Anybody a little worried about our warranty on the 997s...
05-28-2009, 10:29 PM
#32
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somebody help me here. how does having fewer dealerships save them that much money? i'm being serious. nearly all of the compensation from pcna/pag is based on volume whether it's one giant dealership or many small ones. they gain very little wrt economy of scale.
the largest issue facing the dealership network wrt PAG is credit risk which IS reduced with fewer dealers but theoretically, that's already very bad and the creditors want to keep the dealers afloat until they're paid off. with a well run distribution channel such as porsche's, they don't face the same issue - or at least not on the same scale.
my bad if i'm being dumb here but the issues with the GM/chrysler were driven by **** poor dealerships they wanted to eliminate and they had become over distributed with the marginal cost of dealerships exceeding the marginal value of their existance.
signed,
i dont' get it
the largest issue facing the dealership network wrt PAG is credit risk which IS reduced with fewer dealers but theoretically, that's already very bad and the creditors want to keep the dealers afloat until they're paid off. with a well run distribution channel such as porsche's, they don't face the same issue - or at least not on the same scale.
my bad if i'm being dumb here but the issues with the GM/chrysler were driven by **** poor dealerships they wanted to eliminate and they had become over distributed with the marginal cost of dealerships exceeding the marginal value of their existance.
signed,
i dont' get it
05-29-2009, 12:40 AM
#33
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Brendo
You almost answered your own question. To simplify:
Volume- is gone. Effectively; there are not enough clients to go around.
Production- reduced dramatically. although if you peek around the nation, depending on the car, you *might* think that's not the case. But to the trained eye, you're noticing a drastic difference in inventories, nationally.
Business; evolved. Its in the manufactorers best interested to somehow 'save' and 'maintain' a certain level of sales; therefore they must trim some fat. Too many dealers.
And last peice of the puzzle; the entire dealer network, for the most part; is making sh*t for profit. The stronger, better franchises should benefit from their investments with facility and caliber of employee. They deserve to make a better living then the sh*t ones.
But unfortunately- and I mean this with blunt honesty and respect:
Porsche and the rest of the manufactorers can't trust YOU the client to seek out the better dealers. You guys have been doing business with whomever for the past several years. And PCNA and the rest have enjoyed it. Now with pressure from the 'better' dealerships- they must conceed that the sh*t dealerships must die.
Healthier, more professional dealer network, yield more consistant sales.
Simple successful business model.
You almost answered your own question. To simplify:
Volume- is gone. Effectively; there are not enough clients to go around.
Production- reduced dramatically. although if you peek around the nation, depending on the car, you *might* think that's not the case. But to the trained eye, you're noticing a drastic difference in inventories, nationally.
Business; evolved. Its in the manufactorers best interested to somehow 'save' and 'maintain' a certain level of sales; therefore they must trim some fat. Too many dealers.
And last peice of the puzzle; the entire dealer network, for the most part; is making sh*t for profit. The stronger, better franchises should benefit from their investments with facility and caliber of employee. They deserve to make a better living then the sh*t ones.
But unfortunately- and I mean this with blunt honesty and respect:
Porsche and the rest of the manufactorers can't trust YOU the client to seek out the better dealers. You guys have been doing business with whomever for the past several years. And PCNA and the rest have enjoyed it. Now with pressure from the 'better' dealerships- they must conceed that the sh*t dealerships must die.
Healthier, more professional dealer network, yield more consistant sales.
Simple successful business model.
05-29-2009, 11:05 PM
#34
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i guess i still don't get it. porsche is not overdistributed. they could increase the overall quality of the dealership network but compared to their peers, they do not have a problem.
what is the incremental $$ savings associated with having fewer dealerships?
chris - i do agree with your perception that the stronger franchises from a service POV will / should survive.
what is the incremental $$ savings associated with having fewer dealerships?
chris - i do agree with your perception that the stronger franchises from a service POV will / should survive.
05-30-2009, 11:14 AM
#35
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I know I can't put it on a spread sheet, but to those who are well versed in Sales, - you understand that the difference between mediocre sales technique and Professional Sales is literally -black and white-.
To put it another way; Automakers have spent hundreds of millions in advertising, incentives and cash back- all to bring people in the door of the dealership and sell cars.
Yet, at the end of the day; It boils down to the Sales Person whether or not the car is sold.
that variable they cannot control; no matter how much they'd like to or try. It's human interaction. 20/80 rule.
They're just attempting to push 'more' business towards the upper crust in performance- which will yield a healthier client base and retention.
aka: stronger relationships yield better results.
To put it another way; Automakers have spent hundreds of millions in advertising, incentives and cash back- all to bring people in the door of the dealership and sell cars.
Yet, at the end of the day; It boils down to the Sales Person whether or not the car is sold.
that variable they cannot control; no matter how much they'd like to or try. It's human interaction. 20/80 rule.
They're just attempting to push 'more' business towards the upper crust in performance- which will yield a healthier client base and retention.
aka: stronger relationships yield better results.
