A point of contact for SoCal buyers - Kearny Mesa Ford

[Rion]

Please forgive my extreme ignorance here, but when there is no Dealer markup, the dealership still receives a commission from Ford...yes? (As they should. Just trying to clarify commission vs markup)

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[acetdeucy]

I’m in the inland empire. It’s about a 2 hour drive to get down to the SD area

Yeah yeah. Later we’ll meet.

 

[EricAtKearnyMesaFord]

Please forgive my extreme ignorance here, but when there is no Dealer markup, the dealership still receives a commission from Ford...yes? (As they should. Just trying to clarify commission vs markup)

Hey Rion, I can answer that. Dealerships typically make in profit whatever a vehicle is sold for over the invoice price. In the case of selling at MSRP, the profit is the amount between the invoice and MSRP. There are a few other kickbacks dealers get from the manufacturer, but that is the basics of it. The term 'Dealer Markup' in the way it is used on this forum refers to dealerships selling a vehicle for more than MSRP, further increasing that profit margin. That dealer markup is also sometimes called an addendum. Hope that helps!

 

[Rion]

Hey Rion, I can answer that. Dealerships typically make in profit whatever a vehicle is sold for over the invoice price. In the case of selling at MSRP, the profit is the amount between the invoice and MSRP. There are a few other kickbacks dealers get from the manufacturer, but that is the basics of it. The term 'Dealer Markup' in the way it is used on this forum refers to dealerships selling a vehicle for more than MSRP, further increasing that profit margin. That dealer markup is also sometimes called an addendum. Hope that helps!

Thank you for that answer, just what I needed.

let me push it one step further then: I know people typically haggle to get a better deal down from MSRP price. I imagine this is possible when inventory is high or someone is trying to make a quota. Would I be correct in assuming that there is little opportunity to haggle considering we are preordering a custom vehicle?

 

[EricAtKearnyMesaFord]

Thank you for that answer, just what I needed.

let me push it one step further then: I know people typically haggle to get a better deal down from MSRP price. I imagine this is possible when inventory is high or someone is trying to make a quota. Would I be correct in assuming that there is little opportunity to haggle considering we are preordering a custom vehicle?

Even on a typical special order I think it's fair to expect some flexibility in the price. This launch doesn't exactly fit that mold though. I haven't seen anybody post about successfully negotiating with a dealer here in California. There are only a handful of dealers like Grager Ford in Iowa who are offering discounts publicly also. You never know until you try though!

 

[kahunabob]

Eric Bunch
Internet Director
Kearny Mesa Ford
858-560-5544 ext 1013


Hello Eric,

What is your take on all the reservation/fulfillment news over the last day or so? My reservation is with your store...I am not going anywhere!

Just wanted to hear your take on it.

Thanks!

 

[EricAtKearnyMesaFord]

Eric Bunch
Internet Director
Kearny Mesa Ford
858-560-5544 ext 1013


Hello Eric,

What is your take on all the reservation/fulfillment news over the last day or so? My reservation is with your store...I am not going anywhere!

Just wanted to hear your take on it.

Thanks!

Hey Kahuna! Sorry for the radio silence. I'm researching it now and will let you know once I've got my head fully wrapped around it.

 

[GRENDIZER]

Hi, @EricAtKearnyMesaFord -

Following up with you. We've been corresponding via email. But wanted to throw it out here in case your on the forums today. I swapped my reservation over to Kearny Mesa Ford today.

Thanks for being part of our group and answering questions here.

 

[EricAtKearnyMesaFord]

What is your take on all the reservation/fulfillment news over the last day or so? My reservation is with your store...I am not going anywhere!

Just wanted to hear your take on it.

Thanks!

Hey Bob okay I've had some time to think about the announcement and the process Ford has planned for allocation. You asked for my opinion so I'll gladly share it.

First of all, I think the problem of how to prioritize the fulfillment of orders is probably much more complex than us onlookers are aware. Let's say Ford is only able to produce 80,000 units in 2021 (made up number), but has 160,000 people who've reserved one (not a made up number). How do they most effectively distribute those 80,000? Do they do first come first serve? Well that might leave large areas of the US underrepresented. Do they give all dealerships an even number? Well that definitely wouldn't work here in SoCal where over 5% of Bronco reservations are held. So in short, I can appreciate the complexity of the problem they face.

I believe Ford's decision tries to address all facets of the problem. First, reservation priority is still heavily based on where you are in the national reservation list. Some other factors that will determine the number of Broncos given to each dealership are: The number of vehicles sold in a rolling 12mo period (to address volume aspects), the number of competitive vehicles like wranglers and 4runners registered in a 12mo period (to address areas of competition), and lastly the dealership's conversion ratio of Bronco reservations. I don't fully understand that last component. A dealership could theoretically receive more or less units based on something completely out of our control. This ads a layer of complexity to my strategy because I (and we) now have a vested interest in making sure that anybody with reservations who are on the fence either shit or get off the pot. Order cancellations do not count against conversion ratios, but uncontacted or un-submitted orders do.

The good news for our dealership's reservation holders is we are a higher-volume dealer so will benefit from additional allocation based on the volume aspect. We also live in a region with ample competitive registrations. The part I need to figure out is how to best capitalize on the conversion ratio aspect. I'm not sure how to do this yet. It is not in our best interest for me to just convert every order regardless because Ford will be watching for dealerships gaming the system. The best action might be to personally contact everyone on the list as we approach December.

One way or another Bob, I will figure out how to get as much allocation as is possible. That may not satisfy the needs of everyone, but I will still do all that I can.


Eric

 

[Methman]

Hey Bob okay I've had some time to think about the announcement and the process Ford has planned for allocation. You asked for my opinion so I'll gladly share it.

First of all, I think the problem of how to prioritize the fulfillment of orders is probably much more complex than us onlookers are aware. Let's say Ford is only able to produce 80,000 units in 2021 (made up number), but has 160,000 people who've reserved one (not a made up number). How do they most effectively distribute those 80,000? Do they do first come first serve? Well that might leave large areas of the US underrepresented. Do they give all dealerships an even number? Well that definitely wouldn't work here in SoCal where over 5% of Bronco reservations are held. So in short, I can appreciate the complexity of the problem they face.

I believe Ford's decision tries to address all facets of the problem. First, reservation priority is still heavily based on where you are in the national reservation list. Some other factors that will determine the number of Broncos given to each dealership are: The number of vehicles sold in a rolling 12mo period (to address volume aspects), the number of competitive vehicles like wranglers and 4runners registered in a 12mo period (to address areas of competition), and lastly the dealership's conversion ratio of Bronco reservations. I don't fully understand that last component. A dealership could theoretically receive more or less units based on something completely out of our control. This ads a layer of complexity to my strategy because I (and we) now have a vested interest in making sure that anybody with reservations who are on the fence either shit or get off the pot. Order cancellations do not count against conversion ratios, but uncontacted or un-submitted orders do.

The good news for our dealership's reservation holders is we are a higher-volume dealer so will benefit from additional allocation based on the volume aspect. We also live in a region with ample competitive registrations. The part I need to figure out is how to best capitalize on the conversion ratio aspect. I'm not sure how to do this yet. It is not in our best interest for me to just convert every order regardless because Ford will be watching for dealerships gaming the system. The best action might be to personally contact everyone on the list as we approach December.

One way or another Bob, I will figure out how to get as much allocation as is possible. That may not satisfy the needs of everyone, but I will still do all that I can.


Eric

Thank you for the research and information. Does your dealership have the 2021 color book in yet? I stopped by last week and was told it wasn’t in yet... I have to say the lobby was quite chaotic and the woman who I was directed to ask was quite rude and didn’t appear to know what I wanted nor did she appear to care.

 

[Outbound Exploration]

Eric Bunch
Internet Director
Kearny Mesa Ford
858-560-5544 ext 1013


Hello Eric,

What is your take on all the reservation/fulfillment news over the last day or so? My reservation is with your store...I am not going anywhere!

Just wanted to hear your take on it.

Thanks!

I emailed Eric the same thing too! Ford really put everyone in a pinch.... does not put us reservation holders at ease. I'm in the process of hopefully switching to Kearney Mesa but that info dump was not helpful..?

 

[xXChartmanXx]

I emailed Eric the same thing too! Ford really put everyone in a pinch.... does not put us reservation holders at ease. I'm in the process of hopefully switching to Kearney Mesa but that info dump was not helpful..?

You've got 2-3 bonuses going with KM Ford with the way they are doing the allocations.

1 - High Volume Store
2 - Tons of Jeeps and 4Runners sold in SD and SCAL as a whole
3 - Lots of reservations at the dealership (Of course its partly up to Eric and partly up to us who reserved there to turn them into real orders, the more of us that do, the better for all of us)

 

[EricAtKearnyMesaFord]

Thank you for the research and information. Does your dealership have the 2021 color book in yet? I stopped by last week and was told it wasn’t in yet... I have to say the lobby was quite chaotic and the woman who I was directed to ask was quite rude and didn’t appear to know what I wanted nor did she appear to care.

Hey sorry about the experience. I was out of the office last week or I would have been glad to speak with you personally. The reality is that much of the staff still are not well versed on the Bronco yet, hence why I've put myself at the tip of the spear.

I have not received a color book yet, or swatches, or anything really. I had some physical brochures that showed pictures of the colors, but I only had a dozen and they went very quickly. Is your reservation currently with my dealership? I am planning to let everyone know next time I get anything physical that depicts the colors.

Eric

 

[Outbound Exploration]

You've got 2-3 bonuses going with KM Ford with the way they are doing the allocations.

1 - High Volume Store
2 - Tons of Jeeps and 4Runners sold in SD and SCAL as a whole
3 - Lots of reservations at the dealership (Of course its partly up to Eric and partly up to us who reserved there to turn them into real orders, the more of us that do, the better for all of us)

Thanks for the info and @EricAtKearnyMesaFord added a bit of that too in his response to me! I will be bringing both of my reservations to him???

 

[acetdeucy]

Hey Bob okay I've had some time to think about the announcement and the process Ford has planned for allocation. You asked for my opinion so I'll gladly share it.

First of all, I think the problem of how to prioritize the fulfillment of orders is probably much more complex than us onlookers are aware. Let's say Ford is only able to produce 80,000 units in 2021 (made up number), but has 160,000 people who've reserved one (not a made up number). How do they most effectively distribute those 80,000? Do they do first come first serve? Well that might leave large areas of the US underrepresented. Do they give all dealerships an even number? Well that definitely wouldn't work here in SoCal where over 5% of Bronco reservations are held. So in short, I can appreciate the complexity of the problem they face.

I believe Ford's decision tries to address all facets of the problem. First, reservation priority is still heavily based on where you are in the national reservation list. Some other factors that will determine the number of Broncos given to each dealership are: The number of vehicles sold in a rolling 12mo period (to address volume aspects), the number of competitive vehicles like wranglers and 4runners registered in a 12mo period (to address areas of competition), and lastly the dealership's conversion ratio of Bronco reservations. I don't fully understand that last component. A dealership could theoretically receive more or less units based on something completely out of our control. This ads a layer of complexity to my strategy because I (and we) now have a vested interest in making sure that anybody with reservations who are on the fence either shit or get off the pot. Order cancellations do not count against conversion ratios, but uncontacted or un-submitted orders do.

The good news for our dealership's reservation holders is we are a higher-volume dealer so will benefit from additional allocation based on the volume aspect. We also live in a region with ample competitive registrations. The part I need to figure out is how to best capitalize on the conversion ratio aspect. I'm not sure how to do this yet. It is not in our best interest for me to just convert every order regardless because Ford will be watching for dealerships gaming the system. The best action might be to personally contact everyone on the list as we approach December.

One way or another Bob, I will figure out how to get as much allocation as is possible. That may not satisfy the needs of everyone, but I will still do all that I can.


Eric

I'm thinking a BBQ lunch... and a commitment to all people converting to an Order will not have an increase in the deposit that you currently hold! In some cases that is the $100 that was placed at the time of the original reservation... and in the case of the dedicated people that have moved to KMF, it is the Ford authorized $0 (inasmuch as Ford has been the one to coordinate the return of their original deposit).

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