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My local dealers attitude towards MSRP and below dealers

Jjt24

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It actually is theirs. When I gets delivered the dealer gets "charged" for it. Then the dealer sells it to you.
I agree that we should have been able to do it all thru the Ford site and just go to the dealer, sign some documents and drive away.
The reason the Bronco is on their lot is due to a person ordering it. If they're going to charge some ridiculous adm they should disclose that up front. At which point the customer would walk and they would not have "their" Bronco.
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tyrobronco

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I'm curious what type of distribution system you propose would be better? There must be local outlets for sales and service. Are you proposing they should all be factory owned rather than (usually) locally owned? If this is what you are proposing, then how is the dealership model a monopoly? Factory ownership would be considerably more monopoly. Curious what is the reasoning behind your comment, and others who say the same thing.
The Bronco situation was screwed up by Ford.

They NEVER should have done the reservations and ordering process since they were not committed to it 100%. If they had stuck to their current system of sending them to dealerships based off their archaic system and people just start buying them off the lot - a ton of bad feelings never would have happened.

That being said, lying is a bad business practice and businesses that do so should have consequences. The OP's story, at least, they are honest.

What gets me, in this current disaster, is the reservation holder is the whole reason these stealerships even have FEs, or 2-doors, or 2.7 engine models to upcharge on.

Too many of them lied and said, "we will be fair with you" just to get the vehicle to their lot to sell to someone else at a huge profit margin. These places are 100% scummy. Each place should at least hand a finders fee over to the reservation holder as a thank you for giving them this Bronco opportunity.
 

phocion

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The reason the Bronco is on their lot is due to a person ordering it. If they're going to charge some ridiculous adm they should disclose that up front. At which point the customer would walk and they would not have "their" Bronco.
Yep, Ford set up a poisonous incentive structure here. The dealership is incentivized to have the original reservationist walk away, so they can sell a massively marked up truck. Basically they are incentivized to treat the reservation holder like crap.

One of many flaws in the way Ford set up this scheme. While Ford never could have predicted some of the twists and turns in the Bronco rollout, the reservation system was massively under-designed from the beginning.
 

goatman2

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The Bronco situation was screwed up by Ford.

They NEVER should have done the reservations and ordering process since they were not committed to it 100%. If they had stuck to their current system of sending them to dealerships based off their archaic system and people just start buying them off the lot - a ton of bad feelings never would have happened.

That being said, lying is a bad business practice and businesses that do so should have consequences. The OP's story, at least, they are honest.

What gets me, in this current disaster, is the reservation holder is the whole reason these stealerships even have FEs, or 2-doors, or 2.7 engine models to upcharge on.

Too many of them lied and said, "we will be fair with you" just to get the vehicle to their lot to sell to someone else at a huge profit margin. These places are 100% scummy. Each place should at least hand a finders fee over to the reservation holder as a thank you for giving them this Bronco opportunity.
Yep, Ford set up a poisonous incentive structure here. The dealership is incentivized to have the original reservationist walk away, so they can sell a massively marked up truck. Basically they are incentivized to treat the reservation holder like crap.

One of many flaws in the way Ford set up this scheme. While Ford never could have predicted some of the twists and turns in the Bronco rollout, the reservation system was massively under-designed from the beginning.
I think you folks are missing a big point. Sure, there have been some abuses of the system by bad actors, but it hasn't been the rule, it's been the exception. BTW, we have an important principal in any business I'm involved in, we don't make procedures and policy based on the exceptions. What you are missing is dealerships would have received the same amount of Broncos with or without the reservation system, since every Bronco built would go to a dealership. Without all of the pre-orders and reservations we would all be stuck paying market price for our Broncos off of the lot. Nearly everyone on this forum is getting a Bronco at a lower price than if there had not been a reservation system.

So, sure, Ford and other car companies are trying new strategies. Tons of things that happen in life and business turn out not as good as it was planned. There are things that could not be planned for (Covid and parts shortages, shipping problems) and plenty of things Ford has learned and would likely change the next time.

It blows my mind how many people have basically pointless bitches mostly because they are not getting what they want. Some of you need to take the red pill and get some reality and a life. :giggle:

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I think you folks are missing a big point. Sure, there have been some abuses of the system by bad actors, but it hasn't been the rule, it's been the exception. BTW, we have an important principal in any business I'm involved in, we don't make procedures and policy based on the exceptions. What you are missing is dealerships would have received the same amount of Broncos with or without the reservation system, since every Bronco built would go to a dealership. Without all of the pre-orders and reservations we would all be stuck paying market price for our Broncos off of the lot. Nearly everyone on this forum is getting a Bronco at a lower price than if there had not been a reservation system.

So, sure, Ford and other car companies are trying new strategies. Tons of things that happen in life and business turn out not as good as it was planned. There are things that could not be planned for (Covid and parts shortages, shipping problems) and plenty of things Ford has learned and would likely change the next time.

It blows my mind how many people have basically pointless bitches mostly because they are not getting what they want. Some of you need to take the red pill and get some reality and a life. :giggle:

Cheers! Happy New Year! 🍻
Your insights based on your direct dealership management experience should be reviewed and absorbed by a lot of people here. I have been saying basically the same things but not with the precision you have. I do think the cyber launch/direct reservation is somewhat in conflict with the franchise dealership distribution model. What made the Bronco launch and direct reservation/order scheme defective in this case was the COVID pandemic. I think the MIC top issue was more related to COVID than most think rather than a poor engineering effort. The MIC top along with other COVID-impacted supply issues led to the problems we've seen thus far. Had the original plan been executable without COVID impacts, I doubt there would be many dissatisfied customers.

Having the benefit of hindsight now, it would have been better for Ford to have punted on the reservation scheme and saved it for a future model launch once COVID was in the books. To gin up a reservation system with COVID looming in the background was a bad business decision looking back at it. However, as a businessperson I completely understand the desire to push forward with the original plan devised before COVID hit. What we have witnessed is a company making business decisions to modify their plan as the situation changed, which were intended to keep the investors happy, the dealers happy, and the customer base happy; adults know that means compromises all around and no one gets exactly what they want. No one gets their present on their birthday; it just sometimes happens that way...
 

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These greedy pigs will be the first ones screaming about "buy local" when the market craters and people are using the internet to buy from mega dealers. I would make it a point to show up in my Bronco and just laugh at them.
 

Last Ride Bronco

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Dealerships that are smart sell at “good/fair” prices and make up adm by selling volume. Additionally, local dealerships want to treat you right so you will have maintenance and repair done at their dealership (which is where the real money is made).
 

SmellzLikeYeti

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The dealers are stupid. Imagine how much clout their dealer would get if they sold locally and had Broncos driving around. It is almost hilarious that all the dealers with markup have the same Bronco sitting now for months and months. I was lucky to get one at MSRP at a dealer who understands this mentality. It was a dealer order and the first thing I asked, "are you gouging it?". They replied with "No we don't do that here, we want to run a business not a flipping company."
 

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I think you folks are missing a big point. Sure, there have been some abuses of the system by bad actors, but it hasn't been the rule, it's been the exception. BTW, we have an important principal in any business I'm involved in, we don't make procedures and policy based on the exceptions. What you are missing is dealerships would have received the same amount of Broncos with or without the reservation system, since every Bronco built would go to a dealership. Without all of the pre-orders and reservations we would all be stuck paying market price for our Broncos off of the lot. Nearly everyone on this forum is getting a Bronco at a lower price than if there had not been a reservation system.

....
Except for your core premise being complete bullshit, this sounds almost plausible. Sure, every Bronco would go to a dealership, likely the very ones they are at currently. You conveniently leave out the important part. Many people who have the reservations have invested a great deal of time and are emotionally involved. They were promised to be first and all that. If they had to shop on the lot, they would be able to move to any dealer they wanted, they wouldn't be stuck with a single dealer that knows they have a captive audience. People cannot move to another dealer to compete without tossing the benefits of a reservation they have held for over a year in most cases. Dealer are well aware that unless they give up and start over, the final consumer has to pay the ADM toll as they are locked in. What Ford has done is combine the worst possible combination for the final consumer in the process they have in place. The expected results are happening, extending the ADM (instead of the well-healed getting all of them at the start and then the pricing coming down quickly for the normal folks). So yes, market price, then fades to normal pricing if they had no reservation system, however reservation system means a captive audience for the dealers, which force them to give up the time they have invested or pay, you would not have the time invested in a strictly allocation deal, people would not feel pressured and would walk.

Unless you want to convince folks that the time they spent dreaming, waiting, not making interest on earnest money, price protections, Ford Points, etc. is worth nothing and that giving up the reservation is a zero loss move?

edit; short version; people are psychologically predisposed to not give up sunk costs, that is the allure of gambling. Had people known at the time of reservations about Ford changing the whole deal with allocations, how many do you think would have put money down on a reservation 13 months ago? They also would have looked into allocations, chose the most reasonable wait time for them against prices and so forth and it would have balanced out the wait for all dealerships. Ford chose, repeatedly, to do the worst thing they could do for the reservations holders each and every decision.
 
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Garemlin

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Dealerships that are smart sell at “good/fair” prices and make up adm by selling volume. Additionally, local dealerships want to treat you right so you will have maintenance and repair done at their dealership (which is where the real money is made).

That's the bad part. This dealer's service department is really good. I've had my previous Fords serviced there. After this lousy attitude I don't really want to give them any of my business. But the next closest Ford dealer is over a half hour away and I don't like them one bit. Next one's are almost an hour beyond that.
 

goatman2

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Except for your core premise being complete bullshit, this sounds almost plausible. Sure, every Bronco would go to a dealership, likely the very ones they are at currently. You conveniently leave out the important part. Many people who have the reservations have invested a great deal of time and are emotionally involved. They were promised to be first and all that. If they had to shop on the lot, they would be able to move to any dealer they wanted, they wouldn't be stuck with a single dealer that knows they have a captive audience. People cannot move to another dealer to compete without tossing the benefits of a reservation they have held for over a year in most cases. Dealer are well aware that unless they give up and start over, the final consumer has to pay the ADM toll as they are locked in. What Ford has done is combine the worst possible combination for the final consumer in the process they have in place. The expected results are happening, extending the ADM (instead of the well-healed getting all of them at the start and then the pricing coming down quickly for the normal folks). So yes, market price, then fades to normal pricing if they had no reservation system, however reservation system means a captive audience for the dealers, which force them to give up the time they have invested or pay, you would not have the time invested in a strictly allocation deal, people would not feel pressured and would walk.

Unless you want to convince folks that the time they spent dreaming, waiting, not making interest on earnest money, price protections, Ford Points, etc. is worth nothing and that giving up the reservation is a zero loss move?

edit; short version; people are psychologically predisposed to not give up sunk costs, that is the allure of gambling. Had people known at the time of reservations about Ford changing the whole deal with allocations, how many do you think would have put money down on a reservation 13 months ago? They also would have looked into allocations, chose the most reasonable wait time for them against prices and so forth and it would have balanced out the wait for all dealerships. Ford chose, repeatedly, to do the worst thing they could do for the reservations holders each and every decision.
You're putting way more into my comment than what I said, and what I was responding to. I was responding the comment that dealers wouldn't have so many Broncos to mark up with out the reserve system, which is not true. Every Bronco that gets built would go to a dealership, that was my point. I made no comment regarding the reservation system, or people waiting a long time to get their Bronco. I simply said that if there was no reservation system, there easily would be and could be ADM, and the reservation system at least guaranteed that most of us got a Bronco without ADM.

Also, you're comment about no advanced notice that dealership allocation would be involved is not true. It is clearly documented that in Sept of 2020 Ford announced that the reservation dates would be subject to parts availability AND individual dealership allocation. Most of you continue to insist that no such announcement is applicable, but it was clearly made and in my view some of the dealerships that took WAY more orders than they had any real expectation of being able to fill knew that allocation would play a part in filling orders and did not disclose this to their customers.

We're beating a dead horse here. I think what I think, with good reason.
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