Yet another price increase

[sheridany]

Rumor on the street this morning is Newmar has increased prices again today and no more price protection. I heard up to 8%. Not confirmed if that’s accurate.

 

[Richpatty]

Well, on the bright side, that is good for existing owners….

 

[Neal]

At some point buying will stop. I think that point is near.

 

[Jim]

Rumor on the street this morning is Newmar has increased prices again today and no more price protection. I heard up to 8%. Not confirmed if that’s accurate.

Gotta pay for the acquisition somehow.

 

[MapNerd]

Gosh with the rate of increases, I might not be able to afford to sell my coach because I won’t be able to afford another one

 

[Neal]

If the situation is true that prices can increase after an order is placed, which I find wronger than wrong, if I got notified "hey, we need another $30K for your order" rest assured it would be a hard NO and expect a full refund of my deposit. Just when I was thinking of selling mine and buying back in it sure became much less of an option with this news.

 

[MapNerd]

In all fairness, i do understand a need for some increases due to inflation, parts and labor shortages, coupled with high demand. It just seems…a lot. I mean, what would be the point of selling a lightly used Ventana to upgrade to a…*checks price lists*…Ventana?

 

[redbaron]

Today freightliner raised chassis price on all unsold by $11k. Those chassis not yet built have to pay then increase. All dealers got the letter.

Newmar is passing cost to dealer regardless of sale date, since freightliner is doing it.

I don't know if this affects chassis in the construction stage (ie: chassis prep), but I assume it doesn't since those are sold before newmar does the welding.

Newmar also passed on an 8% price increase today and stated they are no longer price protecting their components.

How this affects each person depends on the dealer and the deal.

 

[Neal]

Gently used 2017 Newmar Ventana. $549,995.

 

[redbaron]

I just had a conversation with another dealer, who is very informed. The particular case I posted about mentioned only Freightliner Chassis.

That is not accurate. All production is affected by this look back price increase, including those built on Spartan and Ford. The specific dollar amount does vary by model, but all models are affected.

And to emphasize "For the First time EVER the increase does affect retail sold orders." However, according to my source, retail sold orders will receive a smaller increase than the dealer's non-sold stock orders.


The details of the increases are a bit complicated and most dealers are still trying to sort through their options. My source stated:

"I absolutely dread the thought of calling my customers and telling them that their price just went up on their ordered coach. I will do everything I can to avoid that."

It is best that you allow your dealer time to process the information, and have internal discussions on how each deal will be affected. Wait for your dealer to contact you.

There is a shock-wave going thru the industry right now, and some policies are being made in a vacuum. This may be one of them. As a final statement, my dealer source had this to add:

I’m sure not all dealers will handle this the same way and some of us are still hoping Newmar will re-consider including retail sold coaches in this latest increase.

 

[Old-RV'er]

Put this in perspective. Much of the MH's built today are parts manufactured overseas, ships stuck at sea, cannot unload, trucks who cannot or will not haul parts, etc., et-al. Add in at least 1.00-1.50 increase of diesel to haul stuff, law of supply and demand. According to several experts I have read, and subscribed too, this situation WILL NOT clear in 2022, and may not clear into deep 2023. Since our government is powerless and ineffective concerning inflation, covid, and Supply Side Crisis, I do not see any, and I mean any improvement this year, or next. Is this the new normal? One fellow at our local grocery store said he does not expect the problems to clear in "his lifetime-his words". So, price increases are going to be the norm, all, every single part and components and base materials are going up in price, it's only common sense to pass those along to consumers. No price lock, totally understand, how can there be, when tomorrow, the supply chain could just collapse (it's now very close). But, as mentioned above, the absolute top in prices is fast approaching, I sure as heck aint paying $350,000 for a new Ventana 3407, and mine is for sale at $262,000. I was thinking about reducing price, now NOPE. It only makes the excellent used ones more valuable. The RV industry is like a drunken sailor on liberty on payday, spend and build until, the market is saturated, then watch as manufacturers go down in flames, huge debt loads etc. Think of national RV back in 2008, lots of capacity, but very few orders with huge debts, when they went under cascade effect took 40% of others along the way. Plus, cannot get into any RV park because of thousands of new users block up spots and then not showing up. One article said make reservations now for 2023, if I have to schedule life that far out, the fun is gone. Look up my unit on RV Trader, it's nice.

 

[Neal]

A contract is a contract. It will be interesting to see what people are signing and if there are clauses in the signed that prices can change "without notice." IMHO if a dealer sells an item under contract, they have to eat the costs should they change, this goes to Newmar as well, or any provider. You better price right up front to cover this is how it's typically done. Failure to price right means YOU absorb the losses. Raising prices is fine but that should never affect current contracts / orders. Same with homes, etc. I would imagine law suits could arise from situations like this.

 

[redbaron]

A contract is a contract. It will be interesting to see what people are signing and if there are clauses in the signed that prices can change "without notice." IMHO if a dealer sells an item under contract, they have to eat the costs should they change, this goes to Newmar as well, or any provider. You better price right up front to cover this is how it's typically done. Failure to price right means YOU absorb the losses. Raising prices is fine but that should never affect current contracts / orders. Same with homes, etc. I would imagine law suits could arise from situations like this.

Here is my contract wording from NIRVC:

Agreement to Purchase.
You agree to buy the Vehicle from NIRVC for the price stated in this Contract. You agree to sign any documents necessary to complete this transaction. Unless
you have cancelled this Contract under the condition described in the Manufacturer section, if you refuse to take delivery of the Vehicle, we can keep any deposits you have made to us, and you will be liable to us for all of our damages and expenses in connection herewith, including but not limited to rea son able attorneys' fees.

Manufacturer.
We are not an agent of the Manufacturer. Manufacturer can change the price, design or standard features of the Vehicle at any time without notice. If we cannot
obtain the Vehicle from the Manufacturer at the price in effect as of the date of this Contract, or if we cannot obtain the agreed upon product from the Manufacturer, you or we can cancel this Contract. If you cancel this Contract under the terms of this section, we will refund to you any amounts you have pa id to us. If you have delivered a Trade in Vehicle to us, we will return it to you. If we have already sold the Trade in Vehicle, we will pay you the trade in allowance after adjusting f or any payoff to a lienholder.

 

[Jim]

If we have already sold the Trade in Vehicle, we will pay you the trade in allowance after adjusting f or any payoff to a lienholder.

 

[Old-RV'er]

Home builders across the country have changed the contract provisions on building you a new home. They have taken out any price locks because of materials being non available, sudden price hikes, or disease related issues. Some in ATL were taken to court, but case thrown out, in this market today, there are no longer any guarantees on anything. Lumber was up over $1000 a million board feet last year, now in the range of 150.00 per million board feet (if I have the number correctly) Coffee which went up over 500 dollars for a 100 Lb bag, has also dropped back to 225 or so. Natural Gas was over 5.00 a million cuft, it has dropped into the 3.00 range. With prices all over the place, and not one certain thing in place, price lock guarantees are like many things today, GONE. Saw this am, Used Car Prices are on average up to 29,000 per vehicle two years or newer. Makes my Jeep more valuable still, and the Gladiator Pickup is over 60,000 for the Rubicon with automatic transmission, think now, that is a very small pickup, the Ford F-250/350, is getting close to 80,000 for new. This is now a very, very different world we live in, either adapt or do the ostrich method.

 

[redbaron]

Yes, there is nothing good about canceling a deal with a trade in.

I have always gone the route of selling my coach myself. Using the dealership for an IN / OUT process makes things much smoother.

 

[Jim]

All this craziness going on almost makes me wish I hadn't sold mine. Almost. . .

 

[FLSteve]

I just saw where Angie from NIRVC posted this on another forum. It does shed some light on the situation a bit.

Angie Morell Member Official iRV2 Sponsor Join Date: Sep 2019 Posts: 58

Two things happened yesterday morning (1/3/22). First, Newmar was the only remaining manufacturer price protecting a retail sold order from the date of acceptance of the order by Newmar all the way through to delivery. As of yesterday Newmar will no longer offer any price protection on any order. The invoice price will be set at the time of shipment. Effective immediately, the base pricing of Newmar's 2022 model year product will increase: Eight percent (8%) on Bay Star Sport, Bay Star, Canyon Star, Kountry Star, Ventana, Super Star, Dutch Star, New Aire and Supreme Aire. Six percent (6%) on Mountain Aire, London Aire, Essex and King Aire. These changes in base prices will impact all dealer stock orders for Newmar product invoiced and shipped after 1/3/22. Secondly, I’ll now attempt to answer how Newmar is handling retail sold orders submitted, received, and accepted by Newmar prior to 1/3/22. Any retail sold orders at Newmar, and already scheduled for production (run 30 and prior) will remain price protected until they are completed, invoiced, shipped and delivered to the retail customer on record. Any retail sold orders at Newmar and not yet scheduled for production (runs 31 and beyond), will not incur the total impact of the price increase. These retail sold orders will, however, incur a chassis surcharge to cover the recent price increases announced by Newmar’s chassis suppliers. Chassis increases to Newmar are not being deferred to the next model year as has been the practice in the past. The respective chassis surcharge amounts are as follows: Bay Star Sport and Bay Star $1,000.00. Canyon Star $7,500.00 Kountry Star, Mountain Aire, London Aire, Essex and King Aire $8,500.00 Ventana, Dutch Star and New Aire $11,000.00. All retail sales will be audited for as long as necessary by Newmar. Any discrepancy between the retail customer name on the original order and owner registration filed by the dealer will result in a charge back to the dealer equal to the total amount of the price protection. For this reason, if you are purchasing your coach in an LLC, or some other name, it is imperative the name on your order corresponds exactly to the name you will be titling your coach in. Because National Indoor RV Centers hasn’t changed its pricing policy during this pandemic, meaning we price our coaches at the same margin over the manufacturers invoice to us today, as we did before the pandemic, NIRVC has the vast majority of all Newmar retail sold orders, and thereby has the largest number of both scheduled, and unscheduled retail sold orders. I wish I could share NIRVC’s position on all of this, but I know Brett too well, and I know he is mulling all of this over very thoughtfully. He doesn’t make knee jerk reactions to anything, and he would like to discuss it more with Newmar, and our management team before responding. __________________ . NATIONAL INDOOR RV CENTERS - NIRVC Sales | Service | Indoor Storage | Wash Collision Repair & Paint Restoration 214-392-1100

 

[Old-RV'er]

Car prices remain high as Chinese-made semiconductor shortage keeps inventories low

Car prices are still inflated as dealerships struggle to maintain their inventories amid a shortage of semiconductor chips coming in from China.

www.foxnews.com

I rest my case!

If we make chip here, instead of China, there is not supply/shipping issues for the most part, the chips initially will cost more, but as they plants ramp up, those costs will go down. That we as a nation, embraced the global economy is the stupidest thing we could have done. Island nations realized this a long time ago, they took steps to build things as much as possible at home.

If diabetic, bet your insulin prices have skyrocketed, why, before PT, it all was made in China, PT demanded that production be brought here, not sure if that ever happened, but Joe aint mandating that to happen. Good luck affording it. That every single thing we buy, is going to cost more is a given. The point I reach to pay for some things is fast approaching. For instance, if diesel hits 3.75, parking MH. If gas hits 4.00, only grocery store period. Experts believe, 100-dollar oil soon, 150-200 by 2023. Experts have been wrong, massive demand in Far East, and you can bet, Japan and others are not going to let price deter their industry. In some places in CA, diesel is 6.00 gallon, truckers, pass that along to you and me. That we are going to pay lots more is a given. Take steps now, and like us when on sale, we stock up.

 

[No Plan]

I received confirmation today my 2022 Ventana 3407 will not be affected by the price increases as it is scheduled for Run 29. I do have to say I am extremely relieved... To be honest, I don't know if my order was affected how I would have dealt with this price increase. Undoubtedly I would have gone forward, but I know I would not be happy. I priced out my heavily optioned Ventana 3407 on the Newmar website today, and based on the current cost, the MSRP price now is slightly more than a 10% increase from the MSRP when I ordered.

It will be interesting to see if these price increases will have an impact on future sales. Additionally, there will no longer be any price protection in the future on ordered units. I'm glad I didn't procrastinate any longer than I already had and placed my order when I did in October. No doubt there are a number of prospective buyers who were sitting on the fence considering a potential order, and will now have to accept a new price on a unit they were considering ordering prior to these price increases.

Based on an optimistic projected build timeline, it looks like my Ventana 3407 will be completed sometime in March with a delivery in early April. I'm not in any rush, as once delivered, I will be having my dealer install some additional options.