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Kirkham Motorsports

 
 
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  #18 (permalink)  
Old 04-23-2003, 07:35 AM
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Location: Buffalo, NY USA, NY
Cobra Make, Engine: Superformance
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Default T-Bird..

...Yes, Ford DID make some marketing errors with the car BUT this is also a VERY fickle market segment. The cars were selling for way over sticker when the first hit the market. The "Needless Markup" versions sold out in a few hours. Customers argued with dealers for the first car, one dealer I know kept his first car for himself (he even actually paid the dealership for it, no "perpetual floor plan") and had customers ragging on him to sell it.

But the worm turns quickly, once the pipeline was full and the "early adaptors" had the car they paid too much for, this is the time when marketing needs to crank up to keep momentum. This is where Ford and others (read GM) often fall down. Example-local dealer suddenly has FIVE 2002 Birds in stock, all equipped with the $10K "Market adjustment sticker" added to the cars......Too many cars in stock, usual Ford dealer solution? DISCOUNT 'em! They have just destroyed the market and the image of the car.

I have seen this happen before and even been involved in such foolishness. When Ford introduced the SVO Mustang in late 1983 any dealer could order the car, there was no such network as with todays SVT dealers. Soon most dealers had one....and then two as they had backed up the order with another to replace the anticipated quick sale of the first car. Said first sale did not take place and NOW WE HAVE TWO OF 'EM? Get ridda 'em! How? DISCOUNT!!!! This is how they destroy the image and value of the product. You don't see Rolexes being discounted because the jeweler has a couple, they know they will sell them and order appropiate volumes. Auto dealers tend not to due to lead times and the greed factor...I want what is hot until it is not...

I also saw this happen when I imported the AC MK IV in the 80s, once the dealer had a car and it had not sold they panicked knowing another was on the way. Once more they started the discount monster and ruined the image of the car. Understand there was less markup on these than you might have expected and once discounted there was very little profit for the dealer. Gee, when you don't make much on a sale how inclined are you towards servicing the customer? What type of treatment will you provide to the customer base?

This is a self fullfiling operation that will only go down hill. Coupled with a specialty car market that makes the "latest and greatest' the thing to have, a product like the Thunderbird becomes stale quickly in the market. It will happen with the new Caddy and whatever else comes along in this market segment.

Rick
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