robertlane Posted May 17, 2006 Report Share Posted May 17, 2006 ARTICLE LINK Link to comment Share on other sites More sharing options...
kaylan1521 Posted May 17, 2006 Report Share Posted May 17, 2006 Beat you by two minutes Robert :happy feet: http://www.stangsunleashed.com/forums/inde...wtopic=1124&hl= Link to comment Share on other sites More sharing options...
robertlane Posted May 17, 2006 Author Report Share Posted May 17, 2006 See what happens when you're interrupted by a Molsen commerical while you're posting something. This is ALL CANADA'S FAULT Link to comment Share on other sites More sharing options...
lawdude Posted May 17, 2006 Report Share Posted May 17, 2006 Ford spokesman Dan Bedore says a similar frenzy occurred in 2001 when customers clamored for the Thunderbird. Bedore says dealers can charge what they want for cars. Here's hoping the GT500 resale prices don't tank like the Tbird's did. But what do I care. Looks like I'm gonna have to fall back on Plan B anyway. Link to comment Share on other sites More sharing options...
1969HOT Posted May 17, 2006 Report Share Posted May 17, 2006 Not only did this article talk about the craze around people paying over MSRP on the thunderbird and we all know how that ended. But am I correct in what I read, Ford admitting that Over MSRP was a good thing? Link to comment Share on other sites More sharing options...
Joe G Posted May 17, 2006 Report Share Posted May 17, 2006 Not only did this article talk about the craze around people paying over MSRP on the thunderbird and we all know how that ended. Yep. The T-bird is a classic case of high initial demand (with the corresponding ADM's over MSRP) quickly falling (usually BECAUSE of the high initial prices) leading to early death of the model. Will our GT500's follow suit like most other high initial demand cars? Who knows. But, every economist will tell you that a hot market, with it's corresponding price inflation, will ALWAYS lead to a equally quick downturn and corresponding price deflation (or model extinction!!) Consistant pricing is the model for a sustainable supply/demand and it's steady stream of customers. Sorry for the economic history... I've just been thinking about this a lot (and trying not to come off too negative!). I don't make the rules, I'm just quoting trends that are more established than anyone here is old. I know many of the dealer guys around here say "if there's a demand at $X price, why NOT charge it." Well, it's because there's more than just INITIAL supply and demand to consider. If we look at a more long term supply/demand, it is easier to justify NOT trying to get every last cent of profit on the initial cars. Again, everyone who quotes "it's just supply and demand at work" usually only read the first chapter of Econ 101. There are many more forces at work that statistically show that this is not a good model to cling to. Ok, I'm done... hope I didn't bore anyone with this. I'm trying to be as positive as I can. Group hug... Link to comment Share on other sites More sharing options...
6707Shelby Posted May 17, 2006 Report Share Posted May 17, 2006 Not only did this article talk about the craze around people paying over MSRP on the thunderbird and we all know how that ended. But am I correct in what I read, Ford admitting that Over MSRP was a good thing? I dont think your interpretation of Ford encouraging markups is accurate. "Ford isn't concerned with dealers selling above sticker. In fact, the automaker sold off the first GT500 at a Barrett-Jackson auction in Arizona in January for $600,000. Proceeds went to the Carroll Shelby Children's Foundation" The purpose of this Auction was marketing and building hype for the car. Not to set the stage for dealer markups. Sounds like the writer of this article came to that conclusion. Link to comment Share on other sites More sharing options...
Joe G Posted May 17, 2006 Report Share Posted May 17, 2006 I dont think your interpretation of Ford encouraging markups is accurate. "Ford isn't concerned with dealers selling above sticker. In fact, the automaker sold off the first GT500 at a Barrett-Jackson auction in Arizona in January for $600,000. Proceeds went to the Carroll Shelby Children's Foundation" I think the quote that is concerning was: Ford spokesman Dan Bedore says a similar frenzy occurred in 2001 when customers clamored for the Thunderbird. Bedore says dealers can charge what they want for cars. "It's actually a good problem to have," he says. Link to comment Share on other sites More sharing options...
RUFDRAFT Posted May 17, 2006 Report Share Posted May 17, 2006 I don't think the T-Bird is a good analogy. What's been the T-Bird history? It sucked. Mustangs are different. 2006 Mustang GT's are still very strong in the market. I'm sure everyone who's decided to pay above MSRP for a Shelby understands that they'll lose every cent above MSRP when they put their car on the block. They're paying the premium to be "first on the block." Anyone paying MSRP for a Shelby will take much less of a "hit" come time for selling. IMHO. It matters not what you paid - when it comes time to sell. Link to comment Share on other sites More sharing options...
Five Oh B Posted May 17, 2006 Report Share Posted May 17, 2006 Again, everyone who quotes "it's just supply and demand at work" usually only read the first chapter of Econ 101. There are many more forces at work that statistically show that this is not a good model to cling to. It really is just supply and demand. There are way too many of you that want GT500's versus the number that will be built. Also, way too many people want them now and don't want to wait for later production. So, what happens when too many people want something right now and can't get it? Prices go up to flatten out demand until supply can catch up. It really is as simple as that! On the flip side, look at the new Ford Five Hundreds and Freestyles. Dealers knew before they ever started production that there wasn't going to be demand to match supply, so initial pricing was below MSRP with rebates as well! Dealers understand supply and demand better than you give them credit for, and they price accordingly. And by the way, I got past the first chapter of Economics 101. In fact, I have a bachelor's degree in corporate finance which required tons and tons of classes in finance and - you guessed it - economics. Link to comment Share on other sites More sharing options...
NOSHOULDERS Posted May 17, 2006 Report Share Posted May 17, 2006 Sorry but off the subject, But is there going to be extended warrentys, security systems, etc... like on other fords Link to comment Share on other sites More sharing options...
Five Oh B Posted May 17, 2006 Report Share Posted May 17, 2006 Sorry but off the subject, But is there going to be extended warrentys, security systems, etc... like on other fords Yes, but we don't have specific surcharges on the 2007 yet. The 03/04 Cobras and 99-04 Lightnings had "supercharged" surcharges assessed by Ford for extended warranties. As for security systems, if your local police agencies are up and running on the LoJack vehicle recovery system, I would highly recommend the LoJack in your GT500. The local police around here first started doing the LoJack thing about 3 years ago and have been incredibly successful recovering stolen vehicles with LoJack within 30 minutes to 1 hour of the actual theft. That's quick enough to prevent the car from being stripped, hacked, or put on a container ship out of the country. Link to comment Share on other sites More sharing options...
Joe G Posted May 18, 2006 Report Share Posted May 18, 2006 B)--> QUOTE(Five Oh B @ May 17 2006, 10:13 AM) 12876[/snapback] It really is just supply and demand. There are way too many of you that want GT500's versus the number that will be built. Also, way too many people want them now and don't want to wait for later production. So, what happens when too many people want something right now and can't get it? Prices go up to flatten out demand until supply can catch up. It really is as simple as that! And by the way, I got past the first chapter of Economics 101. In fact, I have a bachelor's degree in corporate finance which required tons and tons of classes in finance and - you guessed it - economics. I'm glad you answered, Five Oh, because your dealership actually helped me make my point. Like you've pointed out many times, you actually had DEMAND from more than a few customers at a much higher price than your "$10k over MSRP" price. You didn't let that make your decision for you. You weighed multiple choices and CHOSE to price less than the market limit was for this car because "supply and demand" was only a part of what was important (customer service and loyalty are 2 that come to mind about your store). Many more dealers only choose to look at the "highest price" portion of the equation and think that they're doing what's right because "that's the market." Some even look at the total equation and see that customer service/loyalty is much more important than ANY ADM's. To each their own, but I still believe that my premise that "it is short sighted to look at nothing more than initial supply and demand" is true. There is middle ground, and I have a feeling that many of the dealers who are trying to only maximize profit in the short term will find that there will be much larger repercussions in the near future. I think you and I are mostly on the same page. I appreciate your feedback, and, while not a fan of the ADM's, think that your approach was the most up front and transparent to your valuable customers. I'm glad you choose to stick around after your short sabatical a few weeks ago! Link to comment Share on other sites More sharing options...
Five Oh B Posted May 18, 2006 Report Share Posted May 18, 2006 Joe, I guess you're right and I didn't even really see it at first. Yes, supply and demand helped lead us to our price point due to customer offers and the huge list we've amassed. But, as you said, we didn't go for the top offers, just a happy medium that would please more than enough customers, while alienating as few as possible. I have noticed something happening with our GT500 list lately worth mentioning. Some of the guys that originally told us they would wait for MSRP have contacted me lately to say $10K is now OK. Most have been shopping other dealers and are learning that at MSRP they either 1) can't get on a list elsewhere, 2) can't get high enough on a list to get a car in 07 or 08, or 3) aren't taken seriously at all. At least we take them seriously with a genuine desire to get them a car in the long run if we can ever get enough cars. Some of these MSRP-converts may not like the ADM, but are now starting to give up hope of finding an MSRP deal in our geographical area. For a long time I was preaching here that if you wait long enough (late 2007 or 2008) that supply would catch demand and pricing would settle down, but I'm really starting to second guess myself as I see our ever-growing list and hear you guys mention lists elsewhere with hundreds of people on them. The demand only appears to be growing as we get closer to Job #1. Link to comment Share on other sites More sharing options...
RUFDRAFT Posted May 18, 2006 Report Share Posted May 18, 2006 I agree, Five Oh - Wait until some Shelby's start appearing in showrooms and on the streets. I think several things will be responsible for large demand (I'm not in marketing - just an enthusiast!): Styling - this car LOOKS bad. The redesigned front end - stripes (vis a vie Ford GT). The latest Cobras looked too much like a GT - they didn't scream FAST. Heritage - while Shelby isn't building the cars - his name will attract many who had/wanted one back in the day. Power - The Shelby has 200 more hp than the GT - the most recent Cobras were 390. The magix number of 500 is going to reach out to a lot of folks considering a Mustang GT (but, honey - it's got 500 hp!) Short of some major engine flaw showing up - I think this one is going to remain a hot ticket. Time will tell. Bryan Link to comment Share on other sites More sharing options...
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