Reservation vs. Walk in order

[NewBootGoofin]

So I am new here, been reading through all the threads and I am a full blown rookie here.

So I Understand that there are reservation holders and there are people who just place orders, I am in the walk in order group. These are the two groups, one promised to get them before the other, but it seems allocations are all over the place. Is there really a difference??

Also, why are new models, like the raptor, already delivering when there is such a backlog?

I only ask these questions because my dealership gives me little insight to anything, they give me answers more vague then the call center for Ford.
(The only concern for me and the delay is my in-high demand used truck offering me shit tons of money for trade in is going down as the used car market slows down/Stabilizes.)

-NewBoot

Sponsored

 

[Jhopkinson]

Allocation is the driving factor, then constraint, then reservation.

 

[HoosierDaddy]

The way it looks right now, Ford has stopped taking orders for 2022 and is trying to clear the backlog of reservations as evidenced by the recently announced increase in allocations and cut back in dealer stock builds.

There is strong speculation that they are doing this NOT because of customer loyalty, but because those backlogged Broncos that have price protection are getting more costly to Ford every day due to current inflation levels.
It might be getting close to the point that the price protection will start making losers for them.

Using that speculation, one could expect to start seeing those early reservation builds getting picked more now ..... though it will still take at least ALL of this remaining model year and into next to work through the backlog.
PLUS, the 2023my will have a lot of fence sitters getting into the game if the options change for the better .... like the Body color painted Modular Hard top becoming available, as an example.

 

[frankk]

In a nutshell, Ford announced a relaunch of the Bronco. Many fans hung on Ford's every word leading up to the launch. The launch, originally scheduled for March 2020, included a new reservation process where customer would pay $100 to reserve their place in line. Ford stated clearly that the reservation timestamp would drive the order in which Broncos were produced. The launch was later postponed until July.

On the evening of July 13, during the launch, the reservation system was opened. Literally tens of thousands of people tried to register. The system was overloaded and was up and down but people persisted to get their reservation. Ford received over 100K reservations.

Ford delayed production and sent reservation holders apologies and some incentives. When they started producing Broncos they had severe limitations in parts, specifically the hard tops. Reservation holders were further frustrated by these delays. Later these tops were found defective and Ford wound up replacing them. This entailed holding thousands of built reservation holder's Broncos at the plant while new tops were produced.

Later Ford changed the dealer allocation system so larger dealers got more Broncos. This started to really skew the promise that 'reservation timestamp determines order of production'.

Shortly after that, new orders stated to slide in front of reservation holders. It became clear that Ford was not honoring their promise, and that reservation timestamps meant little or nothing.

Today's build process, with bronco6g's build week threads, gives a lot of transparency into the process and its clear that timestamps are ignored. Reservation holders from July 2020 are being bumped while new orders with the same configurations were being built.

People stated thinking that Ford was taking advantage of reservation holders because they knew they were loyal and would endure. Look at what they already dealt with. Most people felt this was hardly fair.

This is the backstory on reservations. There's more frustration with ice mountain, etc. But that impacts everyone so not a reserve vs walkin issue.

 

[babraunagel]

In a nutshell, Ford announced a relaunch of the Bronco. Many fans hung on Ford's every word leading up to the launch. The launch, originally scheduled for March 2020, included a new reservation process where customer would pay $100 to reserve their place in line. Ford stated clearly that the reservation timestamp would drive the order in which Broncos were produced. The launch was later postponed until July.

On the evening of July 13, during the launch, the reservation system was opened. Literally tens of thousands of people tried to register. The system was overloaded and was up and down but people persisted to get their reservation. Ford received over 100K reservations.

Ford delayed production and sent reservation holders apologies and some incentives. When they started producing Broncos they had severe limitations in parts, specifically the hard tops. Reservation holders were further frustrated by these delays. Later these tops were found defective and Ford wound up replacing them. This entailed holding thousands of built reservation holder's Broncos for at the plant while new tips were produced.

Later Ford changed the dealer allocation system so larger dealers got more Broncos. This started to really skew the promise that 'reservation timestamp determines order of production'.

Shortly after that, new orders stated to slide in front of reservation holders. It became clear that Ford was not honoring their promise, and that reservation timestamps meant little or nothing.

Today's build process, with bronco6g's build week threads, gives a lot of transparency into the process and its clear that timestamps are ignored. Reservation holders from July 2020 are being bumped while new orders with the same configurations were being built.

People stated thinking that Ford was taking advantage of reservation holders because they knew they were loyal and would endure. Look at what they already dealt with. Most people felt this was hardly fair.

This is the backstory on reservations. There's more frustration with ice mountain, etc. But that impacts everyone so not a reserve vs walkin issue.

As sad as it may be, it's a beautiful synopsis.

 

[NewBootGoofin]

The way it looks right now, Ford has stopped taking orders for 2022 and is trying to clear the backlog of reservations as evidenced by the recently announced increase in allocations and cut back in dealer stock builds.

There is strong speculation that they are doing this NOT because of customer loyalty, but because those backlogged Broncos that have price protection are getting more costly to Ford every day due to current inflation levels.
It might be getting close to the point that the price protection will start making losers for them.

Using that speculation, one could expect to start seeing those early reservation builds getting picked more now ..... though it will still take at least ALL of this remaining model year and into next to work through the backlog.
PLUS, the 2023my will have a lot of fence sitters getting into the game if the options change for the better .... like the Body color painted Modular Hard top becoming available, as an example.

There is not a big loss lead on the cost factor, their margin is high enough not to be fully impacted, but the increase in cost will impact the stock price and Dividend payout. I do see the fact that the longer the Res, the more it cost Ford overall due to all the increases, but they locked in all those prices at the time of build with there suppliers. Their suppliers are taking the hit. I know we are seeing a reduction in Container shipping and intemodal shipping cost accross all supply chain sectors, this would be the perfect to focus on shipping to save money before it goes back up in 7 months.

 

[NewBootGoofin]

In a nutshell, Ford announced a relaunch of the Bronco. Many fans hung on Ford's every word leading up to the launch. The launch, originally scheduled for March 2020, included a new reservation process where customer would pay $100 to reserve their place in line. Ford stated clearly that the reservation timestamp would drive the order in which Broncos were produced. The launch was later postponed until July.

On the evening of July 13, during the launch, the reservation system was opened. Literally tens of thousands of people tried to register. The system was overloaded and was up and down but people persisted to get their reservation. Ford received over 100K reservations.

Ford delayed production and sent reservation holders apologies and some incentives. When they started producing Broncos they had severe limitations in parts, specifically the hard tops. Reservation holders were further frustrated by these delays. Later these tops were found defective and Ford wound up replacing them. This entailed holding thousands of built reservation holder's Broncos at the plant while new tops were produced.

Later Ford changed the dealer allocation system so larger dealers got more Broncos. This started to really skew the promise that 'reservation timestamp determines order of production'.

Shortly after that, new orders stated to slide in front of reservation holders. It became clear that Ford was not honoring their promise, and that reservation timestamps meant little or nothing.

Today's build process, with bronco6g's build week threads, gives a lot of transparency into the process and its clear that timestamps are ignored. Reservation holders from July 2020 are being bumped while new orders with the same configurations were being built.

People stated thinking that Ford was taking advantage of reservation holders because they knew they were loyal and would endure. Look at what they already dealt with. Most people felt this was hardly fair.

This is the backstory on reservations. There's more frustration with ice mountain, etc. But that impacts everyone so not a reserve vs walkin issue.

So the moral of this story is that they are trying to adapt to the high demand and shortage issues, but doing it the wrong way... In fact, they are making things worse. I will check out the build weeks thread to understand this process more. I work in Supply Chain Logistics, so I love understanding where all the issues are so I don't repeat the mistakes/issues.

 

[TripleB]

Waiting 18-24 months to pay MSRP vs paying $10,000+ markup for now

 

[Bob 07064]

in my signature is my story. My first build I waited little over a year to have the rug pulled out from under me. On this one, I ordered it on 11/28 and its being built today so I should have it by 1st week in may

 

[InTheShift]

Welcome to the board, Lieutenant!

 

[NewBootGoofin]

Welcome to the board, Lieutenant!

I wasn't an officer, I worked for living. hahaha.

 

[NewBootGoofin]

My dumb ass made the mistake of just now looking at the tracker, its all over the place...

 

[HeliPilot]

Waiting 18-24 months to pay MSRP vs paying $10,000+ markup for now

I was ok with this scenario. Dealer had the exact build that I wanted. They bought my used truck for what I paid new off the lot. In the end, I got my trade paid off, and I walked out the door in my new bronco after tax, title and tags for $300 over MSRP. It was a total win in my book.

 

[frankk]

So the moral of this story is that they are trying to adapt to the high demand and shortage issues, but doing it the wrong way... In fact, they are making things worse. I will check out the build weeks thread to understand this process more. I work in Supply Chain Logistics, so I love understanding where all the issues are so I don't repeat the mistakes/issues.

From an operational perspective, it seems Ford's leadership principle is to isolate anything associated with a problem to its own segment and keep moving forward with the main business, then address the problem segment over time, at its own priority.

A recent example is ice mountain. Take all the [thousands of] Broncos without chips and park them in a yard then take 4-5 months to clear the yard while you keep the main business (production line) moving.

This is kind of what they did to reservation holders. Segment them off to the side and slowly work them into the main flow. This gives them a reasonable turnaround time for new orders but elongates the time it takes for reservation holders to get their build.

They start building a healthy model for the future at the expense of the very people who put them in a position for success -- their fan base (also violating a significant public commitment they made to their fans, i.e., timestamps).

Edit: @NewBootGoofin, from an operational logistics perspective, do you agree with Ford's approach, to isolate a segment of thousands to keep tens of thousands happy or do you think the dissatisfaction rubs off on the whole community? I feel this is a lot harder to answer today than it was back when Ford grew up -- no internet so individual customers were in the dark.

 

[da_jokker]

Just so I understand it correctly, you can not Actually order a Bronco right now correct?

For example say I got tired of waiting for my reservation and just walked into a high volume dealer and agreed to be ripped off with ADM.... They would not even be able to place the order right?

Sponsored