$25,000 to sell the SRT Viper - SRT Branding Packages

[XDCX]

I've read that Auburn Hills is going to require any CJDR dealer who wants to sell the 2013 Viper to pay $25,000 for a SRT Branding Package that includes special tools and training. I understand Chrysler wants to limit the distribution of the Viper and I can see their logic.

What I'm less clear about is what the CJDR dealers get who decide to participate in the $5,000 SRT Branding Package.

It's my understanding that all CJDR dealers will be able to sell all of the SRT vehicles with the exception of the Viper. CJDR dealers who purchase the $5,000 SRT Branding Package will receive tools, training and equipment plus a higher allocations of SRT vehicles.

Again, I follow Chrysler's logic and perhaps the SRT vehicles are truly a unique brand but there's part of me that becomes concerned when OEMs start selling allocation. (The newest twist to two-tier pricing?) Is it just me or is this an issue with the CJDR dealers?

Does the $5,000 SRT Branding Package offer enough value based on the tools and training alone, or is Auburn Hills trying to induce dealers to sign-up by showing them their projected allocations?

[CL Pgh]

Once you get thru the smoke… I think it works like this:

If you receive an initial Viper allocation… it’ll cost you $25,000 to get it (and the whole package). If you don’t have allocation but want in the Viper family… its $5000 (for the package) and you are now in line for future allocation once Viper production kicks up. Once you get allocation, the remaining $20,000 is due.

Seems the $5000 ante-in is to help ASM’s close the dealer that doesn’t have Viper allocation up front: “Uh yes, Mr Dealer… that’ll be $25,000 today and product in the some what, maybe near… future???”

SRT8/4/? Jeep, Chrysler and Dodge vehicles are unaffected by this program… I think.

[rd3311]

If you receive an initial Viper allocation… it’ll cost you $25,000 to get it (and the whole package).

Is any of this really worth $25K?

If a very brave player went for this deal, what is the guess on time frame for ROI of the $25k?

How about floorplan costs while an unsold $100K invoice car sits for how long?

I would pass on this deal with no second thoughts..

[jayhawk]

we sold 4 vipers from '94/'99, had trained techs, tools, couldnt make it work out . we'll pass on this one. rather focus on jeeps, minivans, rams, etc..

[chryslersrt8]

I would think for most dealers that choose to pay the $25 they will get a ROI only if they consider the increased floor traffic/marketing publicity it brings in. Only a select few dealers will sell enough of them to earn back their money.

[XDCX]

Originally Posted by CL Pgh

Once you get thru the smoke… I think it works like this:

If you receive an initial Viper allocation… it’ll cost you $25,000 to get it (and the whole package). If you don’t have allocation but want in the Viper family… its $5000 (for the package) and you are now in line for future allocation once Viper production kicks up. Once you get allocation, the remaining $20,000 is due.

Seems the $5000 ante-in is to help ASM’s close the dealer that doesn’t have Viper allocation up front: “Uh yes, Mr Dealer… that’ll be $25,000 today and product in the some what, maybe near… future???”

SRT8/4/? Jeep, Chrysler and Dodge vehicles are unaffected by this program… I think.

CL - Thanks for the clarification - your version makes more sense.

Here's an excerpt from a report in Automotive News that gave me the impression that Auburn Hills was essentially selling SRT allocation:

For $5,000 each, any of the 2,347 Chrysler Group dealerships may buy a base agreement for tools, equipment, training, signs and, perhaps most important, preferential ordering and additional allocation of such vehicles as the Jeep Grand Cherokee SRT8, says Ralph Gilles, head of the SRT brand.

For an additional $20,000, the high-performance agreement also permits dealers to sell the Viper.

Dealers who opt into the SRT brand agreements must meet customer satisfaction requirements to qualify for the preferential ordering and extra allocation of SRT vehicles.

Dealers will be shown their projected allocation of SRT vehicles if they wish to participate, Grady says.

[XDCX]

Originally Posted by rd3311

Is any of this really worth $25K?

If a very brave player went for this deal, what is the guess on time frame for ROI of the $25k?

How about floorplan costs while an unsold $100K invoice car sits for how long?

I would pass on this deal with no second thoughts..

I agree that from a business standpoint most CJDR dealers who opt into this agreement will not see a positive ROI when all of the costs are factored in. It will be interesting to see how many Viper Dealers Chrysler ends up with and whether there will be any major markets without representation.

That said, it's only $25K and I bet a lot of CJDR dealers who are making decent money right now will pay-up just to have a trophy on their showroom.

[XDCX]

Originally Posted by chryslersrt8

I would think for most dealers that choose to pay the $25 they will get a ROI only if they consider the increased floor traffic/marketing publicity it brings in. Only a select few dealers will sell enough of them to earn back their money.

I agree 100%.

While I'm happy the Viper has survived it is a bit sad to see how far the car has drifted from the original concept Bob Lutz had when he pushed the project through Auburn Hills.

The original Viper in 1992 was designed to lift the Dodge brand and give the entire Dodge Dealer Network something to be proud of. And the pricing, while far above the initial target of $25K, was still within the realm of many buyers.

The 2013 Viper, by contrast, won't even be branded as a Dodge, will only be sold at select dealers and has a price tag that makes the vehicle unobtainable for the vast majority of the population. Unlike the 1992 Viper, I don't think the 2013 has the same "Halo Effect" that lifted the Dodge Brand and the image of the dealership that had a Viper on their showroom.

[XDCX]

According to a recent news report that quoted Ralph Gilles, SRT will probably only have 100 - 150 Viper Dealers across the country. For the full report - click here

Initially it was thought about 1 of every 5 CJDR dealers would have access to the Viper, now it appears it will be closer to 1 of every 20.

The referenced article also provided clarification about what the CJDR dealers get for their $5,000 SRT Branding Package and it appears CL was 100% correct.

[Lakeshow]

GM did this with the Vette in the early 90's. If you didn't buck up for the program, you could sell them off a dealer trade but could not order them. In my jilted opinion, it's just another kick in the gooch for smaller dealers. And if my memory is correct, I think the cost of the GM program was about....you guessed it; $25k.

[birch3x]

We sold a fair number of Vipers over the years, and way back then we got the allocation on some sort of comnination of CSI & SSI scores, plus a bit of ordering other vehicles to get one. Then the Sprinter came along, and we did not invest in taller lifts and special tools, then it's gone. Then we see the 4500 and 5500, same deal. Now SRT...

[steve_biegler]

Maybe we should call them.....Micro Franchises.

[The StraightShooter]

Legal extortion. Just stack those tools right next to the Crossfire, Sprinter and Durango Hybrid kits.

[CL Pgh]

Here’s a strange… sort of unrelated, related twist to the new Viper. The entry level $99,000 (approx) Viper has NO leather option. Maybe I’m wrong here but it seems to me that type of price tag should ALWAYS have leather seating! ???

Can you imagine finding out your allocation is for the base unit ONLY... and then having to floorplan that $100,000 cloth interior unit.

[XDCX]

Originally Posted by Lakeshow

GM did this with the Vette in the early 90's. If you didn't buck up for the program, you could sell them off a dealer trade but could not order them. In my jilted opinion, it's just another kick in the gooch for smaller dealers. And if my memory is correct, I think the cost of the GM program was about....you guessed it; $25k.

That's interesting that the amount of the tools/training package for the Corvette was about $25K too. That amount seems to be just high enough to dissuade a lot of smaller dealers who might have been tempted to step-up.