| 5 Ways Subscription Businesses Can Thrive in Uncertain Times
Taking strategic actions is the key to growing recurring revenue during uncertain times. This session reveals the few vital actions subscription business leaders should take immediately to focus their team and themselves on growth over the next few months.
This free webinar is April 15, 2 PM Eastern.
For drivers with a need for speed and a desire for luxury, Mercedes-Benz has expanded its subscription offerings to include the high-performance AMG series. After a one-time activation fee of $495, subscribers can drive AMG C63, C63 Cabriolet, GLC63, GLC63 S Coupe, E63 S, E63 S Wagon, G63, S63 Coupe, GT 63 4-door coupe, GT roadster or the GT C for just $3,595 a month. That is a premium price, but subscribers are paying for top-of-the line vehicles as well as insurance ($1 million liability, $2,000 medical payments, $1,000 member deductible), 24/7 roadside assistance, maintenance, and pick-up and delivery service.
Only available in Atlanta, Georgia, the new Mercedes AMG Exclusive program is automatically renewable, has no minimum commitment, and no mileage limitations. Members can pause their subscriptions for a $200 convenience fee and resume at any time. Like other vehicle subscriptions, Mercedes offers a white glove concierge service, and drivers can reserve their AMG series vehicle through an app. This subscription option is a stand-alone tier.
“With the AMG Exclusive tier, our subscribers now have unlimited access to world-class performance luxury at their fingertips,” said Heiko Schmidt, CEO of Mercedes-Benz Subscription Services USA LLC. “For over 50 years, Mercedes-AMG’s reputation for automotive performance, quality and precision workmanship has built a strong customer following across the globe, including in the U.S. The pilot program in Atlanta is an incredible opportunity for our subscribers to be part of this rich tradition and experience the horsepower and thrill of the drive synonymous with our best-in-class Mercedes-AMG vehicles.”
Craig Walters, director of Mercedes-Benz subscription services in the US, also commented on the new program, “Customers can experience various AMG models, depending on their preferences, changing vehicles for any occasion without restrictions commonly associated with owning or leasing a car. The introduction of the AMG tier reinforces our commitment to meeting consumer expectations and providing the most diverse subscription service in the industry.”
Mercedes also offers the Mercedes-Benz Collection, currently available in Nashville, Tennessee and Atlanta, Georgia. Like the AMG Exclusive program, the Mercedes-Benz Collection has an activation fee of $495. Monthly subscription rates vary based on location and vehicle category.
In Nashville, for example, there are three tiers available, each offering different models of vehicles, including sedans, SUVs, coupes, convertibles and vans. All vehicles available are within the three most recent model years.
- Signature vehicles for $1,095 a month
- Reserve vehicles for $1,595 a month
- Premier vehicles for $2,995 a month
Subscribers can upgrade to a premium model for a daily fee, and they can change their vehicles when they want via “flips” they request through the app. They can do this periodically or for special occasions, like a vacation or wedding. In Atlanta, subscribers can choose from one of the three options above or the AMG Exclusive tier. If AMG Exclusive is popular, it is possible Mercedes could roll it out to other locations.
So many auto manufacturers are trying the vehicle subscription route, but as we’ve said before, there are no clear winners or losers yet. Some like Cadillac and Volvo have rolled out their subscription programs with a lot of hope and fanfare, only to dial them back to better meet their customers’ – and dealers’ – expectations. It seems to be a tricky balance to identify what a customer wants and is willing to pay for it, while keeping dealers, who have helped the auto manufacturers get where they are, in the loop.
The trends we are seeing are that vehicle subscriptions tend to be pricey, but the prices are all-inclusive. Part of the attraction to them is that, once a subscriber gets approved, selecting and taking delivery on a vehicle is pretty simple. They can often change the vehicle out whenever it suits them. Some programs even have mileage restrictions, while others offer unlimited mileage. We are watching as the market continues to evolve, but so far, there is no magic formula.