Flaw in Fords allocation system?

[Champ]

I have asked and asked that very question! I have yet to receive an answer other than from one MTC member who constantly points out to me (and anyone that reads his post), that WE are not Ford customers, but dealership customers. That the only customer Ford has are the dealerships! So as long as the dealerships are kept happy the rest of us can go pound sand!

Ha Ha! Ford dealers are the actual manufacturer's customer? Tell that theory to former Dodge and Plymouth dealers and their floor plan providers who actually were buying those vehicles. Want a new Dodge truck? Whoops I mean a Ram from a new dealer? I think I'll go see a new Desoto, or Olds, or Pontiac, at a dealership, those who are [were] according to your source, the actual manufacturer's "customers"! Any manufacturer had better consider the end user the customer, as the supply chain cogs aren't the ones keeping the money flowing, just like a leach isn't a blood source! Excuse me, I need to see the Amazon driver, who apparently was the actual customer for the product I needed by your convoluted theory and is finally dropping it off . I will agree that if this driver wants to not give me the item unless I pay an additional charge, I will call him a scumbag and refuse it! So much for that product's "customer". Always another competitive source for virtually anything . JMHO

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[DJF]

Ford stopped taking orders when they reached totals they thought they could build. This shows intent to build all of them. So what do allocations really have to do with anything @Ford Motor Company ?

Fast forward to getting bumped to MY 23, if that happens. My "place in line" and when my truck gets built is back to being influenced by dealer allocations. If I was penalized as a want-to-be Maverick owner by lack of dealer allocations in 22, how is 23 going to be any different? I've asked my dealer how many Maverick allocations they usually get and/or how many Maverick orders they have on the books and they refuse to provide any information. Ford's allocation system absolutely puts my ability to own one of their vehicles at the mercy of my local dealership and their ability to move product. Do I ride it out with my local dealer with my "prioritized" 22 to 23 order or take my chances with a new 23 order at a larger dealership that has more allocations and likely more orders? Their allocation system is the single biggest factor to IF and when I become one of their paying customers.

 

[Chance301]

Fast forward to getting bumped to MY 23, if that happens. My "place in line" and when my truck gets built is back to being influenced by dealer allocations. If I was penalized as a want-to-be Maverick owner by lack of dealer allocations in 22, how is 23 going to be any different? I've asked my dealer how many Maverick allocations they usually get and/or how many Maverick orders they have on the books and they refuse to provide any information. Ford's allocation system absolutely puts my ability to own one of their vehicles at the mercy of my local dealership and their ability to move product. Do I ride it out with my local dealer with my "prioritized" 22 to 23 order or take my chances with a new 23 order at a larger dealership that has more allocations and likely more orders? Their allocation system is the single biggest factor to IF and when I become one of their paying customers.

I agree that’s there’s something fundamentally wrong with Ford’s allocation system as it applies to it’s “new” business model. Ordered in July from my local dealer. Great dealership with excellent reputation but relatively small compared to major metro areas. They’ve yet to deliver a hybrid and have only received a handful of eco’s. Sales manager told me they have no allocations for March with 17 Maverick’s on order (including a couple of June orders).
This system has got to be as frustrating for dealers as it is for purchasers.

 

[xlt-doug]

If I get pushed to 2023 I’ll try to order 3 from different dealerships with refundable deposits and take the first to come in. My current dealership will not be one of them

 

[Bad Actor]

This will be what a lot of people do, further adding to the problems for Ford and buyers.

 

[jc888888888]

Don't flame me, but this is the allocation model in a nut shell. I'm not defending it, really. Just explaining it. But this is why...

Normal Every Day Selling Fords:

• Low Volume Dealer sells 1 Ford a Day.
• High Volume Dealer sells 15 Fords a Day.

All Day Long. Every day. If Ford made $1000 per transaction, Low Volume Dealer makes Ford $365k a year. High Volume Dealer makes Ford nearly $5.5M.

But it can get much more askew than that. What if the Low Volume Dealer sells more cars that have less margin? Maybe their margin average is $1000, but the High Volume Dealer sells lots of expensive SUV's and trucks. Maybe their average is $2500 for Ford? Maybe it is comparing $365K to $13.7M a year?

So, if there was no allocation model, in a normal year they would still after a year be a ratio difference of 15:1 between the low volume and high volume dealers in total sales. Just letting the chips fall where they may.

Popular model comes along. It's constrained in the number of units it will produce the first year. A Low Volume Dealer may be able to quadruple their normal sales volume due to that popular model. The High Volume dealer would see anything less than a 15:1 ratio as cutting into their sales. And that would be true.

They have been there, year over year, producing high numbers of sales for Ford. And now, when something popular comes along, they are supposed to live with less than what they normally receive? Meanwhile, low volume dealers get a sudden windfall, but the high volume dealers, are supposed to fund their windfalls.

The allocation system is designed to keep things in check, that dealers can't suddenly just take constrained and popular vehicles at a much higher quantity than normal. It's a stop gap to keep the field fair for dealers.

And you have to ask yourself, "Why does a dealer do such low volume and have a low allocation?" In many instances it is because they provide poor customer service, have bad reputations, overcharge or have ridiculous ADM's or shistery business practices. Do we really want a greedy high ADM low volume dealer getting a much higher ratio of Broncos and Mavericks? Each one there will be at the expense of another dealer with better business practices. If it was first come, first served, they are much more likely to put in fake ID names and get a larger share. Or turn on their customers and demand ADM on retail orders that were not disclosed. If you can't get more units than your allocation, it doesn't matter how many orders you put in...illegitimate or otherwise.

I'm sure there are lots of small dealers who are professional and price fairly, but they are small. And they will get popular Fords in roughly the same quantity they always sell Fords.

High volume dealers sells lots of cars. They generally are good dealers with good reputations and reasonable prices. That's why they are a high volume dealer. You can't force mass numbers of people to purchase a great quantity of vehicles.

If only 50,000 Mavericks end up being produced, the allocation system is designed to make sure that they are awarded out to dealers at roughly the same rates that they normally purchase vehicles. The only way to game the system is to sell more vehicles. That's what Granger was doing selling their Mavericks at low prices. To change their ratios and get more future allocations.

This process, though the fairest for dealers, is not fair to a customer. A customer would probably happily go to another dealer if they knew the end result for them would be different. Customers want to be treated fairly and similarly. In a dealer stock situation, customers wouldn't be harmed by the allocation process. They would go to the low volume dealer lot and see little to no inventory and move on to other lots until they found what they were looking for.

But in a retail order model, the allocation system does not work for customers. Because the low volume dealer is not injured that they are getting vehicles in roughly the same quantity ratio they always have. Their final sales numbers will end up similar at the end of the year. But all those extra customers they ordered vehicles from beyond their normal allocation are stranded.

The way I see it, they need to either...

• Modify the allocation system on the order end. Instead of scheduling allocations, make order allocations. The low volume dealer can schedule their 1:15 share (or whatever it actually is). Then they have to tell customers they are out of order allocations for the month when they want to place an order beyond their monthly allocation. Then the customer can decide to look elsewhere for a dealer with order allocations, or go on a waiting list, or check back in next month. In this method, everyone who gets an order in will be scheduled in a month or two. Customer is in control, and not subject to an undeterminable and prolonged order/waiting process.
• Or scrap the allocation system all together. But something will need to be done to protect the high volume dealers from having their inventory raided on popular models. A first come first served system will just cause all the dealers to commit funny business to try to get a greater share for themselves. The only way to game the system now is to sell more (and all the time).

Ford does need to do something though. This is just killing the customers. Who did nothing wrong except want to buy a Ford. I'm sure Ford never thought this kind of information would ever get out there and understood by the public. But it is.

I know people that won't buy Chevys, or Fords, or Dodges, or Volvos, or whatever, and they say it's because something minor or obscure that happened to them 30-40 years ago. Or sometimes they do not even remember why. But they are still holding a grudge.

I've seen some of them in these forums. They will be hating Ford 40 years from now. And they may not even remember why.

Ford, do something for the customer! You can't win here. But you certainly can lose!

I hate to agree but everything above is pretty correct as far as my sales guy and manager explain it. LET ME ADD , I am repeating what I was told and will tell you what I saw at the high volume dealer who I ordered from . What I saw and my experience : I ordered an eco boost Lariat on 11/03/2021 truck was delivered to me 2/22/2022. My dealer from the outset told me anything we can do here LEAVE IT OFF your order .covers ,mud flaps, spray ins ,drop ins, i had floor mats on my order they made me take it off. Bozard ford Saint Augustine FL BTW. They have a full fledged body shop and an accessory shop with 8 bays just to do lifts ,lights etc on trucks.
Bozard Ford always had 3 to 5 Mavericks coming in every week. BTW MSRP $699 dealer fee upfront transparency you don't like it don't buy from us we are cool with that is what I was told. NOW HERE is how they skew the allocation . I was told by management : #1 We have a VERY HIGH customer satisfaction rate with Ford this is huge with corporate #2 WE take their hard to sell models and never cherry pick, we don't care if we have to sell them at cost or loss ,this is how we get broncos mavs , and hard to get vehicles. #3 allocation is based upon volume we sell lots of vehicles. Smaller dealers know this system and probably where not doing potential customers a favor ordering 100 mavericks and then blaming it on Ford. As they should of had no realistic expectation of getting that many based upon their sales history Again repeating what I was told

 

[Oldopelguy]

If I was penalized as a want-to-be Maverick owner by lack of dealer allocations in 22, how is 23 going to be any different?

If I get rolled over to '23 I will be ordering the exact same truck from as many dealers as I can and canceling the orders after I finally get one. I'll order 100 trucks at 100 dealers if that's what it takes to get one with their stupid system.

 

[jc888888888]

If I get rolled over to '23 I will be ordering the exact same truck from as many dealers as I can and canceling the orders after I finally get one. I'll order 100 trucks at 100 dealers if that's what it takes to get one with their stupid system.

Great idea but it is flawed. If a dealer is ordering correctly for you ,you will need to produce your drivers license . The dealer will need to verify your identity with Ford and go thru the steps to complete the verification which is essentially ROVP . You will be flagged and denied as the system was set up to stop exactly what you are suggesting . Traders and used car dealers are calling dealers like crazy offering over MSRP to flip Mavericks. You might risk being flagged as one of them and be denied completely . You can probably get away with a couple (2 max 3) I would guess ,stating one is a gift for my Dad ,wife, kid etc. And my bet is this in August when my23 starts up the current system will not be in place. You will go on the website order your truck . Pick your dealer ,put down a $500 deposit, put in all your info to prove who you are , THEN the dealer you pick acknowledges and accepts your order at the price listed and confirms and you now have an order. THIS IS HOW: They are taking orders for the Mach E and I believe the lightening F150. I know for a fact the Mach E is like this as I have one on order

 

[jc888888888]

If I get pushed to 2023 I’ll try to order 3 from different dealerships with refundable deposits and take the first to come in. My current dealership will not be one of them

my bet is this in August when my23 starts up the current system will not be in place. You will go on the website order your truck . Pick your dealer ,put down a $500 deposit, put in all your info to prove who you are , THEN the dealer you pick acknowledges and accepts your order at the price listed and confirms and you now have an order. THIS IS HOW: They are taking orders for the Mach E and I believe the lightening F150. I know for a fact the Mach E is like this as I have one on order

 

[jc888888888]

Fast forward to getting bumped to MY 23, if that happens. My "place in line" and when my truck gets built is back to being influenced by dealer allocations. If I was penalized as a want-to-be Maverick owner by lack of dealer allocations in 22, how is 23 going to be any different? I've asked my dealer how many Maverick allocations they usually get and/or how many Maverick orders they have on the books and they refuse to provide any information. Ford's allocation system absolutely puts my ability to own one of their vehicles at the mercy of my local dealership and their ability to move product. Do I ride it out with my local dealer with my "prioritized" 22 to 23 order or take my chances with a new 23 order at a larger dealership that has more allocations and likely more orders? Their allocation system is the single biggest factor to IF and when I become one of their paying customers.

Ford has stated, anyone who is pushed to 23 from 22.Is at the front of the line

 

[xlt-doug]

Ford has stated, anyone who is pushed to 23 from 22.Is at the front of the line

I will not take any chances this time around. Being number 1 at my dealership is no guarantee since they have only a handful arrive. I believe a lot of allocations go to the owners friends, family and regular customers by giving them better priority numbers. My October ecoboost order is nowhere close to being scheduled. I will learn from my mistakes and order elsewhere.

 

[Decayed]

They aren't killing their customers. I understand their shareholders are quite happy.

 

[huunvubu]

I’m trying to figure out fords allocation logic, maybe someone can provide some more insight but I’m having a hard time figuring out how Ford's current system will work out specifically for small allocation dealers

My dealer is a small mom and pop dealership and when I placed the order they showed me the list and there were probably a good 50-60 hybrid orders and 15-20 ecoboosts ahead of me.

You joined this forum on February 15th which was well past the cut-off date for ordering either a Hybrid Maverick (11/15/2021) or an EcoBoost Maverick (1/29/2022).

On what date did you place your order?

You state that there were 65-80 Maverick orders ahead of you when you ordered and that you ordered from a small (mom and pop) dealership. Why not ask them before you ordered as with those outstanding orders it sure was going to be a long time before you get scheduled because of those 80 ahead of you.

I joined this forum five weeks before I ordered and learned about allocations and with that knowledge I knew I didn't want to order from either a mega-dealer (Long McArthur, Chapman, etc) as the multi-hundreds of orders they had outstanding would result in my order being pushed well into 2022 before it got scheduled (if at all). The same problem exists for the small dealer as not many sales so not many allocations.

I went with a medium sized dealer in AutoNation Ford in Frisco TX and ordered my Hybrid Maverick XLT on 8/23. At my time of ordering they had 29 Maverick orders ahead of me not the 65-80 you have ahead of you. My Maverick was built on 11/29 and I took delivery on 12/13.

 

[huunvubu]

I will not take any chances this time around. Being number 1 at my dealership is no guarantee since they have only a handful arrive. I believe a lot of allocations go to the owners friends, family and regular customers by giving them better priority numbers. My October ecoboost order is nowhere close to being scheduled. I will learn from my mistakes and order elsewhere.

You should have asked for Priority 10 when you ordered. I did and my salesperson had no problems with putting 10 as my priority code.

 

[huunvubu]

I'd like to see CP360 saved for my XLT hybrid build, but understand that waiting is part of the process. I don't have access to the big picture and completely empathize with the frustrated June orders.

Keep the CoPilot 360. It is a fantastic piece of tech.

I have it on my Maverick Hybrid and the Blind Spot and Cross-Traffic detection alone are worth the wait.

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