📊 2022 Bronco Allocations Formula Per Dealer

[Pl8to]

A fair model doesn't exist as someone will always benefit at the expense of someone else as demand is greater than production capacity. However, the system I would advocate for would be one that guarantees all remaining 2020 reservations are built in MY22. This could be accomplished by holding back a number from the estimated production total. For example, if Ford thinks it can build 100,000 units in 2022, then hold back 10k. Use the newly posted allocation formula to distribute 90k Broncos and the 10k is allocated as needed to dealerships to clear their 2020 reservation backlog. The dealerships that offered deals (Granger, Stephens, BU, Chapman, Mullinax et al) and have an above average 2020 reservation backlog probably only account for 2000 "extra" reservations once you back out scheduled MY21 units. And if Mega-dealership needs to be appeased then redo the MY23 allocation formula to be based of historical sales and leave Bronco reservations out of the calculation. @Ford Motor Company DM me and I will let you know where to mail the consulting check.

THANK YOU! Really this is the kind of response that isn't just complaining and is offering a more balanced response. I'll PayPal you your $1,000,000 fee when I get Bronco delivered.

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[GiveItaTri]

You'd have to give me some specific examples.

Well, this thread started with the best example. Even you said this current allocation formula will hurt dealers like Granger. I also remember Ford saying that no dealer stock would be produced until all reservations were built. That's a good example of a change that hurt reservation holder.

 

[Gloff]

I would have been fine with that - a more traditional launch. Offer the vehicle when it's better prepared for prime time without issues. Let the "first kid on the block" and big spender types do their thing, paying ADMs or whatever.

As that burned through, I'd be checking out the Bronco versions and their features, and then eventually cutting a reasonable priced order with a dealer. Whatever Ford was trying with it's early reservation marketing scheme (which blew up in their face when they could not deliver), it was not so good for customers like me from the get go.

I'm considering a different new vehicle coming out this spring, and the maker is not offering early reservations. Thank god - I won't have to hear about "reservation time stamps" and all that other malarkey.

The demand wouldn't be different, there would still be 125k people trying to buy 60k Broncos (which Ford would have built as soft tops with the MIC situation).

I know a lot of people think that the markups would disappear in a small amount of time, but I've done this song and dance. When demand out strips supply by 2 to 1, you get ADMs until there's on the ground inventory in large quantities, and that was never going to be the case with Bronco based on the demand.

 

[Tonka1]

I think that is where the "makes logistical sense" comes in. If they built broncos by reservations their output would be extremely small. Saying "build in order of reservation" is not in anyway an actual plan. That's like me saying "Why doesn't Ford just build them all faster and give us our Bronco's right now".

The excess broncos that are going to be built while waiting for resources have to get allocated somewhere so there has to be a plan for those as well.

Thats not what I'm advocating for. It makes perfect sense to build what they can with priority given to existing orders but in this case it appears that I may not have my order built in a timely manner unless I work with a big dealer. The gripe is FMC came out with this reservation system and made a promise that they later rescinded to build existing orders prior to delivering dealer stock to the extent possible. The fact is, there will be many unhappy reservation holders working through smaller dealers unless there is a representation of fairness.

 

[okbob]

This is all crazy to me. How are early MY21 reservations still not getting priority? Especially those wanting a 2 door after being forgotten all year? Make it make sense.

Simple answer, Ford doesn't care lol.

 

[Gloff]

Well, this thread started with the best example. Even you said this current allocation formula will hurt dealers like Granger. I also remember Ford saying that no dealer stock would be produced until all reservations were built. That's a good example of a change that hurt reservation holder.

I have had exactly one stock Bronco scheduled, and it was special allocation given to us. Maybe some dealers have gotten some soft top big bends scheduled, but it's not like there's a bunch of stock Badlands Sas/Lux Hard tops running around.

As I said, Granger is the outlier, and because of their tenacity, they will get far more Broncos than they would have under any traditional allocation formula. They probably have more Bronco orders than their average throughput over the last 3 years combined. @Zach@Granger can likely verify that.

I don't think anyone here gets the level of demand this car brought. If orders were deliveries, the Bronco would be our store's best seller overnight, by a wide margin.

 

[GiveItaTri]

I have had exactly one stock Bronco scheduled, and it was special allocation given to us. Maybe some dealers have gotten some soft top big bends scheduled, but it's not like there's a bunch of Badlands Sas/Lux Hard tops running around.

As I said, Granger is the outlier, and because of their tenacity, they will get far more Broncos than they would have under any traditional allocation formula. They probably have more Bronco orders than their average throughput over the last 3 years combined. @Zach@Granger can likely verify that.

I don't think anyone here gets the level of demand this car brought. If orders were deliveries, the Bronco would be our best seller overnight, by a wide margin.

I'm truly not arguing with you. You asked me to support my point, I believe I did.

 

[Pl8to]

No it does not. I said build reservations before non reservations. I understand you can't build them in 100% order. But please explain to me why I made a reservation at all if some big market ADM dealer is going to get my exact car as a stock order before mine ever shows up to the discount dealer I chose?

Do you know how many of those dealer "stock" were simply just canceled orders?

 

[Snowdogyyz]

With a little research, you can find Ford dealers offering the same. Mine for example sells at MSRP on all vehicles.

The difference is you may actually be able to purchase and take possession of a Toyota or Jeep. Unlike a bronco.

 

[Drex]

I explained this already, and was the point of the first post I made. Building strictly in order of reservation timestamp is extremely inefficient. It has nothing to do with the dealers themselves, it has everything to do with commodities and location. You might have back to back builds on different sides of the country, one of those builds would have to wait until it can go on a train to a distribution port near the final destination. There is way more nuance to vehicle production and delivery than you're making it out to be, which is why the allocation is formulated the way it is.

So, while your cherry picked example is the most extreme case, I can see where it would not be the most efficient method. Couple points though; Ford invented the Bronco specific allocation formula in part to get the Bronco's out to more geographical locations, at least that was one of the claims. So they were not choosing the most efficient path regardless and it was outside their 'normal' allocation formulas of the past. The motivations for its addition after the fact appeared to have been designed to favor dealers over the res holders.

Since it is apparently obvious to you (a dealer) that production according to time stamp would have been extremely inefficient, It seems the two alternatives you are implying is that Ford would have to be either incompetent or flat out lying to reservation holders about the original deal that a $100 reservation would act as a (as close to practicable) placeholder for order of production. Unless you have a third or fourth explanation as to why Ford originally had those terms in place?

Regardless of their motivations or your evaluation of their competence, Ford making those promises was an integral part of generating the huge number of reservations at the start of the process (FOMO is real for many people). People don't like playing by the rules and having the rules changed in the middle. The feel they are being cheated. Can you blame them?

 

[Dewreckingcrew]

Big dealers sell majority of Fords vehicles, they also most likely have most of the reservations since they sell majority of vehicles and serve the most customers. The formula may screw over some reservation holders but it also may not. Not sure how this formula automatically screws over reservation holders since most reservation holders are probably at those big dealers.

I have a reservation at a tiny little rural dealer that had I think 2 allocations last year and I was number 3 on the list. It makes literally no business sense to start allocating more to dealers that sell less. The fact that they have 2021 Bronco allocations on there will help bump up some of the small dealers that did a good job converting orders last year.

I get being unhappy, but I also haven't seen a single post of someone laying out a better formula that actually makes business sense. Reservations are still going to be held up by constraints so as they crank out soft tops and easy to make vehicles they have to go somewhere and sending them to dealers that reach a lot of customers makes sense.

Here's one for you...build the damn things in order of timestamps and ship to the dealership where the reservation was held until all the reservations have been filled. If the big dealers hold most of the reservations then they shouldn't bitch about that plan, correct?

 

[Bronc-O]

Well, this thread started with the best example. Even you said this current allocation formula will hurt dealers like Granger. I also remember Ford saying that no dealer stock would be produced until all reservations were built. That's a good example of a change that hurt reservation holder.

That's the one thing people didn't want to hear when the line started getting long. They kept lining up anyway to save money. Now, the reality of the line moving very slow has finally hit. Things that are good don't always come without some pain.

 

[TXNavy]

@Gloff @Pl8to care to explain this then? No reservation, gets build email a week after ordering? This is my exact order besides color so why should allocation come I to it at all? This is a reservation system. Allocations are for systems that can meet demand.

 

[Bronc-O]

The difference is you may actually be able to purchase and take possession of a Toyota or Jeep. Unlike a bronco.

True and the reason a certain dealer isn't up at 1:30 worrying. They sell Jeeps also.

 

[Pl8to]

Thats not what I'm advocating for. It makes perfect sense to build what they can with priority given to existing orders but in this case it appears that I may not have my order built in a timely manner unless I work with a big dealer. The gripe is FMC came out with this reservation system and made a promise that they later rescinded to build existing orders prior to delivering dealer stock to the extent possible. The fact is, there will be many unhappy reservation holders working through smaller dealers unless there is a representation of fairness.

I get that I guess I'm just tired of a lot of people complaining about this allocation method assuming that it is automatically hurting reservation holders at small dealerships. If you think about it simply from a numbers standpoint, if a dealer has historically sold more cars then it will most likely have more reservations. If it has historically sold less cars it's probably in a lower population area that has less reservations. If that holds true, which on average it will, then this allocation shouldn't necessarily hurt reservation holders at small dealers anymore than at big dealers.

There will be outliers of course like Granger and such, but on average I don't see how this screws anyone over anymore than anyone else.

Speaking of Granger dealers like that knew this was a risk, whether they relayed that to customers or not it's a different story.

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