Originally Posted by CobaltCr

Easy way to fix the problem on the dealer side as well as company side. Have low inventory or no inventory dealerships where the cars on the floor are for Demo only. Each car is then manufactured as the customer orders it and delivered at msrp. No cap on production. Naturally you will sell less gt cars than caymans and cayennes. Let the supply and demand even itself out.

I mean, why have hundreds of options available on the menu but force customers to buy already built dealer/factory optioned cars? Dealers then have to sit on extra inventory until the right customer happens along. Porsche is a boutique custom car company. They should build cars that people want. I'll buy a ford truck by going to the dealership and browsing. I want my Porsche to be like I want it.

Right now the frenzy for gt cars is not being fueled by actual demand. I think that the market is artificially elevating the demand for the car because opportunists and speculators (read dealers and flippers) are soaking up the allocations and people who really want the cars who are enthusiasts are left on waiting lists. It's a crazy way to do business.

On the markup business, how many people who wanted a new iPhone payed AT&T or Verizon stores more than msrp for their phone because the supply couldn't meet demand?

Originally Posted by CobaltCr

On the markup business, how many people who wanted a new iPhone payed AT&T or Verizon stores more than msrp for their phone because the supply couldn't meet demand?

Originally Posted by STG991

Apple is smart. They want anyone with a high end smart phone to have an iPhone. They make sure to give everyone wanting one an opportunity to own one. They won't let you spend your money elsewhere.

Originally Posted by Mr. Adair

Good point. I'm guessing they are more times than not sold at a lower price than the advertised price. When it's nut cutting time they will move on price, they want to sell cars and need to sell cars. I bet there is 5-8K in a 30K over GT3 deal at months end. I really would be curious on a 125K over RS deal. Wonder if anybody on Rennlist would be willing to tell us how their RS deal went?

Originally Posted by PhilT3

Bingo. Though, consumer electronics is greatly different than the auto business. Either way, i agree with your point.

Originally Posted by STG991

A lot of this "hype and frenzy" is actually over emphasized by these dealers who hoard allocations, have unreal markups, and make people buy into the overinflated market. Trust me, it will only last so long. You're starting to see it already in the 997 GT market.

If you threw 300 RS and 500 GT3 allocations into the US tomorrow, things would get pretty quiet on here, trust me. I am still convinced this is all by design on Porsche's part to give dealers a line of cars (GT's) to reward them with allocations and create a marketing buzz. This gives Porsche a lot of leverage with its dealers and free marketing. Why have all the frenzy be about Ferrari and the other "hard to get" models. They failed with the 918 and had to create a VIP program to makes sure they sold out.

Originally Posted by Mr. Adair

What if you opened up a 60 day "buy" window on GT cars at dealerships across the country, PTS the whole deal. Everyone on the list gets a car. Porsche goes into production to build all of the cars. However long it takes to manufacturer. You can't get in again until the next year. It's the old vehicle production conundrum. Porsche built X amount of 918's GT3's RS's etc. and had to find a home for them. When you build to order you might sell fewer cars but you have so much less inventory exposure. Less sourcing issues etc. and you become more profitable. They always want to manufacture growth as opposed to organic growth. I know nothing about car building but my company does it for a 130 page catalog (soft goods) and 1000 sku's. and is accurate to within 1%. There certainly not that many sku's in the Porsche line up. Crazy?

Originally Posted by mrsullivan

Except when the flippers are other dealers. Sorry when dealers are trading for allocations, re titling cars, adding big mark up, etc. on a new car, that's a problem porsche should be fixing

Originally Posted by Mr. Adair

Agreed. Made to order is an interesting strategy. In my business a store is asked to pre-book their order in the spring for fall delivery. They can purchase as little or a much as they want usually based on their previous seasons sales. They of course are given more dating (time to pay) and a 1-4% percentage discount based on volume. The manufacturer then builds a total
dollar amount of all of the dealers (700) pre-books and builds another 40% of product above and beyond to sit on the shelf for dealers to buy "at once" during the selling season.Works perfect. No favorites, no back door, no VIP etc. Just not sure the car industry could build that way? On just GT cars maybe. It works great for the manufacturer and dealer as well. The demand is still there on the consumer side as the gear will run out before the end of the season and they will have to wait.

Originally Posted by STG991

A lot of this "hype and frenzy" is actually over emphasized by these dealers who hoard allocations, have unreal markups, and make people buy into the overinflated market. Trust me, it will only last so long. You're starting to see it already in the 997 GT market.

If you threw 300 RS and 500 GT3 allocations into the US tomorrow, things would get pretty quiet on here, trust me. I am still convinced this is all by design on Porsche's part to give dealers a line of cars (GT's) to reward them with allocations and create a marketing buzz. This gives Porsche a lot of leverage with its dealers and free marketing. Why have all the frenzy be about Ferrari and the other "hard to get" models. They failed with the 918 and had to create a VIP program to makes sure they sold out.

Say what you want about the 918, but get rid of the Energizer Bunny, add a bigger engine, and sell it for half the price and you'd be golden. Who wants a 1 million dollar car to sound like a Prius around town? Just sayin!

Originally Posted by usctrojanGT3

My guess is that dealers are hoarding 100-150 RS allocations to themselves and trying to extract max pain from buyers.

Originally Posted by goin2drt

And why not if Porsche allows them to? If they allow then great, charge as much as you want. It sucks, I hate it but there is NO ONE to blame but Porsche. Ferrari has it figured out, why can't Porsche? They are losing customers to other brands. I think that is why McLaren has gotten more popular. You don't think those buyers were any pissed off P car buyers.

Originally Posted by Guest89

There is no one to blame; the market sets the price, and no individual participants have the ability to move prices to any appreciable extent.

Originally Posted by STG991

Makes sense to me. How easy for them to be able to forecast demand and schedule production. They give you an approximate build date, and know what they're in for. The way they're doing things now, they're going quarter by quarter. Look at the GT3's. I don't think they know how when they'll actually stop making them. They keep trickling out like a leaky toilet. Just slow enough to **** people off. Same with the RS's. The big mystery of how many, when, where, and what color. I really think there is some disorganization within the ranks. I mean, they can't even get a PTS and Exclusive program under control. Quantity and quality control wise. Add the engine debacle, and you have one cluster _ _ _ _

They're better at selling the Porsche Badge lately on non sports cars than the actual sports cars!

Originally Posted by usctrojanGT3

And have the buyers put down a deposit to order the car and then an additional % of the option value as an additional deposit as a sign of good faith like they do when you buy a new home from a home builder.