C.J. Ichiban

You're late to the dance

gmgracing

My question in regards to a list, and the notion of "honoring whomever put their deposit down first". How far in advance of the car's release would the dealer start to accept deposits? This would open a whole new can of worms.

If there is no set "start time" on accepting deposits, then you could foreseeable have buyers putting their names on lists YEARS in advance. On the other hand, if you start a list once the model goes public, then you have customers cramming in all at once (a la' Tesla Model 3).

sccchiii

The better setup list stores don't start taking deposits until announcement is eminent or within a reasonable time period beforehand (6 months-1year max).....which is better way to do it imo. Those that start a list 8 years ahead of time might as well just be writing in the clients they want to give cars to and call it a day, no point on calling it a "list".

Dr.Bill

The problem is, if you already have a list of 30-40 enthusiasts, you will never have a desirable limited car available to sell new to the local customers. If they see all the cool stuff heading out of state or to the owner's buddies, how many local people will become loyal customers? I don't know the answer. Of course, even all the 'evil' dealers on all the internet 'bad dealer' lists are still in business, so who knows?

Probably no right or optimal answer.

sccchiii

Again I think everyone will agree when demand higher than supply there will always be some left behind at dock when ship sails. I think every effort needs to be made to take care of loyal, local customers before allowing your allocations to be shipped out of area.....obviously a dealer must take into account each person that has interest but if someone lives elsewhere but has purchased X+ cars from my store in past over a short period of time then yes that person would be in bucket with loyal locals.

Banango

In a word: fairly. The problem is that "fair" means different things to different people so the second word would be "communication". I will take the time to get to know my dealer - from the DP to the parts gofer - and give the absolute benefit of the doubt that they are entirely honest, if they will take a little time to get to know me, or more accurately us. Everyone will then understand what "fair" means. So long as no goal posts are moved, so long as everything is transparent and expectations are met on *both* sides, that is all I require to be a repeat customer as often as I can afford to be, and to be an evangelist for my dealer and the brand.

MSRP is an excellent starting point. Knowing one's position on a waiting list and feeling confident no one can jump the queue no matter what is an excellent next step. Being able to depend on the dealership for full support is about all we need otherwise. Similarly, if my dealer doesn't want me selling my allocation, fussing over inconsequentials, etc, going elsewhere for service and parts for a set period if I am local, if they want us and the car available for promotional events if needed, etc, then that is incredibly reasonable so long as the expectations have been made clear.

Accurately express and then meet your brand promise and I will do the same with mine. It is and should be just like any other healthy and mutually beneficial relationship.

CAlexio

If you ask what people want, people are just going to say MSRP no? But if you can charge more even if a few people think it's "not fair".. Are your feelings going to be hurt while you're counting your cash and your sales people are thanking for Xmas bonuses? Just make sure you treat everyone the same, meaning rules are applied transparently... You're not in business to make friends, you're in business to make money.

Now, if you feel like when market is bad those local people who didn't get to buy at MSRP arent patronizing the business, then during next market boom maybe you charge MSRP. OR, if you feel that people have short memories and are disloyal anyway, charge what market will bear and take your risk during the downturns.

This isn't directed at you, it's a hypothetical for any dealer. I can say that when I buy a car from local dealer and they tell me the next GT/desirable car is going to be a auction/bidding process... Maybe I wait to buy my daily driver Panamera or I shop around the entire country for the best deal I can find..

Banango

Bingo.

Treat people as you say you will and transparently so. Even if charging a little over, so long as it is consistent and the service is good, you will in fact make friends as well as money.

People appreciate good value. That doesn't always mean low prices, it means a fair exchange of goods and services for the money provided.

MerlinsGarage

Yep. My situation many times.

Instead of the "cram", invite all prospective customers from the "list" to a wine and cheese at your dealership (Porsche loves to do this when introducing new models). Have a drawing for the first allocation. Then go back to your preferred (list?) selection process for 2 through X.
Sales rule 1 applies here. You get the (mostly local) interested folks into the store. They can see the selection process is fair. And maybe they pick something else out if they didn't get the allocation.

shizzle

I would keep an internal list of 'priority' customers based on how many vehicles they buy from the dealership. When you get ready to start a new list for a special car (this can happen 1-2 years before a car is launched), these people are called first and offered a spot on the list for a refundable deposit. These folks get one opportunity to get on the list, and if they say no when called, they have to get in line with everyone else. Once these VIP have been given their opportunity, you then open up your list to everyone else. I would also watch for flippers, and just make sure that people understand they will loose their VIP privilege if their car goes straight from delivery to another dealer (in Canada a few people were caught ordering cars for other dealers and have been banned from buying cars). And generally allow only one allocation per person for special cars.

I would also recommend making sure all your staff knows exactly how this process works, and should be able to explain it to any customer asking. My biggest irritation is when I hear 3-4 different explanations from the same dealership about how their lists are compiled. Luckily the dealership I deal with here in Ontario is pretty clear about how they operate. You aren't going to please everyone, but being transparent should work in your favour.

IMO this way you build loyalty, still open allocations for new customers and keep things as fair as possible.

C.J. Ichiban

thanks shizzle.

in another 60 days I can release information and will transparently inform rennlist of how I will do it. I have a combination of a radius system for local-ish guys (since I know where everyone lives that wants to be on the list) guys that turn their cars often, guys that buy multiple types of cars (GT4, GT3, cayenne etc)
and highest priority will be sequential/numerical order of deposits placed.

example- if someone lives 20 miles away, and gets new cars all the time, and their wife drives a cayenne and they sign up first, they're first and will stay first. I would inform that guy first since I know I can count on him.

there are plenty of people who solely through rennlist have requested to be on my list or get called and they are on the list strictly in sequential order.

I will also prefer to sell cars to semi-locals (2 hr driving radius) who have been burned by their current store and to keep their business long term we can hand deliver in that type of radius. They will also probably end up doing track days with our store etc.

some people I placed on the list based on factors I use and I know them and would reach out in numerical order /chronological order


some people I will never place on my list in any circumstance due to their antics RE: flipping on eBay. They are already getting cars from someone else and can get them from somewhere else.

shizzle

I think what you've described is the best way forward. Any chance you can buy a dealership up here!?

C.J. Ichiban

in canada? one day maybe. currently my stores are in Chicago, California, AZ, and my race shop is in texas. I'd like to do something in Vancouver eventually but going all the way to Ontario or Montreal might be a stretch logistically unless I bought an entire group of stores in one area.

I'm young, you never know

Spyerx

CJ, you need some cal-worthington style appearance commercials. DO IT.

C.J. Ichiban

Filming in 3 weeks. Ahead of you on that!