Even with the MINI plant in Oxford churning out cars every day of the week, demand is still quite high – especially in the US. In fact many parts of the country still have long wait lists and even dealer mark-ups. As a MINI owner and enthusiast this all sounds quite nice. High resale and a rather exclusive car are certainly all perks. However the outlook can be a little different at the dealer level. Here’s another view on the topic of sales that a Sales Manger at a MINI dealer sent me recently:
You may want to make a side note to your last article. Our “sales” numbers are merely a reflection of (and limited to) our allocation. In the last 6 months, we have never had more than 2 in-stock, unsold MINI’s. Most of the time we have zero. Each month we loose dozens of customers to other manufactures due to our lack of inventory. If given a chance, those #’s would be much different.
Certainly puts those monthly sales increases in perspective. You may recall the new MINI USA Vice President James L. McDowell saying that he’d like to see MINI’s US sales double over the coming years. With the MINI Plant undergoing a 200 million dollar expansion, it looks like he’ll soon get the extra production capacity to make that happen. Especially if MINI Dealers continue to see such high demand.
<p>The manager at <a rel="nofollow" href="http://www.minipeabody.com">MINI of Peabody</a> tells the same story … his lot is basically empty and what cars are there are pre-sold; even buying cars from low-sales-volume dealerships does not help.</p>
<p>Curiously the allocation of MINIs to dealerships seems to ignore the local demand!</p>
<p>Honestly…if MINI is limited in production…and demand is the same elsewhere in the world (ne Europe) as in the US, then they are probably best off selling what units they can make in Europe.</p>
<p>The US/E exchange rate MUST be punishing on the bottom line. Also, I believe MINIs tend to have a higher starting MSRP in Europe anyway, so it would be more money all the way around.</p>
<p>What about the VAT effect over there.</p>
<p>We don’t have that level of government getting their hand into the purchase…..yet!</p>
<blockquote>
<p>The US/E exchange rate MUST be punishing on the bottom line. Also, I believe MINIs tend to have a higher starting MSRP in Europe anyway, so it would be more money all the way around.</p>
</blockquote>
<p>That’s a great point. I’m a firm believer that the base Cooper is a loss leader of sorts for the MINI line.</p>
<blockquote>
<p>What about the VAT effect over there.</p>
</blockquote>
<p>Take their base price (including VAT) and our base price (including sales tax) and look at the dif. It’s certainly not small.</p>
<p>Is it true or urban myth that when it was decided to re-import the Mini in ’02, BMW dealers were against it? That they insisted on limited inventory to protect themselves from competition against lower priced Bimmers? Which explains why there are so few dealers, even in the large population centers eg: only three in NJ?</p>
<blockquote>
<p>Is it true or urban myth that when it was decided to re-import the Mini in ’02, BMW dealers were against it? That they insisted on limited inventory to protect themselves from competition against lower priced Bimmers? Which explains why there are so few dealers, even in the large population centers eg: only three in NJ?</p>
</blockquote>
<p>Myth. There are a number of reasons why there are less MINI dealers. First and formost MINI USA decided to only sell the car in major urban areas. Secondly they wanted to grow the brand and the dealer network gradually and only through the very best BMW dealers. There were other factors at work but those were probably the most important.</p>
<p>I feel for the mini dealers in some respects, but, I wouldnt mind if minis were a little less popular. Here in Annapolis, MD, its a rare day when I dont see 5-10 minis going around. As a point of reference, the term very best BMW dealers is up to argument…..I am very lucky to be within 3 mini dealers, and only 1 is competent enough to service my mini.</p>
<p>Heres to more waiting lists and high resale. :)</p>
<p>I certainly hope BMW does not flood the market with MINIs. Sounds like that could benefit the sales managers, but not necessarily us, current owners.</p>
<p>mb</p>
<p>The Law of Supply & Demand. I bought a MCS in LA (California, not Louisiana) last December walking in the dealership, surprised to see that they had virtually exactly what I would order and took the car on the spot. I paid a serious mark-up, but since I live overseas in where MINIs aren’t imported and couldn’t really wait to order one in LA, it made sense.</p>
<p>I know that MINI has retained high resale, but I don’t think that should be a reason to buy a car. Buy what you like or need based on the cost and your personal valuation that you’ll get that value out of it.</p>
<p>Saludos</p>
<blockquote>Myth. There are a number of reasons why there are less MINI dealers. First and formost MINI USA decided to only sell the car in major urban areas. Secondly they wanted to grow the brand and the dealer network gradually and only through the very best BMW dealers. There were other factors at work but those were probably the most important.</blockquote>
<p>Another factor is that the inital projection for U.S. MINI sales, that was made well over a year before the dealerships opened, was based on BMWUSA’s experience with the Z3 and that pretty badly underestimated demand. </p>
<p>You can’t really blame them though for playing it safe. Back in 2002, who would have thought 5 model years later a premium small car like the MINI would still be selling at MSRP or MSRP + Mark-up?</p>
<p>The implication of that projection was that by the time the strong U.S. demand had been realized, the slicing up of the global MINI production “pie” had already happened, and MINIUSA had to wait for increased production to gain more cars for sales in the U.S.</p>
<p>It also meant that it took MINIUSA a while to gain the clout to get MINI to make changes geared towards the U.S. market like the revised gearing and limited slip.</p>
<p>Another (obvious) factor is gas prices. This will keep the demand high, and hopefully depreciation will remain low. I was stunned when I went to order last saturday–there were three mini’s on the lot (one of which sold while I was there), and two in the show room–and one of those was used. By comparison, there has been at least ten (and usually more) on the lot, and two in the showroom at any other given time. Dealer said there has been an appreciable increase in demand this summer, with a majority of customers downsizing to a mini, citing gas economy as a primary reason. I couldn’t believe the foot traffic at the dealer saturday–glad I made an appointment to order in advance.</p>
<p>Sorry. At work. No time to plow the posts that popped onto this scene. I appologise for redundancy.</p>
<p>Just to note that the lack of immediate availability of new MINIs may be a boon to the sale of the old (pre-owned) (resold).</p>
<p>Oh. And that the statement was clear in previous MF articles that the new factory capabilities would be focusing the increased production elsewhere.</p>
<blockquote>Here in Annapolis, MD, its a rare day when I dont see 5-10 minis going around.
</blockquote>
<p>Here in San Francisco, I step out my front door and see 4 parked on the street ;)</p>
<p>I ran into the same demand issue with ordering my second MINI. Rather than wait, I decided to buy pre-owned from a local Volvo dealer. I was able to negotiate a good deal on a 2 year old with low mileage (still under warranty) even with a not so great trade-in. My local MINI has preowned models available at a really great price, but even that selection is pretty limited, so they really aren’t able to be too competitive even in the preowned marketplace.</p>
<p>In Irvine, CA (orange county) I found a USED 03 base model for $32,000.</p>
<p>I decided to fly to Ohio and drive back my 05 S rather than pay those insane markups.</p>
<p>I will be glad when they complete the Oxford expansion. We here in Alabama are tired of driving to TN & GA for servicing & we are hoping that our 1st & only statewide dealership will open when the expansion is complete.</p>
<p>p.s…Come to the Southeast if you are looking for a good selection of Mini’s. Last time I was at the Georgia dealership they had about 20-25 new ones sitting on the lot.</p>
<p>Drove by my local MINI dealerships this past weekend. I’m lucky enough to have two dealerships within a 45 minute drive from my home. Both were out of stock and any purchase would have to be ordered. They did seem to have a couple of convertibles left though. </p>
<p>Probably demo cars.</p>
<p>As of Sunday evening, there were only three MINIs left on the Century MINI lot here in Greenville, SC. There were none in the showroom. A couple of months ago, the lot was almost full and there were three in the showroom.</p>
<p>My ’06 MSC should be ready for delivery in a few days, and I am still surprised that we don’t have a dealer in Austin, TX. The nearest is 90 miles away in San Antonio. </p>
<p>By the way, for fun, I just configured an ’06 MSC on the UK configurator to roughly the same specs as my ’06 US MSC. Converting the MSRP from pounds to dollars, the UK version of the same car was about $10,000 more than my US car!</p>
<p>What’s up with that?</p>
<p>I test drove an automatic S in Irvine Ca about 3 years ago. It was the only one on the lot not sold and they were asking $2500 over MSRP. </p>
<p>How much of a mark up over MSRP are you seeing now and where? </p>
<p>P.S. I got a sweet deal (dealer cost) being active duty in Europe on an 06. Should be here this month.</p>
<p>Hey MiniPower !!!</p>
<p>Earlier this year I almost bought an 03 from a Volvo dealer..wondering if it’s the same one. Hasbrouck Heights New Jersey ??? Click on my name and you’ll be able to email me. Thanks!</p>
<p>GadgeTT, there were issues with MINI in Texas that delayed their dealerships a year – maybe that is still part of the issue in Texas.</p>
<p>TDBEForbes, the automatic S did not exist till January 2005 – if you tested a manual 3 years ago, it was not an S!</p>
<p>Sorry, Hugh – Columbus, OH</p>
<p>I am selling my 05, 7 moths old MCSa and ordering 06 MCS JCW with $2000 mark up. Usually it goes up to $4000 over MSRP here, in LA area.</p>
<p>By the way, the car is in perfect condition. Email me, if interested.</p>
<p>Take heed to the downfall of the
P.T.Cruiser and Volkswagon Beetle.
Too many = dime-a-dozen. MINI is smart
to keep the numbers low and continue
to win the high resale value awards.
If perspective MINI owners truly wanted
a MINI, they will wait or find one
somewhere else. Let the “buyers-on-a-whim” that don’t research or “gotta have it now” Veruca Salt group go to the local Ford dealer and buy a Mustang. There’s always plenty of those sitting around the car lots.</p>
<p>Obviously in USA there is a high demand but here in New Zealand (Right hand drive market) sales are low and some cars have been in stock for up to a year. We pay $39000 for a basic Cooper (US $27268). What is the answer for US market? Obviously if the demand is there the MINI factory should allocate more production to US and cut numbers to low selling countries (70 at last count).
So if you want a RH drive model, NZ may be able to sell you one. What could be more exclusive and foreign than a RH drive british car in USA?</p>
<p>“Each month we lose dozens of customers to other manufactures due to our lack of inventory.”</p>
<p>This part sort of made me roll my eyes. I had to wait more than six months to get my 03 MC in Los Angeles. There was no way that I would have gone to another manufacturer. I was sold on MINI and would not have bought anything else.</p>
<p>The wait for my MINI didn’t bother me at all. But what would have made me peeved enough to walk away would have been to pay a mark-up on MSRP. There is no way I would line the pockets of greedy dealerships. </p>
<p>Just call me lucky in NJ, I guess. My ’05 MCS was MSRP and not a penny more.</p>
<p>It’s true… my sister wanted a MINI like mine, but she ended up going with a Toyota convertible because the wait time was simply much too long.</p>
<p>It’s not the numbers of the PT Cruiser that make it ‘dime a dozen’. It’s the lack of innovation in a PT Cruiser that keeps it high on the bla scale. It’s the fact that it’s a bland car built on a bland platform that keeps it bla. Unless the MINI degrades in quality, the streets could be paved with MINIs, and they still will not be bla…</p>
<p>I stopped by MINI of Peabody last Monday and looked at every car on the lot and in the showroom. Now I was in Boston on business and not in the market for a car (Just got an ’05 MCS at Checkered Flag in Va Beach). At no time during my 20 minutes at this place was I ever approached by anyone nor even recognized. If this is their approach to selling cars, then I wish them luck. They had a fair amount of new cars, including several 2006 models and pre-owned. I was just curious to see the new ’06 blue w/silver roof, but may have purchased some minor accesories while there. I left wondering if they had sized-me up and determined that I was not worthy of their time or that the sales quota for the month had been met. If you would like great service and ever in the SE Virginia area, do not hesitate to visit Checkered Flag MINI.</p>
<p>There are a couple problems I have with the limited allocations that each dealership has. I live in the Northwest where we have only two MINI dealerships in the area, one in Seattle, and one in Portland. Both dealerships are backlogged with requests, but when I navigate to any MINI enthusiast site (NAM for one) you can see ads for fairly prompt order times (rather than an eight month wait). Why not load balance it? I mean, that’s what we do with server networks. It would seem that they could generate more sales by doing that.</p>
<p>The other issue I have with the scarcity of dealerships is that in the Northwest, we only have two dealers. If you have an issue with one, then the other is about a 200 mile drive one way. We’re pretty lucky that I think both are pretty fair in their dealings. It definitely makes us jealous of those in NJ who have three.</p>
<p>Totally off topic but relating to the picture. Is that a mint green MINI?</p>
<p>“Totally off topic but relating to the picture. Is that a mint green MINI?” – GoofyTruax </p>
<p>I was thinking the same thing! That would certainly brighten up the current round of colors.</p>
<p>-Paul!</p>
<blockquote>The US/E exchange rate MUST be punishing on the bottom line. Also, I believe MINIs tend to have a higher starting MSRP in Europe anyway, so it would be more money all the way around.</blockquote>
<p>When I was in England, I was amazed (and so was the british motoring advisor) of the big difference in price of the basic Cooper. According to the miniuk site, Coopers start at 12,395 Pounds (approx $22,300) and on the miniusa site, base price is $16.950. $5000 US is nothing to sneeze at.</p>
<p>Bob</p>
<p>i am luck florida has several dealers. i have one about 15 miles from my house. that dealer didnt want to order my 2006 mcs with out adding their $1,000 auto bond protection. they said i had to buy it with the car. they would not sell me the car with out it. i called another dealer a 110 miles away. they knew exactly what i was talking about. 5 minutes on the phone and 6 weeks later mine will be here. some dealers want to sell minis and i guess some dont. p.s. thanks down town mini see you in about 5 more days:)</p>
<p>“Each month we loose dozens of customers to other manufactures due to our lack of inventory.”</p>
<p>Really?? I’m not so sure these folks are MINI-worthy. Can you imagine someone walking into a MINI showroom, or even going for a test drive, and then going off to get “something else” simply because a car is not on the lot? Booohooo!!! These folks clearly are fly-by-nights who don’t get it, and are way too quick to settle. Most of us have had to jump through some hoops to get a MINI….it’s very do-able, but you have to want it. Clearly these folks don’t seem to want it bad enough.</p>
<p>i agree with gocartride. it might have been a little trouble finind a dealer to sell me my 2006mcs but it worth the wait. 6 weeks to get the car i want. no big deal.</p>
<p>I waited 5 months and purchased out of state to avoid a long wait or excessive markup. It was nice knowing that I couldn’t have gotten a much better deal if I drove a harder bargain. Plus when actually ordering the car it gets speced to your needs/ wants from the factory which was nice as well.</p>
<p>As far as the weak dollar goes. I think that big companies like BMW probably hedge against the price of the dollar so the swings don’t effect the overall profit margin as much.</p>
<p>“It’s the lack of innovation in a PT Cruiser that keeps it high on the bla scale. It’s the fact that it’s a bland car built on a bland platform that keeps it bla.”</p>
<p>That PT Cruiser was so bla, I even forgot I test drove one before ordering my MINI.(no, really!)</p>
<p>TDBEForbes, the automatic S did not exist till January 2005 – if you tested a manual 3 years ago, it was not an S!</p>
<p>Oh, Ok, thought it was an S. I cant slip anything past you guys. It was a long time ago. I just remember not liking the power band fealing in axceleration but loving the handeling.</p>
<p>RE: MINT GREEN MINI</p>
<p>that’s probably a pepper white MINI photographed in fluorescent light (which throws a green tint).</p>
<p>You shouldn’t dismiss people who buy another brand because their local MINI dealer didn’t have any in inventory. If Global MINI didn’t have a suitable car on the lot back in December ’03, I would be driving a VW Jetta today (and probably very happy with it).</p>
<p>Why? Because my ’00 Jetta had been totalled, the insurance company settled and cut off the rental car, so I had to buy a car that day. Sure, I would have preferred to order a car to my specs, but life doesn’t always allow what we want.</p>
<p>As it turned out, they had a car I liked, I bought it and have been very happy with it.</p>
<p>KevinR, I have to agree – that’s how I got my Rendezvous, and it’s because I had the time, I could afford to wait and order a mini from my Ottawa dealer. (They were very helpful, so I seem to be lucky and found a reasonably close dealer that is good at what they do.)</p>
<p>They have a handful on the lot and seem to push them out as soon as they come in – on a trip past Toronto, though, I noticed that the mini dealer there (burlington) had to have at least a dozen on the lot. Add that to the multiple mini dealers in that area… </p>
<p>Anyways, I do like the feeling of exclusivity – go to any other car shop and you’ll see literally hundreds of cars on the lot, like puppies in a pound, waiting for someone to pick them. Minis seem to be the opposite – you pick what you like, almost like the car picking you. :)</p>
<p>(Oh boy, I have a long month and a half to wait!)</p>
<p>James….</p>
<p>The fact that the dealers have a product that sells itself should be enough. They don’t have to advertise, and they sell every car they can get. Sounds like my kind of job. Don’t ruin the MINI marque by flooding the market. We have just enough to go around now…..! LOL</p>
<p>Gabe “Myth. …….. Secondly they wanted to grow the brand and the dealer network gradually and only through the very best BMW dealers. There were other factors at work but those were probably the most important.”</p>
<p>That certainly does not explain how BMW of Darien, CT got a MINI dealership. The motoring advisors are a fantastic bunch but just don’t ever need to get any service done. It will give you gray hair.</p>
<p>Re: The price difference between U.S. MINIs and elsewhere, don’t forget the odd effects of CAFE (fuel economy) standards. Assuming MINIs are lumped in with all the other cars BMW sells, BMW doesn’t mind making less money (or even losing money) if it means they can sell more high markup 7 series sedans or M5s. Otherwise BMW would face big gas guzzler taxes on their cars, taxes that would make their gas guzzlers relatively uncompetitive compared to Mercedes, Jaguar, and other premium cars.</p>
<p>There’s a lot of talk about how BMW/MINI purposely “limits” production to keep demand high. I would take that with a grain of salt, as it goes against every tenet of the auto business, that basically being you (hopefully) make and sell as many cars as the market will bear. The MINI is an oddity in the US market, the fact that it can still command MSRP in its 5th year is amazing, but I truly believe if BMW could squeeze out enough more units to double US sales, it would do so in a heartbeat. Despite the MINI owner culture and loyalty, car companies aren’t generally in the altruism business.</p>
<p>Is the MINI the “most successful” automobile in U.S. history? Five full years of MSRP and empty dealer lots?</p>
<p>What other notables could bump MINI off of that title?</p>