Dealer Price Negotiations Disappear... Mercedes-Benz Korea Introduces Direct Sales System

Mercedes-Benz Korea is set to dramatically overhaul the way cars are sold in the country. The company will switch to a direct sales system that integrates pricing, inventory, contracts, and delivery into a unified digital process. As a result, customers will no longer need to visit multiple showrooms to compare prices.

On April 12, Mercedes-Benz Korea announced that it will officially implement the new sales method, known as "Retail of the Future (RoF)," starting April 13.

The core of RoF is that the head office centrally manages all vehicle prices. Previously, inventory and discount rates differed by dealership, requiring customers to shop around and compare terms. Going forward, all nationwide inventory will be integrated into a single system, and prices will be uniformly set by the head office. Customers can check vehicle prices and availability on the official website, then choose a showroom for consultation and test drives as desired.

Mercedes-Benz EQE 350+ SUV. Mercedes-Benz Korea

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One of the most significant changes under RoF is the expansion of promotion disclosure. For example, customers can check in advance the discount conditions for vehicles scheduled for delivery in July even if they sign the contract in April. If the discount rate changes later, the most favorable terms will automatically be applied for the customer.

At a press briefing on the RoF strategy held on April 9, Lee Sang-kook, Executive Vice President of Marketing and Communications at Mercedes-Benz Korea, explained, "If a better discount policy is introduced between the time of contract and delivery, customers will naturally benefit from the improved terms. Even if the discount policy disappears after the contract, the original terms at the time of contract will remain in effect. We call RoF our 'Best Price Policy.'"

On the other hand, some concerns have been raised that as price competition between dealers decreases and a fixed pricing system is introduced, customers might lose out on discount benefits. A Mercedes-Benz Korea representative clarified, "The company will now manage discount policies, which were previously left to the discretion of each dealer, and provide customers with the most attractive and best prices based on vehicle supply conditions. This does not mean that discount rates will disappear."

Alongside these changes, the transparency of the entire vehicle purchasing process will also be strengthened. Customers will be able to track the progress of their vehicles in real time, from production, shipping, and arrival at port to their arrival at the showroom. Vehicles will be allocated according to the customer's desired delivery timeline, significantly reducing the uncertainty of not knowing when a car will be delivered.

The car sales process itself will also become largely digital. Centralized sales, contract, and payment processes managed by the head office are expected to streamline dealership administrative work and improve efficiency. KakaoTalk-based notification systems will automatically inform customers of changes in vehicle delivery schedules and payment status, replacing the manual confirmations previously handled by sales staff.

In the past, each dealership competed by offering bigger discounts to attract customers. Now, Mercedes-Benz Korea expects that the focus will shift to "explanation competition." Executive Vice President Lee said, "Whereas 90% of consultations used to be about price, going forward sales interactions will focus more on explaining the product and the brand."

Meanwhile, as of March, Mercedes-Benz has introduced the RoF sales method in 12 markets worldwide. Korea will become the 13th market where it is officially implemented. A Mercedes-Benz Korea representative stated, "Many customers do not necessarily favor price negotiations when purchasing cars, so Mercedes-Benz aims to establish a fair and transparent pricing system that enhances trust in the brand. We have observed positive results in every market where RoF has been introduced, including Germany."

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