Mfg to Dealer price increases - question

[CPJeff]

Hoping to get some history on how the industry works.
Background: Ordered a new TT from a dealer back in late October. Made a partial down payment to lock in the order. Trailer has arrived to dealership, but now dealer is telling me that Forest River did price increases across-the-board and now my trailer is $1000 more than when I order it. However, they are graciously absorbing $500 of that increase.
My questions are:

1. Does this happen often when you order a trailer for a future delivery?
2. Is this dealer just trying to get an extra $500 out of me?
3. Does this sound shady to anyone else or is it just my cynical nature?
4. Opinion: Should I go through with this deal or not?

Thanks everyone for their input.

[BehindBars]

Originally Posted by CPJeff

Hoping to get some history on how the industry works.
Background: Ordered a new TT from a dealer back in late October. Made a partial down payment to lock in the order. Trailer has arrived to dealership, but now dealer is telling me that Forest River did price increases across-the-board and now my trailer is $1000 more than when I order it. However, they are graciously absorbing $500 of that increase.
My questions are:

1. Does this happen often when you order a trailer for a future delivery?
2. Is this dealer just trying to get an extra $500 out of me?
3. Does this sound shady to anyone else or is it just my cynical nature?
4. Opinion: Should I go through with this deal or not?

Thanks everyone for their input.

Imagine if there was a dealer’s price decrease, or a new internal rebate incentive, or some kind of increase in holdback paid to the dealer. Do you think the dealer would pass that savings on to you, or that you would even be told about it?

When I placed a motorhome order, the selling price was already agreed upon. Did that not happen in your case?

[SmackIt]

Take a close look at the appliances and features you were expecting. There's a good chance some things may have been upgraded and an equally good chance some things were downgraded.

[D W]

Sounds like the typical "Bait & Switch". Did you negotiate an out-the-door price? If not, then the dealer got you. By absorbing $500, the dealer is playing you.

[bclemens]

I will say, in years past, this would be "bait & switch". This year? Not so much.

Normally, we (the OEM) would "eat" the increase. Due to Covid supply shortage and SUPER high demand we are getting increases at a rapid pace. Far faster than I can absorb. Traditionally we would price protect retail orders and make it up on the stock units, but the ratio of retail orders are so high, it has taken that option away as well.

Our suppliers are also not able to eat the increase like normal, due to demand. I will give you an example. I just spoke with a supplier of manufactured parts, mainly steel and aluminum. They will get a call from their coil supplier who says "Hey, we just loaded up your steel coils, but the raw material was higher, so here is the new price" Our vendor says "wait a minute, we already had a quote, you need honor that price" "that is the new price, our costs are rising faster than we can adjust, so if you don't want to pay the new price, let me know I have about 10 other companies that would gladly take these coils" "fine, ship it".

Should they eat the other $500..that is your call. Are they lying? A good chance they are not (this time). Dealers are begging for inventory right now and they likely have about (10) other buyers lined up if that deal falls through. $500 is only the begining.
On the motorized side, we have take 4 price increases since October. 1-1.5% each time. I've never seen it like this and we still have shortages because they literally ran out of cargo containers for ships.

Edit:
One other note. As I said, we normally try to protect retail pricing but what happens is dealers catch on and end up putting fake retail names on orders. So the solution has been to take the increase we "need" and not the one we "want" hoping material will fall back to reality and then apply that across the board (retail name or not) to prevent the games. So we have been eating half and have asked the dealers to partner up as well.

[azwiz]

Tell them to stick it where the sun don't shine!!!!

[Reverse_snowbird]

Originally Posted by CPJeff

1. Does this happen often when you order a trailer for a future delivery?
2. Is this dealer just trying to get an extra $500 out of me?
3. Does this sound shady to anyone else or is it just my cynical nature?
4. Opinion: Should I go through with this deal or not?

* No. This doesn't happen often.
* From what bclemens says, it sounds like they are trying to save a sale even though their costs went up.
* In normal times, it would be shady, but these are not normal times.
* Whether you go through with the sale or not is your decision.
However, if you wait and reorder, the price may be even higher and you'll have to postpone your camping. They have partially completed rigs in inventory waiting on things like appliances, air conditioners, etc. that are probably going to cost the manufacturer more due to more demand than supply.

[Cabinfever97]

Material cost have been skyrocketing. I have seen 20% increase in new home building cost over a year ago. I have also read prices will continue to rise, a 30% increase in construction materials are likely in 2021. Many of.the same raw materials used building RVs.

[TitanMike]

Originally Posted by azwiz

Tell them to stick it where the sun don't shine!!!!

Surprisingly, that would probably make the Dealer VERY happy. He would now have a unit he could re-price and sell at a greater profit.

In reading the earlier posts it seems like the Dealer is trying to work with the customer and is sharing the price increase. Something he certainly doesn't have to do.


A lesson learned here. READ the sales contract and make sure it states your actual cost at time of delivery.