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Old 01-03-2022, 07:18 PM   #1
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01-2022 Newmar Pricing increase

Today freightliner raised chassis price on all unsold by $11k. Those chassis not yet built have to pay the increase. All dealers got the letter.


Newmar is passing cost to dealer regardless of sale date, since freightliner is doing it. Prior, newmar price protected the house components, but did not consider the chassis protected from increase.


I don't know if this affects chassis in the construction stage (ie: chassis prep), but I assume it doesn't since those are sold to Newmar before newmar does the welding.


How this affects each person depends on the dealer and the deal.
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Old 01-03-2022, 09:16 PM   #2
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Let's hope this isn't going to also effect Spartan. Good thing redbaron73 is getting a LA on a Spartan chassis.
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Old 01-03-2022, 10:22 PM   #3
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The way things are going, if Spartan doesn't raise prices, they may not be in business. There is no way that spartan can afford to eat cost increases, nor can they buy components as cheaply as freightliner can.

Most likely the only reason spartan didn't announce a price increase is because they've already sold their chassis to Newmar.
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Old 01-04-2022, 06:34 AM   #4
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Quote:
Originally Posted by redbaron73 View Post
Today freightliner raised chassis price on all unsold by $11k. Those chassis not yet built have to pay the increase. All dealers got the letter.


Newmar is passing cost to dealer regardless of sale date, since freightliner is doing it. Prior, newmar price protected the house components, but did not consider the chassis protected from increase.


I don't know if this affects chassis in the construction stage (ie: chassis prep), but I assume it doesn't since those are sold to Newmar before newmar does the welding.


How this affects each person depends on the dealer and the deal.
What you posted isnít 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.
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Old 01-04-2022, 07:19 AM   #5
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Quote:
Originally Posted by Clemson View Post
What you posted isnít 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.
Sadly you are wrong. Many owners received calls yesterday who had orders placed and names attached, and where informed that the would be charged the $11k.

This was for dutchstar specifically.

Your statement has contradictory information. Units in production cycle means chassis prep and beyond. I specifically called out that as most likely not being affected

Names attached to a slot or run but not yet in production are the ones being charged.
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Old 01-04-2022, 08:17 AM   #6
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I just had a conversation with another dealer, who is very informed. The particular case I posted about mentioned only Freightliner Chassis.

That is not accurate. All production is affected by this look back price increase, including those built on Spartan and Ford. The specific dollar amount does vary by model, but all models are affected.

And to emphasize "For the First time EVER the increase does affect retail sold orders." However, according to my source, retail sold orders will receive a smaller increase than the dealer's non-sold stock orders.


The details of the increases are a bit complicated and most dealers are still trying to sort through their options. My source stated:
Quote:
"I absolutely dread the thought of calling my customers and telling them that their price just went up on their ordered coach. I will do everything I can to avoid that."

It is best that you allow your dealer time to process the information, and have internal discussions on how each deal will be affected. Wait for your dealer to contact you.

There is a shock-wave going thru the industry right now, and some policies are being made in a vacuum. This may be one of them. As a final statement, my dealer source had this to add:

Quote:
Iím sure not all dealers will handle this the same way and some of us are still hoping Newmar will re-consider including retail sold coaches in this latest increase.
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Old 01-04-2022, 12:05 PM   #7
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I find this a little confusing. How can a company raise prices on a chassis that has already been delivered? Is the chassis considered unsold until the unit is used? I worked in manufacturing and once we received a product the selling company couldn't raise the price. I believe Federal laws prohibit that. As far as Spartan chassis are concerned, I wouldn't put a whole lot of stock in what business insight news (speculators) say. Business insight news sources really don't have a great track record for accuracy.
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Old 01-04-2022, 01:42 PM   #8
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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, Iíll 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 Newmarís 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 hasnít 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 NIRVCís position on all of this, but I know Brett too well, and I know he is mulling all of this over very thoughtfully. He doesnít make knee jerk reactions to anything, and he would like to discuss it more with Newmar, and our management team before responding.
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Old 01-04-2022, 01:59 PM   #9
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Quote:
Originally Posted by Angie Morell View Post
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, Iíll 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 Newmarís 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 hasnít 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 NIRVCís position on all of this, but I know Brett too well, and I know he is mulling all of this over very thoughtfully. He doesnít make knee jerk reactions to anything, and he would like to discuss it more with Newmar, and our management team before responding.
Just like your videos, thorough and clear. Thanks
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Old 01-04-2022, 02:14 PM   #10
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Thank you, Angie. I know that this will weigh heavy on Brett and the NIRVC team.

All the best,
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Old 01-04-2022, 03:48 PM   #11
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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.
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Old 01-04-2022, 04:10 PM   #12
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Thanks for the update, Angie. This does help us folks that have a coach on order better understand where we may stand. I am in run #26 on my order from your Atlanta location.

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Old 01-04-2022, 05:58 PM   #13
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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!
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Old 01-04-2022, 06:17 PM   #14
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Crazy how things continue to get crazier! Out of curiosity, I just built the same Ventana on Newmarís 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!

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


My 2022 was purchased before the July increase. There has already been several increases in the current model year. This will definitely reduce the depreciation hit when I go to sell it in 2-4 years.
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