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People made jokes like this about horse-less carriages once upon a time, too.
Progress surprises most people. The more stale and entrenched the incumbents, the bigger their surprise will be.
He claims to have a fix on who the people are who are flipping his machines. And he wont sell to them. No details on how he plans to do that. And I wonder if he thinks, perhaps, the biggest flippers are his dealers. And, might that say something about allocations?
So, while he cannot legally directly control the price, IMO, he does have his hand firmly on the controls of something just as effective on price - supply. Which may be where he's going. Pure guess.
.........he does have his hand firmly on the controls of something just as effective on price - supply. Which may be where he's going. Pure guess.
I think this lines up with has been publicly expressed in the past- Production of the .2 will meet demand. Once we have a "healthy" relationship between supply and demand, there will be no room for the flippers.
People made jokes like this about horse-less carriages once upon a time, too.
Progress surprises most people. The more stale and entrenched the incumbents, the bigger their surprise will be.
I'm obviously not anywhere near cut from the cloth of the average car dealer let alone porsche dealer and and into the double digits in terms of "stern reminders" for speaking out too loudly and complaining about other dealers. So I'll leave it at that.
CJ, you're doing it great! People want to support you because of your candor and transparency. I really hope people are supporting your dealership with their non-GT purchases as well. There was another very well known man and Porsche dealer that was beloved by customers and loathed by other dealerships and often butted heads even with the mothership. That man and dealership was the famous (sometimes infamous depending on view) was none other than the highly esteemed Vasek Polak! In my opinion, there are many parallels between the two of you. You having your own race team and a small dealership that larger dealerships are beginning to fear (complain about) is a real testament to how you're running your program. Honestly, I hope you don't change anything, because you just keep it real!
Originally Posted by mdrums
VIP program or whatever has NOTHING to do with this....a Porsche dealer can sell a product (1 on 1 negotiations in person, on phone, in email) for whatever they want to.
A manufacture can not tell a dealer what to sell something for. They can say what it can be advertised for but not what it is sold for...very illegal in the USA. That is price fixing, anti trust collision and all. I deal with this a lot in my business as a manufacture rep selling to dealers/stores. I've had more coaching with attorneys than I need on this.
So maybe you all are not getting it...and I'd think there would be some very astute business people here...maybe not...but...
Example: you own a store...
you are authorized to buy and sell a manufactures product.
Signed dealer agreements and all.
You order the product...pay for it or it's on a payment plan...
There is a MSRP (manufacture SUGGESTED retail price) Suggested is the key and legal word here...
someone walks in to by the product...you can legally sell it for a $1 if you want...or you can sell it well over MSRP...there is NOTHING LEGALLY the manufacture can do about it.
You just can't advertise it lower than a price the manufacture sets forth...that is the MAP (minimum advertised price) law if a manufacture has MAP on it's products.
What you said is all true. However, Porsche holds the ultimate hand, they give out the allocations. If they don't like how a dealer is conducting themselves, they can withhold allocations and that is absolutely legal. A very good example of this is a petfood store that I go to carries a food brand called Instinct. They are a discount food outlet. They offset lower prices by increasing volume sales. Well it must have cut well into the nearby Petco and Petsmart sales, because they received threats from the parent company of Instinct that they'd lose the ability to sell their products. They responded by instituting a "rewards" program and for every $10 spent on their product, you received a $1 reward towards the purchase of any non-food item (leashes, toys, meds) in the store to be used only on the same visit. Eventually, even that program ended because once again Instinct stepped in.
Originally Posted by ipse dixit
Can you imagine how much higher GT car prices would be if the only dealer in the U.S. was Porsche?
At least now we can go to supposedly "good" dealers like Sonnen versus supposedly "bad" dealers like AutoGallery and at least in theory there would be a competitive landscape.
If there was a complete, perfect monopoly, then what? If you wanted a GT3, and Porsche decided to sell all GT3s at 500k, what would members like usctrojanGT3 do? There'd be no one to bash -- there'd be no "stealerships" or perhaps everyone would be a "stealership."
How fun would that be? This forum might die and wither on the vine.
(And lets not forget, there are some of us here who buy regular 911s, or 911 Turbos, or (gasp!) a Panamera. Imagine buying all of those cars at whatever price Porsche set without any ability to bargain or negotiate? Not even for a free keychain or clear LED sidemarkers?)
#PassNoThankYou
Imagine that, people would have to actually talk about things like modifications to suspension, or exhausts or DIY's or god forbid, track days! Oh no, an entire forum full of guys like TRAKCAR! NIZER and MOOTY oh no!!!
What you said is all true. However, Porsche holds the ultimate hand, they give out the allocations. If they don't like how a dealer is conducting themselves, they can withhold allocations and that is absolutely legal. A very good example of this is a petfood store that I go to carries a food brand called Instinct. They are a discount food outlet. They offset lower prices by increasing volume sales. Well it must have cut well into the nearby Petco and Petsmart sales, because they received threats from the parent company of Instinct that they'd lose the ability to sell their products. They responded by instituting a "rewards" program and for every $10 spent on their product, you received a $1 reward towards the purchase of any non-food item (leashes, toys, meds) in the store to be used only on the same visit. Eventually, even that program ended because once again Instinct stepped in.
Imagine that, people would have to actually talk about things like modifications to suspension, or exhausts or DIY's or god forbid, track days! Oh no, an entire forum full of guys like TRAKCAR! NIZER and MOOTY oh no!!!
Yes correct..but I was never talking about or referring to allocations...yes totally legal. I was only speaking of dealer pricing...above or below msrp. Oh yeah and I prefer the guys like TrakCar, Nizer and Mooty...much more interesting and fun guys.
[QUOTE=ScottKelly911;14451273]CJ, you're doing it great! People want to support you because of your candor and transparency. I really hope people are supporting your dealership with their non-GT purchases as well. There was another very well known man and Porsche dealer that was beloved by customers and loathed by other dealerships and often butted heads even with the mothership. That man and dealership was the famous (sometimes infamous depending on view) was none other than the highly esteemed Vasek Polak! In my opinion, there are many parallels between the two of you. You having your own race team and a small dealership that larger dealerships are beginning to fear (complain about) is a real testament to how you're running your program. Honestly, I hope you don't change anything, because you just keep it real!
I'm off topic here ... bought my first Porsche from Vasek. Great dealer and store. Back in those days when you bought a car from Vasek they would assign a mechanic to work on your car. Steve McQueen and i had the same mechanic. Would run into him every once in a while and talk cars.
09-01-2017, 10:39 AM
