Thank you.Point #2, 3rd Bullet is as follows:
“As a reminder, converted reservations as of January 31, 2021 will account for 50% of the dealer allocation formula, with the remaining 50% weight on competitive registrations and your Ford retail sales as a percentage of the nation.“
Let’s break this down.
”50% of the dealer allocation formula” means that your total number of reservations accounts for half of the weight in the formula. The remaining half is a based on competing registrations and your retail sales percentage. There is nothing in this description that tells us anything about what the actual formula is.
Now, I’m not mathematician, but for all we know the formula is:
Total FY21 Allocations = Converted reservations as of January 31, 2020 + (0.5 x (Total Competitive Registrations x Retail Sales %))
So if I have 100 converted reservations, and there are 2000 competitive registrations in my area, but I only sell 1% of all Fords nationally, then the formula looks like this:
100 + (0.5 x (2000 x 0.01))
Meaning I will actually receive 110 Broncos.... which leaves me 10 extra Broncos for the lot...
Do you see what I mean?
Anyone who claims they can read Point #2, 3rd Bullet, and come to a conclusion about how the formula works, is making some assumptions, or has information not included in the memo.
Sponsored