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Help me understand Porsche's Business Model...

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Old 12-06-2017, 03:25 AM
  #46  
Alan Smithee
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Originally Posted by Maitre_Absolut
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...
Didja read my post directly above yours? Porsche can't increase MSRP to bring down demand, then decrease MSRP when demand subsides, whether that comes from introduction of something newer/better alongside it, or when the next market downturn happens.
Old 12-06-2017, 10:30 AM
  #47  
Maitre_Absolut
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Originally Posted by Alan Smithee
Didja read my post directly above yours? Porsche can't increase MSRP to bring down demand, then decrease MSRP when demand subsides, whether that comes from introduction of something newer/better alongside it, or when the next market downturn happens.
Leave at MSRP and discount the car adjust to market conditions? This "price for the long term cycle" seems to have more bad than good and still leaves money on the table.
Old 12-06-2017, 10:32 AM
  #48  
orthojoe
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Originally Posted by Maitre_Absolut
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...
Because the car is meant to be a track car, not a dbag’s trophy car. At a certain price point it doesn’t make sense to track a car anymore, even if you have the money.
Old 12-06-2017, 10:42 AM
  #49  
chillindrdude
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Originally Posted by orthojoe
Because the car is meant to be a track car, not a dbag s trophy car. At a certain price point it doesn t make sense to track a car anymore, even if you have the money.
i will bet the percentage of GT3s being tracked is far lower than what most of us think...
Old 12-06-2017, 10:47 AM
  #50  
Manifold
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Originally Posted by chillindrdude
i will bet the percentage of GT3s being tracked is far lower than what most of us think...
But I bet it's a far higher percentage than the percentage of McLarens, Ferraris, and Lambos which are tracked. And conversely, among all the cars that show up to track events, the percentage which are GT3s is pretty high, especially among more experienced drivers. As Orthojoe said, this is first and foremost a track car; using it only on the road is arguably wasting the car, but people can spend their money and use their cars as they choose.
Old 12-06-2017, 10:52 AM
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Originally Posted by chillindrdude
i will bet the percentage of GT3s being tracked is far lower than what most of us think...
I think you are correct that the trend is starting to move slightly away from track use despite the increased popularity of the hobby. In NorCal there were A LOT of 991.1s at the track. Then the ‘value’ game started to take off and each new version is turning into dbag trophy cars. Then we also have people who expected to make money or drive for free whining about trade in values at 80-100% of msrp? Really? Those people really shouldn’t track their car.
Old 12-06-2017, 11:00 AM
  #52  
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Originally Posted by orthojoe
Because the car is meant to be a track car, not a dbag’s trophy car. At a certain price point it doesn’t make sense to track a car anymore, even if you have the money.

Correct ..

The GT3 is actually a bit overpriced in my opinion.

Because people are delusional because of the hype, the low depreciation (which is not reality), and the economic bubble we are in, some think it should be worth $20K more. The ADM game has clouded many buyers perception of value.

Anyone would suggest other Porsche models are underpriced?? They are all quite the opposite.

Wait until a market correction comes, the big ballers $$$ will be dropping like flies on RL and so will the ADM game.
Old 12-06-2017, 11:05 AM
  #53  
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Originally Posted by orthojoe
I think you are correct that the trend is starting to move slightly away from track use despite the increased popularity of the hobby. In NorCal there were A LOT of 991.1s at the track. Then the value game started to take off and each new version is turning into dbag trophy cars. Then we also have people who expected to make money or drive for free whining about trade in values at 80-100% of msrp? Really? Those people really shouldn t track their car.
... and of course reluctance to put miles on the car means that they're really just owning it for a while, maybe enjoying looking at and possessing it, but not enjoying actually driving it. I can understand that mindset, but for me, cars are for driving and track cars are for tracking.

What many people also don't realize is that depreciation isn't proportional to miles on the car. Once you have substantial miles on the car, additional miles won't affect depreciation much, so you get closer to 'driving for free' again. And it's not like these cars are only good for 100K total miles, then they're junk; parts can be replaced, engines can be rebuilt, etc.
Old 12-06-2017, 11:06 AM
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To those that think the MSRP should be increased, why not just go pay your self imposed price increase by way of an ADM??
Old 12-06-2017, 11:52 AM
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I've concluded that the reason we see such high turn-over with the recent GTx cars, is that most don't really want the particular car per-say but rather the recognition that they were able to obtain an allocation that is deemed "rare". Than the same bug hits when the next new model is released... Soon porsche will have 100's upon 100's of GTx cars sitting on lots at insane used prices..
Old 12-06-2017, 11:54 AM
  #56  
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Originally Posted by STG
To those that think the MSRP should be increased, why not just go pay your self imposed price increase by way of an ADM??
I support that approach but only from Porsche's business perspective (not as a consumer of course). I've made the argument that, if demand exceeds supply, Porsche should raise the price until equilibrium is met. That is how free markets work. We can argue that the ADM is essentially doing that and then when demand dies down, the ADM goes away. But then the dealers are the ones making the additional profit instead of PAG/PCNA.

But even paying the ADM, consumers still have to play a game to get the car. Get on a list, trade allocations with another dealer, be a "special" customer etc.

We should be able to walk into any Porsche dealership and order the car we want and have it delivered within 12 weeks. Ok, I guess I am a naive idealist.
Old 12-06-2017, 02:55 PM
  #57  
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Originally Posted by Manifold
... and of course reluctance to put miles on the car means that they're really just owning it for a while, maybe enjoying looking at and possessing it, but not enjoying actually driving it. I can understand that mindset, but for me, cars are for driving and track cars are for tracking.

What many people also don't realize is that depreciation isn't proportional to miles on the car. Once you have substantial miles on the car, additional miles won't affect depreciation much, so you get closer to 'driving for free' again. And it's not like these cars are only good for 100K total miles, then they're junk; parts can be replaced, engines can be rebuilt, etc.
This question comes up in my head often and I may start a new thread on the topic, but for the GT3.2 owners what are they using their car for exactly? Track or street? If it’s a track car then there are so many other options out there that are well below that price point that have greater performance.

I have a GTS Cab and I do some track days w it and Race lemons and Lucky Dog for my wheel to wheel itch. My wife asked me what the hell I needed a GT3 for and I couldn’t answer the question besides to say. “It’s a manual, NA 500hp” which in the end means it’s a different feel to drive. Not sure that justifies the 180k price point when I have a very nice weekend car in my GTS.
Old 12-06-2017, 04:36 PM
  #58  
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I will "bet" that the qualifications of a dbag have little to do with whether that person tracks their GT3, that person solely drives "wastes" their GT3 on the street or that person stares at their GT3 as it sits in their garage.

I will also "bet" their are many dbags who track their GT3 every weekend.

I will finally "bet" that the consumer shall determine what the GT3 is "meant" for, unless of course PAG starts having requirements to purchase each of their models, other than a bag of money.
Old 12-06-2017, 04:57 PM
  #59  
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Originally Posted by NA430GTS
This question comes up in my head often and I may start a new thread on the topic, but for the GT3.2 owners what are they using their car for exactly? Track or street? If it €™s a track car then there are so many other options out there that are well below that price point that have greater performance.

I have a GTS Cab and I do some track days w it and Race lemons and Lucky Dog for my wheel to wheel itch. My wife asked me what the hell I needed a GT3 for and I couldn €™t answer the question besides to say. €œIt €™s a manual, NA 500hp € which in the end means it €™s a different feel to drive. Not sure that justifies the 180k price point when I have a very nice weekend car in my GTS.
Depends on how often you track it, and how hard you drive it. I think the GT3 will handle frequent and aggressive track use better than a non-GT Porsche, and the driver will have more fun doing it.

Regarding price point, my 991.1 GT3 was $140K. I have the sport bucket seats, nav, etc., and I don't fee that the car is missing anything.
Old 12-06-2017, 05:06 PM
  #60  
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Originally Posted by STG
Correct ..

The GT3 is actually a bit overpriced in my opinion.

Because people are delusional because of the hype, the low depreciation (which is not reality), and the economic bubble we are in, some think it should be worth $20K more. The ADM game has clouded many buyers perception of value.

Anyone would suggest other Porsche models are underpriced?? They are all quite the opposite.

Wait until a market correction comes, the big ballers $$$ will be dropping like flies on RL and so will the ADM game.
before the regular carreras were turbocharged, the gt3 was not AS special as today. Today, to get a naturally aspirated, high revving engine, is very hard. you have v12 ferrari, and... i can't think of any others. aston, ferrari, porsche, pagani, koenigsegg, mercedes, bmw... i don't see any Naturally aspirated cars. THAT, is why the gt3 is so so special.. and not overpriced in my opinion. I wouldn't buy the new aston v8.. because its not NA.. even at similar money and arguably higher content.

Originally Posted by NA430GTS
This question comes up in my head often and I may start a new thread on the topic, but for the GT3.2 owners what are they using their car for exactly? Track or street? If it €™s a track car then there are so many other options out there that are well below that price point that have greater performance.

I have a GTS Cab and I do some track days w it and Race lemons and Lucky Dog for my wheel to wheel itch. My wife asked me what the hell I needed a GT3 for and I couldn €™t answer the question besides to say. €œIt €™s a manual, NA 500hp € which in the end means it €™s a different feel to drive. Not sure that justifies the 180k price point when I have a very nice weekend car in my GTS.
good question.. for me it was purely the sense that while i enjoyed my spyder immensely.. i wanted what i thought could be the last manual high revving car in production. if i didn't want manual, the used gt3.1 is a STEAL at today's prices with the engine warranty... it's just not enjoyable for everyday driving. I want to drive on the roads here in NorCal, and enjoy shifting, and working the transmission at "sane-ish" speeds.. maybe the occasional trackday. but there are better cars for the track, and I am fortunate to have access to a world-class collection of hypercars of all kinds thanks to kind friends. But speed is not my sole interest. I just want a car with a screaming exhaust which i can row myself, which feels exciting at all speeds. There is nothing, NOTHING in the market which compares to a manual gt3 with this amazing motorsport engine, and at $143k (plus a stupid amount of options because i have no self restraint)... i still think there is nothing better value or even comparable. I drove the 911R on street and track, and thought it could be my "only" car forever, perfection.. with the only things missing being a lively top-end and the ability to own one. The gt3.2 with manual solves both for me.

if you want manual, Naturally aspirated high revving, there is nothing else left.


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