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.