Market Surcharge

IvoryHemi · 05-02-2021, 10:54 PM

Anyone else notice Forest River starting to pad the MSRP?

$705 “Market Surcharge”

WanderMore · 05-03-2021, 03:41 AM

It’s not really a ‘pad’. Since the pandemic the industry as a whole has experienced significant price increases from just about all their suppliers. And, those increases are constantly in flux.

After the pandemic hit nobody wanted to fly and/or stay in a hotel/motel but they still wanted to travel for vacation. An RV is a great alternative; take your “house” with you.

So now you’ve got 10s of thousands more RV customers than you planned for. Not only do manufacturers of the things that go into an RV (toilets, refrigerators, etc) get stretched to produce more but in many cases they have fewer people to make them due to the pandemic.

Now enter the laws of supply and demand. Scarce items cost more.

Will it get back to “normal”? We shall see.

wahoonc · 05-03-2021, 05:27 AM

Not to mention an awful lot of the stuff that goes into an RV is sourced from overseas, shipping costs are through the roof along with the wait times. I would hate to be in international logistics at this point in time. Not to mention the lack of available trucks/drivers here in the US.

If you pay any attention at all to the national/international news it is across the board on just about everything.

Aaron

GPs37FLH · 05-03-2021, 06:42 AM

Quote:

Originally Posted by wahoonc

Not to mention an awful lot of the stuff that goes into an RV is sourced from overseas, shipping costs are through the roof along with the wait times. I would hate to be in international logistics at this point in time. Not to mention the lack of available trucks/drivers here in the US.

If you pay any attention at all to the national/international news it is across the board on just about everything.

Aaron

And, add to that a shortage of shipping containers so products from China destined to the US and abroad are experiencing longer than expected delays. Also, add to that the super container ship that ran aground in the Suez canal for a couple weeks blocking shipping traffic that did have containers to deliver stacked on to those delays.

Unfortunately, all these problems trickle down to the consumer paying more for goods and services.

lbrjet · 05-03-2021, 08:37 AM

Just read an article yesterday that Warren Buffet said they are raising prices.

We are seeing substantial inflation," Buffett*said at the Berkshire Hathaway annual shareholder meeting broadcast exclusively by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."

Buffett called out much higher steel costs impacting Berkshire's housing and furniture business.

Forest River is owned by Berkshire Hathaway if you didn't know.

NMWildcat · 05-03-2021, 08:44 AM

Glad we bought a new car just when the pandemic hit. Looks like the new RV will be put off several years. We will just keep fixing our old stuff and motor on!!!
We have seen price increases in everything and don't expect them to stop anytime soon. So we are trying to get bigger ticket items that we really need before it gets worse.

Scrapper · 05-03-2021, 09:29 AM

Quote:

Originally Posted by GPs37FLH

And, add to that a shortage of shipping containers so products from China destined to the US and abroad are experiencing longer than expected delays. Also, add to that the super container ship that ran aground in the Suez canal for a couple weeks blocking shipping traffic that did have containers to deliver stacked on to those delays.

Unfortunately, all these problems trickle down to the consumer paying more for goods and services.

Also add all the container ship companies over loading the ships then loosing containers overboard in severe storms.

According to the SupplyChainBrain article "Shipping Containers Are Falling Overboard at a Rapid Rate" written just last month, more than 3000 boxes were lost in 2020 and more than 1000 have fallen overboard so far in 2021. They used to have a policy of try to go around storms, now it's be damned the consequences and barrel through.

Bhrava · 05-03-2021, 09:56 AM

When we sold our Coleman last June, my wife said, why don't we wait until next year. I then reminded her of the trailer we wanted last year and how none of them are available anywhere around. I then told her we may find one right now that we like and next year may not be available or if it is, will cost more.

We did find the 5th wheel, and we did get a good deal on it, 2020 Arctic Wolf 3660 for $40K. After taxes and a few add ons like a cover and Reese Sidewinder, taxes, it was $47K out the door. Today, a 2021, which last year was $1500 more then the 2020 with little more than an upgraded One Control, is now in the $50K's! There are also none near us.

I am SO glad we bought last year. Not only that, but interest rates are going up as well as loan term limits going down. Fewer people may qualify for loans at low rates.

Two days after we put a down payment on ours, the other one they had in stock also sold. They had no more come in the rest of the year and still don't have any.

HangDiver · 05-03-2021, 10:08 AM

......

Bhrava · 05-03-2021, 10:12 AM

^^ Aint THAT the truth^^

IvoryHemi · 05-09-2021, 04:27 PM

Apparently Forest River is increasing prices 7% starting 6/1

Wonder if that’s on top of the market surcharge or just straight MSRP

Bhrava · 05-09-2021, 05:37 PM

Wow, I am now super glad I bought last year. That would tack on another $4200 or more to the Arctic Wolf 3660.

On the flip side, it is also good for those who want to sell, they can get more for it. Value on both my trucks have gone up.

hobienick · 05-09-2021, 05:47 PM

You only get to keep the extra money if you do not replace the truck or RV.

Bhrava · 05-09-2021, 05:51 PM

True, but if it were to get totaled, at least I would be getting cash back instead of all of it going to the bank. IOW I am a year ahead in equity on both, though I always had some equity on the F350, I bought below market and put money down to stay positive. Heck even the RV has some positive now. I could easily sell it for more than I paid.

BUT you are right, if I were to sell either truck, I would have to replace it with something, which will cost more too. I don't plan to sell, but it is nice knowing for once tht at least one of them is no longer upside down.

Bogieboy · 05-10-2021, 07:48 AM

Quote:

Originally Posted by HangDiver

......

yep.... needed 2 2x4s to finish a porch railing, what used to be about $2 a piece cost me $18.50 out the door 3 weeks ago....

GPs37FLH · 05-10-2021, 08:11 AM

Quote:

Originally Posted by Bhrava

Wow, I am now super glad I bought last year. That would tack on another $4200 or more to the Arctic Wolf 3660.

On the flip side, it is also good for those who want to sell, they can get more for it. Value on both my trucks have gone up.

I'll bet anything the amount you'd pay for that today is even more than $4,200. Consider the selling prices today for a 3660 is going for not much less than the manufacturers retail price of about $65K. Your talking more than $4,500 for the same thing today that you'll buy after June 1st.

It's probably more like $8 to $9K more for a 2021 model of your RV. I cannot believe my 2020 Sabre floorplan is selling today on RV Trader for almost $10K more on a 2021. Not very much difference in the options and packages included to warrant that much of a price bump IMHO.

Bhrava · 05-10-2021, 08:33 AM

Quote:

Originally Posted by GPs37FLH

I'll bet anything the amount you'd pay for that today is even more than $4,200. Consider the selling prices today for a 3660 is going for not much less than the manufacturers retail price of about $65K. Your talking more than $4,500 for the same thing today that you'll buy after June 1st.

It's probably more like $8 to $9K more for a 2021 model of your RV. I cannot believe my 2020 Sabre floorplan is selling today on RV Trader for almost $10K more on a 2021. Not very much difference in the options and packages included to warrant that much of a price bump IMHO.

Oh you are 100% correct on that. I paid $40K for mine last year, and when looking at them now, the lowest price I found was $48K, all the rest were near or at MSRP. I would not be surprised if I listed at $45K right now it would sell within a week or two.

GPs37FLH · 05-10-2021, 08:37 AM

Quote:

Originally Posted by Bhrava

Oh you are 100% correct on that. I paid $40K for mine last year, and when looking at them now, the lowest price I found was $48K, all the rest were near or at MSRP. I would not be surprised if I listed at $45K right now it would sell within a week or two.

Disagree with you on that.....you'd sell your RV within hours, not weeks.

Bhrava · 05-10-2021, 09:35 AM

Quote:

Originally Posted by GPs37FLH

Disagree with you on that.....you'd sell your RV within hours, not weeks.

LOL Thats a disagreement I could agree with.

Brother Les · 05-10-2021, 10:05 AM

I can not find parts that I need to fix what has broken.... Stores say "Can not get that until... unknown... go online.... Online, says, not in stock and have no date to have in stock. I feel that I am in a holding pattern and that my money is no good..... 'Companies' for many years 'planned' their Businesses in the 'just in time' delivery theory and that Business Model has now collapsed.

The Beatings will continue until Moral Improves or until we all look like the man in the picture.....

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