Price increases in FR motorhomes

[Iggy]

Message from GM Brian Clemens Forest River Motorized Division you need to read.

https://www.forestriverforums.com/fo...FrMEtcAvib_b6A

[NXR]

Woo hoo! That means anyone selling or trading in should immediately ask for 2% more!

Ray

[D W]

2% is chump change on a couple hundred dollars, but on thousands of dollars it it adds up to a significant cost increase. Just sayin'.

[Cabinfever97]

This was posted on the site early this week. With the material cost skyrocketing I am surprised it is only 2%.

[BehindBars]

Originally Posted by Cabinfever97

This was posted on the site early this week. With the material cost skyrocketing I am surprised it is only 2%.

The 2% might be to test the waters. If sales remain strong, maybe the next announcement could be 5%, or 8%.

[TitanMike]

Originally Posted by D W

2% is chump change on a couple hundred dollars, but on thousands of dollars it it adds up to a significant cost increase. Just sayin'.

2% on a $300k MH is the price of a nice towable with $$$ left over.

This begs the question, how much will towables be "surcharged"?

[wmtire]

Originally Posted by TitanMike

2% on a $300k MH is the price of a nice towable with $$$ left over.

This begs the question, how much will towables be "surcharged"?

300,000 X .02 = 6000. Are you maybe referring to used towables?

[Cabinfever97]

Originally Posted by BehindBars

The 2% might be to test the waters. If sales remain strong, maybe the next announcement could be 5%, or 8%.

Might be since material cost have risen a lot more than 2%.

[Sunseeker16]

Let's hope for a 2% quality increase. Just dreaming.

[TitanMike]

Originally Posted by wmtire

300,000 X .02 = 6000. Are you maybe referring to used towables?

Yes.

Even a downpayment on a nice new unit.

[NXR]

Originally Posted by D W

2% is chump change on a couple hundred dollars, but on thousands of dollars it it adds up to a significant cost increase. Just sayin'.

Yup and Brian did not say if it's 2% on MSRP or on the dealer pricing.

If it's 2% on the dealer pricing we can expect the dealer to mark up their price to the customer by 2% as well so it would be more than 2% to the customer.

Here is the pricing on the 2021 version of mine from RV Universe:

2021 FOREST RIVER GEORGETOWN GT5 34H5
MSRP: $195,118
Price: USD $156,094

2% of $195,118 is $3,900 (MSRP)

2% of $156,094 is $3,121 (the sale price)

2% of $100,000 is $2,000 (estimated dealer cost)

A 2% increase to the dealer cost is a 3% increase in the sale price.

Details are important...

Ray

[thebigkat]

Demand is high
Cost of raw materials via supply chain is up
I was expecting they would try 5%

Newmar jacked up the King Aire $300k
https://youtu.be/pllBmXAmCqE

[NXR]

A 2% increase to the dealer cost is a 3% increase in the sale.

I wrote that poorly. It's still a 2% increase but the dealer sees a $2,000 cost increase while the customer sees a $3,000 cost increase, roughly.

Ray

[NXR]

Originally Posted by thebigkat

Demand is high
Cost of raw materials via supply chain is up
I was expecting they would try 5%

True but if a fridge goes up 30% that is an infinitesimal price increase on the finished product. There's a lot of other costs, such as labor, insurances, and facilities that are not controlled by a supplier.

Ray

[TitanMike]

Let's not overlook the cost of delays due to suppliers not delivering finish items on time(A/C's etc).

Factories have to sit on incomplete units for often long times. Interest on the money sunk into them as well as reduced cash flow has an effect on costs and further drives price increases.