Dealer Allocation Incentive

[RoadKiller]

I’m curious from a Dealer side. Does the amount of reservations play into effect of how many Bronco a dealer will get? So 2 dealers sell the same amount of cars so equal. But one dealer has 250 reservations because he sells at invoice or below. Other dealer has only 100 reservations sells at MSRP. Is there allocation based on reservations? Or seeing dealers sell same amount of cars still get SAME amount.? In that case they will get more Broncos for lot to jack up price. So they would rather not have reservations. What’s incentive for dealer to take reservations vs waiting for stock to sell at higher price. Does more reservations get a dealer more allocation?

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[NotApplicable]

Yes

 

[Lilj4425]

This is how the allocation process works:

 

[MadMan4BamaNATL]

I’m curious from a Dealer side. Does the amount of reservations play into effect of how many Bronco a dealer will get? So 2 dealers sell the same amount of cars so equal. But one dealer has 250 reservations because he sells at invoice or below. Other dealer has only 100 reservations sells at MSRP. Is there allocation based on reservations? Or seeing dealers sell same amount of cars still get SAME amount.? In that case they will get more Broncos for lot to jack up price. So they would rather not have reservations. What’s incentive for dealer to take reservations vs waiting for stock to sell at higher price. Does more reservations get a dealer more allocation?

This post from you is a bit confusing in how it's written, but I think you'll get some responses as guys try to think through what you're asking.

The Bronco was of course a reservation process, so customers got to pick their own dealer to work with. Do large or volume dealerships benefit from this? Well, yes in a sense because having a larger customer base and/or larger footprint in an area means more people will order through that dealership; in theory.

Thing is with Bronco, many of us (me) are new to Ford and knew nothing really about Ford dealerships, some dealerships have shown behavior with this launch that is unexpected, both good and bad. customers were also able to change their dealership before placing an order and maybe after following complaints to corporate.

Yes, all dealerships get an allocation of vehicles to sale based on several factors some of which I referenced above. Whether or not a dealership's allocation status will influence whether or not your Bronco will be built and delivered faster has been debated here on the forum for over a year.

I'm not sure there have been any definitive conclusions that anyone can call gospel. This will also be debated, but in the end, what unit gets built seems random from a customer perspective and the formula Ford uses is likely a closely held algorithm on purpose to protect business interests.

My point is that these questions and debates can only be considered as entertainment, as the process and influences are not simple math equations.

 

[Gamecock]

I’m curious from a Dealer side. Does the amount of reservations play into effect of how many Bronco a dealer will get? So 2 dealers sell the same amount of cars so equal. But one dealer has 250 reservations because he sells at invoice or below. Other dealer has only 100 reservations sells at MSRP. Is there allocation based on reservations? Or seeing dealers sell same amount of cars still get SAME amount.? In that case they will get more Broncos for lot to jack up price. So they would rather not have reservations. What’s incentive for dealer to take reservations vs waiting for stock to sell at higher price. Does more reservations get a dealer more allocation?

Dealer Allocation:

50% is based on the number of reservations converted to orders as of the cut off date.

50% is based on a formula that weights the dealer’s previous year SUV sales AND number of Wrangler /4Runner registrations in their market.

So in your hypothetical, the dealer with more reservations would get significantly more Broncos, if the other part of the formula were equal.

 

[Headsong]

This is how the allocation process works:

Brilliant!

 

[Last Ride Bronco]

Roughly, and I say roughly, dealers get approximately 30% allocations of number ordered.

 

[2021badlands bronco bob]

 

[Rednek]

Fords allocation model

 

[shieldsy]

This is how the allocation process works:

Subject to change of course at the whim of the Ford Dealer Advisory Board.

 

[Headsong]

To me, the dealers getting units for sale before orders are filled is the biggest pr disaster so far. Someone should rank them and create a poll.

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