01-2022 Newmar Pricing increase

[UMXHAULER]

If I under stand all this, that means my 2021 DS I picked up last April and ordered the October prior has gone up about 20% in pricing. Last time I checked out coach would spec out for about $560K and originally was about $493K. With this increase, it would now spec out for like $600K the way I read everything. That means a selling price of maybe around $90K higher given the same deal. Holy Smokes! I am not a full timer and we do not live in our coach but one positive way of looking at this, is if someone is selling their home and planning on moving into a new coach, home prices have gone up a similar amount in the past year. I wonder what this will do to insurance premiums-most likely go up as well.

[Angie Morell]

Originally Posted by jmcarter

Thanks for sharing Angie, I’m sure this is sobering news to everyone but know that Brett and the entire NIRVC team will respond appropriately. As the market invariably starts leveling and making the inevitable correction one would have to wonder about buying new. Really look forward to seeing Brett’s response. Wish NIRVC could be at Tampa but regardless this year’s show will be very interesting.

Brett and I will be at the Tampa show in the campground with the AIM CLUB. Free dinner and entertainment for all who want to join us on Wednesday the 19th at 6:30pm and Friday the 21st at 6:30pm under the AIM CLUB tent. Just bring your friends and chairs. We will also be doing presentations during the day on Proteng (fire suppression system), Rettroband, and Internet on the Go. We would love for you to join us for any or all of the activities!

[D20]

Originally Posted by redbaron73

That will go a long ways towards softening any deprecation your 2021 might have taken.

This is true. When I checked recently, my BS was going for 23% more than I paid for it. So I guess a bit more now with this latest price increase.

Oh, and as a side note, my 2 1/2 year old F150 is worth $8k more than I paid for it when I bought it new.

Crazy times.

[MRUSA14]

Originally Posted by jmcarter

...As the market invariably starts leveling and making the inevitable correction one would have to wonder about buying new....

If you think buying used will protect you from inflated prices, you are mistaken.

[LWBAZ]

Originally Posted by Angie Morell

Two things happened yesterday morning (1/3/22).

First, Newmar was the only remaining manufacturer price protecting a retail sold order from the date of acceptance of the order by Newmar all the way through to delivery. As of yesterday Newmar will no longer offer any price protection on any order. The invoice price will be set at the time of shipment.

Effective immediately, the base pricing of Newmar's 2022 model year product will increase:

Eight percent (8%) on Bay Star Sport, Bay Star, Canyon Star, Kountry Star, Ventana, Super Star, Dutch Star, New Aire and Supreme Aire.

Six percent (6%) on Mountain Aire, London Aire, Essex and King Aire.

These changes in base prices will impact all dealer stock orders for Newmar product invoiced and shipped after 1/3/22.

Secondly, I’ll now attempt to answer how Newmar is handling retail sold orders submitted, received, and accepted by Newmar prior to 1/3/22.

Any retail sold orders at Newmar, and already scheduled for production (run 30 and prior) will remain price protected until they are completed, invoiced, shipped and delivered to the retail customer on record.

Any retail sold orders at Newmar and not yet scheduled for production (runs 31 and beyond), will not incur the total impact of the price increase. These retail sold orders will, however, incur a chassis surcharge to cover the recent price increases announced by Newmar’s chassis suppliers. Chassis increases to Newmar are not being deferred to the next model year as has been the practice in the past.

The respective chassis surcharge amounts are as follows:

Bay Star Sport and Bay Star $1,000.00.

Canyon Star $7,500.00

Kountry Star, Mountain Aire, London Aire, Essex and King Aire $8,500.00

Ventana, Dutch Star and New Aire $11,000.00.

All retail sales will be audited for as long as necessary by Newmar. Any discrepancy between the retail customer name on the original order and owner registration filed by the dealer will result in a charge back to the dealer equal to the total amount of the price protection. For this reason, if you are purchasing your coach in an LLC, or some other name, it is imperative the name on your order corresponds exactly to the name you will be titling your coach in.

Because National Indoor RV Centers hasn’t changed its pricing policy during this pandemic, meaning we price our coaches at the same margin over the manufacturers invoice to us today, as we did before the pandemic, NIRVC has the vast majority of all Newmar retail sold orders, and thereby has the largest number of both scheduled, and unscheduled retail sold orders.

I wish I could share NIRVC’s position on all of this, but I know Brett too well, and I know he is mulling all of this over very thoughtfully. He doesn’t make knee jerk reactions to anything, and he would like to discuss it more with Newmar, and our management team before responding.

Great insights Angie - thanks very much for sharing this information!

[Jabber Jaw]

I wonder if any of the manufacturers realize that for every "price increase", that there is a segment of folks taken out of the marketplace?

If this keeps up, the "Motorhome" industry is in for some rough times!
The "bubble" is about to burst!

Just glad I got mine when I did, & that it is paid for!

Thankful I don't have to endure what some of these folks are having to endure, to get a new Motorhome!

[UMXHAULER]

What I was wondering is, if they(Newmar) will determine the final price at the time of coach completion, can the customer back out if they can't deal with the final number? Is this a binding sales contract no matter what the final price? I cannot imagine that and if that is the case, who gets stuck with the coach? The dealer may not want it because it could be an "odd" build that they think may be difficult to sell or may not even want to take the risk on. This policy is crazy IMO. What Newmar should do is order all the parts to build the coach at the time of coach exceptance and not wait months until the actual build starts. I do construction for government entities and we have not been able to raise prices. They tell us to buy all materials at the time the contract is being issued and bill them for it immediately. If they change the design down the road before we begin construction and it requires us to buy different materials or change our design, we can bill them for that-it's called a "change order." If it's a material that cannot be preordered(like concrete for instance), they will allow for prices to float based on evidence but this must be included in the contract. There is always risk in manufacturing and good companies will not try and pass all that risk onto their customers but instead find creative ways to manage risk. I think this policy along with recent price increases will cost them many sales.

[No Plan]

I received confirmation today my 2022 Ventana 3407 will not be affected by the price increases as it is schedule for Run 29. I do have to say I am extremely relieved... To be honest, I don't know if my order was affected how I would have dealt with this price increase. Undoubtedly I would have gone forward, but I know I would not be happy. I priced out my heavily optioned Ventana 3407 on the Newmar website today, and based on the current cost, the MSRP price now is slightly more than a 10% increase from the MSRP when I ordered.

It will be interesting to see if these price increases will have an impact on future sales. Additionally, there will no longer be any price protection in the future on ordered units. I'm glad I didn't procrastinate any longer than I already had and placed my order when I did in October. No doubt there are a number of prospective buyers who were sitting on the fence considering a potential order, and will now have to accept a new price on a unit they were considering ordering prior to these price increases.

Based on an optimistic projected build timeline, it looks like my Ventana 3407 will be completed sometime in March with a delivery in early April. I'm not in any rush, as once delivered, I will be having my dealer install some additional options.

[UMXHAULER]

Originally Posted by K0YJ

I received confirmation today my 2022 Ventana 3407 will not be affected by the price increases as it is schedule for Run 29. I do have to say I am extremely relieved... To be honest, I don't know if my order was affected how I would have dealt with this price increase. Undoubtedly I would have gone forward, but I know I would not be happy. I priced out my heavily optioned Ventana 3407 on the Newmar website today, and based on the current cost, the MSRP price now is slightly more than a 10% increase from the MSRP when I ordered.

It will be interesting to see if these price increases will have an impact on future sales. Additionally, there will no longer be any price protection in the future on ordered units. I'm glad I didn't procrastinate any longer than I already had and placed my order when I did in October. No doubt there are a number of prospective buyers who were sitting on the fence considering a potential order, and will now have to accept a new price on a unit they were considering ordering prior to these price increases.

Based on an optimistic projected build timeline, it looks like my Ventana 3407 will be completed sometime in March with a delivery in early April. I'm not in any rush, as once delivered, I will be having my dealer install some additional options.

I know I would not have gone through with my deal if I had to pony up another $75-90K. I think these increases will also cause people to have to buy down. That is, I was thinking about a Dutch Star but now I can only afford a Ventana for example. I am not blaming Newmar for having to raise prices-I get it. I just think it shows that the real rate of inflation is closer to 20% and not 7%-I did not sell my home to buy one of these things. If anyone wants a small piece of advice on how to save a few thousand on a Newmar, ditch the 360 camera option-total wast of money IMO-I'm sure we can get a thread going just on that alone.

[RVStitchy]

Originally Posted by UMXHAULER

If anyone wants a small piece of advice on how to save a few thousand on a Newmar, ditch the 360 camera option-total wast of money IMO-I'm sure we can get a thread going just on that alone.

Agree on 360 camera option. $3,600 and I have yet to find it useful. Images get distorted when transitioning between cameras so useless when parking. No additional information on the highway that I don't get from my mirrors. And in low light it is a complete blank. Wish I could hand that option back to Newmar and buy $3,600 of wine to offset my current whine.

[RonAz]

The only way it seems to me that this could work is the Freightliner is flooring the chassis for the manufacture. The manufacture then pays for the chassis at time of build, shipping to dealer, or something else. Freightliner does not have to hold on to production and can maintain a smooth production flow. The was Henry Ford's plan when he started independent dealerships.
If I was building a house and the supplier told me that I had to pay more for the unit of plywood that was delivered and bought and paid for last week, you can guess where I would tell him to go.
You can always move on and let someone else buy it. It is just a motorhome.
This puts the buyer in the place of putting a deposit down on a unit with a price to be negotiated later. Long term this will never work. Way to open to abuse.

[randystu]

Originally Posted by Clemson

What you posted isn’t exactly correct. If you have an order with Newmar and your name is attached to your unit in production you are not affected. This affect units not yet in the production cycle. Which are basically new contracts to purchase. As far as Spartan chassis is concerned I would be watching other business insight news which has painted a bleak picture of their future.

Not now. If you order now, no price lock with Newmar.

[randystu]

Originally Posted by tomato

Crazy how things continue to get crazier! Out of curiosity, I just built the same Ventana on Newmar’s website that we purchased back in July. Ours is a 2021 built in June, and the current 2022 MSRP is 19% higher than it was just seven months ago!

Go to Newmar's website and do a build. You will see the price of the coach before you pick your floor plan. It reflects the first 2022 price. Then pick your floor plan and it will change the price showing how much the price has increased since May/June 2021.

Do it quick because some day they will fix this.

[BOSTONBERNIE]

Here*s what really is sad about the whole price raise situation.In the real world prices fluctuate all the time,mostly always increase. Now this is usually due to different aspects of the world economy etc.....blah blah blah.What is going on here {not only in RV*s} is that they are raising the price Because They Can, and that my friend is just Not right.