Yet another price increase

[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.

 

[MapNerd]

Ain’t it funny that they price protect themselves when the shoe is on the other foot? When no one is buying and supply is plentiful, no way are they going to tell you 6 months later when your coach is ready that they’re happy to sell it to you for 10% less than the price when the order was placed.

I think I’d have to walk if my cost increased at delivery.

 

[sheridany]

 

[redbaron]

I find it impossible to believe that both freightliner and spartan chassis raised exactly $11k on all 3 Dutch star chassis configurations. (37,40,43).

Most likely, freightliner added $2k, spartan added $4k and newmar rounded up after markup and blamed the chassis mfg.

 

[Bob K4TAX]

It appears to be falling under the laws of economics. Thus supply and demand. If the supply goes down, the price goes up. If the demand goes up the price goes up. If there is a surplus of materials, the price goes down. If no one buys the products, the price goes down. At least that's what I recall from Economics 101.

As one wrote, I can't afford to sell what we have because we can't afford to replace it with a like model. Same for our residence. It is worth more than we paid for it, but if we sell it, what could we get for our money? Certainly nothing like as nice as we have at present.

 

[JJT-NC]

I doubt our luxury toys are being priced on a cost-plus basis. More likely we are seeing value based pricing, as many luxury goods are priced - ie priced according to their attractiveness to buyers vs priced to supplier costs plus a margin.

I remember Econ 101 showing that some (luxury) goods become more popular with increased price - such as Rolls Royce. Long lines form for the highest priced, limited editions!

In the end, these prices will continue to run as long as there are buyers willing to pay.

One way to game this situation is to downsize. But I like my luxury toy too much ;-)

 

[redbaron]

I think you are right that these are being priced as value priced.

I also feel like a lowering of msrp will eventually happen...once the market softens

 

[Neemer]

I also feel like a lowering of msrp will eventually happen

Has that ever happened? It may have, but I am unaware of it.

 

[redbaron]

Has that ever happened? It may have, but I am unaware of it.

No, it never has.

Frankly, Newmar has never been so greedy in the past, and never changed price protection on sold orders that were delayed due to Newmars own supply issue.

There is a lot of firsts, and I think that once greed stops paying off, common sense will have to take it's place.

 

[J&JD]

common sense will have to take it's place

Unfortunately, common sense seems to be a lost art. Very much like a handshake deal now seems to be worthless. Hope I’m wrong.

 

[Neemer]

I see in the RVtravel newsletter this morning that black book prices on used RVs have declined for the first time in months.

Looking ahead, If MSRP on new units do not pull back, I suppose invoice to dealerships could, providing a greater apparent discount to end users.