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Unpopular opinion: this could be a consumer benefit, although BMW doesn’t seem to quite have the value proposition exactly where I’d like it to be. It’s cheape
by dangus 4y ago
Unpopular opinion: this could be a consumer benefit, although BMW doesn’t seem to quite have the value proposition exactly where I’d like it to be.
It’s cheaper to build fewer SKUs and variations of a product. The fact that the assembly line never has to change what they’re installing in the car could make heated seats cheaper in the first place.
BMW currently charges $500 for heated seats a la carte in the US, so that costs 1.76 times more than the 3 year subscription at $283. That means your breakeven point is at a little bit over 5 years, without considering present and future value of money.
I could see a lot of BMW owners being completely uninterested in owning the car after 5 years, with so many of them choosing to lease. It is a luxury car, after all.
Now, here’s the other thing, if you do the monthly plan, presumably you could unsubscribe in the summer. So that’s more like $54 a year if you need it for three months of the year. That puts your breakeven point at close to 10 years!
BMW does have a lifetime purchase option, too.
I hope these purchases are tied to the vehicle and not the owner, but I have my doubts on BMW being so benevolent.
I also think it would be ideal if hardware subscriptions like this would simply unlock once the car reaches a certain age to consider its depreciated status.
- juve1996 4y agoYea, you can't use it in the summer and save those months. But what if BMW says "the costs went up, subscription price must raise." Now in 3 years it's $25 a month. This is the path. Companies exist for profit. They will only make customers as happy as they need to.
- dangus 4y agoIt's true that they've always existed for a profit. BMW doesn't operate in a bubble and has a wide selection of competitors, so if their pricing and terms are too unreasonable, customers will go elsewhere. I think these connected services are aimed at lessees who are the bread and butter of BMW's business. Someone leasing this car would actually save money by "renting" the heated seats, next owner be damned. Still, I'm definitely not trying to say that this is a wonderful, wonderful thing. But, considering that a "lifetime" purchase option still exists, I think this represents example of giving customers more options than they previously had.