996 Turbo / GT2 Turbo discussion on previous model 2000-2005 Porsche 911 Twin Turbo and 911 GT2.

group buy for evo intake?

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Old May 5, 2005 | 05:34 PM
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group buy for evo intake?

There are a bunch of people on rennlist who wish to buy the evo intake. The problems is that the proper way to buy it would be directly from the manufacturer to get the best price for the members. However since Evo seemingly isn't a sponsor there they want to do it through a middleman which is contrary to the best interests of the members. Any Evo personel interested?

Obviously it raises a distributor/manufacturer claim, but if the buy is done here first through the manufacturer there is no conflict of insterest. I am a little PO'D with someone's stance that they should go through a middleman/distributor in breach of the duty of loyalty to the members. As such I think it would be nice to have this done through here and through EVO regardless of whether I myself participate or not. I can understand that some deference should be given there to the sponsor there however again, boards are supposed to be for the best interest of members whether or not sponsors reap any benefit.

I know people are going to flame me about this but I don't like it when people are not really helping the members to the full extent possible, I mean after all isn't that the purpose of the forum?
 
Old May 5, 2005 | 07:59 PM
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Why don't you give Todd @ EVO a call. He is a 6speed sponser.
 
Old May 5, 2005 | 09:09 PM
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The problem with the manufacture having a group buy is it kills their distributors. If a manufacture under cuts the people that resell their product then they will have no one to resell it. That is bad business. When we sell something that we also allow a reseller to have we NEVER undercut them. If a group buy was going to happen a firm EVO dealer like myself can probably get you farther down the road you are looking for.

In light of that there have been so many sold that I do not think a group buy is going to come to reality. We still are trying to get all the orders out from the intro.
 
Old May 5, 2005 | 09:52 PM
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Hey SPR, I received your request today for a group buy on the EVO intakes from Todd. I had a meeting with Todd today and we both agreed that there might be something that we will do, but it probably will not be a typical group buy. Stephen (PorschePHD) has a very valid point, and we want to make sure that if we do offer a special pricing on the V-Flow that it is acceptable for retail customers as well as our dealers. We will be releasing an official 6-speed V-Flow press release in the coming week, and at that time there will possibly be a collaborative effort amongst all EVO dealers to introduce a ONE TIME ONLY introductory price that can be redeemed throughout our entire dealer network. There is obviously a lot of planning involved in getting a deal like this worked out, so please be patient with us as we get the details worked out. We want to make sure that we have enough kits built on the shelf to be able to handle the type of demand that this intoductory price could cause, as well as our regular volume of intake orders. If you have any questions about the V-Flow or anything else, feel free to give me a call or shoot me an email @ nmirand@evoms.com. Thanks guys, keep an eye out for that press release!
 
Old May 5, 2005 | 11:06 PM
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count me in for the Group Buy!
 
Old May 6, 2005 | 07:32 AM
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Buy it like everybody else did and pay what everybody else did.
What do you think you will save? $10.00?
 
Old May 6, 2005 | 09:22 AM
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I hear you Nate, please let me know what you turn up. I certainly don't want to upset your distributors but only wanted to get the best price directly from you to avoid the mark up. I did a similar group but for the 993tt guys on a ruf oil cooler which turned out very well, and I had the prospective distributors undergo a price bidding war to get the best price on the units at the quantity demanded, which turned out to be great for everyone. I actually outstripped the production in ruf germany because of the demand! I know that is a concern for you. Also there is demand for both the 996na as well as turbo kits. Assuming these kits are priced about the same?, or if we can also work out a structure to discount them likewise in the same deal, I think everyone again, would be happy and be greatly appreciative. Another note, while I met the # for the price, what typically happens is that other people get on at the end and actually demand an extra 50% which is good for you because you are price would still reflect the agreed upon forecasted demand instead of the latent one. Let me know Sean
 
Old May 6, 2005 | 10:32 AM
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Originally posted by spr
I certainly don't want to upset your distributors but only wanted to get the best price directly from you to avoid the mark up.
Interesting standpoint. So, this doesn't support the local or regional resellers and service companies, and additionally it puts pressure on the manufacturer to sell at a deep discount, taking a lower return on R&D and manufacturing, not to mention lessening financial reserves for future op's and development... IMO, pretty short-sighted. Yes, it provides a lower buy-in price for enthusiasts, but that's a short-term benefit. Long-term, doesn't it establish a lower pricing standard for the part that will be difficult (if not impossible) to reverse? Doesn't it cause some financial harm to the distributors, dealers and in some way to the creator of the part as well (even though you've "helped" them by creating a volume sales op with little marketing cost)? I know with the internet, and easy access to manufacturers, it's now a "buyer's market", but long-term what will all the group buys produce? Cheaper-made parts, less local support and bottle-necked distribution at the manufacturers?

Nate, EVO, do what you need to do in order to remain healthy and stick to a path of developing, manufacturing high quality, selling and having widespread support for your products. It sounds like you're being careful about this, and I hope you take the time to think it through and do the right thing for all involved. Sean, I'm not saying that you buying their product isn't a good thing, nor is this a personal attack on you--everyone wants to get "a good deal", it just has to make sense businesswise for EVO--a business, not a philanthropic automotive charity org.

Sidenote: Last year a friend saw a DA unit on my racecar and asked me all about it. The next week, he told me he was shopping all over to get a cheaper price than I got mine at (I'd bought it through a local race prep shop, knowing I was within 5-10% of the cheapest price but felt good to support my guy, who was in turn supporting me with valuable service). I told him, "C'mon man, you're a doctor. Give your guy an op to order it from the manufacturer, make a few points at a decent market price, and support him so he can keep the doors open. We're always complaining there aren't enough good shops around..." He got the point and then had his guy order it.

I'd like to hear what experienced businesspeople think about all the undercutting, and how it affects companies and consumers long-term.
 

Last edited by Super D; May 6, 2005 at 10:59 AM.
Old May 6, 2005 | 01:10 PM
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You're a typical person who has never run a corporation nor knows PIE from you pie hole. The marginal reduction in the profit per unit is offset by the additional units sold considering the discount. Take an elementary undergrad econ course before you speak, then take an elementary undergrad financial accounting course.

It in no way harms the manufacturer because if you do a graph of it, they actually profit more. R&D is an expense anyways and is an asset by such, further just read the below, I am done with your poor arguments

A company undertakes an R&D project because it believes the project will eventually provide benefits that exceed the current expenditures. Unfortunately, though, it’s difficult to predict which individual research and development projects will ultimately provide benefits. In fact, only one in ten actually reach commercial production. Moreover, even for those projects that pan out, a direct relationship between research and development costs and specific future revenue is difficult to establish. In other words, even if R&D costs do lead to future benefits, it’s difficult to objectively determine the size of the benefits and in which periods the costs should be expensed if they are capitalized. These are the issues that prompted the FASB to require immediate expensing.
 
Old May 6, 2005 | 01:32 PM
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I don't understand the hostility.?????
This is not the first time a group buy has happened and I have never seen this type of "back and forth" concerning those other group buys.
I thought it was a win win situation mostly.
 
Old May 6, 2005 | 01:36 PM
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Just so that we are all on the same page here, there will definitely be NO conventional group buy. What I mean by conventional group buy is a discount structure based upon the number of people involved. What we want to do is possibly offer a period, say one month, where we discount the V-Flow across the board for all customers who are aware of the deal or not. The problem with a conventioal group buy is that 1. You are limiting the deal to only those who know about it and 2. We would be taking business away from our dealers because in a conventional group buy customers will only be able to buy from us. Both of those scenarios pose problems that we don't want to create. We want to be able to offer a ONE TIME ONLY discount rate that will be redeemable through ALL of our dealers. That way you guys as customers will be able to get in on an introductory rate, and our dealers will not feel like we are taking business away from them. I hope that this clarifies the situation a little more.
 
Old May 6, 2005 | 01:40 PM
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We already had a group buy. Many of us...It was 30 days ago...at the asking price...no complaints here. You are asking for a discount from medium to small businesses. Let them make their profit.
 
Old May 6, 2005 | 02:05 PM
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Originally posted by spr
You're a typical person who has never run a corporation nor knows PIE from you pie hole. The marginal reduction in the profit per unit is offset by the additional units sold considering the discount. Take an elementary undergrad econ course before you speak, then take an elementary undergrad financial accounting course.

It in no way harms the manufacturer because if you do a graph of it, they actually profit more. R&D is an expense anyways and is an asset by such, further just read the below, I am done with your poor arguments

As I said, "...nor is this a personal attack on you--everyone wants to get "a good deal", it just has to make sense businesswise for EVO...", but perhaps I offended, and if I did, I apologize. My experience in undergrad econ, and accounting was worthless compared to years working with manufacturers in several industries. My discussions with retailers and distributors however, were very educational.

Your paragraph on expensing R&D is insightful, however my original post voiced concern about fostering local reseller relationships and accessible service for consumers over the long term.
 
Old May 6, 2005 | 03:13 PM
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Originally posted by NC Bob
We already had a group buy. Many of us...It was 30 days ago...at the asking price...no complaints here. You are asking for a discount from medium to small businesses. Let them make their profit.
I agree 100%.
 
Old May 6, 2005 | 03:37 PM
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Originally posted by NC Bob
We already had a group buy. Many of us...It was 30 days ago...at the asking price...no complaints here. You are asking for a discount from medium to small businesses. Let them make their profit.
 


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