Question about srt viper sales

[MoparMan]

Maybe SRT figured the cars with deposits are a guaranteed sale so why not get the unsold cars out there fast so they can move them??

Umm, because they told us custom orders with VCA numbers on them would get priority?!?

 

[Chelseasnake]

Umm, because they told us custom orders with VCA numbers on them would get priority?!?

yes we got priority....... to the back of the line

 

[ViperSmith]

maybe someone just entered the list in reverse order?

 

[ViperSmith]

I have a few observations from a local CJD(SRT) dealer.

This place has 4.... FOUR gen 5 Vipers. Two red, one black one LE.

I drive up in my ridiculous company car (Kia Soul with full 3M graphic wrap), walk up to look at the LE and right away I get the same old greasy salesman walking up.. "boy she's a beaut.. going to make someone very happy... could be you for just about 2,000 a month... same as a Porsche really"

I chuckled. I asked him if he has driven it, he nervously said "oh no.. no... our technician went out to Las Vegas and drove it. He drove it up to 125 miles per hour and he says it's amazing.. no sense of speed at that rate"

I had a (female) coworker with me. He was leering and making comments about how she would look good in a bright green Wrangler.

I went back 2 weeks later when I drove by and saw BOTH red ones sitting outside IN THE RAIN. I said "hey unless someone is getting ready to test drive those in the rain, you really should get them inside" He laughed and said "oh no, we need the attention from having them out there and no one test drives them at all unless you're ready to buy.

OKAY... so here's the sales issue as I see it.

1. Same old dealerships, same old lines, same old greasy/dirty feeling walking in and leaving.. it's a beautiful car sitting in the middle of a dump where most high-end buyers would not ever think to shop.

2. NO TEST DRIVES! someone said in an earlier post that the car is a bargain... we can guess that because we've driven the older ones, we can see the improvement in the interior, and we can guesstimate how much better the 640 will pull... we are more than half way there. Someone with a 911 has no frame of reference and needs to be able to test the car to be impressed enough to appreciate what a good deal they're getting for 100K. you might spend 100 bucks on a guess... not 100,000
(so those red track-packs that are sitting at dealerships should be tested like mad all year and sold at 87,500 next June)

3. Custom order fails have turned many of the faithful into frustrated customers instead of great brand ambassadors. I don't think this is as big a deal on the sales numbers as the first 2 reasons, but it certainly is unacceptable for brand loyalty, and is a missed marketing opportunity.

The large majority of dealers are the worst part of the equation.

SRT needs to adopt the Tesla model of sales. If dealers aren't going to allow test drives, there isn't much use for them collecting any cash over invoice.

 

[SRTviper]

The large majority of dealers are the worst part of the equation.

SRT needs to adopt the Tesla model of sales. If dealers aren't going to allow test drives, there isn't much use for them collecting any cash over invoice.

What is Tesla's model? Because now New York is trying to ban Tesla sales in the state.

 

[tbsviper]

The large majority of dealers are the worst part of the equation.

SRT needs to adopt the Tesla model of sales. If dealers aren't going to allow test drives, there isn't much use for them collecting any cash over invoice.

What is Tesla's model? Because now New York is trying to ban Tesla sales in the state.

that is a good question. Tesla has a new sales model in an old industry. It will be interesting to see how it gets resolved from a legal perspective. I liken the situation to new media vs. old media sales channels. Could take a while to sort out but Tesla will prevail.

 

[Mamba52]

If SRT sold direct how much per unit would we save.

 

[mnc2886]

If SRT sold direct how much per unit would we save.

Probably 15%.

 

[ViperSmith]

What is Tesla's model? Because now New York is trying to ban Tesla sales in the state.

They have a few stores throughout the country. You order directly from them, no dealer in the equation.

Time will tell it it works

 

[SRTviper]

So whats wrong with doing that? Isn't that what SRT wants to do anyways since they are their own brand?

If a fully loaded viper was 120k instead of 145k (saving around 15%) I would buy one tomorrow and wouldn't even consider a porsche carrera 4s, used turbo s, or any other car basically short of a ferrari lol.

 

[I Bin Therbefor]

They have a few stores throughout the country. You order directly from them, no dealer in the equation.

Time will tell it it works

Not going to happen as long as the dealer associations in each state and on a national level have the political power they have. As I recall, this model has been tried before and the dealers manage to get laws applied against this model. Same thing with enforcing MSRP.

 

[mjf6175]

Many states have laws prohibiting DIRECT sales of new cars by the manufacturer to the customer. Most states (if not all) have franchising laws that REQUIRE new cars to be sold by only car dealers.

 

[SRTviper]

Well thats BS then.

 

[Pythonpete]

I have a few observations from a local CJD(SRT) dealer.

This place has 4.... FOUR gen 5 Vipers. Two red, one black one LE.

I drive up in my ridiculous company car (Kia Soul with full 3M graphic wrap), walk up to look at the LE and right away I get the same old greasy salesman walking up.. "boy she's a beaut.. going to make someone very happy... could be you for just about 2,000 a month... same as a Porsche really"

I chuckled. I asked him if he has driven it, he nervously said "oh no.. no... our technician went out to Las Vegas and drove it. He drove it up to 125 miles per hour and he says it's amazing.. no sense of speed at that rate"

I had a (female) coworker with me. He was leering and making comments about how she would look good in a bright green Wrangler.

I went back 2 weeks later when I drove by and saw BOTH red ones sitting outside IN THE RAIN. I said "hey unless someone is getting ready to test drive those in the rain, you really should get them inside" He laughed and said "oh no, we need the attention from having them out there and no one test drives them at all unless you're ready to buy.

OKAY... so here's the sales issue as I see it.

1. Same old dealerships, same old lines, same old greasy/dirty feeling walking in and leaving.. it's a beautiful car sitting in the middle of a dump where most high-end buyers would not ever think to shop.

2. NO TEST DRIVES! someone said in an earlier post that the car is a bargain... we can guess that because we've driven the older ones, we can see the improvement in the interior, and we can guesstimate how much better the 640 will pull... we are more than half way there. Someone with a 911 has no frame of reference and needs to be able to test the car to be impressed enough to appreciate what a good deal they're getting for 100K. you might spend 100 bucks on a guess... not 100,000
(so those red track-packs that are sitting at dealerships should be tested like mad all year and sold at 87,500 next June)

3. Custom order fails have turned many of the faithful into frustrated customers instead of great brand ambassadors. I don't think this is as big a deal on the sales numbers as the first 2 reasons, but it certainly is unacceptable for brand loyalty, and is a missed marketing opportunity.

Ed, just had a similar experience at a different local CJD stealership. They have a beautiful gun Metal Pearl with Black stripes and red interior. Not that I they would let me look at it. They have it roped off so I asked if i could see it. I wanted to check out the interior, I was told they don't have the keys, only the owner has the keys. If I wanted to make an appointment then I can see it. I'm a buyer and I can't even sit in it? I don't have the time to come back nor will I. Its a car, open it so I can see what I'm buying.

 

[DodgeViper01]

yes we got priority....... to the back of the line

maybe someone just entered the list in reverse order?

Between these two posts, I got a good laugh! Sadly it seems more and more true from what we are reading here.

 

[BlueLIGHTNING]

If the dealers are having a hard time unloading the cars they have now and only maybe 800 being built for this year how long before they cancel the viper? I know they never really made money with the viper but times are different and accountants rule.

 

[SlateEd]

Ed, just had a similar experience at a different local CJD stealership. They have a beautiful gun Metal Pearl with Black stripes and red interior. Not that I they would let me look at it. They have it roped off so I asked if i could see it. I wanted to check out the interior, I was told they don't have the keys, only the owner has the keys. If I wanted to make an appointment then I can see it. I'm a buyer and I can't even sit in it? I don't have the time to come back nor will I. Its a car, open it so I can see what I'm buying.

Pete - I think I know the one you're talking about.. Courtney and I drove through there at one point and saw the GenV in the window... The Jeeps parked up on the rocks are impressive, but that's the smartest thing they've done up there

Dealerships like these are missing the value of letting someone come into direct contact with the car to impress upon them that it's a dream car. For someone who is able to afford it, or driven to get there one day, the contact with the car will solidify the resolve to buy. It seems that if you want to sell a halo car you should be happy to create a group of people who idolize the car and at this point that pretty much means you need to let them sit in it....

what happened to the 50 red Track Pack cars that were specifically designated for demos..? SRT corporate might need to blur the lines here a little and enforce some testing policy for those....

 

[SRTviper]

Pete - I think I know the one you're talking about.. Courtney and I drove through there at one point and saw the GenV in the window... The Jeeps parked up on the rocks are impressive, but that's the smartest thing they've done up there

Dealerships like these are missing the value of letting someone come into direct contact with the car to impress upon them that it's a dream car. For someone who is able to afford it, or driven to get there one day, the contact with the car will solidify the resolve to buy. It seems that if you want to sell a halo car you should be happy to create a group of people who idolize the car and at this point that pretty much means you need to let them sit in it....

what happened to the 50 red Track Pack cars that were specifically designated for demos..? SRT corporate might need to blur the lines here a little and enforce some testing policy for those....

I am going back to the dealer near me in a couple months to see if they will let me test drive then. I don't think theirs is one of the 50 but it is a red GTS track pack but it has the sepia interior.

 

[ACRucrazy]

I never understood why the "special edition" Vipers were some of the most produced models. Call me selfish but I hope the Viper stays a very low production hand built car and cutting out the dealer and selling direct seems like an ideal situation for a car like this.

I would be pissed if I was still waiting on a Gen V and there are masses sitting at the dealer marked up over sticker.

 

[v10enomous]

I can understand the frustration for guys that ordered cars but the dealers have a bigger stake in this situation and when you have a desirable hand crafted limited production supercar it's not easy to keep everyone happy. Say what you will about the dealerships and the price of the car but the dealership is a non factor IMO and the price is fine because it keeps the car out of the mainstream for those that have the resources.

 

[chorps]

that is a good question. Tesla has a new sales model in an old industry. It will be interesting to see how it gets resolved from a legal perspective. I liken the situation to new media vs. old media sales channels. Could take a while to sort out but Tesla will prevail.

I doubt Tesla will prevail without a lot of help.

NYC had ruled that Tesla did NOT have abide by the dealership rules because Tesla has no franchisees. The laws were basically made to keep the auto manufacturers from competing directly with the dealerships.

So now there are two bills working their way through the state of New York requiring new vehicle registrations to come only through dealership franchises, doing an end run around the existing law and running Tesla's model out of town. Tesla has to fight this type of legislation in every state, and all the dealers in every state have a vested interest in breaking Tesla's gambit because they know the other manufacturers would love to go direct as well. The public would have to be very motivated to help Tesla counter lobby against this type of legislation...and the dealers will yank out the local community participation card every time.

So unlike Tesla, SRT/Dodge can never go direct as it stands because they are not allowed to sell direct while they have dealers selling the same product. And there will be little savings to the customer from going direct because the manufacturer wants to keep the extra margins, or there would be no point to going direct from the manufacturer's point of view.

Still, it would be a hoot to hit "Buy NOW" from a SRT configurator, and click Fed Ex overnight shipping...

Some linkage in case anyone wants to look more into it:
http://www.roadandtrack.com/go/news/go-news-tesla-wins-dealership-lawsuit
http://green.autoblog.com/2013/06/22/ny-dealers-try-to-make-it-illegal-to-register-a-tesla/
[URL="http://azstarnet.com/business/local/tesla-s-electric-cars-a-tough-buy-in-arizona/article_a412e9d4-370b-50a5-bdb3-aa19be6b4e6e.html"]http://azstarnet.com/business/local/tesla-s-electric-cars-a-tough-buy-in-arizona/article_a412e9d4-370b-50a5-bdb3-aa19be6b4e6e.html
[URL]http://www.foxnews.com/leisure/2013/05/25/tesla-motors-cut-out-middleman-approach-could-spell-trouble-in-north-carolina/[/URL][/URL]

 

[VENOM V]

I can understand the frustration for guys that ordered cars but the dealers have a bigger stake in this situation and when you have a desirable hand crafted limited production supercar it's not easy to keep everyone happy. Say what you will about the dealerships and the price of the car but the dealership is a non factor IMO and the price is fine because it keeps the car out of the mainstream for those that have the resources.

I do not blame the dealers for this, not one bit. My dealer has been exceptional, and is doing everything he can to resolve this, and I'm talking on a weekly basis! The sad thing is that BOTH the dealers and the custom-order folks got hurt by this. Dealers have seen cancelled orders because custom-order folks have an incentive to cancel when they can go to another dealer and buy a car similar to what they had on order, and end their wait. Plus, now that the market is flooded with unsold cars, dealers are beginning to sell below MSRP. If SRT had built the custom-orders that people like me ordered in November first, there would be less inventory and the dealers may not have had to mark them down to sell them. This problem was created when SRT chose not to build sold orders first.

Look at my situtation. I may cancel my order which was at MSRP and may buy a car for $10 to $15K below MSRP, because I'm tired of waiting. Nobody won in this mess up, and I'm guessing SRT is painfully aware of this by now.

 

[PDCjonny]

They are seling cars NOW at 10-15K below sticker??
Geez what's going to happen a year from now.

 

[VENOM V]

They are seling cars NOW at 10-15K below sticker??
Geez what's going to happen a year from now.

Only a small few are being discounted, nationwide. But I can ship from anywhere for a reasonable price.

 

[ViperSmith]

They are seling cars NOW at 10-15K below sticker??
Geez what's going to happen a year from now.

I've seen a few.

I think the smart guys realize they might have them sitting on lots. Or, they could also be driving for more allocations... Who knows. But, smart guys are cutting the price.

 

[SRTviper]

I doubt Tesla will prevail without a lot of help.

NYC had ruled that Tesla did NOT have abide by the dealership rules because Tesla has no franchisees. The laws were basically made to keep the auto manufacturers from competing directly with the dealerships.

So now there are two bills working their way through the state of New York requiring new vehicle registrations to come only through dealership franchises, doing an end run around the existing law and running Tesla's model out of town. Tesla has to fight this type of legislation in every state, and all the dealers in every state have a vested interest in breaking Tesla's gambit because they know the other manufacturers would love to go direct as well. The public would have to be very motivated to help Tesla counter lobby against this type of legislation...and the dealers will yank out the local community participation card every time.

So unlike Tesla, SRT/Dodge can never go direct as it stands because they are not allowed to sell direct while they have dealers selling the same product. And there will be little savings to the customer from going direct because the manufacturer wants to keep the extra margins, or there would be no point to going direct from the manufacturer's point of view.

Still, it would be a hoot to hit "Buy NOW" from a SRT configurator, and click Fed Ex overnight shipping...

Some linkage in case anyone wants to look more into it:
http://www.roadandtrack.com/go/news/go-news-tesla-wins-dealership-lawsuit
http://green.autoblog.com/2013/06/22/ny-dealers-try-to-make-it-illegal-to-register-a-tesla/
[URL="http://azstarnet.com/business/local/tesla-s-electric-cars-a-tough-buy-in-arizona/article_a412e9d4-370b-50a5-bdb3-aa19be6b4e6e.html"]http://azstarnet.com/business/local/tesla-s-electric-cars-a-tough-buy-in-arizona/article_a412e9d4-370b-50a5-bdb3-aa19be6b4e6e.html
[URL]http://www.foxnews.com/leisure/2013/05/25/tesla-motors-cut-out-middleman-approach-could-spell-trouble-in-north-carolina/[/URL][/URL]

I don't see how the margins would change from direct. If SRT makes a certain amount of money selling to the dealer lets say 5% and the dealer marks the car up 15% on top of that 5 to make a profit well even if SRT marked up by 10% direct to us we are still saving 5%. And if they kept that 5% and passed it to us well then we are saving 10%.

It is always a benefit for direct sales in ANY industry but that is why these dealers fight so hard against. If there was no difference they wouldn't fight it but no there is a big difference and it makes a lot of money for the dealers and not the company.

 

[chorps]

For the general market I can see where you're coming from but a toy that is 100k or 95k won't mean much in drawing the customer (in the Viper's case). If marketing and design can't close the deal at 135k vs 145k something is seriously wrong elsewhere in the process (like manufacturing and delivery). In the Viper's case chucking the discount versus trying to get the business case righted (shipping 40% the amount of projected units with the commensurate sales income) with highest margins would be a more preferable case.

 

[v10enomous]

I suspect that there is a huge markup in the msrp and deep discounts were part of the plan. Can't blame someone for cancelling an order if they can find a suitable car in stock for less.

I do not blame the dealers for this, not one bit. My dealer has been exceptional, and is doing everything he can to resolve this, and I'm talking on a weekly basis! The sad thing is that BOTH the dealers and the custom-order folks got hurt by this. Dealers have seen cancelled orders because custom-order folks have an incentive to cancel when they can go to another dealer and buy a car similar to what they had on order, and end their wait. Plus, now that the market is flooded with unsold cars, dealers are beginning to sell below MSRP. If SRT had built the custom-orders that people like me ordered in November first, there would be less inventory and the dealers may not have had to mark them down to sell them. This problem was created when SRT chose not to build sold orders first.

Look at my situtation. I may cancel my order which was at MSRP and may buy a car for $10 to $15K below MSRP, because I'm tired of waiting. Nobody won in this mess up, and I'm guessing SRT is painfully aware of this by now.

 

[09 Venom]

don't believe this unless it is in black and white in a contract ready to be signed..

They are seling cars NOW at 10-15K below sticker??
Geez what's going to happen a year from now.

 

[09 Venom]

WHAT!!! YOU ARE CRAZY!! carrear 4s, USED turbo...you will be severely disappointed if you buy one of these instead of the new Gen V! I have owned both..trust me!

So whats wrong with doing that? Isn't that what SRT wants to do anyways since they are their own brand?

If a fully loaded viper was 120k instead of 145k (saving around 15%) I would buy one tomorrow and wouldn't even consider a porsche carrera 4s, used turbo s, or any other car basically short of a ferrari lol.