Tesla finishes last in Pied Piper’s latest dealership ‘mystery shopper’ ranking

Tesla finishes last in Pied Piper’s latest dealership ‘mystery shopper’ ranking

Market research firm Pied Piper has released its latest dealership ‘mystery shopper’ ranking, in which electric vehicle maker Tesla Motors has bagged the last spot. The ranking is largely based on the dealerships’ capacity to turn potential customers into vehicle buyers.

Pied Piper’s dealership ‘mystery shopper’ ranking results from an annual study for which the market research firm sends ‘mystery shoppers’ to US dealerships in a number of locations for each brand. The main objective behind the study is to find out “how well dealerships follow sales processes” or, in other words, how effectively they close sales.

For the latest study, Pied Piper claims to have gauged the treatment of car-shoppers at a total of 3,466 dealerships across the US. As per the findings, Tesla finished last, and could not even come close to the average based on Pied Piper’s benchmark.

The evident reason behind Tesla finishing last in Pied Piper’s dealership ‘mystery shopper’ ranking is that the automaker sells its vehicles via the direct-sale model and owns as well as operates all its own stores, rather than using the typical third-party franchise dealership models.

The main issue which Tesla has with the franchise dealership model is that dealerships do not incentivize salespeople to sell electric vehicles, as they mostly sell gas-powered vehicles and a large part of their profit comes from servicing the vehicles they sell. In contrast, Tesla does not aim to make a profit on service.