Misguided Management

[vegatron]

I'm just throwing something out here. Does anyone else agree with me, that Ford Motor Co. SVT Div. upon releasing this vehicle has messed up royally on promoting this vehicle. I had read over and over the following year at how they, (SVT div) were proud of their accomplishments on the design of not only the car itself, but being able to offer such a vehicle for under $50,000. So my question reguards to Ford's messing up. I believe they should have set a fixed window sticker prise, no matter what the demand of the vehicle was, and for the fortunate one's who not only put down deposit's in good faith, but in a timely manner, should not be seeing multiple sticker prise's at so many different SVT dealer's. In my mind, Ford should be not only taking away any and all the SVT assigned right's from these dealer's but also be reprimanding them.

 

For one, who for the last couple day's now, also being my first new car purchase, I find this so dispicable in this time of age. What are we now again in the 1950's, kicking tire's and the regular schimer's in the dealer's again. I seriously have owned a number (4), mind you been second hand Ford's so far, but this has really turned me against Ford now, and am seriouly not just thinking of abandoning this purchace, but if so, will definately never ever buy another Ford again. Too bad Ford has let this happen for I'm sure I can't be the only one miffed about waiting over a year with a deposit to come to find this happening.

[Joe G]

While I'm sure most would agree with you, unfortunately the laws and contracts Ford has with its dealers allow them to set their own price. The "S" in MSRP is "suggested" - I don't like it, but it is what it is.

 

This has been beat to death over the last few months. I can see both sides of the arguement, but until people refuse to buy at these high prices they won't come down for a while.

 

Lastly, this isn't a commodity that HAS to be purchased. There are thousands of different options (including not buying at all) that make you and I in charge of the decision.

 

Me - I want one too. I won't pay the markup that the few dozen dealers I've spoke with want right now. I'll wait, and hopefully get the deal I want. If not, I'll just keep enjoying the 68 Mustang I have in the garage!

[DVS2XS]

1

[JETSOLVER]

Do you recall the utter stupidity around the PT(phtt cruzer) thing? Or the fact that there are 05 Stang owners on the hook for a full year of financing beyond the value of the car? It is about what the car is worth TO YOU. Personally, as awsome as the car is, it is just a killer powerplant with some attendant chassis mods in what is at its plainest , a rental car. TO ME. As such I have a value in mind for which I will pay for. If you want to get annoyed with FORD, give them hell for not selling enough 4 door toasters to allow them to devot the resources to keep what was SVT(recall COBRA, Lightning,Contour,Focus)pumping exciting vehicles out on a year to year basis. That is where the hype comes from. The original SVT dealers took a big leap on training advertising and darn fussy buyers on a TOTALLY left field sales concept that might have jumped up and bit them hard. Then we had the 99 COBRA problem whereby the company took an unprecidented step and cancelled production of an in demand premium car; to make existing owners happy! Very unique, lots of happy customers, dealers and a pretty healthy cockiness in the company as well. For ten years! Then lil Bill gets it into his head to do the GT program and those dealers sitting on their investment (fussy customers remember) are totally without product for the last 2 full years. And they have nothing but prospective new unhappy customers. And some idiot at headquarters decides to let all dealers in on the act? Ones who are going to go insane when proud(understandably so) new GT500 owners find out that their service/sales experiance is going to be no better than the kid who just bought their first mean Focus? One blown engine because somebody didn't realize that maintaince and premium fluids was not just a suggestion and that 10K that somebody got screwed out of is gonna go up like smoke. Believe me owning this car means you are gonna wait a good long time for very expensive and hard to source parts and very few of the new owners of a 50k car are going to sit quietly for that. I really hope some of the SVT dealers chime in re the time and effort they expend on cars like this perhaps to the exclusion of other customers. Sorry for the long post but this has been building for a while now. My sales person is at his wits end trying to pacify all the people with interest in this car and is taking me to lunch to APOLOGIZE for NOT SELLING ME A CAR!!!!!!

[orangesnake]

+1

 

Iam a business owner and profit makes your business. Having said that. The dealers have found a great way to kill a product. If they wouldnt charge sooooo much over MSRP they would sell alot more the first year and thus the following years because everyone would see the cars on the streets and want one them. People buying your product is the best form of advertizement. A good way to make lots of profit is to sell more at a smaller margin and sell lots. Opposed to selling few at a big margin and not selling so many. If production was a problem people would wait because they thought they were getting a fair deal. Not selling a select few cars at an outlandish premium and then killing the model because demand is down and nobody wants one because everyone is feed up with the screwing they felt they were getting and they felt not that many people wanted one (resale delema). Iam rambling.

 

Examples Thunderbird, Cobras, Machs , GT40. Lots of them sat on the lots for months and are still sitting on the lots. Ford should step and tell the dealers that they are messing up some great products. Just one mans opinion.

[DVS2XS]

I don't see how getting upset with Ford is an answer. It is not possible for them to manage the price. They COULD make a statement to dealers, but it would be all show, no go.

It is the dealers (or some of them - not all) that are causing the issue.

[Orf]

I'm not a marketing guy, but...

 

I think Ford did a great job of marketing this car. How much extra advertising did they have to do to get all the 2007 allocation pre-sold and, from what it sounds like, a good bit of the 2008 allocation, too?

 

Honestly, I think the 6 letters in the upper left of the trunk lid did most of the marketing for Ford. Regardless of your personal opinion about the level of Mr. Shelby's involvement, or the value of it, the name is what is creating the market conditions.

 

On the flip side, I think they really screwed up with the Excursion marketing. (I know....not a truck site, but bear with me)

 

I never saw an ad, be it on TV, in a magazine, etc. for the Excursion. Being an owner, I would have noticed, but I may have missed one. Anyhow, they killed the vehicle because of lack of sales. They could have increased sales in just the diesel segment by pointing out GM didn't offer one in the large SUV category.

[VNMOUS1]

I'm not a marketing guy, but...

 

I think Ford did a great job of marketing this car. How much extra advertising did they have to do to get all the 2007 allocation pre-sold and, from what it sounds like, a good bit of the 2008 allocation, too?

 

Honestly, I think the 6 letters in the upper left of the trunk lid did most of the marketing for Ford. Regardless of your personal opinion about the level of Mr. Shelby's involvement, or the value of it, the name is what is creating the market conditions.

 

On the flip side, I think they really screwed up with the Excursion marketing. (I know....not a truck site, but bear with me)

 

I never saw an ad, be it on TV, in a magazine, etc. for the Excursion. Being an owner, I would have noticed, but I may have missed one. Anyhow, they killed the vehicle because of lack of sales. They could have increased sales in just the diesel segment by pointing out GM didn't offer one in the large SUV category.

 

 

Well....I AM a marketing guy and I will tell you in no uncertain terms that this has been BRILLIANT marketing. As to whether or not Ford did it on purpose or it's just a matter of "buzz" isn't even an issue. This is every marketer's dream. Buzz marketing is the single hottest method of marketing in the world. Two reasons....first, it's generally cheap. Second, "buzz" comes from friends, coworkers, people you know....real, walkin' around humans. Not from some company's sales/PR/marketing departments. And we, as consumers, trust word of mouth. That's why people look up things in Consumer Reports, but put more into the customer reviews.

 

Think about it. What has Ford really said about the car? "most powerful Mustang ever" is about it. That, coupled with a limited (sort of) build has set off a wildfire of desire. They knew the Shelby moniker would tickle the memory banks of boomers (yes, I'm one of them). But, it is power and availability that has lead this to HUGE success. To top it off....Ford's brilliance in advertising "more than 450 hp", then "more than 475", and now "final figures at 500!!" was just spectacular. Finally, as much as I'd like to know how much I'm paying for this thing, the fact that I....along with thousands of others...actually have a written contract to pay more than an unknown figure is unbelievable!!!!! Now THAT'S buzz marketing to it's highest level.

 

P & G was the subject of an article this week that was talking about the same thing. They are creating buzz groups to get excited about their products. Compensation is provided by giving participants X amount of P & G stuff (that's a lot of stuff!!). So....these people are walking, talking, peer group billboards. They don't have to really like the stuff....they have a job that requires them to be excited about it. When they do it, they get compensated. Ford, on the other hand, isn't engaging "stunt consumers" or compensating anyone. It's all fact, desire, supply and demand.

 

Yep....Ford has hit a homer with this one. All of us that have any control over any business should take this lesson and learn from it.

 

 

bj

[gt5001]

>I think Ford did a great job of marketing this car. How much extra advertising did they have to do to get all the 2007 allocation pre-sold and, from what it sounds like, a good bit of the 2008 allocation, too?

 

Has the 2007 allocation sold out? I seem to remember hearing the same thing about the Ford GT a couple of years ago. There are going to be 9,000 GT500s out there. How many people post or even read this and the other Mustang "buff" boards? Lots of people are talking about the car, many here have put down deposits, but the deal isn't done (at least in this state) until the car owner drives it off the dealer's property.

[RUFDRAFT]

+1, bj

 

I notice in your sig that you have "deleted" the front license tag bracket.

 

I downloaded the order form and didn't see that as an option.

 

Do I need to tell my sales rep about this?

 

We don't use front tags here in NC. And I DON'T want one on!

 

Thanks

[VNMOUS1]

+1, bj

 

I notice in your sig that you have "deleted" the front license tag bracket.

 

I downloaded the order form and didn't see that as an option.

 

Do I need to tell my sales rep about this?

 

We don't use front tags here in NC. And I DON'T want one on!

 

Thanks

 

 

I can't imagine your dealer ordered it. It doesn't come with one unless you do....sort of like California Emissions; if ya gotta have it, you check the box. If not......don't. But, just in case your dealer is out of state and in one where they DO use them, you might want to call and make sure they don't drill your bumper before you come to pick up your car

 

Illinois requires one....my dealer is in KY. Don't know if they do there or not. In any case, I've asked that it be left.

 

 

 

bj

 

 

bj

[Orf]

>I think Ford did a great job of marketing this car. How much extra advertising did they have to do to get all the 2007 allocation pre-sold and, from what it sounds like, a good bit of the 2008 allocation, too?

 

Has the 2007 allocation sold out? I seem to remember hearing the same thing about the Ford GT a couple of years ago. There are going to be 9,000 GT500s out there. How many people post or even read this and the other Mustang "buff" boards? Lots of people are talking about the car, many here have put down deposits, but the deal isn't done (at least in this state) until the car owner drives it off the dealer's property.

 

 

I agree with the last part. As for my earlier statement, I was going by my experience when setting up my plan B option. I'm in western PA, and when it started to look like my current dealer was setting me up to play games, I called around. I got the telephone number for every dealer in western PA, about 75 if I recall correctly, and spent some time letting my fingers do the walking.

 

Quite a few told me they wouldn't be allowed to sell any. SVT dealers only, they said. Despite me explaining how they could. I found a couple that didn't know what their ADM would, much like my original deal. Many said they had many more names on their list than they would ever get allocation for. I found 3 who had none sold, and struck a deal with one of them for 5K over.

 

Keep in mind, this is in western PA. Not exactly ground zero for Mustang sales. I'm sure the demand in southern and western states is much greater than here. The major metro dealers in those regions are probably scouring the hinterland for units to help meet demand.

 

If I'm wrong, I'll admit I was a dolt. It won't bother me. I'm going with my gut on this one, though.

[jrichard]

I agree that Ford's marketing and pricing is perfect for this car. Brilliant or accidental? Who knows, but they've managed to create huge buzz and demand for a car that, at the end of the day, isn't so special. But it sure feels special and I want one. Scratch that...I'll get one.

 

And the pricing is perfect for Ford and the dealers. Between Ford and the dealers, virtually all of the value has been captured. They're simply going to work their way down the demand curve. The higher the price, the less demand. So, the best strategy is to work your way down the curve: meet the demand at the highest possible price point. When those folks are satisfied, then start moving down the curve and meet the demand by continuously lowering prices (e.g. we'll see ADM decay). (This process doesn't work the other way...it's impossible to move your way up the demand curve without leaving significant money on the table.) I know, I know, some will argue that there is more demand for this vehicle at high price points (MSRP + significant ADM) than the production of the vehicle. Maybe so, but it doesn't matter because it is almost inconceivable that there is not a better Mustang lurking around the corner.

 

At the end, it could be that the price never makes it all the way down to MSRP. And, Orf, there's nothing wrong with paying $5k over MSRP now even if the price moves down to MSRP later. It doesn't make you "wrong." You're going to get your car earlier than those of us who wait and you're guaranteed you'll get one. So, even if the price moves down, you got (a) early delivery, ( b ) guarantee of possession. It's exactly the value in those two things that drives the market.

 

I was very close to paying $5k ADM just for "early" delivery, but then turned the deal down. My wife even blessed up to $20k ADM if I really wanted the car before fall. Nice wife, eh?

 

As I've posted in another thread, this isn't the end of cars of this sort...it's the beginning of a new "pony" war between the Big 3. Just today the Sacramento Bee had the Challenger and Camaro concept cars above the fold in the Wheels section. I'm betting they will make it to production and they will have lots of power. And Ford will fire back with something that blows away the current GT500. How could it not?

 

So, don't hate Ford because the demand for this car is driving up prices. Thanks to Ford, this market will be "proven" and we'll see great cars coming our way.