Crazy ADM with Gen 3 Raptors... any MSRP dealer in Md/Va/Dc/De?

[GCATX]

Not true. Ford can and should crack down on ADM.

Preventing price-gouging and controlling your brand is not socialism.

Think about when a new gaming console is released, or about the hot Christmas toy. Can Best Buy unilaterally decide to mark up a Playstation 25% over MSRP just because it's in demand? No, they cannot, because Sony will not let them.

ADMs almost certainly cost Ford money, too.

Let's say a Raptor costs 100k, and at that price, 10 people want to buy one. Gross margins vary by manufacturer, but 10% is a good number - so Ford makes 10k per Raptor sold. The dealer makes 5k.

At the 100k price, if 10 people buy it:

Ford profit = 10k x 10 = 100k

Dealer profit = 5k x 10 = 50k

Now... imagine the dealer puts an ADM of 10k. At that price, only 5 people want to buy the truck.

Ford profit = 10k x 5 = 50k

Dealer profit = 15k x 5 = 75k

See the difference?

Granted, this is a very simplistic scenario, but the point is that controlling ADM is NOT socialism, and may even be a benefit to Ford.

You should definitely open your own dealership and give Raptors away.

 

[Chainsaw]

You should definitely open your own dealership and give Raptors away.

What a dumb reply. Selling at MSRP is giving Raptors away? You must be one of the boobs who happily pays ADM, then.

Have fun with that.

 

[GCATX]

What a dumb reply. Selling at MSRP is giving Raptors away? You must be one of the boobs who happily pays ADM, then.

Have fun with that.

Nope. I must be one of the few the understand the "S" in MSRP.

 

[K223]

Nope. I must be one of the few the understand the "S" in MSRP.

Manufacturer Shove it to them Retail price?

 

[melvimbe]

I'm sorry, I really don't mean to offend anyone, but if you pay 20K ADM for a truck, you are simply intellectually limited. The vehicle loses all of that value (and then some) when you drive it off the lot. Raptors themselves retain value very nicely, as we've seen. But god, if you are willing to slap 20K on the table, no matter what your bank account looks like, just to drive this truck a little earlier, you are just simply daft to borrow a phrase from our neighbors across the pond.

If I had 10 million sitting in my bank account, I don't think I would worry much about 20k ADM

 

[melvimbe]

What a dumb reply. Selling at MSRP is giving Raptors away? You must be one of the boobs who happily pays ADM, then.

Have fun with that.

Losing the argument if you resort to baseless assumptions and name calling.

 

[GCATX]

If I had 10 million sitting in my bank account, I don't think I would worry much about 20k ADM

It would be akin to driving across town to save $1 per gallon of gas. When some people need gas, they just find the closest station.

Not saying I would do that. I'd probably just put a few gallons in and stop somewhere else.

 

[Chainsaw]

Losing the argument if you resort to baseless assumptions and name calling.

There was no valid argument.

It was in response to a snarky, immature reply with zero added value to the conversation. I am free to respond in kind.

 

[GCATX]

There was no valid argument.

It was in response to a snarky, immature reply with zero added value to the conversation. I am free to respond in kind.

No biggie. I just think it's hilarious that people get twisted up that a business can sell their product for whatever they can get. You can crank out all the numbers you want, none of it matters. The market matters, that's it.

 

[melvimbe]

There was no valid argument.

It was in response to a snarky, immature reply with zero added value to the conversation. I am free to respond in kind.

Of course you are. As I think I implied before, I can see both sides of the argument. Ford is free to lock in prices if they want to, and dealers can do what's best for their business. I just don't think either strategy is evil.

No biggie. I just think it's hilarious that people get twisted up that a business can sell their product for whatever they can get. You can crank out all the numbers you want, none of it matters. The market matters, that's it.

When I was buying a house many years back, on lost on a couple deals because other buyer's were willing to pay cash and/or above the asking price. Seller didn't even bother to take a 2nd bidding step (whatever it's called). I guarantee when it comes to selling my house one day, I'd take an offer above asking price if I get one.