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Laramie discount question

U

User_3336

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They are the same thing, tread lightly is an affiliate organization so if you are a member at the $100 or more annual membership they will give you a control number. You have to be a member for a minimum of 30 days before the number is valid.
My ORIGINAL question was.

How are dealers using the control #'s, using the FFP $$$ specifically stated on the POC sheet, then giving a discount below that?.

you have to sign that sheet, with the authorization #, and the POC sheet attached, and the #'s SHOULD be filled in. Are people just signing a blank sheet and the dealer says "They'll fill it in later". Of course, that's upon them if they fudge the #'s not on the buyer.
 

millerbjm

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My ORIGINAL question was.

How are dealers using the control #'s, using the FFP $$$ specifically stated on the POC sheet, then giving a discount below that?.

you have to sign that sheet, with the authorization #, and the POC sheet attached, and the #'s SHOULD be filled in. Are people just signing a blank sheet and the dealer says "They'll fill it in later". Of course, that's upon them if they fudge the #'s not on the buyer.
Like I said I can't answer your original question since I haven't signed anything yet - all I know if the sales manager said he'd take another $500 off. I am not going to ask any unnecessary questions about the multiple incentives I plan to use unless they try to deny something but if it is obvious I'll let you know!
 
U

User_3336

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So, lots look at an example POC sheet, there is MSRP, INVOICE, Supplier Price/Affiliate, Employee Price, and the dealer Holdback.

Affiliate pricing is listed at the FFP # on the invoice. Its INVOICE minus 1% plus a $75 admin fee.

So, 88,206 would be the selling price using the Affiliate pricing. Technically, that is the price they are authorized to sell the truck at (using a control number - - - and so they can get their rebate on the backend)

Point is, how is a dealer selling below that #, and accurately reporting it on the affiliate form without fudging it?

they are aren't selling it for EP. NOW, its possible they are using some of their "holdback" money to give an extra discount, but that varies widely based on model and trim. this was a TRX and it had about $2800 of dealer holdback.

poc.jpg
 
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6of36

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Well, explain your interpretation of the 1%, instead of just saying "Nope", and "You're Wrong".

I know how the affiliate program works, I've used it a few times.
If you simply read the post above where you wrote, it was explained. I didn't think I had to explain again 30 seconds later.
 

6of36

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So, lots look at an example POC sheet, there is MSRP, INVOICE, Supplier Price/Affiliate, Employee Price, and the dealer Holdback.

Affiliate pricing is listed at the FFP # on the invoice. Its INVOICE minus 1% plus a $75 admin fee.

So, 88,206 would be the selling price using the Affiliate pricing. Technically, that is the price they are authorized to sell the truck at (using a control number - - - and so they can get their rebate on the backend)

Point is, how is a dealer selling below that #, and accurately reporting it on the affiliate form without fudging it?

they are aren't selling it for EP. NOW, its possible they are using some of their "holdback" money to give an extra discount, but that varies widely based on model and trim. this was a TRX and it had about $2800 of dealer holdback.

View attachment 158723
FFP is Friends and Family Plan, not affiliate. That is the maximum price a dealer can charge, not the minimum. Mark Dodge beats that price every day.
 
U

User_3336

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FFP is Friends and Family Plan, not affiliate. That is the maximum price a dealer can charge, not the minimum. Mark Dodge beats that price every day.
WELL, then what line on the POC is Affiliate pricing??????????? the MAXIMUM price a dealer could be what ever they wanted (remember market adjustments???????) 6of36, I'm sorry, you have NO IDEA what you're talking about.
It sure ain't EP.
 
U

User_3336

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If you simply read the post above where you wrote, it was explained. I didn't think I had to explain again 30 seconds later.
Well, you seem to be the expert on Affiliate pricing, so I'll let you lead (mislead) the topic going forward.
 
U

User_3336

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Here is the PDF of the "Affiliate Rewards Program". Note: "Affiliate" refers to Employees of FCA/Stellantis and their Spouses, Retiree's of FCA/ Stellantis, and Members of Participating Organizations (also called a Supplier Discount and also referred to as a Friends And Family Preferred Price).

Preferred Price: A participating dealer submitting a claim under this program must sell or lease the vehicle as the Preferred Price (of 1% below factory invoice plus a $75 administration fee). The dealer must show the participant a copy of the Factory Invoice (POC).

SELLING DEALERSHIP: The selling dealership through the signature of its authorized representative below, represents to FCA US LLC that (1) it has provided a copy of the Program Rules and Provisions (“Rules”) to the Customer; (2) it has read, understood and agrees to comply with the Rules; and (3) any non-compliance with the Rules by the dealership or anyone acting on its behalf may result in (a) the recovery by charge back or otherwise of sales fees paid to the dealership, or incurred as an obligation to the dealership by FCA US LLC, and (b) the termination or suspension of the dealership from participation in the Program. *The dealer is responsible for the proper calculation of the applicable sales tax, if any, owed to the taxing authority(s) with respect to the vehicle purchased/leased under this Program. This Pricing & Acknowledgement Form is not to be used by the participating dealer in the proper calculation of the sales tax base.

The selling price of the vehicle must be clearly documented on the Pricing and Acknowledgement, identified at the PP/FFP price on the POC for members, or EP for employees/retirees. The Control Number must be clearly documented as well as the VIN number. This paperwork must be kept in the sales jacket to validate the connection between the buyer and the dealership for audit purposes.

If you want to read the entire 9 page document, download it.
 

6of36

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Here is the PDF of the "Affiliate Rewards Program". Note: "Affiliate" refers to Employees of FCA/Stellantis and their Spouses, Retiree's of FCA/ Stellantis, and Members of Participating Organizations (also called a Supplier Discount and also referred to as a Friends And Family Preferred Price).

Preferred Price: A participating dealer submitting a claim under this program must sell or lease the vehicle as the Preferred Price (of 1% below factory invoice plus a $75 administration fee). The dealer must show the participant a copy of the Factory Invoice (POC).

SELLING DEALERSHIP: The selling dealership through the signature of its authorized representative below, represents to FCA US LLC that (1) it has provided a copy of the Program Rules and Provisions (“Rules”) to the Customer; (2) it has read, understood and agrees to comply with the Rules; and (3) any non-compliance with the Rules by the dealership or anyone acting on its behalf may result in (a) the recovery by charge back or otherwise of sales fees paid to the dealership, or incurred as an obligation to the dealership by FCA US LLC, and (b) the termination or suspension of the dealership from participation in the Program. *The dealer is responsible for the proper calculation of the applicable sales tax, if any, owed to the taxing authority(s) with respect to the vehicle purchased/leased under this Program. This Pricing & Acknowledgement Form is not to be used by the participating dealer in the proper calculation of the sales tax base.

The selling price of the vehicle must be clearly documented on the Pricing and Acknowledgement, identified at the PP/FFP price on the POC for members, or EP for employees/retirees. The Control Number must be clearly documented as well as the VIN number. This paperwork must be kept in the sales jacket to validate the connection between the buyer and the dealership for audit purposes.

If you want to read the entire 9 page document, download it.
Read the third line of your post. There can not be market adjustment with the program. That is the maximum price. The dealer can charge less if they want. It is a fact that Mark Dodge sells less than that price. EP is employee price. It's real simple, the abbreviations correlate with the words. I hope I didn't use too big of words.
 
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EP is employee price. It's real simple, the abbreviations correlate with the words. I hope I didn't use too big of words.
Read paragraph #4, I know what EP, FFP, and HB mean. Now, you're just being an A&&HOLE!
 

AnthonyRI

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Read paragraph #4, I know what EP, FFP, and HB mean. Now, you're just being an A&&HOLE!

Maybe I can help, maybe I can't... but let me first ask this - which part is the problem in this conversation:
- Is the question whether or not it is ALLOWED for a dealer to sell BELOW a particular price that is listed somewhere on the POC?
OR
- Is the question HOW could a dealer afford to sell BELOW a particular price that is listed somewhere on the POC?

Those are two very different questions, and one of them had some terms like "fudging" which is frankly not very nice! Would love to help clarify if I can.
 

millerbjm

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Maybe I can help, maybe I can't... but let me first ask this - which part is the problem in this conversation:
- Is the question whether or not it is ALLOWED for a dealer to sell BELOW a particular price that is listed somewhere on the POC?
OR
- Is the question HOW could a dealer afford to sell BELOW a particular price that is listed somewhere on the POC?

Those are two very different questions, and one of them had some terms like "fudging" which is frankly not very nice! Would love to help clarify if I can.
I am curious how you guys sell as low as you do and still make any profit - assume it has to do with volume? The dealers around here will get close with negotiation and comparison shopping g but no one has even matched or beat your prices that are avail with no negotiations! Plus it seems your dealership has excellent staff and policies as well! I really like my local dealer but he says he'd lose money at your price - common sales tactic I suppose.
 
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User_3336

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Volume will dictate price and greater discounts. Financing creates greater dealer kickbacks, so sometimes loss of money (reduced price) is made up by rebates/incentives from a dealer arranging financing. Add-ons, extended warranties, etc sold in the finance office also make up for a dealer selling at a cheaper price. Last day of the month a dealer might discount highly to make a sales goal.

I am not speaking in reference to Mark Dodge, just in general.

On the opposite brand, I know a friend who got a Nissan Titan 2023 on the last day of the month, and got $11500 off on it. There was only $1,000 in rebates at the time. I am sure dealer discount and holdback could not have exceeded 5-6K. So where did the dealer make up the difference? Friend did finance @ 7%. this is a volume dealer as well. Just an example. Dealer did lose $ on this deal, but was a loss leader.
 

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Read paragraph #4, I know what EP, FFP, and HB mean. Now, you're just being an A&&HOLE!
That's because you are talking out your a&&. Facts are facts, and you are wrong. They sell below those numbers.
 

AnthonyRI

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I am curious how you guys sell as low as you do and still make any profit - assume it has to do with volume? The dealers around here will get close with negotiation and comparison shopping g but no one has even matched or beat your prices that are avail with no negotiations! Plus it seems your dealership has excellent staff and policies as well! I really like my local dealer but he says he'd lose money at your price - common sales tactic I suppose.
Fair question @millerbjm – In the simplest of terms, its with a commitment to service first, and economy of scale as a result. Over the past few years we've found a number of ways to reduce our overhead and costs, and pass that on to our pricing to encourage growth, better service, and then benefit again from economy of scale. The way that we price, we are setting up very slim or slightly negative margins on the cost of goods –balanced that out by the average on the number of vehicles. A small retailer employing this may fear “well what if we lose $xxx on this one” as opposed “we help 100x more people have a great experience, the odds will end up working.” Our leadership team and owner are committed to that, and resist the urge to veer away on special items (Demon, TRX, etc), or tough times, etc – again, because it will all average out. I get the privilege of being the voice of all of this a lot of the time, but the reality is there is a small army who makes each part of it work – especially in titling/reg/accounting dealing in all 50 states, and our PDI team (who’s getting some new toys shortly), etc etc.


Now where this conversation started to go astray, for affiliate pricing – remember that the dealer is invoiced LONG before the customer buys the car, whether it is a stock unit or a sold-order. That means also before we know if the potential buyer is an affiliate member, EP, what rebates they’ll get, etc. All of those items are credits that we apply for from the manufacturer AFTER the vehicle has sold, which again was way after we paid for it. Money does change hands between RAM and the dealer quite a few times in the process, but the basics are that we pay first, then we set the price and the customer pays, and then we settle up with RAM after the fact for anything that needs adjusting. The amount of credit that RAM gives us back for any incentive, whether it was a regional bonus bucks or an affiliate, is determined by RAM off their data, not any number we can write down ourselves.
 
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Speaking of LARAMIE Discount. I ran into a great deal here I might pursue.

Laramie priced at 66,335 (Crew 4x4), Dealer discount 6589, 10% off = 6634

$13,224 off = Final price $53,112. Seems an EXCEPTIONAL price for a Laramie.

About 20% off Total.

Ram has NEVER offered more than about $4000 off on a Laramie.

The BTS I looked at was 50,111. $3000 more for the LARAMIE trim seems "in-line". Leather seats, 12 inch UC5, nicer grille......

Thoughts?
 

jl13

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Speaking of LARAMIE Discount. I ran into a great deal here I might pursue.

Laramie priced at 66,335 (Crew 4x4), Dealer discount 6589, 10% off = 6634

$13,224 off = Final price $53,112. Seems an EXCEPTIONAL price for a Laramie.

About 20% off Total.

Ram has NEVER offered more than about $4000 off on a Laramie.

The BTS I looked at was 50,111. $3000 more for the LARAMIE trim seems "in-line". Leather seats, 12 inch UC5, nicer grille......

Thoughts?
laramie
 

millerbjm

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Was there more to your response that got lost?
I thought that as well at 1st - perhaps he was correcting spelling etc. Then I realized he is just offering his though that the Laramie is the better deal. Unless you have a strong preference for the special color or uniqueness of the BTS I would agree. I had a BH and them switched to a Laramie and I won't go back.
 
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User_3336

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I thought that as well at 1st - perhaps he was correcting spelling etc. Then I realized he is just offering his though that the Laramie is the better deal. Unless you have a strong preference for the special color or uniqueness of the BTS I would agree. I had a BH and them switched to a Laramie and I won't go back.
Do you like the seats in the Laramie? I've never had leather except for those Katzkin's replacement.
 

Jrodd52

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Speaking of LARAMIE Discount. I ran into a great deal here I might pursue.

Laramie priced at 66,335 (Crew 4x4), Dealer discount 6589, 10% off = 6634

$13,224 off = Final price $53,112. Seems an EXCEPTIONAL price for a Laramie.

About 20% off Total.

Ram has NEVER offered more than about $4000 off on a Laramie.

The BTS I looked at was 50,111. $3000 more for the LARAMIE trim seems "in-line". Leather seats, 12 inch UC5, nicer grille......

Thoughts?
I would go with the Laramie if I was looking at which vehicle would have a higher resale value. Especially if you trade in every few years. The BTS colors this model year are offered on most trims. If the BTS was offered in ceramic grey again I would probably choose the BTS because of the limited amount of rams on the road with that color. Plus, I really like the color.
 

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