Ford CEO Farley making the tough decisions

[JeffKeryk]

Ford can blame the stealerships near me for marking up everything. I've yet to see a ford maverick at msrp. They all have 5k addendums which should be illegal at this point. I'd buy one at msrp but not over. But the msrp already increased recently anyway.

This is what kills me. The Maverick, IMO, makes so much sense for so many people. I think of it as the 70's Datsun PU. And then the dealerships choose to mark up the price which will make more profit in the short run but send many customers to other brands.

In business school we learn if your customer thinks you did them right they will tell 10 of their friends. If they think you did them wrong they will tell the world.

 

[PWMDMD]

This is what kills me. The Maverick, IMO, makes so much sense for so many people. I think of it as the 70's Datsun PU. And then the dealerships choose to mark up the price which will make more profit in the short run but send many customers to other brands.

In business school we learn if your customer thinks you did them right they will tell 10 of their friends. If they think you did them wrong they will tell the world.

Yup...so simple and this idea even appeals to just plain old common sense and yet many businesses can't seem to get this right.

 

[JeffKeryk]

In my 1st Marketing class in the San Jose State Business Tower, on the 1st day the professor taught us the definition of a good customer:
"A good customer is one who profits from your goods or services so they can come back and buy more."

 

[CKN]

Yup...so simple and this idea even appeals to just plain old common sense and yet many businesses can't seem to get this right.

Many business principles are nothing more than common sense. But yea I agree with you...some just don't get it.

 

[dishdude]

Unfortunately a lot of dealers are happy to sock someone once for as much as they can and move on to the next victim.

 

[GON]

In my 1st Marketing class in the San Jose State Business Tower, on the 1st day the professor taught us the definition of a good customer:
"A good customer is one who profits from your goods or services so they can come back and buy more."

JK, have to ask- you went to college to learn that?

 

[PWMDMD]

JK, have to ask- you went to college to learn that?

It was day 1 and the first concept out of the prof's mouth...you have to start somewhere. Also, as simple as that sounds clearly lots of people in business don't understand it.

 

[SC Maintenance]

In my 1st Marketing class in the San Jose State Business Tower, on the 1st day the professor taught us the definition of a good customer:
"A good customer is one who profits from your goods or services so they can come back and buy more."

Thats true.

80% of your cusotmers make 120% of your profit, is also true.

If your only playing in one market segment, your ripe for being rendered irrelevant. Apple for example has been rendered irrelevant in most of the markets they once played, yet they invent whole new markets and excel. Blackberry owned the entire market at one point, until they didn't. Great movie BTW if you haven't seen it.

 

[JeffKeryk]

JK, have to ask- you went to college to learn that?

I majored in Management of High Tech Business, which is a Silicon Valley specialized degree. Mostly Finance and Marketing. Dabbles in Manufacturing and Electronics Engineering. This concentration does not require a major because there are like 4 additional upper division class requirements.
Double minored in Econ and Computer Science. Joined AA and cleaned up at 33; got my 1st degree at 40.

 

[JeffKeryk]

Unfortunately a lot of dealers are happy to sock someone once for as much as they can and move on to the next victim.

Spot on. Dealerships are constantly changing management and ownership. Short term business. For the most part, they could care less about customers.

 

[GON]

I majored in Management of High Tech Business, which is a Silicon Valley specialized degree. Mostly Finance and Marketing. Dabbles in Manufacturing and Electronics Engineering. This concentration does not require a major because there are like 4 additional upper division class requirements.
Double minored in Econ and Computer Science. Joined AA and cleaned up at 33; got my 1st degree at 40.

I was in a Masters' program and in a business class the professor said he was the sole owner of a dozen or so corporations. Right then I knew he was clueless about what he was teaching......

 

[slo town]

In my 1st Marketing class in the San Jose State Business Tower, on the 1st day the professor taught us the definition of a good customer:
"A good customer is one who profits from your goods or services so they can come back and buy more."

Yay San Jose State! I majored in Business Marketing there.

I got my one and only F in all my school years in a statistics class while going to SJSU. Math was always fairly easy for me so I never had to study. On top of that I seldom attended class because I was too busy partying and having fun. I was hanging on by a thread grade-wise, but that was good enough at the time.

The day of the final arrived and within 5 minutes I realized I was in seriously deep doo doo. I rallied myself and worked on the questions I felt confident in answering, but that was only about a third of them. Realizing I was totally screwed I walked up to turn in my test within 20 minutes of starting, the first student to do so. To the other students I looked like either a genius or a failure. When I handed my final to the instructor I whispered to him, "I am so sorry I wasted your time". I'll never forget that moment.

Scott

 

[PimTac]

JK, have to ask- you went to college to learn that?

I seem to remember learning that principle in grade school. We were also taught the proper way of counting change as well, starting from the penny and up. Our “cash register” was a cigar box.

 

[JeffKeryk]

Yay San Jose State! I majored in Business Marketing there.

Scott

Yeah, but you didn't wait until 40 to get your degree. Smarty pants.

 

[97K15004WD]

“I’m not here to tell you that we’re under valued,” Farley said Monday. “You make your own decision.”

Shares of Ford fell just under 1% in midday trading Monday.

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Sounds like investors made a decision - Ford may have further to fall.

 

[slo town]

Yeah, but you didn't wait until 40 to get your degree. Smarty pants.

Jeff, I added to my original post. I wasn't a smarty pants in this particular instance. I'll never forget "that moment" in that class.

Scott

 

[jeepman3071]

This is what kills me. The Maverick, IMO, makes so much sense for so many people. I think of it as the 70's Datsun PU. And then the dealerships choose to mark up the price which will make more profit in the short run but send many customers to other brands.

In business school we learn if your customer thinks you did them right they will tell 10 of their friends. If they think you did them wrong they will tell the world.

+1

It doesn't make any sense to me. Killing off all cars besides the Mustang was also a stupid business move IMO. Sure, cars weren't their biggest seller compared to trucks and SUVs, but I know many, many Ford truck owners who would look first to the Ford dealership when it was time to buy a small car for their teenager.

 

[JeffKeryk]

Jeff, I added to my original post. I wasn't a smarty pants in this particular instance. I'll never forget "that moment" in that class.

Scott

Statistics is tough even if you attend. I love Stats. Made a dang career in Statistical Forecasting.

 

[wtd]

Funny you mentioned Super Duty. A week ago I parked in front of a Ford Super Duty pickup that was an amazing color of Red. It was either brand new or almost new.

There were two distinct spots on the leading edge of the hood where that paint had come off. One was the circumference of a tennis ball. The other was smaller. I was trying to figure out if it was a paint defect or something had gotten onto it there. It wasn’t from any impact.

The guys I were with thought it was strange too. Right down to the primer.

The paint on their newer F150's is no better. My fiance's 2017 F150 with only 45,000 miles on it has ton's of rock chips on the hood and edges of both front fenders. We take this truck mainly on vacation trips and most of this paint damage is from highway driving. The paint on this truck is very soft.

 

[4WD]

So Ford should sell mulch? I am not sure they are in the business of home improvement, except for trucks, but ya never know...
Just kidding! But my point is, Ford and Home Depot are in totally different markets. Apples to oranges.

Yep - Mulch ain’t making me into a lifetime customer - I want Cypress that lasts a long time and doesn’t float away - not the garbage they sell cheap …