MileHigh911

So after my email communication with my SA of a small dealership, he told me they are sticking with their ADM on the GT cars. These small dealers will end up hurting in the long run from all of this. The big dealers have plenty of customers......the small ones better hope the loyal brand customers don’t start spending their disposable income on different brands.

Jimmy-D

But if a small Dealer only sees (5) he ain't selling many 911s anyway. Probably selling more Cayenes, Pan. ect.

So for them; less Customer loss to worry about and an extra $30,000-$40,000, per GT, puts more $$ back in to the Owner's hand which makes a bigger difference.

I actually think the bigger Dealers have more to lose. The smaller Dealers have a great excuse. The bigger Dealers do not.

ExMB

The way I see it is that they are selling out of state and won't be making any service $s. Is that an excuse? NO. But thats how they are playing the game.

evilfij

Who cares? Seriously, buy a mcclaren or Ferrari or NSX. Make sure to pay MSRP on that NSX when you do .... Or see if Ferrari would give you a special Ferrari at all.

Anyone who feels entitled to a car at MSRP is not an ideal customer anyway. Market is market. Pay it or don’t. Just don’t whine.

I walked into a smaller dealer where my other house is and said “how about a GT3 I am willing to pay market.” They were like “we are getting 6 and they are all spoken for at $30k over.” I was like “ok, well can I get on the list if someone bails?” And they said “no point, our good customers will take them.” I was like “ok thanks.” So clearly the small dealers can get ADM and it doesn’t bother their customers.

0to60

Funny how some can predict if an ADM will help or harm dealerships. In this thread the op has a theory that small dealers will be hurt for charging ADM. Smalll or large these dealerships will go on and will stay in business. It’s a luxury item pay the ADM or move on.

Jimmy-D

Yep!!! Too much money on the street. Every high end sports car manufacturer has been enjoying double digit growth the last couple years and they are all having another great year. People/Businesses, tend to have short term memory when things are going good. When things head South they will be shocked and wonder what happened to the good old days - but the cycle will continue

CAlexio

The answer is easy, just look at how cj conducts his business. #threadclosed

gago1101

^ agree
Small dealers that do honest business and stick to MSRP during these times will put themselves on the map. ADMs and stealers will actually help the small "good guy" dealers, IMO.

Akunob

Supply / Demand economics...there are more willing and prospective buyers of Porsches than there are cars to go around. Small dealers will be fine charging ADM. The primary thing that harms small dealers is an economic downturn...and that hurts large and small dealers alike.

C.J. Ichiban

By doing my business in a clear honest way I️ will build my client list constantly. Eventually I️ will have more and more cars to supply my customers.

20-30k on a car is not going to make or break my dealership for the 5-10 GT3’s I️ am allocated.

The 20-30 “I’ll buy from you because of ____” that I️ add annually by getting them awesome CPO GT cars...that will eventually pay off.

Some dealers push huge volume, lose money selling cars up front and pray for service to save them. They get huge volume, barely make anything on their cars, and then try to “make it up” on their GT cars by charging 100k over. So they end up breaking even.


The downside really is that by blowing out a C2S (first phone call huge discount % offer), they are all trying to steal customers on price- which takes away the luxury feel of the process. Porsche is more upset about that stuff than the ADMS. Adm stuff is a testament to the quality of the product by demonstrating value beyond the cost. Some people don’t see it that way- but there will always be a guy willing to pay more to have it sooner.

My thought is to tell everyone- hey, I’m small. I️ cannot compete without your business. You can help me grow now, get in on the ground floor. Buying CPO GT3RS, GT4, Turbo, etc type cars is my currency. I️ cannot wake up yet to 1200 Porsches sold in a year. If my store gets to 300 or so, it will be because of organic growth from people buying into the process.

If I️ nuked my 20 top customers for ADMS on this next handful of GT cars, I️ could lose them all. Better to fight for a future relationship that is worth 10M+ in sales vs stab a few fish for 150k now.

Anyone want a panamera? Macan? I’ll show myself out

evilfij

If Porsche does not want dealers discounting 911s they should not base GT cars on 911 sales. It’s math. Do any dealers actual use financial models to manage this? I built one for the dealer I worked for way back when and it showed (correctly it proved out) in what will be overly simplistic, but that selling more of the “lesser” vehicles by heavily discounting them to get more of the high margin model was a positive for profit even before any money from future service work.

When Porsche started selling Macans they ruined the luxury experience. It’s little different from BMW/Audi now. Regardless, I don’t care about the “luxury experience” anyway and think the giant showrooms and fancy stuff in them is a complete waste. I want a fair price whether that is a discount on a 911 or ADM on a GT3. Most of all I want service. Valet my car (I don’t want to take some shuttle or impose on someone for a ride or take a crappy loaner and I don’t want to waste time going and dropping it off in any event) preferably flatbed it (for a reasonable fee if need be). Fix it 100% the first time if it breaks. If it is something odd wrong, have the tech/service writer search the issue on RL or the equivalent before giving up so I don’t have to print out a forum thread with a dozen people with the same issue and the fix. Basically have service/parts/techs/sales who know everything inside out backwards and sideways and don’t lie or make excuses. Make sure they know their business. Parts needs to have common stuff in stock ready to go. Service writers who know you are coming before you get there and why you are going to be there and plan accordingly so people and the cars go in and out efficiently. And the service writer needs to explain in a way you understand what is going on. It’s not that hard, but it does require focus.

The number of dealers who have this level of (what I consider basic, common sense) service is extremely small and in my experience they are very successful. And they often not the biggest or the ones with the fancy showrooms or even the ones with the best price (although usually they know the market and tend to sell close to it and that includes service and parts) they are the ones with the best people and management.

Most of the time I just give up and treat sales, service and parts as three different things and act accordingly. I mean when I saw a tech put on a lugnut with an impact gun without a torque stick and the service writer shrugged I never went back to that dealer (all of these are not Porsche). Same thing when I was told I needed brakes and they were a 6/32nds. Or when the shuttle stops running at 5pm and they don’t have the promised loaner. Or parts are at 2x MSRP. And I am not an obviously easy mark — quite the opposite. I was always polite about it, but give me a break. Needless to say I am nervous about getting my GT3 serviced at the dealer. The prices checked out and I watched the techs for a while and did not see anything untoward. Whatever, I am sure I can DIY anything I need even though I rather spend my time otherwise. Oh, and good service leads to more sales as well as anything else.

PS I would love insight on the criteria for “premier” Porsche dealer status is as I think/hope it tracks the service concept I tried to explain.

MileHigh911

This OP isn’t whining about not getting a car at MSRP. It is just a car. Just observing the current business model. Which will hurt them in the long run. The dealer in areas of the country where life’s excesses include big dollar depreciating assets can get away with it, and that’s likely why they are big dealers. Beverly Hills would never trade it’s location to someone in Arkansas.
Go ahead, take an out of state ADM customer, he won’t blink an eye at your next newest Cayenne, at least not at your dealership.
It just seems like bad business when a loyal brand customer, who only buys from his small local dealer, and services his GT3 and wife’s Macan GTS there, only trades in his last Porsche’s at same dealer, and has sent 2 friends there in the last year who have purchased cars, has his loyalty thrown away over an ADM markup. That’s all.

TRAKCAR

If my dealer wants to charge over MSRP I’m go gone and I call C.J.
If I still can’t get one I go and look elsewhere or wait for the next down turn.

I did also buy a Macan at MSRP from my dealer without being asked to do so. Just seems like the right thing to do.

Even with a 10 year rolling deposit, no go on the GT2RS but I wasn’t offered over MSRP and VIP 918 buyers come first.. We will see with the upcoming GT3RS..

GiuseppeM

There are so many people involved in the sale that are getting a cut that selling 5 cars at $20k over it’s peanuts for a small dealership, it just leaves a sour taste.

shapiroeric

This ADM debate comes up every time a new GT car comes out....and clearly it has zero impact on the dealers as they continue to do it.....I think RL lives in a little bit of a bubble as there are more non RL GT owners than the opposite....demand will always dictate the price....