Yet another price increase

[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.

 

[No Plan]

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

I don't share in this opinion unfortunately... The RV industry isn't like retail consumer goods that you purchase daily/weekly. The fluctuation of prices for meat, poultry, etc. are affected by availability based on our current supply chain issues and our current inflation. If and when fuel prices lower, and consumer products can get to the retail outlets at a lower cost, prices will decrease. This happens on a somewhat regular basis.

The RV industry is affected in a similar way because of cost of materials and supply chain issues, etc. But once a price is established in the current RV market by any manufacturer, in my opinion, I don't believe a lowering of the MSRP will happen. Consider a customer who purchases an RV at today's prices and next year the manufacturer lowers the MSRP by say 10%, there will be a tremendous number of really upset buyers... I know I would be. Again, in my opinion, the prices that have been adjusted currently by RV manufacturers, not only by Newmar, are unfortunately here to stay and undoubtedly there will be more price increases as things move forward.

 

[Lab00Rat]

When someone does the double take and realizes that Newmar is charging 8% because of inflation, and passing the "cost" of inflation to the customer because there is no price protection, the buying is going to stop. Inflation adjusted price and inflation adjusted cost does not work together to retain customers.

 

[Rich W.]

p

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

Not sure why you would want to upgrade. That Ventana has everything you need. I used to have IFS, more HP/TQ, and side radiator envy, But after 30k in my Ventana Ive come to realize that it really does just fine, has everything I need, and is a very fine coach. It is a high option version with Oasis, nicer woodwork, full tile, washer dryer, EMS and AGS upgrades, etc, but its still a basic FL chassis. I added Active Air which helped handling considerably and added air leveling, It was $10k but money well spent and a lot cheaper than moving to a DS or MA.

I also added a remote control roof mounted spotlight, and upgraded the stove, added 1575w of solar, and will soon upgrade the inverter and battery bank. So Im finding myself very satisfied, using the coach rather than focusing on moving up, and getting plenty of enjoyment out if it. And once you settle down and decide “this coach is it“, its a lot easier to justify spending some $$ on those nifty upgrades that even the higher end coaches dont have, and make it more functional and enjoyable..

 

[Jabber Jaw]

p

Not sure why you would want to upgrade. That Ventana has everything you need. I used to have IFS, more HP/TQ, and side radiator envy, But after 30k in my Ventana Ive come to realize that it really does just fine, has everything I need, and is a very fine coach. It is a high option version with Oasis, nicer woodwork, full tile, washer dryer, EMS and AGS upgrades, etc, but its still a basic FL chassis. I added Active Air which helped handling considerably and added air leveling, It was $10k but money well spent and a lot cheaper than moving to a DS or MA.

I also added a remote control roof mounted spotlight, and upgraded the stove, added 1575w of solar, and will soon upgrade the inverter and battery bank. So Im finding myself very satisfied, using the coach rather than focusing on moving up, and getting plenty of enjoyment out if it. And once you settle down and decide “this coach is it“, its a lot easier to justify spending some $$ on those nifty upgrades that even the higher end coaches dont have, and make it more functional and enjoyable..

As you stated," I'm very satisfied"! And for that very reason, is why I spent the money upgrading the suspension on my Canyon Star to "Liquid Spring" suspension, front and rear! This was a fantastic investment, & now I have a coach that rides/handles as good as any "solid front axle" DP! My biased opinion!
It still may be a bit noisy for some, but with the other "mods", it really doesn't bother me!
My opinion, I have the finest "gas" coach available, & am still about $50K ahead!
In the end, it's all about what makes you happy! And I'm VERY HAPPY!
__________________

 

[redbaron]

Honesty and Integrity used to matter. For now, it is still on the Guiding principles and Heritage page of Newmar:


We are committed to conducting all activities and interactions with our customers, employees, suppliers, and dealer partners according to the following principles:


Courtesy | Fairness | Honesty | Integrity | Morality | Reasonableness | Reliability


What they have done is reversed their guiding principles in their relationship with the dealer and the customer. By going back on price protection for Retail Sold, Newmar has in fact become dishonest, unfair, unreasonable, unreliable, immoral, and plain rude. This is a 180 shift from their principles that appear to have ended 12/31/2021


Source: https://www.newmarcorp.com/why...ewmar/company-history/mission/

 

[sheridany]

It’s really a shame to see a company that sold itself and lost their way and their standards in the process of integrating into a larger holding company. Does anyone know if Grand Design or the Winnebago brand is doing the same thing? That could be telling if they aren’t.

 

[redbaron]

From what I have read, only Forest River has honored price protection for sold orders.

 

[redbaron]

Brett Davis has a new V-log:

 

[MapNerd]

Wow

 

[redbaron]

Yes, I just finished watching. Brett can sure sell....made me want to thank Newmar for increasing the price!

For those whom purchased from NIRVC before 1/3/2022, you have price protection from Brett Davis.

I wonder how many other dealers will step up and do the same.