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The Bronco - A Social Case

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As folks are so willing to pay above MSRP for a truck, why wouldn't Ford or any other auto manufacturer use the Bronco as an example of a new business model?
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It's not a new business model. Low supply to keep price up is nothing new, Ford is just not doing it on purpose and it's not their business model.

If there were 20 Broncos on every lot there would be no mark ups. People want what they can't have.
 

Bender

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It's not a new business model. Low supply to keep price up is nothing new, Ford is just not doing it on purpose and it's not their business model.

If there were 20 Broncos on every lot there would be no mark ups. People want what they can't have.
Yeah, the markups are helping the dealers, whereas Ford would prefer to sell enough Broncos to meet demand at any price above invoice.
 

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Well, for one, Ford doesn't make a single dime on a dealer selling over MSRP.
They make money by volume sales of key products.

What a manufacturer generally wants is:

1 - hot new product, sells for over MSRP due to demand.
2 - industry buzz about hot new product = free advertising.
3 - actually meet demand within 4-6 months, while also benefiting from all the free advertising.
4 - Crazy prices for a "Halo" product used to actually drive foot traffic to the dealership. Drive over to look at the awesome $120k BOSS Mustang, and there is a decent chance you get talked into a nice GT or Ecco-boost Mustang while you are there, because getting people in the door is gold.

In a situation like this, it hurts Ford's Brand.

A - Dealers come across as money-grubbing sleazeballs.
B - "Bob's Ford Dealership" has a big giant Blue Oval on the sign, so it reflects back on FoMoCo.
C - All the buzz and news about how "they can't make stuff, so they are charging more" disincentivizes new purchases, so folks think, I can limp along on this 06 Mustang for a couple more years while they get their act together. This drives DOWN sales.

What Ford really wants to do, is move to an "order" model, where a lot more customers spec out exactly what they want, and order it delivered to their dealer. Which you have always been able to do BTW, well at least since the 50's. This would save them a lot of money on incentives when they try to move old stock at the end of a model year.
 

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MayhemMike

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Well, for one, Ford doesn't make a single dime on a dealer selling over MSRP.
They make money by volume sales of key products.

What a manufacturer generally wants is:

1 - hot new product, sells for over MSRP due to demand.
2 - industry buzz about hot new product = free advertising.
3 - actually meet demand within 4-6 months, while also benefiting from all the free advertising.
4 - Crazy prices for a "Halo" product used to actually drive foot traffic to the dealership. Drive over to look at the awesome $120k BOSS Mustang, and there is a decent chance you get talked into a nice GT or Ecco-boost Mustang while you are there, because getting people in the door is gold.

In a situation like this, it hurts Ford's Brand.

A - Dealers come across as money-grubbing sleazeballs.
B - "Bob's Ford Dealership" has a big giant Blue Oval on the sign, so it reflects back on FoMoCo.
C - All the buzz and news about how "they can't make stuff, so they are charging more" disincentivizes new purchases, so folks think, I can limp along on this 06 Mustang for a couple more years while they get their act together. This drives DOWN sales.

What Ford really wants to do, is move to an "order" model, where a lot more customers spec out exactly what they want, and order it delivered to their dealer. Which you have always been able to do BTW, well at least since the 50's. This would save them a lot of money on incentives when they try to move old stock at the end of a model year.
I just read where Ford is going to have dealers select what type of dealership they want to be. Either ICE, EV, or truck. Creating specific dealerships instead of dealerships that carry all models. Not to mention, the works are already in okay to make the Bronco a syand alone brand and stand alone dealerships.
 

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And Mik sang “You can t always get what you want” ……
 

Fmuguira

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Mick…. Dang smart phone 😂
 

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My guess. Because at some future point in time, whenever that occurs, Supply might yet, some day, outstrip demand. Then dealerships will again have year end deals... Or buy at company employee pricing... or "This weekend only" sales events... or...
 

CobraKaiSG

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it's just supply issue- if there were more out there, other dealers would try to woo buyers away with slightly lower price- competition would result in lower prices. the question is, can ford and dealers make more money selling fewer vehicles at higher margin or more vehicles with slimmer margins. if they net more with fewer vehicles, then we're all in trouble!
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