- First Name
- Nathan
- Joined
- Jul 15, 2020
- Threads
- 20
- Messages
- 616
- Reaction score
- 2,213
- Location
- Union, Iowa
- Vehicle(s)
- 21 Badlands traded for 22 Badlands, to 23 Wildtrak, to 24 Wildtrak
- Your Bronco Model
- Wildtrak
M
It was a good idea. From what I see, the fatal flaw was permitting the client to choose the dealer. Had Ford placed geographic limits on customers to support their dealers then this situation with giant dealers using marketing to amass more orders than they could satisfy wouldn’t have occured. I am surprised Ford didn’t do that, frankly. In Industrial Sales, there is such a thing as Territorial boundaries. A dealer of Brand X heavy equipment can sell only in their territory, and if a client from outside their territory comes to them, they MUST be referred to their local authorized dealer. If you sidestep that rule, you will (one) be imposed a financial penalty by the manufacturer (payable to the dealer whose business you stole) and two may lose your dealership if there are repeat offenses. Dealer /Manufacturer support is a two way street. Dealers pay to abide by Ford franchise guidelines and keep Ford stock in the lot. Ford needs to support their dealers in turn.
I don't think the locked territory's would work. Too many other issues. For example, we can buy Hunter alignment equipment from more than one source, but only their rep can come and service it since he as a locked territory. We had issues with everytime he'd come install software, we'd have heads or other costly issues the next alignment, but we couldn't go to another tech. This is why we don't have any Hunter equipment in the shop anymore.
Also you'd have people that are loyal to another local dealer. Also Ford's territory's aren't very logical, the town a few miles south of me isn't in my territory even though its part of our school district, yet one that's 20 miles southwest of me is in my franchise area.
What would have worked is if they'd have done like Mach E and fixed the pricing. Manufacturers can't set the price by law, but they can set advertised pricing. On Mach E if you don't advertise at MSRP (not under) you loose some of the holdback (Ad Covenent is what Ford's calling it). If everyone were doing MSRP, you'd find most people buying local-ish with the usual traffic patterns. Then Ford could have really done the in national order of reservation and most dealers wouldn't have had too much of an issue.
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