won't want or don't opt for. $700 for power window blinds? I'll pass. Keep these options as options, but as mentioned earlier, if the total cost amounts to $20, do everyone a favor and just include them. I already know what you're thinking - wouldn't adding certain options drastically increase the base price of the S-Class? My answer: no. Here's why: By adding certain options as standard, the production process would be simplified, because every vehicle would have them. Mercedes' productivity would improve, and better productivity equals lower prices. Secondly, if every vehicle had the options, the price for the parts would go down. Anytime something is purchased in bulk, the price goes down, due mainly to increased productivity on the supply end. And finally, the S-Class would transform itself into a rolling advertisement. Let's say for example that I had never seen a new S- Class before, but my best friend just happened to purchase one and come pick me up for a round of golf. Although I might be impressed by a standard S-Class without any extra options, I'd be much more impressed if he showed me an S-Class loaded with Night View Assist, Distronic PLUS, etc. Of course, the more impressed I am, the more likely I am to purchase a new S-Class of my own. This leads to more sales for Mercedes, which ultimately leads to better prices for consumers. Do I think everyone would benefit from the above mentioned scenario? Absolutely. Do I think this will ever happen? Nope. Not as long as there's teams of people hired to squeeze the price of the S-Class (and every other vehicle) down to a specific price point. Sure, these options will eventually come standard, but when they do, there will be a host of other new and cutting-edge options that replace them, and the vicious cycle will repeat itself. It's the way of the automotive world. For more Mercedes-Benz news and information, visit www.eMercedesBenz.com.