Theoretically- A waiting list
08-01-2016, 09:33 AM
#121
Three Wheelin'
The fatter wallet wins either way -- that's what a free market does, and there's no way around it. It's a feature, not a bug. The buyers (the demand) are running the price higher -- not the auctioneer.
In the "good dealer" scenario, if he has a "loyal" customer who has overpaid $40k (above the market price) on cars and services over the last 3 years and another "more loyal" one who has overpaid $80k, the "more loyal" one will get the desirable GT allocation at $40k below the market. The mere "loyal" one will get pissed.
An honest auction (and honest market prices for all other, more readily available, cars and services) would avoid all this keeping track about who paid above market for what (MSRP Panamera, MSRP Cayenne, F California, service, tchotchkes, etc.) and by how much and figuring out who is more deserving a desirable (yet scarce) allocation at a below market price.
To me, the latter is much more honest, clear, and transparent. What pisses most people off is when dealers practice the latter while pretending to be practicing the former ("good dealer") scenario -- which is inherently dishonest.
In the "good dealer" scenario, if he has a "loyal" customer who has overpaid $40k (above the market price) on cars and services over the last 3 years and another "more loyal" one who has overpaid $80k, the "more loyal" one will get the desirable GT allocation at $40k below the market. The mere "loyal" one will get pissed.
An honest auction (and honest market prices for all other, more readily available, cars and services) would avoid all this keeping track about who paid above market for what (MSRP Panamera, MSRP Cayenne, F California, service, tchotchkes, etc.) and by how much and figuring out who is more deserving a desirable (yet scarce) allocation at a below market price.
To me, the latter is much more honest, clear, and transparent. What pisses most people off is when dealers practice the latter while pretending to be practicing the former ("good dealer") scenario -- which is inherently dishonest.
Last edited by sccchiii; 08-01-2016 at 02:51 PM.
08-01-2016, 09:34 AM
#122
The local Ferrari and McLaren dealer is the only one near me that does these types of events. They also do things like Ferrari California driving days etc. Don't know if it helps them move product or not, but sure it helps the high margin parts/service business.
08-01-2016, 09:37 AM
#123
Rennlist Member
You are correct... a loyal customer is a loyal customer BUT if I had 1 available unit and 2 loyal customers one local and one not, I would always lean towards the customer that is local to sell it to (again assuming a no list scenario). Not only am I more likely to retain the service/warranty work but they also show a higher likelihood of future purchase of non GT cars vs out of town customers. The out of town customer is more likely persuaded back to do business elsewhere out of convenience despite the fact many of us have a go to store we use regardless of where we are located but everything has its limits.
08-01-2016, 09:50 AM
#124
Rennlist Member
The assumption is that the revenue/profits gained from over-charging local customers on new cars, services, trade-ins and under-charging them on GT cars will be larger than the revenue/profits gained from charging market prices on everything you sell nationwide. This assumption may or may not be correct.
08-01-2016, 10:06 AM
#125
The assumption is that the revenue/profits gained from over-charging local customers on new cars, services, trade-ins and under-charging them on GT cars will be larger than the revenue/profits gained from charging market prices on everything you sell nationwide. This assumption may or may not be correct.
They service my cars at a higher rate, but the service level is higher. They come to my house to drop off a loaner and pickup whatever car needs service. That time saving for me is worth the premium in sticking with the dealer vs an aftermarket shop I'm comfortable with.
When I trade cars in they give me back a little less than market, but it is made up in the sales tax credit. And again I don't have to waste time.
08-01-2016, 10:35 AM
#126
Rennlist Member
MSRP sales only. First come, first served. Limited edition models only to local customers. No customer can have more than one deposit on a limited edition model at any given time. Past limited edition customer may only get another limited edition model by trading in the previous limited edition.
You can only do so much when the allocation numbers are limited from the factory.
You can only do so much when the allocation numbers are limited from the factory.
08-01-2016, 10:40 AM
#127
Three Wheelin'
Think long term. There is no business like repeat business. That was my MO for many many years. It proved to be a winning strategy. A repeat, happy customer will provide a much bigger source of business stability and ultimately profit. Be fair in your pricing structure and stick to it. The buyers of these cars are, mostly, also proven business people that can and will smell a rotten deal. Short term greed will give you more at the expense of your clients satisfaction. Good luck!
08-01-2016, 11:31 AM
#128
I think the way most dealerships in Canada operate seems to be fair. Nothing over MSRP. Mostly local clients. Friendly customer service. Happy to offer help with little issues free of charge. Quick to greet you and offer you a coffee, etc. Honest about where you are with a deposit. Not a large monetary deposit ($1000-5000) but this token keeps customers honest too. I suspect a little bumping happens for VIPs but otherwise first come first served; even VIPs were offered special cars based on a documented and well communicated system (first 918 buyers got highest priority for 911R, and fwiw for PTS on the 911R). Willing to help clients with Exclusive and PTS, even if you're not a VIP. My dealership has offered free events and such to customers to keep us engaged.
(Hopefully this doesn't come off sounding bad, but) I think there is one other interesting dynamic up here, as most Canadian customers are willing to queue up politely without demanding any special treatment. Not that most people in other countries are pushy, but Canadians are notoriously laid back and overly apologetic. So, maybe customers' expectations about getting desirable cars may be a little different??? Therefore maybe our impressions of the dealerships are somewhat better because of this. (Sorry if this sounds offensive to anyone--that wasn't my intent at all
)
Anyway, I've heard few complaints about the Canadian dealerships in general.
(Hopefully this doesn't come off sounding bad, but) I think there is one other interesting dynamic up here, as most Canadian customers are willing to queue up politely without demanding any special treatment. Not that most people in other countries are pushy, but Canadians are notoriously laid back and overly apologetic. So, maybe customers' expectations about getting desirable cars may be a little different??? Therefore maybe our impressions of the dealerships are somewhat better because of this. (Sorry if this sounds offensive to anyone--that wasn't my intent at all
)Anyway, I've heard few complaints about the Canadian dealerships in general.
08-01-2016, 02:38 PM
#129
Rennlist Member
Think long term. There is no business like repeat business. That was my MO for many many years. It proved to be a winning strategy. A repeat, happy customer will provide a much bigger source of business stability and ultimately profit. Be fair in your pricing structure and stick to it. The buyers of these cars are, mostly, also proven business people that can and will smell a rotten deal. Short term greed will give you more at the expense of your clients satisfaction. Good luck!
Different strokes...
08-01-2016, 02:44 PM
#130
Three Wheelin'
First come first serve, with a required deposit at MSRP and I, along with my family will buy all the Porsches you can provide from your dealership. On top of this, personal referrals will be sent your way.
Thanks for conducting a mini-poll and best of luck in having your own Porsche dealership.
Drive safe,
Gt3RS-Fan1
Thanks for conducting a mini-poll and best of luck in having your own Porsche dealership.
Drive safe,
Gt3RS-Fan1
08-01-2016, 03:02 PM
#131
RL Community Team
Rennlist Member
Rennlist Member
I really have no idea what the best solution is, or even if there is one, but I do have a question though.
Is it even possible to sustain a dealership by catering primarily to enthusiasts like ourselves who generally focus on limited production GT cars?
I understand that as an owner you want to cultivate loyalty amongst the enthusiasts so that they come back to you again and again to buy GT cars, but how many enthusiasts actually buy other Porsche cars that are the bread-and-butter in what makes a dealership profitable or not.
I know there are many here who have a stable of Porsche cars (Macans, Cayennes, Panameras, Caymans etc.) but I'm guessing most here have a number of GT cars and very few, if any, other Porsches. I know I for one own no other Porsches, and really have no plans to buy a non-GT car in the near future.
Is it even possible to sustain a dealership by catering primarily to enthusiasts like ourselves who generally focus on limited production GT cars?
I understand that as an owner you want to cultivate loyalty amongst the enthusiasts so that they come back to you again and again to buy GT cars, but how many enthusiasts actually buy other Porsche cars that are the bread-and-butter in what makes a dealership profitable or not.
I know there are many here who have a stable of Porsche cars (Macans, Cayennes, Panameras, Caymans etc.) but I'm guessing most here have a number of GT cars and very few, if any, other Porsches. I know I for one own no other Porsches, and really have no plans to buy a non-GT car in the near future.
08-01-2016, 03:19 PM
#132
Three Wheelin'
I have no problem doing repeat business at venues that clear goods at high volumes and at close to market prices (with lowest margins). I do it all the time. I also see nothing greedy about allowing supply/demand to determine the price. Personally, I find the alternative ways of "paying the price" ("loyalty" through repeated "gifting" of premiums on other goods/services) more convoluted, veiled, and even dishonest. There's always a side thinking the other side owes them something or got shortchanged because they've done something for them in the past ("so loyal for such a along time, and no GT car under market price for me?"). Prefer clean accounts -- just skip the over/under-charging/paying and sell/buy everything at whatever price it clears. That's as honest as it gets.
Different strokes...
Different strokes...
As you say...different strokes...
I personally don't know the car industry from the retail side so I am only offering my own perspective that may or may not be relevant. I do know that a happy loyal customer is worth a lot more than one that stops for one deal and then disappears.
08-01-2016, 03:54 PM
#133
Three Wheelin'
I really have no idea what the best solution is, or even if there is one, but I do have a question though.
Is it even possible to sustain a dealership by catering primarily to enthusiasts like ourselves who generally focus on limited production GT cars?
I understand that as an owner you want to cultivate loyalty amongst the enthusiasts so that they come back to you again and again to buy GT cars, but how many enthusiasts actually buy other Porsche cars that are the bread-and-butter in what makes a dealership profitable or not.
I know there are many here who have a stable of Porsche cars (Macans, Cayennes, Panameras, Caymans etc.) but I'm guessing most here have a number of GT cars and very few, if any, other Porsches. I know I for one own no other Porsches, and really have no plans to buy a non-GT car in the near future.
Is it even possible to sustain a dealership by catering primarily to enthusiasts like ourselves who generally focus on limited production GT cars?
I understand that as an owner you want to cultivate loyalty amongst the enthusiasts so that they come back to you again and again to buy GT cars, but how many enthusiasts actually buy other Porsche cars that are the bread-and-butter in what makes a dealership profitable or not.
I know there are many here who have a stable of Porsche cars (Macans, Cayennes, Panameras, Caymans etc.) but I'm guessing most here have a number of GT cars and very few, if any, other Porsches. I know I for one own no other Porsches, and really have no plans to buy a non-GT car in the near future.
08-01-2016, 03:58 PM
#134
Interesting responses - interesting discussion points. My take - I'm happy to put down a deposit - but what stops me from putting deposits down at 10 dealers? or more? 1st on a list makes no sense to me. We could all prospect guesses on the next great car - and dump deposits accordingly. To me the "List" is a subjective 2 way street. All Relationship driven 1. I support the dealers I buy from and in turn receive allocations. A. Trade back cars that I paid MSRP for to them when my next build is processed - let them make a few $$$ - B. When the economy is down I still buy cars - because I drive them - not flip- flippers will disappear in the next recession - the repeat clients will prop up your dealer just as they did in 08' -12' C. Service my cars at dealer - always - D. Help your dealer sell cars - amazing how that works. E. And so on So maybe your the dealers "Friend" - maybe a whale - maybe a guy with the best "Cleaning Lady" info - all great - but I want my best clients to be The ones who will help my business if times are tough - who don't shop me out - who don't hammer me for every last $$$ - who I like selling to - who appreciates my business and people - who use the product I sold them - That's how I'd establish my list. UMM - Buildable LT?
