New Dealer Allocation Rules: Need Clarification
11-26-2014, 02:40 PM
#1
Burning Brakes
Thread Starter
New Dealer Allocation Rules: Need Clarification
Understanding how dealer allocations work is difficult enough; but now - I understand - things have changed again.
Effective in early November, new allocation rules referred to as _____and_____ (move and gain? - something like that) were put into effect. As it was quickly described to me, GM takes a (monthly? weekly?) "snapshot" of each dealer's recent sales of Corvettes (Corvettes only - not all cars) and gives him new allocations based on those sales. If this is accurate, exactly how it affects the dealer's annual allocations is a mystery to me.
Anyhow, if any of you Forum Dealers out there want to take a shot at clarifying some of this I think we'd all appreciate it.
Effective in early November, new allocation rules referred to as _____and_____ (move and gain? - something like that) were put into effect. As it was quickly described to me, GM takes a (monthly? weekly?) "snapshot" of each dealer's recent sales of Corvettes (Corvettes only - not all cars) and gives him new allocations based on those sales. If this is accurate, exactly how it affects the dealer's annual allocations is a mystery to me.
Anyhow, if any of you Forum Dealers out there want to take a shot at clarifying some of this I think we'd all appreciate it.
11-26-2014, 03:11 PM
#2
Le Mans Master
With this policy I could see it helping the warm climate dealers this time of the year since they can probably move their Corvettes quicker than say a northern dealer whose lot is packed with ice and snow.
11-26-2014, 03:47 PM
#3
Safety Car
For many years the allocation system was referred to as "turn and earn". Is that the term you heard used? Maybe allocation is returning to the old system?
11-26-2014, 03:54 PM
#4
Instructor
Understanding how dealer allocations work is difficult enough; but now - I understand - things have changed again.
Effective in early November, new allocation rules referred to as _____and_____ (move and gain? - something like that) were put into effect. As it was quickly described to me, GM takes a (monthly? weekly?) "snapshot" of each dealer's recent sales of Corvettes (Corvettes only - not all cars) and gives him new allocations based on those sales. If this is accurate, exactly how it affects the dealer's annual allocations is a mystery to me.
Anyhow, if any of you Forum Dealers out there want to take a shot at clarifying some of this I think we'd all appreciate it.
Effective in early November, new allocation rules referred to as _____and_____ (move and gain? - something like that) were put into effect. As it was quickly described to me, GM takes a (monthly? weekly?) "snapshot" of each dealer's recent sales of Corvettes (Corvettes only - not all cars) and gives him new allocations based on those sales. If this is accurate, exactly how it affects the dealer's annual allocations is a mystery to me.
Anyhow, if any of you Forum Dealers out there want to take a shot at clarifying some of this I think we'd all appreciate it.
11-26-2014, 03:59 PM
#5
Pro
11-26-2014, 04:10 PM
#7
11-26-2014, 04:23 PM
#8
Racer
Well Craig, it is supposed to be Turn & Earn, but doesn't seem to be working out that way. I just got back from P.O. and our dealer should have "earned" 3 allocations based on recent sales under the new system but instead was granted 0. There were only 4 allocations given to the entire NW area. Our next shot will be the first week or so in December, then no more until after the first of the year. I suppose anything can change at any time. We need to keep our fingers crossed.
Am I understanding this correctly?
11-26-2014, 04:33 PM
#9
Instructor
Sounds like Joe the Corvette Buyer has no say in buying a Corvette "locally". That is, if Joe the Corvette Buyer has a mitt full of cash to spend, his going to his local dealer and saying order me one in red may not happen solely because his local dealer had not sold enough previously? So much for respecting the customer. If this is true, it should not be bewildering to GM why Corvette "wanters" buy Porsches.
Am I understanding this correctly?
Am I understanding this correctly?
11-26-2014, 05:03 PM
#10
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the legal systems have modified "turn and earn" in the industry - it can only be a "portion" of the system, they has to be a base sales number used in the calculation too, so that if a dealer for some reason gets behind in turn and earn for short time, he still gets some cars. Usually most car companies are a 50% 12 month sales history and 50% inventory turn...takes the volatility out of the system...
11-26-2014, 05:31 PM
#11
Drifting
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I would say it is screwed up. Friend of mine ordered a base cpe 5 weeks ago with our local dealer. GM still hasn't picked it though has given dealer a Z51 and a Z06 order in that time. Guess no room to manuf a base car now in BG with all the Z06's being built. He is about to give up. Sure makes the "small town" dealer look bad to people who don't know the "system".
11-26-2014, 05:37 PM
#12
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this won't be popular with many, but there are two sides to this issue.
it's not about "big dealers get the cars" -->one of the biggest dealers is outside columbus ohio by 30 miles, another is in the Dakotas somewhere or Montana, not sure...
it's pretty simple - it's just business....BMW has just announced to the dealers that the i8 will be doled out to the dealers with the largest 6 and 7 sales for 2014....IT IS NOT A CONSUMER FRIENDLY SYSTEM...let's agree on that.
Back in 2010 (or 11, not sure) when you could not give away a C6 due the old design and the wall street Lehman brothers failure thing, GM needed help to keep BG open.They asked their dealers to buy C6's and most told them to pound sand. Note: (Most) Dealers are not LOYAL TO ANYTHING EXCEPT THE $$$. So GM told them the next C7 would be based on who took C6's. AT THIS POINT IN TIME EVERY DEALER IN THE UNITED STATES COULD DECIDE IF HE WANTED TO PLAY OR NOT. Even "the local dealer who everyone thinks now is getting screwed".A few stepped up, did the hard thing and sold, begged and gave away C6's when it was not popular. Today we call them "forum dealers" And to the victor, blah blah blah
you can hate the system but its pretty much the industry standard as long as dealers are independent and can tell the factory to pound sand when things get tough....
Std disclaimer: its not how it should be , but how it is....
also it will not last long, and is 1st/2nd year thing (except for constraint cars) ...As the forum dealers get choked on product, GM will open it up so more allocations go to the base network. Hence, the recent change. Conti has over 50 for sale on the ground right now, and something's gotta give...as one my exec friends in the industry says " you can't eat like an elephant and sh** like a bird for long".....
FYI - I am not a dealer, but was one, and after finding my local dealer could not supply for 8 months, I too drove 1200 miles to get my car - it was a fun vacation and a no hassle transaction.
it's not about "big dealers get the cars" -->one of the biggest dealers is outside columbus ohio by 30 miles, another is in the Dakotas somewhere or Montana, not sure...
it's pretty simple - it's just business....BMW has just announced to the dealers that the i8 will be doled out to the dealers with the largest 6 and 7 sales for 2014....IT IS NOT A CONSUMER FRIENDLY SYSTEM...let's agree on that.
Back in 2010 (or 11, not sure) when you could not give away a C6 due the old design and the wall street Lehman brothers failure thing, GM needed help to keep BG open.They asked their dealers to buy C6's and most told them to pound sand. Note: (Most) Dealers are not LOYAL TO ANYTHING EXCEPT THE $$$. So GM told them the next C7 would be based on who took C6's. AT THIS POINT IN TIME EVERY DEALER IN THE UNITED STATES COULD DECIDE IF HE WANTED TO PLAY OR NOT. Even "the local dealer who everyone thinks now is getting screwed".A few stepped up, did the hard thing and sold, begged and gave away C6's when it was not popular. Today we call them "forum dealers" And to the victor, blah blah blah
you can hate the system but its pretty much the industry standard as long as dealers are independent and can tell the factory to pound sand when things get tough....
Std disclaimer: its not how it should be , but how it is....
also it will not last long, and is 1st/2nd year thing (except for constraint cars) ...As the forum dealers get choked on product, GM will open it up so more allocations go to the base network. Hence, the recent change. Conti has over 50 for sale on the ground right now, and something's gotta give...as one my exec friends in the industry says " you can't eat like an elephant and sh** like a bird for long".....
FYI - I am not a dealer, but was one, and after finding my local dealer could not supply for 8 months, I too drove 1200 miles to get my car - it was a fun vacation and a no hassle transaction.
Last edited by Glen e; 11-26-2014 at 05:48 PM.
11-26-2014, 05:59 PM
#13
Le Mans Master
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Here is another side to this. When GM said sell 4 C6's in a year to get the C7 only 900 dealers did it. The C7 comes out and is selling as fast as they can build them. Now the other 3,000 dealers want it. GM says pony up $3K to go to school, buy some tools, and your in. The non 900 dealers who did when they got their allocation they could get either a coupe or a convertible. Most of these small dealers got cars equipped with options that were on constraint. Was that fair to the customers who had cars on order and were waiting for Z-51 or carbon dash?
GM should break down Corvette allocations into two groups Sold Orders---Stock Orders All sold orders should get pulled first and built with the options the customer orders. Then stock orders next and put the constraints on stock orders.
GM should break down Corvette allocations into two groups Sold Orders---Stock Orders All sold orders should get pulled first and built with the options the customer orders. Then stock orders next and put the constraints on stock orders.
11-26-2014, 05:59 PM
#14
Burning Brakes
Thread Starter
Well Craig, it is supposed to be Turn & Earn, but doesn't seem to be working out that way. I just got back from P.O. and our dealer should have "earned" 3 allocations based on recent sales under the new system but instead was granted 0. There were only 4 allocations given to the entire NW area. Our next shot will be the first week or so in December, then no more until after the first of the year. I suppose anything can change at any time. We need to keep our fingers crossed.
11-26-2014, 06:13 PM
#15
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Here is another side to this. When GM said sell 4 C6's in a year to get the C7 only 900 dealers did it. The C7 comes out and is selling as fast as they can build them. Now the other 3,000 dealers want it. GM says pony up $3K to go to school, buy some tools, and your in. The non 900 dealers who did when they got their allocation they could get either a coupe or a convertible. Most of these small dealers got cars equipped with options that were on constraint. Was that fair to the customers who had cars on order and were waiting for Z-51 or carbon dash?
GM should break down Corvette allocations into two groups Sold Orders---Stock Orders All sold orders should get pulled first and built with the options the customer orders. Then stock orders next and put the constraints on stock orders.
GM should break down Corvette allocations into two groups Sold Orders---Stock Orders All sold orders should get pulled first and built with the options the customer orders. Then stock orders next and put the constraints on stock orders.
The reason they dont do that is dealers fake orders and gm does not have time/resources to verify real orders. This is the definition of "straw buyer" that Porsche has been fighting for years.
I agree its a mess.
11-26-2014, 07:27 PM
#16
Instructor
Hmmm. Well, I know our dealer didn't get any from last Thursday's allocations, but I thought he might get some in tomorrow's (11/27). I've been of the understanding that dealers find out their allocations on Thursdays and then have until the following Tuesday to place orders against them - which are then posted the next day (Wednesday). Let me know if that's not right.
11-26-2014, 08:51 PM
#17
Burning Brakes
Thread Starter
11-26-2014, 09:42 PM
#18
Safety Car
Hmmm. Well, I know our dealer didn't get any from last Thursday's allocations, but I thought he might get some in tomorrow's (11/27). I've been of the understanding that dealers find out their allocations on Thursdays and then have until the following Tuesday to place orders against them - which are then posted the next day (Wednesday). Let me know if that's not right.
11-26-2014, 10:19 PM
#19
I feel lucky now that my order from a 25-30 a year dealer went as he told me it would go. He told me 2-3 per mo. and I was #5 , then should get it by October or November, and it happened just that way. He also told me not to listen to what they say on the Forum. I was also given supplier, price protection and used my GM earnings from this California Dealer, then they delivered my 2015 by flatbed to my home. I am glad the wait is over now and have the title to my new C7.
11-26-2014, 11:47 PM
#20
Drifting
The allocation problem is caused by many things, but most of this seems to be due to the huge number of Z06's being built, as well as the Thanksgiving and Christmas shutdown which eliminate over 2 weeks of production. The largest dealers are getting most of the Z06's, so aren't getting allocations for other Vettes. I have been sitting at 1100 for one month (Z-51- no other constraints) and I have been told that it won't be built until Jan at the earliest. This comes from a top volume Vette dealer in FL. They are selling lots of Vettes as their inventory has gone down considerably, and they have NO 15' Conv's, or any inventory in transit.
Check the latest constraint report for the projected production date for this week's listing. Can you say "January"...
Check the latest constraint report for the projected production date for this week's listing. Can you say "January"...