Changes to the dealer allocation system

Thanks for posting @Garemlin
I tried to watch this guy but couldn’t get through 5 minutes of his drivel before turning it off….

Yeah I need the cliff notes version here, because like @Bschurr, I couldn't get through 3 minutes... this guy just rambles and didn't really say shit.

Then again, I got my Bronco, so this doesn't effect me. But I still have some peeps from that other forum that I'd like to see finally get theirs.

What I got from it is that if dealers move their vehicles quickly (i.e. they're already sold when they arrive so they don't have to put them in inventory) then they'll get more allocations. Not much the customer can do about any of that except take delivery of their ordered vehicle quickly when it comes in. Also he predicts to that prices on dealer stock will start coming down so units can be moved more quickly to help bump up allocations.

TorgSurv

What I got from it is that if dealers move their vehicles quickly (i.e. they're already sold when they arrive so they don't have to put them in inventory) then they'll get more allocations. Not much the customer can do about any of that except take delivery of their ordered vehicle quickly when it comes in. Also he predicts to that prices on dealer stock will start coming down so units can be moved more quickly to help bump up allocations.

so what you are saying is that @ResidualGenius is messing this up for everyone? Jeeze RG, go pick up your truck already... :)

Yeah when I was at the dealer yesterday my sales manager was explaining it to me—this is a different allocation formula than Ford has used in the past. It makes sense if you are familiar with sales and marketing, but if you aren't in those industries it can be mega confusing.

I was contemplating writing a post about this to explain it all, but ultimately it doesn't do anything for someone who is trying to select a dealer. That said, if there is enough interest I can make an attempt.

I wonder what it would take to get my dealership to tell me how many allocations they have? lol

Mal

so what you are saying is that @ResidualGenius is messing this up for everyone? Jeeze RG, go pick up your truck already... :)

I'm completely screwing it up LOL

Bschurr

Thanks for posting @Garemlin
I tried to watch this guy but couldn’t get through 5 minutes of his drivel before turning it off….

He actually does have some informative videos. The ones that go over the order guides. He breaks everything down so you don't have to go back and forth seeing what is available with what and what's not. But yeah he does ramble on.

EZAPAR

I wonder what it would take to get my dealership to tell me how many allocations they have? lol

They only get allocations numbers (roughly) once a month. And one month they may have 7 and the next they may have 37.

In 2021 they got their estimated Bronco allocation for the entire 2021 model year, but it ended up being wildly incorrect. I think my dealer expected to get ~40 and they ended up getting less than 20.

If supply chains went back to normal you could ask your dealer when their average monthly allowance is, but right now with everything being screwed up you'd probably get more accurate estimates from your local tea-leaf-reading fortune teller that lives in the shack down by the lake.

TorgSurv

What I got from it is that if dealers move their vehicles quickly (i.e. they're already sold when they arrive so they don't have to put them in inventory) then they'll get more allocations. Not much the customer can do about any of that except take delivery of their ordered vehicle quickly when it comes in. Also he predicts to that prices on dealer stock will start coming down so units can be moved more quickly to help bump up allocations.

It also sounds like dealerships need to keep their name to sales matches high so there is a bit of an incentive to make sure you buy your ordered vehicle. Seems like now there are folks backing out of their orders, interest rates, found something else, or life changes in the last two years. I see this helping keep ADMs down but also requiring you to place a deposit if you want to order a unit. But I know there are some really slimy dealerships out there that will game the system they just need to find a loophole.

RagnarKon

Yeah when I was at the dealer yesterday my sales manager was explaining it to me—this is a different allocation formula than Ford has used in the past. It makes sense if you are familiar with sales and marketing, but if you aren't in those industries it can be mega confusing.

I was contemplating writing a post about this to explain it all, but ultimately it doesn't do anything for someone who is trying to select a dealer. That said, if there is enough interest I can make an attempt.

I am interested in hearing more. It may not effect my Bronco build now, but may effect my husband's F-250 when order banks finally open up.

TorgSurv

What I got from it is that if dealers move their vehicles quickly (i.e. they're already sold when they arrive so they don't have to put them in inventory) then they'll get more allocations. Not much the customer can do about any of that except take delivery of their ordered vehicle quickly when it comes in. Also he predicts to that prices on dealer stock will start coming down so units can be moved more quickly to help bump up allocations.

BUT, on the other side of the coin: does this mean stubborn stealerships being gready not moving units will be further log jammed filling customers back orders thay already exist? Alot of discussing about dealer's size and allocations effecting fulfillment of pre orders.

OrangecrushBronco

BUT, on the other side of the coin: does this mean stubborn stealerships being gready not moving units will be further log jammed filling customers back orders thay already exist? Alot of discussing about dealer's size and allocations effecting fulfillment of pre orders.

Yes if your dealership is gready (or just stupid) they will lose allocations and thus their customers in line will suffer. It may take some dealerships some time to learn that if they sell 10 units and make $13,000 each that will be a lot less than if they sold 100 units and only make $3000 ea. Remember a dealership will make good money on MSRP sales. the more they sale to the "Named" reservation holder the More allocations they get to sale. and the more dealer allocation they will get.

Jakob1972

It may take some dealerships some time to learn that if they sell 10 units and make $13,000 each that will be a lot less than if they sold 100 units and only make $3000

This could essentially lower prices finally. No more ADMs and possibly even discounts. If they want to move more units they need to quit being greedy.

The only downside is they can't move what the manufacturers can't build no matter how much they lower their prices.

mbelding0512

I am interested in hearing more. It may not effect my Bronco build now, but may effect my husband's F-250 when order banks finally open up.

Well... I tried:

https://thebronconation.com/forums/threads/2023-ford-allocation-formula-explained.13849/