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Help me understand Porsche's Business Model...

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Old 12-05-2017, 11:22 AM
  #31  
Jimmy-D
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Originally Posted by SToronto
I don't think you'll get the answer here. There's plenty of conjecture some of which might form the truth.

I agree it's a funky model that is inconsistent at best from dealer to dealer. I've been trying to wrap my head around it as well from a business and customer experience point of view. Would love to get a straight answer from PAG on the approach. Anybody tried sending Andreas an email?
Porsche North America is just a Customer to them. They sell their Customer. They have limited control over what they can enforce.
Old 12-05-2017, 11:30 AM
  #32  
SToronto
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Originally Posted by Jimmy-D
Porsche North America is just a Customer to them. They sell their Customer. They have limited control over what they can enforce.
You're absolutely right. However I'd say PCNA has a vested interest in keeping PAG happy and vice versa. I would think it's a mutual benefit relationship to some degree, maybe slanted more on the PCNA side because they are on the ground in the North American market advancing the business interests of PAG. PCNA is also a wholly owned subsidiary of PAG staffed by people from PAG, so it's not as arms length as you suggest. PCNA will also be restrained on what it can impose on individual dealers unless they open more corporate stores. But even the corporate store here is taking the unfavoured approach. Hence my earlier funky comment.
Old 12-05-2017, 11:36 AM
  #33  
STG
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PAG makes more $$$ right now per car selling to markets other than the USA.
Old 12-05-2017, 11:43 AM
  #34  
subshooter
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Originally Posted by Drifting
More power won't change the lack of emotion and connection that subshooter described.
Exactly.
Originally Posted by Oldmxnut
Ultra exclustivity.. is to have supply equal demand minus 100, not demand minus 1 as the saying goes.
GT3s are going to be exclusive based on cost alone plus not to mention the lack of practicality for most car buyers. If Porsche wants the GT cars to be exclusive and there is strong demand with limited supply, then just raise the price of the cars until supply equals demand. That would be a rationale business decision.

Originally Posted by STG
Porsche wants the GT cars to be more limited by design. Yes, it does feed the marketing hype.
Are you sure? Isn't a business' goal to make the maximum amount of money possible for themselves and their shareholders? I get limiting the Halo cars or special cars like the 911/50 but not GT cars.
Old 12-05-2017, 02:49 PM
  #35  
mass27
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A few of the posters have given some logical reasons as to why the GT game is present.

PAG has created a product that is in huge demand. There are thousands of people posting just on the topic of allocations. What other brand/model generates this much interest and input? If PAG produced 25K GT3s, does anyone really think there would even be an allocation thread? Would there be any ADM? How would the FMV of past, current and future GT3s be affected?

PAG has organically created a mass produced, custom product. Custom because you can pore over the litany of options on the configurator. This makes you feel special because the car will be built for you. Mass produced because the car will be built for thousands of people (10s of thousands if you include all GT models).

Last edited by mass27; 12-05-2017 at 03:17 PM.
Old 12-05-2017, 03:46 PM
  #36  
robmypro
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The GT3 is still pretty limited, and Porsche wants it to stay that way. So they essentially limit production. I have no problem with that. I still found one (991.1) pretty easily 2 years ago.
Old 12-05-2017, 04:01 PM
  #37  
Alan Smithee
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Originally Posted by subshooter
Porsche's business model doesn't make any sense to me at all. If people want to buy a product at MSRP, why wouldn't Porsche build as many as are demanded minus 1?
Nobody said they won't be doing exactly that.

The current ADM situation is because the GT3 is the first .2 GT car, everybody wants the car now, and everybody can afford it with car loans still at 1.XX% and the DOW closing in on 25k; this car will be sold for two model years, and only reached its first US customers in the last few weeks. During the run of 991.2 GT3 production we will also be seeing the new GT3RS, GT4, Spyder, Speedster, and likely more special models. Not to mention the 992 Carrera and Carrera S...which, if history is any indication, will overlap 991 GT3 production and might outperform them all. Bottom line is demand will drop off, production will continue, and if the car had a base MSRP of $200k the 2019 models would likely start collecting dust on the lots. And all of that is assuming the economy does not take a turn; Porsche prices the cars with all of that under consideration.
Old 12-05-2017, 04:32 PM
  #38  
JC Lacayo
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Porsche could increase the price of the car and it would calm some demand and make them more profit. A problem as the OP points out is with access from dealers. The dealers are playing the games. For more money. It is insulting most buyers, since fewer buyers are kept appeased with their allocations. This hurts Porsche financially in the long run as some jump over to McLaren or F or even with the R8. I know PCA members who have bought more than a million dollars worth of new cars over 30 years, but are denied access to building a GT car because they didn't spend less on a 918. That doesn't seem right.
I would like to configure a GT3 the way I want, and I would keep it forever. But, I can't. Will have to wait until the next thing is out and some of you sell your cars, and then I can pick it up, hoping its a spec near to what I wanted. BTW, I prefer strippers in case some of you are looking to unload in couple years
Old 12-05-2017, 04:40 PM
  #39  
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Originally Posted by Chicago Mike
To a certain degree, but try asking for a 488 GTO allocation...
I think in it's fair to consider the TDF, Speciale, GTO etc... as akin to Porsche's GT cars, and to get one of the special Ferrari's you have to be a 'good customer', I'd argue the difference between Ferrari and Porsche is that Ferrari always make their next car 'better' than their last 'Special' car while Porsche filter some of the good stuff down into the 911 but not to anywhere near the same extent.

Also Porsche still have a particular problem at present, the all-turbo future has alienated Naturally Aspirated owners while their allocation system has poured salt in the wound. As it stands my next sports car is unlikely to be a Porsche, two other Porsche owning friends are looking at the 570GT and new Vantage while I keep going back to the 458 Spider.
Old 12-05-2017, 05:17 PM
  #40  
Riz
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OP - the Porsche model is simple
Porsche = corner fruit/vegetable vendor at a local market
We the consumers = stupid people
For example - the colors cost more on different models and
PTS more expensive on gt3 vs turbo and a lot of other options
The dealership is middle man who used to be our friend now they screw us too
That is why people spending close to $200k and above consider McLaren, tired of bs
Sorry could not write complete sentences, low blood sugar
Old 12-05-2017, 05:27 PM
  #41  
subshooter
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Originally Posted by Alan Smithee
Nobody said they won't be doing exactly that.

The current ADM situation is because the GT3 is the first .2 GT car, everybody wants the car now, and everybody can afford it with car loans still at 1.XX% and the DOW closing in on 25k; this car will be sold for two model years, and only reached its first US customers in the last few weeks. During the run of 991.2 GT3 production we will also be seeing the new GT3RS, GT4, Spyder, Speedster, and likely more special models. Not to mention the 992 Carrera and Carrera S...which, if history is any indication, will overlap 991 GT3 production and might outperform them all. Bottom line is demand will drop off, production will continue, and if the car had a base MSRP of $200k the 2019 models would likely start collecting dust on the lots. And all of that is assuming the economy does not take a turn; Porsche prices the cars with all of that under consideration.
This argument I can buy. Thanks. I feel better now.
Old 12-05-2017, 05:43 PM
  #42  
Manifold
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Another factor to consider is that Porsche dominates the market for proper sports cars in the ~$75K to $200K range. They're starting to get some competition from AMG and the McLaren 570 series, but Porsche still dominates. As long as the competition in this market doesn't get stronger, it's in Porsche's interest to keep dominating this market, and they have some flexibility on their strategy regarding products to develop, how to price them, production numbers, etc.
Old 12-05-2017, 06:30 PM
  #43  
Alan Smithee
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^ Yes, but it is also a very discretionary market; pricing and sales volume needs to be in-line with long-term economic forecasts.
Old 12-05-2017, 11:27 PM
  #44  
Maitre_Absolut
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Many have addressed the limited supply strategy, which is simple to understand, but I havent seen an explanation for leaving money on the table with a low MSRP and having dealers resort to ADM (basically scalpers buying all available tickets and reselling).

Increase MSRP, give dealers a bigger cut, avoid all the ADM backlash. Whats the downside? Artists won't do it (increase prices to market) to keep concerts "accessible" to all. I dont think PAG shareholders feel the need to make GT3s accessible to the general public...
Old 12-06-2017, 01:09 AM
  #45  
Chicago Mike
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Originally Posted by PantsFire
I think in it's fair to consider the TDF, Speciale, GTO etc... as akin to Porsche's GT cars, and to get one of the special Ferrari's you have to be a 'good customer', I'd argue the difference between Ferrari and Porsche is that Ferrari always make their next car 'better' than their last 'Special' car while Porsche filter some of the good stuff down into the 911 but not to anywhere near the same extent.

Also Porsche still have a particular problem at present, the all-turbo future has alienated Naturally Aspirated owners while their allocation system has poured salt in the wound. As it stands my next sports car is unlikely to be a Porsche, two other Porsche owning friends are looking at the 570GT and new Vantage while I keep going back to the 458 Spider.
Yup, that comparison is spot on. The .2 GT3 is my first GT car, so I'm really excited to see what the hardcore side of Porsche is all about. I have always daily driven a Panamera of some sorts but, truth be told, I wasn't nearly as excited about my turbo as I am for this GT3. Though I love the turbo in every way, the GT3 in my eyes is the quintessential current Porsche, aside from the RS and 918.


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