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Ford drops 'Friends & Neighbors' sale early, opts for traditional year-end discounts


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Automotive News
November 27, 2015 - 2:25 pm ET

Ford Motor Co. is dropping its “Friends & Neighbors” promotion five weeks earlier than planned,

after the offers failed to resonate with consumers as much as more traditional year-end discounts

offered by competitors.

 

The sales, which started Nov. 3, was scheduled to run through Jan. 4. Instead, the last day will be

Monday, Nov. 30, and new incentives will start on Tuesday, Dec. 1.

 

"Starting Tuesday, Ford is moving to a new Holiday Sales Event in December," a Ford spokeswoman

said in an e-mail today. "Dealers offered insights on the kinds of offers resonating most with customers

in-market, and we are updating our plan based on their feedback. We will continue to be competitive

yet disciplined on incentives and offers for customers."

 

“Obviously their pulling it means it’s disappointed them,” said Jeff Carlson, the owner of

Glenwood Springs Ford in western Colorado. “We go by what the consumer says, and

the consumer voted not to embrace this.”

 

Carlson said he hasn’t been told what approach Ford will take instead. But he praised the

automaker for taking the unusual step of pulling the deals now and switching to something

that might help dealers be more successful rather than waiting for the promotion to run its

course.

 

Looks like buyers weren't as enthused about the sales as Ford had hoped, maybe buyers

are a lot more savvy than ad men think and actually did the math and discovered the deals

were no different to what Ford was already offering.......

 

I think it's time for Ford to open the incentives book and start offering real end of year savings

lest they get left further behind....

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I recall GM tried this "insider deal program" in the past. Personally, the wording of "insider or employee pricing" turns off many potential buyers. Why remind buyers that others always get a better deal. They think it should be the same price for them too and thus shop the competition.

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I've never heard anyone say they expected the same price as employees. Employees almost always get bigger discounts.

 

I think the prices just weren't low enough compared to the competition. Street prices weren't really lowered - you just got a good no haggle price.

 

They'll have to increase incentives to get a measurable sales boost.

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They'll have to increase incentives to get a measurable sales boost.

This.

When Ford launched the friends and neighbors campaign, I think it was Mark LaNeve that said there was no increase in incentives.

I'm guessing that most potential buyers looking for end of year bargains were looking at what the discounts actually were

but when they are not spelled out as being better than the previous month, the thing falls apart by non-participation.

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Like the Zeta Camaro V6 run out, you can get a base version for around 20K

which is also around the price Ford is doing for the 2015 V6 Mustang...

 

The other issue is that GM's inventory is a bit more swollen compared to Ford,

F 150 is around 95-100K while combined Silverado/Sierra 1500 is about 60% more.

Edited by jpd80
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Somebody must have sales figures in their bonus criteria.

 

Yes sir! Ford executives who qualify for Incentive Bonus Plan and Performance Unit grants were encouraged to step up their efforts to achieve targets in the Automotive Revenue category this year. In the 2015 Annual Meeting of Shareholders and Proxy Statement document Ford sent out to investors earlier this year, that category had the most pronounced under-performance in 2014, with actual performance only 44% of the target.

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Buyers demand constant rebates, etc, thinking "Car companies make too much $$, I am entitied to a cheap new car/truck". Then, complain loudly when plants close or production moves out of the US, due to low profits. Can't have it all.

Edited by 630land
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what is humorous is the programs BEFORE Friends and neighbors were actually better for the consumer, rebates were larger, money factors on leases were lower, and bottom line payments reflected that, as in LOWER. Perception is a funny thing, damn marketing.

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I said that right away. Anyone who was shopping before the sale would have known that and if they were cross shopping other brands then the comparison would be the same as before the sale, too. I think it was a good try and had the potential to bring in some extra sales if folks had resonated with the "insider" deal ploy but they didn't.

 

I just wish they'd put the same $4300 rebates from the F150 XLT SC on the Lariat SC.

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The program lowered my purchase price on the F-250 I ordered by $1800.00.

 

I did miss out $250.00 difference (military discount) when Ford sent me a $750.00 rebate the next day after I purchased the truck. lol..

 

$1800 compared to the pre-sale prices?

Edited by akirby
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The program lowered my purchase price on the F-250 I ordered by $1800.00.

 

I did miss out $250.00 difference (military discount) when Ford sent me a $750.00 rebate the next day after I purchased the truck. lol..

 

The big thing I see here is that you have a new truck and I don't recall seeing pictures. Hmmmm......

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The F and Family worked great for people after vehicles in short supply or which were garnering little in the way of discounts, three examples F-150s ( still short on those ) Mustangs and Explorers......all vehicles we could of and most likely would have , sold for more than the mandated X plan pricing....

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The F and Family worked great for people after vehicles in short supply or which were garnering little in the way of discounts, three examples F-150s ( still short on those ) Mustangs and Explorers......all vehicles we could of and most likely would have , sold for more than the mandated X plan pricing....

 

How much over invoice were those going for?

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each transaction obviously differs....but when you have Platinum Explorers selling before hitting the ground, there was NO need for Xplan to "entice" buyers....if you get my drift...funnily enough Mustang sales fell flat at the announcement, although that may reflect that supply has increased immensely....we are still struggling with f-150 inventory...once again NO work trucks...but my F150reg cab ordered Jan 16th DID finally get a vin number, course its now a 16 rather than a 15....

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