** The "market adjustment" issue **
09-09-2015, 01:15 PM
#31
Race Director
Thread Starter
** The "market adjustment" issue **
Originally Posted by doubleurx
They are making more cars. They are making more of the cars that have the highest demand.
Do you ever hear any complaining about not being able to get any of the other models on the other boards?
Should Porsche fill every dealer order for a GT car? After all, how big is the market for them in the big scope of things?
09-09-2015, 01:20 PM
#32
Nordschleife Master
You should study up on the different franchise laws or a summary at least in the different states..Manufacturers can dictate marketing pricing rules (how the franchisee prices cars in advertising) but NOT ultimate transaction pricing. By definition it would be considered "price fixing".
09-09-2015, 02:04 PM
#33
Drifting
They are making more cars. They are making more of the cars that have the highest demand. We GT lovers are but a puny percentage of their sales. There biggest sales are in SUV's and regular 911's, not GT cars. Which would you make knowing that? THere production model will always focus on the highest volume which is why they are the most profitable car company out there.
There is a difference between highest demand and mass appeal.
Do you ever hear any complaining about not being able to get any of the other models on the other boards?
Should Porsche fill every dealer order for a GT car? After all, how big is the market for them in the big scope of things?
Do you ever hear any complaining about not being able to get any of the other models on the other boards?
Should Porsche fill every dealer order for a GT car? After all, how big is the market for them in the big scope of things?
09-09-2015, 02:36 PM
#34
Where are the facts that stated that they are low margin? I would guess that they would be the same..or at least close.
09-09-2015, 02:49 PM
#35
Drifting
Consider a Cayenne versus a Touareg or Q7; the Cayenne is not much more expensive to make, but can become vastly more expensive to purchase (ie, loaded out Turbo S).
Or think about the outgoing Carrera GTS versus the 991.1 GT3:
The GTS is a "bargain" versus optioning a Carrera to the same levels, but the GTS can very easily encroach on - and conceivably surpass - a GT3 in terms of options.
Base for base, the outgoing GT3 got much more content than the GTS, for example:
(Nearly) all-new engine that revs to 9K RPM and produces specific output on par with the finest NA piston engines in the world
PDK-S
RWS
E-Diff
Model-specific centerlock wheels (wider than GTS wheels)
More performance-oriented tires
Larger standard brakes
And so on...
Admittedly, much of the low margin dynamic is jointly-determined with volume: Lower volume means fewer units over which to amortize costs. Recall that Porsche only greenlit the move to fit the Le Mans-winning "Mezger" engine in the 996.1 GT3 after they proposed to use the same block in the 996 turbo, thereby amortizing costs over far more units.
09-09-2015, 03:30 PM
#36
PAG is probably producing too many vanilla 911 and Cayennes so why not shift some of those production to the GT cars to increase sales there and then you wouldn't have the big MSRP discounts on 911s and Cayennes because their supply will go down? But hey, what do I know...I'm just a bean counter. 
09-09-2015, 04:23 PM
#37
Race Car
Join Date: Jan 2013
Location: The way to hell is paved by good intentions “Wenn ich Purist höre...entsichere ich meinen Browning” "Myths are fuel for marketing (and nowadays for flippers too,,,)" time to time is not sufficient to be a saint, you must be also an Hero
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Simply to keep the price and reputation higher
09-09-2015, 04:29 PM
#38
Banned
PAG is probably producing too many vanilla 911 and Cayennes so why not shift some of those production to the GT cars to increase sales there and then you wouldn't have the big MSRP discounts on 911s and Cayennes because their supply will go down? But hey, what do I know...I'm just a bean counter.
09-09-2015, 04:46 PM
#39
Race Director
Thread Starter
** The "market adjustment" issue **
Originally Posted by goin2drt
Because then all the GT owners would bitch, moan and belly ache that there are too many of them and they are not exclusive any longer. No one will ever be happy.
Bingo! Nailed it. Discussion over.
3 camps
1. Have one? Keep them limited and monitor monthly sales to make sure you're still special.
2. Don't have and want one? Complain about mark ups, flippers, and make more of them.
3. Have one, and don't give a ****! Enjoy the car.
09-09-2015, 04:50 PM
#40
09-09-2015, 04:52 PM
#41
Race Director
Thread Starter
** The "market adjustment" issue **
Originally Posted by usctrojanGT3
and 4. Want one, don't give a crap about resale prices, don't need to feel special, and DRIVE them!
09-09-2015, 05:00 PM
#42
Banned
And 5. Don't have one, would like one but will NEVER pay over MSRP so could really care less but love to be entertained by these threads.
09-09-2015, 05:24 PM
#43
Drifting
Some cars - most cars - are "worth" less than MSRP to the initial buyer, and dealers don't expect to sell most cars at MSRP. Some sell at MSRP, and some sell for more.
09-09-2015, 05:36 PM
#44
Drifting
My issue isn't that dealers sell their cars for over MSRP as it is them taking allocations for themselves and optioning the car when they have dozens of people on the wait list, including people who have bought 10s of cars from that dealer. Either sell all of the cars to the highest bidders or sell to the folks on your waitlist, don't keep changing the rules of the game. Hell, there are even dealers that have agreed to sell a car at MSRP to a customer on their waitlist and when the car comes in the car is no longer for sale at MSRP...it's no MSRP + X market premium. Don't say that you want to establish a relationship with a customer when the dollar signs mean more than the relationship.
I don't like that the cars continue to land in the hands of the same people. Repeat customers, grandfathered in 918 buyers etc. that **** money. There are more than enough buyers for these cars that they don't need to go into the hands of preferred customers each time. ( and I get that it is their reward so to speak for multiple purchases) It's is no way to bring new buyers into the brand for future purchases which I think they will eventually need.
09-09-2015, 05:46 PM
#45
Dealers have every right to charge over MSRP if buyers are willing to pay. I blame buyers that are impatient and must have it now, as they are the ones feeding the bubble. More money does not mean more brains. In a capitalist society aren't dealers allowed to capitalize on buyers willing to pay a premium. FWIW the entire over MSRP makes me sick but it's the buyers fault. The best tool in negotiating is your feet, learn to walk away.