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Old 01-28-2014, 11:19 AM   #1
WS6R6
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Default Unfulfilled Dealer Allocation

I saw this posted by Rick today. It's scary to think some people have been waiting this long for a car with no allocation and I would personally be offended by that...but I guess that's why I did my research before ordering like everybody should. Anybody that's been 1100 for more than a couple months with no items on constraint or anybody that's been at 1100 for 3-4+ months with items on constraint should be aware of what can happen with a smaller dealer on occasion:

---Sorry, had to do it;
A dealer just emailed us this morning, note his math, promised 2 Stingrays, but he has taken 12 sold orders, so he has 10 people still thinking they are getting cars and yet he has not told them they DO NOT have allocation.

I get calls from frustrated clients every day regarding not knowing if they are getting a car or not…..this is the reason why and why we are honored to have an opportunity to assist you directly…..recently OVER 85% of my business is done out of state.
Thank-you for the opportunities! Here’s that email;

“Rick,

My name is ***********. I oversee the Corvette department at ********* Chevrolet. We are a new dealer located in New York. Last year we became a certified Stingray dealer. We were promised an allocation of at least 2 Stingrays. At present time we have 12 sold orders with deposits and have yet to receive allocation. The dealership President has asked me to reach out to other dealers and see if they’d be interested in helping us fill our orders.

If this is of interest to you, please give me a call at the number below.

Thank you,

************
Corvette Specialist” ---


On a brighter note, my 1LT Laguna Blue just received a TPW of 2/17 and I can't wait to be done with this whole ordering process and be able to enjoy the car! I ordered one of the last days of December and with allocation not being pulled for a couple weeks my order will take a bit longer than the usual. Now without a 2 week factory shutdown orders taken today should see a TWP of late February to early March at a large dealer.
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Old 01-28-2014, 11:46 AM   #2
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WOW... That is unreal. I would be really upset. Once I got a better understanding of the ordering process with regard to allocations and constraints, I contacted the dealer I recently placed my order with. They have assured me they have been promised the allocations and they are not taking orders over their promised allocations. They said my car will be built. It's just a matter of time.
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Old 01-28-2014, 12:04 PM   #3
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Originally Posted by Rossi6998 View Post
WOW... That is unreal. I would be really upset. Once I got a better understanding of the ordering process with regard to allocations and constraints, I contacted the dealer I recently placed my order with. They have assured me they have been promised the allocations and they are not taking orders over their promised allocations. They said my car will be built. It's just a matter of time.
That is the same thing my dealer said, but then i reached out to Tommy at MacMulkin, he took my order and it went in the next day. Got my deposit back from other dealer and have been driving my C7 since Jan 2nd. I ordered it the day before Thanksgiving.....
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Old 01-28-2014, 12:07 PM   #4
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Well what a class act dealer! 10 waiting WITH deposits...mmmm, jerk off.
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Old 01-28-2014, 12:10 PM   #5
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Crappy dealer that hurts other dealers that are trying to do right to their customers. He knew he was "promised" 2 allocations, yet he took deposits on 12 cars. That's 10 customers he's crapped on.

If he was a standup dealer he would be telling those he took deposits from, the name of the dealers who actually have allocations and cars on the ground.
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Old 01-28-2014, 12:12 PM   #6
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I thought I read here that any Dealer can order and GM has dropped the
restriction's on numbers!
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Old 01-28-2014, 12:16 PM   #7
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Originally Posted by Rock'n Blue 08 View Post
I thought I read here that any Dealer can order and GM has dropped the
restriction's on numbers!
This is only if they sent a tech to the training class and some other things first. Also this doesn't mean they will get anything over any of the current dealers getting allocation. I'm sure this was only if/when orders slow up at the larger dealers then some random dealer will be able to get a Corvette. I also posted this because I've seen where a lot of people have asked if dealers will actually accept orders past their allocation numbers with no definite answer. Well here's proof that some unethical ones will in fact gladly take your deposit knowing they won't be able to come through for you.

Last edited by WS6R6; 01-28-2014 at 12:18 PM.
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Old 01-28-2014, 12:35 PM   #8
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I think this demonstrates a major flaw in GM's allocation system rather than the dealers being at fault.

If a dealer in a smaller area that does an excellent job with customer service and has very happy and loyal customers has to give up their sales to bigger dealers that get more allocations just because they are situated in an urban environment then there is a problem.

I realize the turn and earn system has been in place for eons but maybe this is a good example of the world being a little more grey than that.

Personally, my order is in with a dealer that has taken excellent care of me and if GM wants to overlook my order to fill others based soley on the dealer's volume then I guess that is why they are GM, need bailouts, and sell everything for minimal profits (at least at the dealer levels). These people with orders in at the smaller dealer may not want to get a car out of state from the elephant stores because they are actually loyal people and want to support the people who see them on a regular basis, not just a "get the car as fast as possible" mentality.

With an appropriate allocation system GM might even see a shift in where their sales volumes really come from (even if it is a small shift) and they might see an improvement in customer satisfaction and even dealer satisfaction when they let demand dictate sales instead of supply. When you cram units down a dealer's throat every month because you made too many and need to hit an objective set the year (or years) before then you have a problem. Maybe a planning problem. Maybe a product problem..... maybe something else.

And yes, I have worked on the manufacturer level writing allocation algorithms with responsibility on the sales/marketing/distribution/fixed operations sides of the business from the factory perspective. Now I work at one of the country's top 5 customer satisfaction Mercedes Benz dealerships at the retail level. There is a WORLD of difference in the whole machine and I don't mean the car (even though that is different, too, lol).
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Old 01-28-2014, 12:49 PM   #9
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I think this demonstrates a major flaw in GM's allocation system rather than the dealers being at fault.

If a dealer in a smaller area that does an excellent job with customer service and has very happy and loyal customers has to give up their sales to bigger dealers that get more allocations just because they are situated in an urban environment then there is a problem.

I realize the turn and earn system has been in place for eons but maybe this is a good example of the world being a little more grey than that.

Personally, my order is in with a dealer that has taken excellent care of me and if GM wants to overlook my order to fill others based soley on the dealer's volume then I guess that is why they are GM, need bailouts, and sell everything for minimal profits (at least at the dealer levels). These people with orders in at the smaller dealer may not want to get a car out of state from the elephant stores because they are actually loyal people and want to support the people who see them on a regular basis, not just a "get the car as fast as possible" mentality.

With an appropriate allocation system GM might even see a shift in where their sales volumes really come from (even if it is a small shift) and they might see an improvement in customer satisfaction and even dealer satisfaction when they let demand dictate sales instead of supply. When you cram units down a dealer's throat every month because you made too many and need to hit an objective set the year (or years) before then you have a problem. Maybe a planning problem. Maybe a product problem..... maybe something else.

And yes, I have worked on the manufacturer level writing allocation algorithms with responsibility on the sales/marketing/distribution/fixed operations sides of the business from the factory perspective. Now I work at one of the country's top 5 customer satisfaction Mercedes Benz dealerships at the retail level. There is a WORLD of difference in the whole machine and I don't mean the car (even though that is different, too, lol).
And what happens towards the end of the product's life cycle when the small dealer doesn't have any customers like they did when the product was hot? Who is going to sell the cars with low demand? The small dealer(with no customers) or the larger dealer(with customers) who can sell at a greater volume at a lower profit per car.

Is the small dealer going to purchase scores of Corvettes and have them sit on his lot when he knows he doesn't have the customer base to support his inventory? The large dealer does.

Last edited by JoesC5; 01-28-2014 at 12:58 PM.
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Old 01-28-2014, 01:07 PM   #10
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I don't know about other dealers, but the dealer I work for is small and we have sold Stingray orders beyond our allocations. But we have been 100% honest and open with our customers that they may not get their car and if they do it may take months.

The problem is with GM. Places like Kerbeck are receiving Z51 Stingrays as inventory when you've got dealers who have earned their customers and have sold orders that aren't being filled. GM is encouraging customers, that dealers worked hard to earn, to go elsewhere.

IIRC there was a lawsuit when the C6's came out, same thing. Clearly product is being produced, yet big dealers are being favored with inventory over small dealers with sold orders from paying customers.

It goes to show that GM is $$ hungry, customers come second.
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Old 01-28-2014, 01:20 PM   #11
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Originally Posted by JoesC5 View Post
And what happens towards the end of the product's life cycle when the small dealer doesn't have any customers like they did when the product was hot? Who is going to sell the cars with low demand? The small dealer(with no customers) or the larger dealer(with customers) who can sell at a greater volume at a lower profit per car.

Is the small dealer going to purchase scores of Corvettes and have them sit on his lot when he knows he doesn't have the customer base to support his inventory? The large dealer does.
I do not agree at all.. Let the small dealer make money while the product is hot. How can a small dealer grow if not given the chance to? If a small chevy dealer has 10 loyal customers who want to buy the hot new stingray why make them go to a big box chevy store out of town when they will be servicing them at the small town chevy store.
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Old 01-28-2014, 01:23 PM   #12
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I don't know about other dealers, but the dealer I work for is small and we have sold Stingray orders beyond our allocations. But we have been 100% honest and open with our customers that they may not get their car and if they do it may take months.

The problem is with GM. Places like Kerbeck are receiving Z51 Stingrays as inventory when you've got dealers who have earned their customers and have sold orders that aren't being filled. GM is encouraging customers, that dealers worked hard to earn, to go elsewhere.

IIRC there was a lawsuit when the C6's came out, same thing. Clearly product is being produced, yet big dealers are being favored with inventory over small dealers with sold orders from paying customers.

It goes to show that GM is $$ hungry, customers come second.

AGREE 100% why would they produce a stock unit before a sold unit? Small dealer orders Z51 for a customer, customer waits 5 months. Big Chevy dealer orders the same car for stock and gets it in 8 weeks. That's messed up GM.. They should have produced all sold orders before any stock units were produced.

My.02 cents
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Old 01-28-2014, 01:49 PM   #13
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I do not agree at all.. Let the small dealer make money while the product is hot. How can a small dealer grow if not given the chance to? If a small chevy dealer has 10 loyal customers who want to buy the hot new stingray why make them go to a big box chevy store out of town when they will be servicing them at the small town chevy store.
Then GM should evenly distribute every car they build to all dealers, no mater how large a market they have? Not just the "hot" models, but all models.

For the Corvette, let every one of the 3000 Chevrolet dealers have 8 car each(total of 24,000 annually). Now, if the small dealer has customers for ten Corvettes, and the large dealer has customers for 500 Corvettes, it's only fair that they each get only 8 Corvettes. Correct? What about the dealer in western Kansas that has zero customers, what is he supposed to do with his 8 Corvettes? What's the dealer in a large city supposed to do to supply his 50 customers that also bought Corvettes from him in the past if all the small dealers get 8 cars, when they didn't sell any last year. 42 of the large dealer's customers are not going to get a new Corvette that they also want. Those 42 customers also supported their local dealer in the past with their purchases of a new Corvette.

For the Silverado, also let each dealer receive the same amount. Why should it matter if the dealer is in western Kansas or New York City? Correct?

Same for the Volt, make every dealer take the same amount of them, as it doesn't matter if the dealer is in middle Nevada or in Los Angeles. Correct?

You do realize that for the small dealer to make a killing when the market is hot, that it takes away that possibility from another dealer, that earned that right by selling Corvettes at the end of it's life cycle with very little profit.
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Old 01-28-2014, 01:51 PM   #14
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Quote:
Originally Posted by n8dogg View Post
I don't know about other dealers, but the dealer I work for is small and we have sold Stingray orders beyond our allocations. But we have been 100% honest and open with our customers that they may not get their car and if they do it may take months.

The problem is with GM. Places like Kerbeck are receiving Z51 Stingrays as inventory when you've got dealers who have earned their customers and have sold orders that aren't being filled. GM is encouraging customers, that dealers worked hard to earn, to go elsewhere.

IIRC there was a lawsuit when the C6's came out, same thing. Clearly product is being produced, yet big dealers are being favored with inventory over small dealers with sold orders from paying customers.

It goes to show that GM is $$ hungry, customers come second.
So, how many Corvettes did you sell in 2012 when no one wanted them?

On January 1st of 2012, GM told every dealer that their 2014 allocation would be based on how many new Corvettes they sold in the 2012 calendar year. There was no secret, everyone knew.

There was also no limits to how many C6 Corvettes your dealer could have stocked for the year. We sold 627 Corvettes that year and earned double that for this year's allocation. Your dealer could have ordered 800 C6s that year, sold them and earned 1,600 2014 Stingrays this year.

So when you say that dealers like Kerbeck or Stanford or any other "big" Corvette dealers are being favored you are insinuating that we are getting more than we deserve when that is not true. We worked hard to sell the cars when everyone wanted to wait for the C7s. Now, when everyone wants it, little dealers want to cry that it's not fair.

The guidelines were given to your store 2 years ago. You earned what you deserved just like every other dealer.

FYI, we just found out that we earned 0 Z28 Camaros when I have quite a few customers who would like one. Do you see me on the Camaro forums crying about how unfair it is? No. I didn't sell enough Camaros to earn one and that's it.



Dave
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Old 01-28-2014, 01:51 PM   #15
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Originally Posted by Higgs Boson View Post
I think this demonstrates a major flaw in GM's allocation system rather than the dealers being at fault.

If a dealer in a smaller area that does an excellent job with customer service and has very happy and loyal customers has to give up their sales to bigger dealers that get more allocations just because they are situated in an urban environment then there is a problem.

I realize the turn and earn system has been in place for eons but maybe this is a good example of the world being a little more grey than that.

Personally, my order is in with a dealer that has taken excellent care of me and if GM wants to overlook my order to fill others based soley on the dealer's volume then I guess that is why they are GM, need bailouts, and sell everything for minimal profits (at least at the dealer levels). These people with orders in at the smaller dealer may not want to get a car out of state from the elephant stores because they are actually loyal people and want to support the people who see them on a regular basis, not just a "get the car as fast as possible" mentality.

With an appropriate allocation system GM might even see a shift in where their sales volumes really come from (even if it is a small shift) and they might see an improvement in customer satisfaction and even dealer satisfaction when they let demand dictate sales instead of supply. When you cram units down a dealer's throat every month because you made too many and need to hit an objective set the year (or years) before then you have a problem. Maybe a planning problem. Maybe a product problem..... maybe something else.

And yes, I have worked on the manufacturer level writing allocation algorithms with responsibility on the sales/marketing/distribution/fixed operations sides of the business from the factory perspective. Now I work at one of the country's top 5 customer satisfaction Mercedes Benz dealerships at the retail level. There is a WORLD of difference in the whole machine and I don't mean the car (even though that is different, too, lol).
Spot on. The ordering process is messed up. I would rather support my local dealers. The way the system is set up you have to go out of state to one of the larger Corvette dealers. As we have seen in multiple posts it's been a challenge for them to keep up with the demand. I should be able to go to my local dealer write a check for 70k and get a car. Assuming no constraints my order should be accepted in the order it is received!
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Old 01-28-2014, 01:54 PM   #16
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So, how many Corvettes did you sell in 2012 when no one wanted them?

On January 1st of 2012, GM told every dealer that their 2014 allocation would be based on how many new Corvettes they sold in the 2012 calendar year. There was no secret, everyone knew.

There was also no limits to how many C6 Corvettes your dealer could have stocked for the year. We sold 627 Corvettes that year and earned double that for this year's allocation. Your dealer could have ordered 800 C6s that year, sold them and earned 1,600 2014 Stingrays this year.

So when you say that dealers like Kerbeck or Stanford or any other "big" Corvette dealers are being favored you are insinuating that we are getting more than we deserve when that is not true. We worked hard to sell the cars when everyone wanted to wait for the C7s. Now, when everyone wants it, little dealers want to cry that it's not fair.

The guidelines were given to your store 2 years ago. You earned what you deserved just like every other dealer.

FYI, we just found out that we earned 0 Z28 Camaros when I have quite a few customers who would like one. Do you see me on the Camaro forums crying about how unfair it is? No. I didn't sell enough Camaros to earn one and that's it.



Dave
Not to start a war and i mean no disrespect as I am sure you guys have done a fantastic job. But it is not about you!! It's about the customer. GM needs to figure that out.
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Old 01-28-2014, 01:58 PM   #17
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I don't know about other dealers, but the dealer I work for is small and we have sold Stingray orders beyond our allocations. But we have been 100% honest and open with our customers that they may not get their car and if they do it may take months.

The problem is with GM. Places like Kerbeck are receiving Z51 Stingrays as inventory when you've got dealers who have earned their customers and have sold orders that aren't being filled. GM is encouraging customers, that dealers worked hard to earn, to go elsewhere.

IIRC there was a lawsuit when the C6's came out, same thing. Clearly product is being produced, yet big dealers are being favored with inventory over small dealers with sold orders from paying customers.

It goes to show that GM is $$ hungry, customers come second.
I believe it's the same with other manufacturers; I know it's the same with Porsche. Before I place an order, I ask the dealer if he has an allocation for that month.
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Old 01-28-2014, 02:01 PM   #18
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Originally Posted by Dave@Kerbeck.com View Post
So, how many Corvettes did you sell in 2012 when no one wanted them?

On January 1st of 2012, GM told every dealer that their 2014 allocation would be based on how many new Corvettes they sold in the 2012 calendar year. There was no secret, everyone knew.

There was also no limits to how many C6 Corvettes your dealer could have stocked for the year. We sold 627 Corvettes that year and earned double that for this year's allocation. Your dealer could have ordered 800 C6s that year, sold them and earned 1,600 2014 Stingrays this year.

So when you say that dealers like Kerbeck or Stanford or any other "big" Corvette dealers are being favored you are insinuating that we are getting more than we deserve when that is not true. We worked hard to sell the cars when everyone wanted to wait for the C7s. Now, when everyone wants it, little dealers want to cry that it's not fair.

The guidelines were given to your store 2 years ago. You earned what you deserved just like every other dealer.

FYI, we just found out that we earned 0 Z28 Camaros when I have quite a few customers who would like one. Do you see me on the Camaro forums crying about how unfair it is? No. I didn't sell enough Camaros to earn one and that's it.



Dave

However it irks me that my Corvette club home dealer is whining because I'm using a large allocation dealer to get my car. I told him the same thing. You can't sell what you can't get.
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Old 01-28-2014, 02:03 PM   #19
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Not to start a war and i mean no disrespect as I am sure you guys have done a fantastic job. But it is not about you!! It's about the customer. GM needs to figure that out.
You are right. And, GM's customer is the dealer.
GM is taking care of its dealer relationships with the current program.
If the small dealer wanted to make a killing on Corvettes he should have bought more in 2012, even if the dealer had to sell them at a loss.
The invoice minus deals everyone talks about here were all from the big guys who bought lots of Corvettes and made no money on them from 2009-2013.
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Old 01-28-2014, 02:05 PM   #20
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Not to start a war and i mean no disrespect as I am sure you guys have done a fantastic job. But it is not about you!! It's about the customer. GM needs to figure that out.
You are 100% correct so let me ask you this. Is a small dealer who only wants to sell a Corvette when they are hot and profitable worried about the customer or just his bottom line?

The dealers who decide to take to invest the time, money and effort to be a Corvette dealer should also be the ones to give the best customer service.

Corvettes are our specialty here. We have another Chevy dealer about 5 miles from here who out sells us almost every month (sans Corvette). On a normal year, there is much more to be made from Chevy Trucks than Corvettes but we let the other dealer have that market so we can concentrate on the Corvettes and the Corvette community.

And please don't think my rant is about keeping Corvettes away from other dealers because that doesn't bother me at all. My complaint was about the salesman from the other store was trying to insinuate that there was special treatment going on when there is not, we just followed GM's instructions.

A perfect example is McMulkin. When the C6 came out he wasn't even in the top 50 Corvette dealers. He spent that entire generation building his customer base and his allocation and he is not #2 with the second biggest allocation. Any dealer in the world could have done that in 2012 if they wanted to make the investment in the product. If you didn't make that investment then, don't cry about it now.

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