Long McArthur Ford is gettting ZERO allocations for at least this coming month.

[Old Man]

Dear Mr. Farley,
Attached you will see the names of 200 experts that know all the intricacies of running a large company and the best method of determing which vehicle is best built in what order. Their vast experience, education and knowledge far outweighs the collective wisdom of everybody at Ford so you should hire them immediately.
And if you don't hire them then no problem because the other American car manufacturers have similar systems so there will be opportunities available for them.
And could you talk to my mom about how she allocates more cookies to my sister than me because she likes her more. It isn't fair.

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[OleFordGuy]

That being the case ,why does ford do this unfair practice making many angry over the process

Who knows. I think the majority if not all automotive manufacturers use it or some form of it, it's not just Ford. As I see it, the allocation system is just an unfortunate artifact of the old dated dealer franchise system. I assume it's a valid process for every day dealer stock inventory distribution to all the dealers, but for the life of me can't see any logic to it being used in a verified customer retail order.

 

[LSchicago]

I agree to this totally. I live in the middle of nowhere and the small dealership i ordered with said they had 5 carryovers and i was the first day one order on the 15th of September with confirmation email. Xlt hybrid with hitch that i removed a month later. They still have not got any of their 23 orders and just got the last of their carry over 22 orders. This allocations system really screw us customers that dont live near big dealerships

Allocations screw with us that live near big dealers too. Sometimes a small town dealer who has mastered internet sales takes 3-5 times what a large dealership gets.

 

[earlyhike]

Dear Mr. Farley,
Attached you will see the names of 200 experts that know all the intricacies of running a large company and the best method of determing which vehicle is best built in what order. Their vast experience, education and knowledge far outweighs the collective wisdom of everybody at Ford so you should hire them immediately.
And if you don't hire them then no problem because the other American car manufacturers have similar systems so there will be opportunities available for them.
And could you talk to my mom about how she allocates more cookies to my sister than me because she likes her more. It isn't fair.

This post should be the final say on the matter.

 

[JohnHartshorn]

Except larger dealerships will have dedicated staff able to flood the books. Smaller dealerships might just have one guy able to put in orders and if there are system issues, might have to wait. Should that dealership be punished simply because a larger dealership is able to afford a team of people able to spam the order banks?

A small dealership will only have a handful of orders. All orders should be COVP to weed out the dealer spamming the order banks. Dealers that game the system by creating fake orders get punished. I wouldn't do the "reduced allocations" that Ford threatened, as that also punishes the clueless customer wondering why they are still waiting, but I'm sure there is something Ford can do to make the dealers wary of doing that.

 

[commadorebob]

A small dealership will only have a handful of orders. All orders should be COVP to weed out the dealer spamming the order banks. Dealers that game the system by creating fake orders get punished. I wouldn't do the "reduced allocations" that Ford threatened, as that also punishes the clueless customer wondering why they are still waiting, but I'm sure there is something Ford can do to make the dealers wary of doing that.

COVPs were not required and can be put in later. The post I was responding to said first-come-first-serve, which has its own disadvantages and is the reason scalping is a problem is most other industries. The allocation system at least lets smaller dealerships get something.

Again, going back to the NFL draft analogy I prefer: every dealership might not get a chance to participate this round but every dealership will get a chance to participate in some round. Larger dealerships will simply get to draft in more rounds than smaller ones, but the smaller ones still get to at least have a round to participate in.

 

[dusty1787]

I just kind of skimmed the pages on this post (may not have seen important posts or comments, and if so, my apologies) and got the general theme that a majority all feel Ford screwed over Tim and should not do that to people who promote the company in positive light.

I completely understand and follow the logic, but to me all that seems to promote is giant mega dealerships. Because tons of people order through them (even across the whole US), they should be prioritized? Lets say I happened to order from the largest volume dealership in Wisconsin and it was down the road from my house, yet it falls like 50th across the whole US.... only the top sellers should get all their allocations every time? The dealership I ordered from is 50th...so that's not as important?

Has Tim ever mentioned how many of his orders are local or within the state? I am not down talking Tim or LM Ford at all, but if (hypothetical) 75% of your business is orders from all over the US, how is that going to help all the other dealerships that do not have the reputation or audience base as Tim does? What about if a world famous celebrity started promoting a single dealership and they get swarmed with orders...should Ford then just give them all the orders they have because they are being promoted by a huge celebrity and it would look bad to let that dealership orders go to waste without stepping in to help?

All I am trying to say is that there most likely is a reason behind this whole thing. Tim does an amazing job at everything he does, but there has to be a reason for it. Maybe each dealership has an automatic pass on allocations for at least 1 month each year....or it has something to do with that hush hush 24MY rollover project.... who knows.... .Once more, I did not read every post on this page, and I am not talking negatively in any way shape or form about Tim or LM Ford. Just giving my $0.02.

 

[JohnHartshorn]

COVPs were not required and can be put in later. The post I was responding to said first-come-first-serve, which has its own disadvantages and is the reason scalping is a problem is most other industries. The allocation system at least lets smaller dealerships get something.

Again, going back to the NFL draft analogy I prefer: every dealership might not get a chance to participate this round but every dealership will get a chance to participate in some round. Larger dealerships will simply get to draft in more rounds than smaller ones, but the smaller ones still get to at least have a round to participate in.

I was the only hybrid order at my small town dealer. I waited a year and a half, watching many posts here of my exact build get delivered that were ordered way after mine. My little home town dealer (and me) got screwed by Fords allocation system that benefitted large dealers with hundreds of orders submitted months after mine.

 

[JohnHartshorn]

I was the only hybrid order at my small town dealer. I waited a year and a half, watching many posts here of my exact build get delivered that were ordered way after mine. My little home town dealer (and me) got screwed by Fords allocation system that benefitted large dealers with hundreds of orders submitted months after mine.

And COVP was required for 2022 orders, and should have been for 2023 orders, and now are. Non-COVP 2023 orders have allegedly been cancelled now.

 

[commadorebob]

Taken from a Bronco forum and updated for Mavericks

Dealers are provided two allocations each month:

• Mid-month Allocation
  • Based on 12 months of sales history relative to other dealers in your dealer's region.
• End-of-month Allocation
  • Based on your dealer's monthly sales velocity & 3 months of sales history relative to other dealers in the region.

Mid-month Allocation
Mid-month allocations comprise of two components:

• Sales Factor - 60%
• Availability Factor - 40%

Sales Factor
Sales factor is the total expected production for your region times the percentage of sales the dealer has made for that particular vehicle relative to other dealers in the region factored by 60%. (Confused yet?) That formula is below:

Share of Region: (Dealer's Sales) / (Region's Sales)
Sales Factor: (Production Expectation) * (12-month Share of Region) * 60%

So let's take an example: Say for the next scheduling month, Ford expects to be able to produce 500 Mavericks for your region. Over the past 12 months, your region sold 6,000 Mavericks and your dealer sold 89 of those Mavericks. Your dealer's share of the region would be the total number they sold divided by the total number sold in that region.

Share of Region: 89 / 6000 = 1.5%

Now apply the sales factor weight of 60% and the total expected production, and the final number becomes the following:

Sales Factor: 500 * 1.5% * 60% = 4.5 vehicles

Therefore, your dealer should expect to receive 4 Maverick allocations from the Sales Factor.

Availability Factor
The availability factor is the total available vehicles in your region plus the total expected production times the dealer's share of region minus the dealer's available vehicles factored by 40%. If that made no sense, don't worry about it, it was painful to write. Let's just look at the formula:

Availability Factor: [[[(Regional Availability) + (Production Expectation)] * (12-month Share of Region)] - (Dealer's Availability)] * 40%

Or a simplified version...

Desired Availability: [(Regional Availability) + (Production Expectation)] * (12-month Share of Region)
Availability Factor: [(Desired Availability) - (Dealer's Availability)] * 40%

"Availability" is defined as vehicles on dealer's lots and vehicles that have been released from the assembly plant and are in-transit to the dealer.

Example time: Say within the region there are 72 Broncos available, while the dealer has 3 Broncos available. Using that information and the expected production and share of region from the sales factor example above, we can figure out the desired availability.

Desired Availability: (72 + 500) * 1.5% = 8.58
Dealer's Availability: 3
Target Availability: 8 - 3 = 5
Availability Factor: 5 * 40% = 2 vehicles

Therefore, your dealer should expect to receive 2 Maverick allocations from the Availability Factor.

Total Mid-Month Allocation
Add the two together, and you get your dealer's total mid-month allocation.

(Sales Factor) + (Availability Factor) = Allocation
4 + 2 = 6

6 Maverick allocations total.

End-of-Month Allocation
The end-of-month allocation is called the "Rapid Replenishment" allocation. The goal is to give dealers more vehicles allocation if they are on a sales streak, and is determined largely by monthly sales performance. The formula is as follows:

Rapid Replenishment: (Regional Rapid Replenishment Volume) * [(Dealer's Sales Velocity Analysis) / (Region's Sales Velocity Analysis)] * (3-month Share of Region)

You are probably wondering what the "Sales Velocity Analysis" is. Formula for that is as follows:

Sales Velocity Analysis (SVA): (Monthly sales) / [(Monthly Sales + Month-end Stock)]

Time for an example. Say your dealer sold 12 Mavericks during the month, and has 1 Maverick left in-stock. The dealer's 3-month Share of Region was 2%. At the region level, say the region was provided 50 units as part of their Rapid Replenishment Volume, the Region's Sales Velocity Analysis was 89.7%.

Dealer's Sales Velocity Analysis: 12 / (12 + 1) = 92.3%

Plugging it all in:

50 * (92.3% / 89.7%) * 2% = 1

Therefore, your dealer can expect to receive an additional allocation at the end of the month.

Final Number
Add the two together, and your dealer can expect to receive 7 allocations for that particular month of scheduling.

Now, keep in mind the Maverick is basically build to order and a new model, so Ford includes the Escape and Edge sales as part of the allocation number calculations. So, if your dealership isn't pushing those two models, it will hurt their ability to get Maverick allocations.

 

[skadizzle]

While I think the amount of allocations should be based on the total orders, I think every dealer should get at least one allocation every month. I see some small dealers going months without an order getting selected which is ridiculous. If they only had 4 or 5 total orders for the year, let them run out in 4 or 5 months and then if stock orders are available, maybe give them an allocation every other month for stock and pass their allocation to someone else on the odd months.

Not everyone will be happy, but every dealer that has orders deserves to get an allocation every month so at least someone gets theirs. I waited 17 months for mine and ordered at a pretty large local dealer. They took in more orders than they could produce for the year and I was fine waiting my turn.

 

[paneubert]

While I think the amount of allocations should be based on the total orders, I think every dealer should get at least one allocation every month. I see some small dealers going months without an order getting selected which is ridiculous. If they only had 4 or 5 total orders for the year, let them run out in 4 or 5 months and then if stock orders are available, maybe give them an allocation every other month for stock and pass their allocation to someone else on the odd months.

Not everyone will be happy, but every dealer that has orders deserves to get an allocation every month so at least someone gets theirs. I waited 17 months for mine and ordered at a pretty large local dealer. They took in more orders than they could produce for the year and I was fine waiting my turn.

I've been thinking something similar as well.

I think I would support it, but only for dealers with customer orders that are unscheduled. Not stock. Google tells me "There are 2,944 Ford Motor Company dealerships in the United States as of May 23, 2023".

So that would eat quite a bit of the "allocations" each month if each dealership got 1.

Edit to add: If each dealer got 1 per month, and they did not have a "buildable" customer order, I would want that allocation to go back to some other dealer the next week. I don't think carrying it over month to month would work, unless customers changed their orders to meet what Ford can produce. Otherwise the dealer just keeps collecting allocations they cant use.

 

[Suzysparks]

Saw your Maverick in the Members Only Lot Walk yesterday. Congratulations Paul.

Hey Ridgview… did you see mine? I think they hid it.

 

[Suzysparks]

I just kind of skimmed the pages on this post (may not have seen important posts or comments, and if so, my apologies) and got the general theme that a majority all feel Ford screwed over Tim and should not do that to people who promote the company in positive light.

I completely understand and follow the logic, but to me all that seems to promote is giant mega dealerships. Because tons of people order through them (even across the whole US), they should be prioritized? Lets say I happened to order from the largest volume dealership in Wisconsin and it was down the road from my house, yet it falls like 50th across the whole US.... only the top sellers should get all their allocations every time? The dealership I ordered from is 50th...so that's not as important?

Has Tim ever mentioned how many of his orders are local or within the state? I am not down talking Tim or LM Ford at all, but if (hypothetical) 75% of your business is orders from all over the US, how is that going to help all the other dealerships that do not have the reputation or audience base as Tim does? What about if a world famous celebrity started promoting a single dealership and they get swarmed with orders...should Ford then just give them all the orders they have because they are being promoted by a huge celebrity and it would look bad to let that dealership orders go to waste without stepping in to help?

All I am trying to say is that there most likely is a reason behind this whole thing. Tim does an amazing job at everything he does, but there has to be a reason for it. Maybe each dealership has an automatic pass on allocations for at least 1 month each year....or it has something to do with that hush hush 24MY rollover project.... who knows.... .Once more, I did not read every post on this page, and I am not talking negatively in any way shape or form about Tim or LM Ford. Just giving my $0.02.

Tim has said that 30% of their business is from out of state. That was not Maverick specific, just 30% of their sales are out of state.

 

[dusty1787]

Tim has said that 30% of their business is from out of state. That was not Maverick specific, just 30% of their sales are out of state.

Thanks for the info. Out of the 10 or so videos I have seen of his, I must have not watched the one where he talked about out of state sales, but I have heard him talk about others numbers before. I believe he had a few hundred (4-500?) Maverick orders alone for this year, right? So add in all of the other Ford models, and that is a nice chunk of orders from out of state. I'm sure every dealer gets some out of state orders if they happen to have a vehicle with all the options someone really wanted, etc..., but when closer to 1/3 of all sales are out of state orders... is impressive!

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