- First Name
- Chris
- Joined
- Jul 19, 2020
- Threads
- 18
- Messages
- 418
- Reaction score
- 1,096
- Location
- North Carolina
- Vehicle(s)
- Bronco First Edition (Reservation)
- Your Bronco Model
- First Edition
I don’t understand some of these dealers and missing out on several options.
1) selling at invoice creating high volume for your dealership.
2) if you accept a reservation for invoice and that customer backs out between now and delivery, you get a Bronco on your lot that you wouldn’t otherwise have. Sell it for MSRP, mark it up, add accessories etc.
Think about, every Bronco (give or take a few that dealers were able to reserve themselves) is reserved. If you post an “Invoice deal” and get 100 Bronco6g members to send you their reservation. How many will complete the transaction? 90? 80? 70? 60? 50? So any reservation not completed is an extra Bronco your dealership wouldn’t have on the lot.
So fuzz number math, you get 100 reservations.
50 members at $1300 below invoice and x-plan complete the transaction and your dealer makes $500 a Bronco (total guess)
50x$500=$25000 that you wouldn’t have gotten without the deal.
50 members don’t complete the transaction and back out leaving you 50 Broncos on your lot. You sell at MSRP or more!!!!
50x$1800=$90000. (I used the $500 profit off the deal and added in the $1300 off for $1000 under invoice and $300 x-plan).
So in this case, by offering up a deal to this group the potential to make money is there and then some.
All this is a guess but when I sold motorcycles, the owner was very clear he wanted units sold in volume and he’d rather sell 10 bikes at $100 profit then sell 1 bike $1000 profit. Volume gave him better buying power and benefits with Honda.
1) selling at invoice creating high volume for your dealership.
2) if you accept a reservation for invoice and that customer backs out between now and delivery, you get a Bronco on your lot that you wouldn’t otherwise have. Sell it for MSRP, mark it up, add accessories etc.
Think about, every Bronco (give or take a few that dealers were able to reserve themselves) is reserved. If you post an “Invoice deal” and get 100 Bronco6g members to send you their reservation. How many will complete the transaction? 90? 80? 70? 60? 50? So any reservation not completed is an extra Bronco your dealership wouldn’t have on the lot.
So fuzz number math, you get 100 reservations.
50 members at $1300 below invoice and x-plan complete the transaction and your dealer makes $500 a Bronco (total guess)
50x$500=$25000 that you wouldn’t have gotten without the deal.
50 members don’t complete the transaction and back out leaving you 50 Broncos on your lot. You sell at MSRP or more!!!!
50x$1800=$90000. (I used the $500 profit off the deal and added in the $1300 off for $1000 under invoice and $300 x-plan).
So in this case, by offering up a deal to this group the potential to make money is there and then some.
All this is a guess but when I sold motorcycles, the owner was very clear he wanted units sold in volume and he’d rather sell 10 bikes at $100 profit then sell 1 bike $1000 profit. Volume gave him better buying power and benefits with Honda.
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