BMW Is Giving Up on Heated Seat Subscriptions Because People Hated Them::The blowback worked—but subscriptions for software-based new car features will continue, according to a BMW board member.
BMW Is Giving Up on Heated Seat Subscriptions Because People Hated Them::The blowback worked—but subscriptions for software-based new car features will continue, according to a BMW board member.
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Yes, and no. Imagine it costs $20/car to install seat heating in every car, but by making two assembly lines, one for with and one without it every car becomes $25 more expensive. Software disabling costs $1/car. In this scenario it would cost more to make a car without physical seat heating than one with. This is just an extreme example to show the problem, with other costs it can be more complicated, but the principle stands.
Why disable at all?
You’ve determined that it’s cheaper to include it in every car Vs provide an option, so include the feature in every car. Why not make your customers happy Vs pissing them off?
“Yes, I buy BMW because you get all the creature comforts like heated seats as standard.” Premium brands don’t nickel and dime their customers.
Premium brands invented this, centuries ago.
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I never said that. Of course you pay for everything that’s in your car, but it’s certainly possible it would cost you more not to have them put it in there, that’s the crux of the matter.
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The issue is that it’s not that people express do not want the option, it’s just that if it is cheaper, they might go without.
In other products I’ve been involved with, the dilemma crops up. 90% of our customers pay for a premium feature, or else the feature has become so cheap it hardly saves us anything, we decide “guess everybody gets the feature”.
The argument that I might be willing to accept is when a feature carries a very large development expense, and you want to defray the cost among those that demanded it, both as a different model for funding the development and for keeping track of waning interest to discontinue that effort. Related are things like patent royalties and licensing fees.
However, we are taking about some resistive heating elements in a chair, hardly an engineering marvel and not really subject to a limited set of demanding supplier nor an area to run afoul of active patents. Once safety regulations got to the point where manufacturers had to run wiring to the seats anyway for the airbag modules, the hearing elements become negligible cost. A lot of budget models even shrugged and just tossed the feature in at that point. In that context, is crazy that a premium brand would think to pull such an obnoxious move.
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