Patton250

Correct.

nyca

The other thing they do is - perhaps they take you out of the market at other dealers. Some people (I am doing this) want to buy from a specific dealer - they research location, reputation on the internet, if they felt well treated when they went it to ask questions - and set their deposit/order there. Some people don't care where they buy it, they leave deposits/demand orders all over the place, and play the field.

tomshop

What I don’t understand is why Porsche doesn’t allocate or build more cars for US? In other markets they are fairly easy to get. Clearly they could build more cars….just look at Tesla which will deliver close to 2mm cars this years from 500K a few years ago. They will still be able to fill orders at MSRP. All this does is enrich the dealers.

Patton250

Dealerships should definitely become nonprofits. Then we could get more cars. Sorry, couldn’t help it. Your post was that funny.

RatherJaded

My dealer sources have stated that it is intentional as Porsche is moving up market, more boutique like. Their most recent price increase is an example of that. They are attempting to mimic Ferrari.

ctdubl07

I believe there are 3 basic drivers of the price increases none of which are a direct correlation to Porsche trying to mimic another brand:
- cost of build inflation
​​​​​​- consumer demand
- stated intention/need to break 21% per unit margin


On another note, an early poster mentioned seeing pictures of the .2 and not caring for the changes….really? You’re seeing such a dramatic shift in design and sheet metal that the .1 is visually superior?

tmslc

21% gross or net profit margin? on 911's or cumulative (all models)? where did you get those figures?

Schn3ll

And Rolex no doubt.

What conflates this a bit is the fact that Porsche now has an IPO. So shareholders are going to want to see ever increasing profits which is typically accomplished with higher volumes, but in Porsche’s case I think the production capacity is more of a factory limitation than anything - the other lever to pull is price increases (to which us 2024 buyer are all too aware of) 😜

RatherJaded

OT, from the main subject, but Rolex related. I have been waiting over four years for a Panda Daytona via our local AD. I finally threw in the towel and purchased one “preowned” with a very recent warranty card. Prices have come down, but they are still inflated, double vs triple.

nyca

They don't want to expand capacity. I think because they see the looming EV mandates in a few years, when the 911 as we know it today will pretty much vanish, so why would they add plant capacity to produce an ICE powered car? But yes, even though they are selling this car in record numbers, they are losing what could be additional 911 sales - a lot of people just walk away when they hear the lead times and pricing terms. And its not just Porsche, I walked away from a Range Rover Sport purchase a couple of months ago because of similar nonsense - just didn't view the vehicle as "special" enough to continue under the terms, bought a Lexus RX instead - more than enough of a car for everyday use and saved some $$$s. Porsche is going to lose 911 sales because of lack of supply when the new AMG GT coupe starts shipping, that's going to be a 1:1 cross shop for potential 911 buyers.

They sell a lot of 911s in China - actually the best chance the USA has to get more 911s, is for the Chinese economy to blow up.

ctdubl07

Blume has stated this repeatedly over last 3-4 earnings presentations.

https://techcrunch.com/2023/06/29/ho...and-speed/amp/

malba2366

No they’re not. Porsche is going to increase 911 production once the 718 production stops in the factory. The industrial site where the 911 is built is maxed out in capacity, and if Porsche were to build an entirely new factory they would have overcapacity when he market turns downwards.

nyca

I really believe that at the 911 price point, the profit margin is much greater than 21%. This is not a car made from exotic materials or specialized castings (carbon fiber, etc), no hand made interiors, etc. And every upgrade is an added cost option - from a basic sunroof to a better radio to folding mirrors, etc. I thought I had read previously that the 911 is the most profitable mass produced car in the world.

Actually I see it now, 47% profit margin, that's what I expected. Seriously, seeing this, it tells you how poor Porsche demand management for this car is when they are allowing many buyers to walk on a $150K+ purchase with a 47% profit margin, because they don't expand capacity to meet demand.

https://www.motoringresearch.com/car...rofitable-car/

tomshop

How would dealerships become non-profits if they sell more cars at MSRP? Would be more thoughtful on your responses as we should all be on here to be helpful to each other and not make comments like this.

ManOfTheHouse

I’m new to this game. But it seems like Econ / Marketing 101 - When there is a demand for a scarce product, a capitalist seeks to maximize profits by charging what the market will bear. Some factors to consider: Price, timing, availability of desired model, flexibility to substitute desired model, willingness to take existing car with options you wouldn’t order, color, actual allocation for the model your want, willingness to buy what’s here now with hope for future trade, and so on. You can try to maximize every criteria you need, but you’ll probably realize at some point that unicorns don’t exist.

Sure, it’s possible to get the MSRP, but I’d wager you won’t get it soon, and even if you do, it won’t be what you said you really wanted, etc, etc, etc. And each of us has different value weightings on what we must have vs what we can live without.

I’m 74, and due to advanced stage 4 cancer I’m willing to pay an ADM to get the GTS I wanted, and I got an true allocation on the first day I visited my local dealer. Hopefully you don’t have a health situation like mine, so your weighing criteria will be different. But I understand some will be angry and demand the situation needs to be fixed. Frankly I’m very happy to have the choice I have even though it is a compromise financially.

What’s the right price and timing for your dream car this year? What you’re willing to pay!