Porsche? It's just business...
Porsche? It's just business...
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Discussion

ChrisW.

Original Poster:

7,825 posts

274 months

https://rennlist.com/articles/porsche-dealer-sues-...

I hope I'm allowed to link to this article ... maybe this explains the extraordinary investment that Porsche OPC's have made in their premises, but who pays ?

gtsralph

1,292 posts

163 months

We’re about to start paying for the “Destinations’ concept driving the redevelopment of centres. Exeter’s has taken almost two years and won’t be fully operational for another 4 months. Heaven knows how many cars they need to shift and what level of service pricing is needed to make a commercial return on investment.

It feels like an Audi dealership with staff tucked away in office pods. Coffee is better but cakes can’t match Mercedes next door.

Inbox

951 posts

5 months

I would like to say I am surprised but I'm not.

It just childish, you would think selling cars is what Porsche needs not arguing about the Wendy house you sell from.

One can only imagine if the dealer wins $300M in damages how much longer will they be selling Porsches for, two wrongs don't a right.

Jeremy-75qq8

1,525 posts

111 months

The whole premises thing grates.

Guildford had perfectly nice premesis. They demolished them. I have not been to the new emporium. It I was at reading and to my astonishment was offered lunch!

Premesis need to meet a reasonable standard of course but I don't see that knocking down Guildford's premesis will lead to a single additional car sale. As above the number of cars to be sold to recoup the cost must be vast.

Most of the time they collect and deliver the car.

I did look at a lotus the other day out of really miserable old premesis in Chiswick with no parking which frankly showed disdain for the customer. So decent premesis are needed but .....

supersport

4,508 posts

246 months

Porsche York knocked down the “old” Volvo dealership and built an identical building with identical out buildings to flog cars from.

The indoor space is tiny so the car park is full of cars for sale, GT3s sat out int snow.

Given that the facade is essentially fancy cladding, seems a bit bonkers to me. The punter is paying at the end of the day.

GT4P

5,673 posts

204 months

Yesterday (08:42)
quotequote all
The whole “destination “ showrooms is all for the instagramers to visit but doesn’t sell cars as most of the followers can’t afford to buy a Porsche.
Where are work part time they are trying to introduce a similar concept but it doesn’t add up to improved sales figures. Must have gone to the same business college as Rachel Reeves

Arrivalist

1,957 posts

18 months

Yesterday (08:48)
quotequote all
supersport said:
Porsche York knocked down the old Volvo dealership and built an identical building with identical out buildings to flog cars from.

The indoor space is tiny so the car park is full of cars for sale, GT3s sat out int snow.

Given that the facade is essentially fancy cladding, seems a bit bonkers to me. The punter is paying at the end of the day.
I’ve gone past that building many times in the last year and wondered if they had just altered the old Ray Chapman building.

gd

419 posts

207 months

Yesterday (11:13)
quotequote all
Porsche Wilmslow have just done the same. The building was fine, and had worked well enough for a couple of decades, but it wasn't the big, grey empty box demanded by youtubers, so it's been flattened. They are currently trying to sell cars, including GT cars, from a small pitch in front of a unit at the back of the industrial estate behind it. Not ideal.. but the fabulous new showroom is coming, they say.

Who pays for it? Do you really need to ask?

I've almost checked out of the brand as I can't get access to any new cars that are worth it, the used cars are overpriced, and I object to paying insane service prices that are going up about 25% a year and now in supercar territory. I've spent millions (literally) on their cars in the past 20+ years, but with the lack of a decent CRM system and trained people, when I walk in to my local OPC whoever is the latest person working there talks to me as through I have no idea what I'm talking about and I couldn't possibly afford one of their cars.

And I really hate the new dealership designs too. Big, empty cold spaces. Feels like a mass market BMW/Audi dealership. And I especially hate how they have their 'management' sat in a glass cube up on high, drinking coffee and looking down on customers, whilst I'm waiting for someone to actually come and serve me. Whoever designed those has no emotional intelligence whatsoever.


Mikebentley

7,880 posts

159 months

Yesterday (11:33)
quotequote all
Not just Porsche but these £20 million showrooms is the reason we all pay £250 per hour for a bloke on £700 Pa gross to work on our cars.

Panamax

7,386 posts

53 months

Yesterday (11:40)
quotequote all
Tesco doesn't flog its produce from a market stall, it has modern superstores.

There are loads of posh shops selling absurdly expensive jewellery, handbags and perfumes.

Selling cars follows the same rules. If you don't want the posh stuff just buy something cheaper from somewhere else.

gd

419 posts

207 months

Yesterday (17:01)
quotequote all
There's some truth in your point.

But most food retailers spend surprisingly little on their supersized stores, and pack them high with product, as you can buy the same items from other retailers. Competition drives the need for low overheads.

In this case, Porsche DE are now demanding that their distributors all follow the same showroom template, at a huge cost, in an attempt to create a perception of luxury through a large and relatively sparse sales space (which is distracting from products that actually look and feel cheaper, in my opinion.) So, more Dior or Prada than Tesco. But I don't buy those brands either as I know the product prices are paying for large, empty showrooms too, and there's better value elsewhere.

My point is that the price of the cars and the servicing is going up a lot to fund this, and much more of our money is paying for these facilities rather than the products. And I actually preferred the old showrooms that cost me a lot less. And I preferred the cars from that era too.


gd

419 posts

207 months

Yesterday (17:03)
quotequote all
Sorry... forgot to add... on your last point, Porsche are also forgetting that I can buy the same products (albeit their used ones) from other retailers without these mega sheds and overheads, and service them at independents. So I can go elsewhere, and get the same product for a lot less.

Mikebentley

7,880 posts

159 months

Yesterday (17:18)
quotequote all
What gd said ^^^^^^ with regards to Tesco etc comparison. I’m actually in a position to buy a Porsche and would likely buy pre reg or pre owned. An OPC would really have to be offering something substantially more for me to pay them a premium for say a 6 month old car. It’s also grim how Porsche have treated their buyer base for the last few years with the whole buy two Taycan and go on the good boy list.

PRO5T

6,446 posts

44 months

Yesterday (17:19)
quotequote all
Part of the deal for my local moving location was extra allocations of halo models. From the horses mouth the family owners (will probably narrow it down a lot!) get an extra allocation themselves of every one. I know in the past they took them, whether they simply sell them on now I have no idea.

Maxym

2,589 posts

255 months

Yesterday (17:44)
quotequote all
Jeremy-75qq8 said:
The whole premises thing grates.

Guildford had perfectly nice premesis. They demolished them. I have not been to the new emporium. It I was at reading and to my astonishment was offered lunch!

Premesis need to meet a reasonable standard of course but I don't see that knocking down Guildford's premesis will lead to a single additional car sale. As above the number of cars to be sold to recoup the cost must be vast.

Most of the time they collect and deliver the car.

I did look at a lotus the other day out of really miserable old premesis in Chiswick with no parking which frankly showed disdain for the customer. So decent premesis are needed but .....
Looks like premesis is your Nemesis, mate.

Inbox

951 posts

5 months

Yesterday (19:06)
quotequote all
gd said:
There's some truth in your point.

But most food retailers spend surprisingly little on their supersized stores, and pack them high with product, as you can buy the same items from other retailers. Competition drives the need for low overheads.

In this case, Porsche DE are now demanding that their distributors all follow the same showroom template, at a huge cost, in an attempt to create a perception of luxury through a large and relatively sparse sales space (which is distracting from products that actually look and feel cheaper, in my opinion.) So, more Dior or Prada than Tesco. But I don't buy those brands either as I know the product prices are paying for large, empty showrooms too, and there's better value elsewhere.

My point is that the price of the cars and the servicing is going up a lot to fund this, and much more of our money is paying for these facilities rather than the products. And I actually preferred the old showrooms that cost me a lot less. And I preferred the cars from that era too.
Competition drives the need for low fixed costs, well Porsche are feeling the heat of competition but demanding their dealers operate Palaces...

Can't see this ending well.

As others have pointed out the glorious dealer palaces are driving the fantastic hourly rate they charge customers and one wonders why customer put up with it.

The warranty is the only reason I can see that makes taking the risk of OPC servicing worth it.

Frankychops

1,739 posts

28 months

Yesterday (19:50)
quotequote all
gtsralph said:
We re about to start paying for the Destinations concept driving the redevelopment of centres. Exeter s has taken almost two years and won t be fully operational for another 4 months. Heaven knows how many cars they need to shift and what level of service pricing is needed to make a commercial return on investment.

It feels like an Audi dealership with staff tucked away in office pods. Coffee is better but cakes can t match Mercedes next door.
I went there. its had a lot spent and i'm not really sure what for? its just adding to the overhead. Timing is tragic with sales dropping and i'll guess margin.

Imagine spending £8m capex in a declining business.

Frankychops

1,739 posts

28 months

Yesterday (19:54)
quotequote all
Panamax said:
Tesco doesn't flog its produce from a market stall, it has modern superstores.

There are loads of posh shops selling absurdly expensive jewellery, handbags and perfumes.

Selling cars follows the same rules. If you don't want the posh stuff just buy something cheaper from somewhere else.
Not really true. I live near two of the best farm shops in the UK. I can barely afford a coffee from each, both are just metal sheds, as cheap as you can get.
.

Edited by Frankychops on Sunday 23 November 07:05