GT3 Dealer Allocation Thread
04-07-2017, 10:49 AM
#1321
6th Gear
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Not in a negative way, but sounds like you are a Porsche Sales. Your comments reminds me of the grievance of many Porsche Sales. Ha ha your description of profitability, and price shopping is just too detailed and visual.
"You take every car you can get from Porsche" This sentence gave it away.
"You take every car you can get from Porsche" This sentence gave it away.
I work for a large well known Investment Bank. Financial Analyst in M&A for dealership groups. I hear the complaints from clients all the time.
04-07-2017, 10:59 AM
#1322
Race Director
Originally Posted by hf1
Must be tough, especially compared to ditch-digging. Is this why there are dozens of Porsche dealerships languishing for sale on Ebay at $1 and no one wants them? 
Welcome to the world of sales. What's new?
There's a reason why some of these dealers are doing ground up rebuilds for $15 million dollars. They make money as they should. That's fine. Don't want to hear any sob stories though.
http://us.blastingnews.com/business/...001578109.html
http://blog.dupontregistry.com/indus...ber-cars-2016/
https://www.bloomberg.com/news/artic...s-up-to-17-250
04-07-2017, 11:03 AM
#1323
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The point I was making was to simply expand the discussion to include some of the real world factors that GM's have to consider when they decide who gets what and at what price.
04-07-2017, 11:04 AM
#1324
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Welcome to the world of sales. What's new?
There's a reason why some of these dealers are doing ground up rebuilds for $15 million dollars. They make money as they should. That's fine. Don't want to hear any sob stories though.
http://us.blastingnews.com/business/...001578109.html
http://blog.dupontregistry.com/indus...ber-cars-2016/
Porsche as a manufacturer is very profitable. That is separate from the individual dealerships.
04-07-2017, 11:06 AM
#1325
Race Director
Originally Posted by DUAlum
The point I was making was to simply expand the discussion to include some of the real world factors that GM's have to consider when they decide who gets what and at what price.
04-07-2017, 11:07 AM
#1326
Race Director
Originally Posted by DUAlum
Porsche as a manufacturer is very profitable. That is separate from the individual dealerships.
Record sales in the USA doesn't translate into profitable dealerships?
Who would be investing $10+ million dollars and not get a return. Don't think ANYONE here will feel sorry for ANY dealer.
Is it a cake walk business? Of course not. What business is??
04-07-2017, 11:15 AM
#1327
Race Director
Originally Posted by DUAlum
Porsche as a manufacturer is very profitable. That is separate from the individual dealerships.
04-07-2017, 11:15 AM
#1328
Rennlist Member
The fact that Porsche MUST sell its cars in the US through this racket is not at all separate from this discussion. Actually, it's essential, as anyone even slightly involved with the markets should know.
04-07-2017, 11:20 AM
#1329
Burning Brakes
Keeping in mind a couple of things:
1) You have a couple customers who have been loyal and bought GT cars or specialty cars from you in the past. You have other clients who have bought a few different 911’s from you over the years. You have many clients who have bought more than one new Porsche (SUV) from you over the years but not more than one 911.
2) You take every car you can get from Porsche. That means all those base Macans that you make nothing on. All “extra” 2016 Panamera Hybrids that you lost money selling. All the extra built cars like Cayman S’s with $100k stickers which you’ll sell for a loss, everything. You do that to try and get one more specialty car.
3) You get the crap shopped out of you on every SUV, where you slug it out over $200 to $500 and people will drive 100 miles to save that $500 bucks. You slug it out over 7 bucks a month on a lease because the even though the guy has been in 3 times and spent a couple hours with you, he called another dealer and showed them the price he beat you up over and they’re willing to do it for 7 bucks less a month.
1) You have a couple customers who have been loyal and bought GT cars or specialty cars from you in the past. You have other clients who have bought a few different 911’s from you over the years. You have many clients who have bought more than one new Porsche (SUV) from you over the years but not more than one 911.
2) You take every car you can get from Porsche. That means all those base Macans that you make nothing on. All “extra” 2016 Panamera Hybrids that you lost money selling. All the extra built cars like Cayman S’s with $100k stickers which you’ll sell for a loss, everything. You do that to try and get one more specialty car.
3) You get the crap shopped out of you on every SUV, where you slug it out over $200 to $500 and people will drive 100 miles to save that $500 bucks. You slug it out over 7 bucks a month on a lease because the even though the guy has been in 3 times and spent a couple hours with you, he called another dealer and showed them the price he beat you up over and they’re willing to do it for 7 bucks less a month.
I'd be curious to know how a typical Porsche Dealership's revenue/profit is divided up. SUV sales, 911 sales, Panamera sales, service, parts etc, and then how much additional profit can they make by selling a handful of special models with a high markup.
If my local dealer decides to add a large markup to the 991.2 GT3 then I'll probably pass on buying a car from them. Not because I'm bitter or don't want to give them business, but my interests will most likely be else where (570S, 997.2 GT3RS, R8, who knows). I'm a very reliable and loyal customer for them. I'm not the one who comes in a haggles every last penny on a discounted Cayenne and then never returns. I don't expect them to go way out of their way to give me some special treatment, but being able to buy a .2 GT3 at MSRP seems like a reasonable request.
04-07-2017, 11:42 AM
#1330
All this chatter. I just want a car. 
04-07-2017, 02:46 PM
#1332
Exactly. And what's missing from this discussion is the fact that dealers make a lot of their profit in the service department. They might make only $500 selling a 4 banger Macan, but then they make a killing on all those $350 oil changes and $400 brake flushes every year. I've valued a number of car dealerships during my career and none of them made their money selling cars. They made their money servicing them and selling things like extended warranties, undercoating, wheel packages, and earning a spread on financing. And every dealer I studied made more profit selling a used car then they did selling a new one.
04-07-2017, 03:06 PM
#1333
Exactly. And what's missing from this discussion is the fact that dealers make a lot of their profit in the service department. They might make only $500 selling a 4 banger Macan, but then they make a killing on all those $350 oil changes and $400 brake flushes every year. I've valued a number of car dealerships during my career and none of them made their money selling cars. They made their money servicing them and selling things like extended warranties, undercoating, wheel packages, and earning a spread on financing. And every dealer I studied made more profit selling a used car then they did selling a new one.
SO true I use to set up merchants to accept credit cards.
And dealers service bays make a ton money .
04-07-2017, 03:06 PM
#1334
Nordschleife Master
Originally Posted by Archimedes
Exactly. And what's missing from this discussion is the fact that dealers make a lot of their profit in the service department. They might make only $500 selling a 4 banger Macan, but then they make a killing on all those $350 oil changes and $400 brake flushes every year. I've valued a number of car dealerships during my career and none of them made their money selling cars. They made their money servicing them and selling things like extended warranties, undercoating, wheel packages, and earning a spread on financing. And every dealer I studied made more profit selling a used car then they did selling a new one.
04-07-2017, 03:23 PM
#1335
Race Director
Originally Posted by Archimedes
Exactly. And what's missing from this discussion is the fact that dealers make a lot of their profit in the service department. They might make only $500 selling a 4 banger Macan, but then they make a killing on all those $350 oil changes and $400 brake flushes every year. I've valued a number of car dealerships during my career and none of them made their money selling cars. They made their money servicing them and selling things like extended warranties, undercoating, wheel packages, and earning a spread on financing. And every dealer I studied made more profit selling a used car then they did selling a new one.