In another thread @chucktobias shared:
Toyota still uses an odd distribution system they set up in the 1960s where there are independent distributors for different parts of the U.S. The distributors will add garbage at the port before delivery which is charged to the dealer, and the dealer then marks that up to the customer.
- Are there some distributors that are better than others?
- Are there some distributors that are worse than others?
- And how can we get rid of this system of middle men, and middle men to the middle men? It seems to me, people are profiting from basically adding no value.
Are there some distributors that are better than others?
The distributors are independently-owned businesses. Here's a video that discusses Toyota's southeast distributor:
https://www.youtube.com/watch?v=OQZNIjbYsU0
Are there some distributors that are worse than others?
Southeast Toyota is known to be the worst when it comes to port installed options. They add a ton. And the thing with port installled options is that they are on the monroney sticker so Toyota knows they'll be installed.
I live in the PNW; we don't get that much port installed options, the most I've seen was like $500 but instead there's dealership added garbage and those are even worse than port installed stuff.
The distributors will add garbage at the port
uhh, what port? Aren't most N.American Toyotas transported by land?
how can we get rid of this system
what makes you think you can?
people are profiting from basically adding no value.
distribution isn't anything new. It exists in every supply chain. Manufacturers don't want to deal with distribution. They want to sell to a customer who is going to buy millions of units. Not dozens, or hundreds. Retailers aren't going to distribute to their rivals.
uhh, what port? Aren't most N.American Toyotas transported by land?
If I understand @chucktobias correctly, I think "port" is a colloquial expression for wherever the main distribution centers are. And the term "port" is a carry over term from when Toyotas were all imported. Now the "port" doesn't necessarily have to be by the sea.
Yes, that's the case.
distribution isn't anything new. It exists in every supply chain. Manufacturers don't want to deal with distribution. They want to sell to a customer who is going to buy millions of units. Not dozens, or hundreds. Retailers aren't going to distribute to their rivals.
I am referring to the distributor added accessories and stuff, that almost none of us want.
tough, I guess. They don't make much money on the cars themselves, so they earn some revenue with addons.
It's a pretty closed market. There's only one supplier, and the customers don't change much either.