Allocation + ADM?
03-11-2021 | 06:13 PM
#361
Intermediate
Joined: Nov 2019
Posts: 47
Likes: 22
Matthew, your comments are objectively true and not arguable Many customers unfortunately think that they are building a relationship with their dealer from buying cars, selling cars, servicing cars, buying parts and accessories from them. Perhaps, in hopes of getting an allocation for a more limited produced car. Dealers have sold cars under MSRP for many many years so making a profit from MSRP wasn’t an issue. So a rational person would think selling a GT car at MSRP would still allow the dealer to make a profit. But as you have said, the dealer would want to capitalize and make as much profit as they could with the knowledge that every car would be sold. It is apparent that customer loyalty only goes one way. However, this is not just limited to Porsche as Ferrari does something similar - they don’t charge ADM’s and instead want you to buy a Portofino or a Lusso if you want an 812 or Pista. In the end you are right, a customer has to do what he is comfortable with - vote with your feet. And I know that you know this but there is Lambo, McLaren and others that don’t do this....
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Matthew Cuomo (03-11-2021)
03-11-2021 | 06:26 PM
#362
Former Vendor
Joined: Jan 2021
Posts: 127
Likes: 40
From: CT & NY
But you are not a client. You are a salesman so I don't think you have that perspective. How do you think a client, who has been on a dealer list with money down for two years is going to react when his allocation is given away to a guy who walks in with 20k above MSRP. Same client supports the dealership and services his cars there. Here is what happens as I have seen it before:
1. The client (Who is the local PCA chapter President) starts bashing the dealership at all the club meetings and recommends buying the cars from the honorable dealership just down the street or an hour away. Dealership loses countless future sales.
2. Same client brings in a reputable Indy as the guest speaker at the next PCA meet or dinner. He gives a nice brief on how he can do the same Porsche service for half the price. Hands out business cards. Gets recommended by PCA president and everyone claps. Dealership service department loses 20 customers.
3. Same client starts trolling dealership facebook and instagram pages, yelp,etc and other social media outlets.
And it doesn't have to be the PCA President.
All so that the dealer can make a few thousand bucks on a few cars that have a limited run anyway. You can play that ADM game, but it will come back to bite your dealership. Watch.
1. The client (Who is the local PCA chapter President) starts bashing the dealership at all the club meetings and recommends buying the cars from the honorable dealership just down the street or an hour away. Dealership loses countless future sales.
2. Same client brings in a reputable Indy as the guest speaker at the next PCA meet or dinner. He gives a nice brief on how he can do the same Porsche service for half the price. Hands out business cards. Gets recommended by PCA president and everyone claps. Dealership service department loses 20 customers.
3. Same client starts trolling dealership facebook and instagram pages, yelp,etc and other social media outlets.
And it doesn't have to be the PCA President.
All so that the dealer can make a few thousand bucks on a few cars that have a limited run anyway. You can play that ADM game, but it will come back to bite your dealership. Watch.
03-11-2021 | 06:38 PM
#363
Rennlist Member
Joined: Dec 2019
Posts: 819
Likes: 588
From: Charlotte, NC
Matthew, your comments are objectively true and not arguable Many customers unfortunately think that they are building a relationship with their dealer from buying cars, selling cars, servicing cars, buying parts and accessories from them. Perhaps, in hopes of getting an allocation for a more limited produced car. Dealers have sold cars under MSRP for many many years so making a profit from MSRP wasn’t an issue. So a rational person would think selling a GT car at MSRP would still allow the dealer to make a profit. But as you have said, the dealer would want to capitalize and make as much profit as they could with the knowledge that every car would be sold. It is apparent that customer loyalty only goes one way. However, this is not just limited to Porsche as Ferrari does something similar - they don’t charge ADM’s and instead want you to buy a Portofino or a Lusso if you want an 812 or Pista. In the end you are right, a customer has to do what he is comfortable with - vote with your feet. And I know that you know this but there is Lambo, McLaren and others that don’t do this....
The reality is the GT3 offers tremendous value at MSRP and it's not a secret......for people that want N/A and RWD, you're down to $240k EVO or $180k R8.....it you want manual.....welp....
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Matthew Cuomo (03-11-2021)
03-11-2021 | 06:52 PM
#364
Racer
Joined: Jul 2010
Posts: 279
Likes: 58
Matthew, your comments are objectively true and not arguable Many customers unfortunately think that they are building a relationship with their dealer from buying cars, selling cars, servicing cars, buying parts and accessories from them. Perhaps, in hopes of getting an allocation for a more limited produced car. Dealers have sold cars under MSRP for many many years so making a profit from MSRP wasn’t an issue. So a rational person would think selling a GT car at MSRP would still allow the dealer to make a profit. But as you have said, the dealer would want to capitalize and make as much profit as they could with the knowledge that every car would be sold. It is apparent that customer loyalty only goes one way. However, this is not just limited to Porsche as Ferrari does something similar - they don’t charge ADM’s and instead want you to buy a Portofino or a Lusso if you want an 812 or Pista. In the end you are right, a customer has to do what he is comfortable with - vote with your feet. And I know that you know this but there is Lambo, McLaren and others that don’t do this....
03-11-2021 | 06:55 PM
#365
Intermediate
Joined: Nov 2019
Posts: 47
Likes: 22
Atlrvr, i was not starting a discussion on NA vs. Turbo or PDK/DCT vs. manual - to each their own taste. No argument that Porsche puts a fantastic product but there are other options. My commentary was related to customer loyalty and that as consumers we have the ultimate choice. I didn’t get a GT3 allocation so ended up buying a new GT3RS that was still in a dealer showroom at a discount. I have cars from other brands as well. But if you don’t want a different buying experience where the dealers welcome you and patiently work with you on your build - there is Lambo and McLaren among others...
03-11-2021 | 07:20 PM
#367
Rennlist Member
Joined: Dec 2019
Posts: 819
Likes: 588
From: Charlotte, NC
I think that's fair. My local Lambo dealer is super laid back and accommodative (they email me whenever they get a new spec in that has options I indicated I'd consider but haven't seen in person to let me to come by before customer picks it up) and I want to buy a car from them because of that. My only point though is that I'm not sure they'd be as customer focused if they had 5x the demand compared to allocations....the rest of that was just me wishing out loud they built that car 
03-11-2021 | 07:40 PM
#368
Rennlist Member
Joined: Jan 2016
Posts: 5,360
Likes: 2,426
From: New Orleans, LA (NOLA)
03-11-2021 | 09:37 PM
#369
Intermediate
Joined: Jan 2016
Posts: 28
Likes: 10
Makes more sense to put the 185K into an S&P 500 growth ETF for the next year -- if you are lucky it turns into 250K then see if you can get one of these at MSRP. Pocket the difference. If not life goes on, or buy a used one. Meanwhile I will enjoy my 991.1
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03-11-2021 | 09:45 PM
#370
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Joined: Jan 2016
Posts: 5,360
Likes: 2,426
From: New Orleans, LA (NOLA)
....but also in VTI for the S&P 500 ETF IRA thing.
But the truth is, a car is not an investment and money is just a tool to get the things we want.
Last edited by subshooter; 03-11-2021 at 09:51 PM.
03-11-2021 | 09:54 PM
#371
Intermediate
Joined: Jan 2016
Posts: 28
Likes: 10
Funny you mentioned that.......I actually did that after I cancelled my Spyder last year but with a bit riskier of an investment in USO. Oil futures went negative last April due to COVID and I couldn't resist. (I love taking advantage of hysteria.....lol) I've made 150% in 11 months now - more than enough to pay for the GT3. Still not going to pay ANY ADM.
....but also in VTI for the S&P 500 ETF IRA thing.
But the truth is, a car is not an investment and money is just a tool to get the things we want.
....but also in VTI for the S&P 500 ETF IRA thing.
But the truth is, a car is not an investment and money is just a tool to get the things we want.
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subshooter (03-12-2021)
03-11-2021 | 10:33 PM
#373
Intermediate
Joined: Nov 2019
Posts: 47
Likes: 22
MrSelfDestruct, I didn’t say that all Porsche dealers suck - just if it doesn’t work for you, one can choose to walk. And that is exactly what you did. And your loyalty in buying numerous cars from that dealer likely enable you to get a GT car. And that is how it is suppose to work.
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Matthew Cuomo (03-12-2021)
03-11-2021 | 10:35 PM
#374
Rennlist Member
Joined: Sep 2017
Posts: 3,437
Likes: 2,271
the investment part obviously comes with some risk but I agree with your attitude- if you don’t get an allocation, life will go on. There will be a ton of them available if you are patient. Enjoy your .1. Cheers.
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BB991 (03-12-2021)
03-11-2021 | 10:39 PM
#375
Intermediate
Joined: Nov 2019
Posts: 47
Likes: 22
That’s a fair point about the demand aspect for the Porsche GT cars. It’s a great product at a reasonable price point. But I would also tell you that there is high demand as well across the Ferrari platform - F8, F8 Spyder, Pista, Pista Spyder, 812SF, 812GTS and the price point there starts at $400k.