Help me understand Porsche's Business Model...
#31
Race Director
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?
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?
#32
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.
#34
Rennlist Member
Thread Starter
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.
#35
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).
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.
#36
Race Director
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.
#37
Rennlist Member
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.
#38
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
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
#39
Rennlist Member
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.
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.
#40
Rennlist Member
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
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
#41
Rennlist Member
Thread Starter
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.
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.
#42
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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.
#43
Rennlist Member
^ Yes, but it is also a very discretionary market; pricing and sales volume needs to be in-line with long-term economic forecasts.
#44
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...
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...
#45
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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.
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.