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Old 02-24-2014, 12:57 PM   #1
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Can anyone provide an answer to "why" pricing is the way it is?

For new coaches, everything has an inflated list but most places sell for 30% off MSRP.

Then I go to look at something new and I get this...100K suggested but 50K average??

I don't get it at all. I can understand 20% but almost 50% ???
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Old 02-24-2014, 01:05 PM   #2
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Hi ie2special,
Everything comes down to profit. There are enough buyers who have never purchased a RV. Don't know the forums exist and guidance is available. These folks will look at an RV purchase like buying any automotive product. The deal of the day or 10-15% off MSRP is a good deal, for a car. They will leave in their new RV happy to start their new life.
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Old 02-24-2014, 01:28 PM   #3
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The NADA example you've shown, is not a list price on a new vehicle...with 24.5K miles.

In my NADA Appraisal Guide "Heading Explanation":

SUGGESTED LIST - The value listed reflects the approximate price of the unit when it is brand new.

USED WHOLESALE - TRADE IN (Low Book) Reflects the average wholesale value 'ready for resale'.

USED RETAIL (High Book) Reflect the retail value of a used unit 'ready for resale'.

The 'Online' version is set up a little differently, which is (I think) what your example shows.
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Old 02-24-2014, 02:53 PM   #4
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Quote:
Originally Posted by scenic route View Post
The NADA example you've shown, is not a list price on a new vehicle...with 24.5K miles.

In my NADA Appraisal Guide "Heading Explanation":

SUGGESTED LIST - The value listed reflects the approximate price of the unit when it is brand new.

USED WHOLESALE - TRADE IN (Low Book) Reflects the average wholesale value 'ready for resale'.

USED RETAIL (High Book) Reflect the retail value of a used unit 'ready for resale'.

The 'Online' version is set up a little differently, which is (I think) what your example shows.

It is, thank you. That makes sense too. I just never understand why all this has to be so difficult
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Old 02-24-2014, 04:08 PM   #5
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discount

No different than negotiating car sale only much greater markup.
Guess there are those that don't and that is where dealers make a killing.
And there are people that are afraid to negociate as I know of them
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Old 02-24-2014, 04:20 PM   #6
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Besides everything that's been said, the American buyer, on average, whether it's an R/V or a pair of pants, will more readily buy when the MSRP is $150,000 and he gets a 33% discount and he pays $100,000 than if it were priced at $90,000 and he wouldn't get a discount. Even for exactly the same thing. I get ads all the time from retailers and restaurants offering 20% or 25%, and even 50% discounts. I think that studies have been made saying what I claim.
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Old 02-24-2014, 04:25 PM   #7
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It's really quite simple. Put a price on it that you think your sales guy's can justify. RV manufacturers and dealers are in business to make money by selling overpriced and under quality RV's to people who will pay for it. "Caveat Emptor" which is basically Buyer Beware.
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Old 02-25-2014, 07:25 AM   #8
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Business in general and Sales in particular is the "art" of extracting money from the difference between Cost and Value.

IMHO
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Old 02-25-2014, 07:45 AM   #9
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Quote:
Originally Posted by GaryKD View Post
Hi ie2special,
Everything comes down to profit. There are enough buyers who have never purchased a RV. Don't know the forums exist and guidance is available. These folks will look at an RV purchase like buying any automotive product. The deal of the day or 10-15% off MSRP is a good deal, for a car. They will leave in their new RV happy to start their new life.
I have 3 friends who recently bought new motorhomes. None and I mean none of them would listen about researching on the internet or forums about issues and quality and pricing. One absolutely paid 10k too much without even flinching. The other paid 20k over the going rate. Now come the questions about how things work on their coach
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Old 02-25-2014, 11:57 AM   #10
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Originally Posted by ie2special View Post
For new coaches, everything has an inflated list but most places sell for 30% off MSRP.

Then I go to look at something new and I get this...100K suggested but 50K average??

I don't get it at all. I can understand 20% but almost 50% ???
Guess I'm old school but what really is the kicker to me is you can take another 20 to 25% off the low retail and you might be allowed that in on trade of your unit! Most dealers that I have tried to deal with lately think you should give them your unit for wholesale price and give them average retail for theirs! And same with autos!! And I won't even go there about the paperwork and prep fees they all try and tack onto their costs!! Done ranting now!! And of course this is JMHO!! Happy Camping to All!!
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Old 02-25-2014, 12:48 PM   #11
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Quote:
Originally Posted by ie2special View Post
For new coaches, everything has an inflated list but most places sell for 30% off MSRP.

Then I go to look at something new and I get this...100K suggested but 50K average??

I don't get it at all. I can understand 20% but almost 50% ???
If you jack up the MSRP a $100K and then take off $50K, it just has to be a good deal for many....
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Old 02-26-2014, 02:07 PM   #12
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Ok, is there a amount that I should use when I am doing calculations here at home? We will have financing pre-arranged and have no trade in. Is 33% off too high on something new?

We are running the numbers on a coach less than 150K used that we will NOT full time in. We will re-evaluate full time living when the teenager moves out in 5-6 years.
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Old 02-26-2014, 02:28 PM   #13
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Another stunning financial issue is that many states price annual license plates on the MSRP, meaning you pay based on that amount, rather than on what you paid for it.

We paid over 30 percent less for our new coach than the MSRP.
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Old 02-26-2014, 02:39 PM   #14
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Discounts on the price of new coaches depend on many factors, including demand for the unit, distance from the manufacturer, local, regional or statewide competition and estimated resale value.

If you're looking for a high-demand, low manufacture volume unit, you will pay more than someone looking at a low-demand, high volume manufacture unit. Simple supply and demand.

That said, never pay full price! MSRP is a SUGGESTED price, not what I will pay. Ever.
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