How does BMW's subscription model work?


BMW's subscription model allows consumers to acquire a vehicle at a lower initial price point, offering an optional upgrade system for specific features later on. This model benefits both the consumer, who can access a BMW at a reduced cost, and the business, by creating a potential revenue stream from future upgrades. Features like heated seats are pre-installed in the vehicles, but consumers must pay a subscription to activate them. This can offset the initial cost of including these features, essentially lowering the upfront price for those who choose not to use extra features 1.

BMW Subscription Model

Adam and Justin discuss BMW's subscription model and how it benefits both the consumer and the business. Sal raises concerns about the cost of adding features to the car and the possibility of a black market for upgrades. The group also discusses the potential for subscription services to offset the cost of adding features to the car.

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