How to hedge exchange rate?

[Greg A]

I don't think Bigfoot can sell direct as it would undercut the Dealer network with the exchange rate advantage etc. Probably in their contract with the dealers.
Kind of have a hunch with ETI moving to the fixed US pricing they seem to be set on, they are looking at possibly going to the Dealer network model.
If you remove the exchange rate factor, there would be a lot of advantages to both sides to do so.

[kdelaney]

Originally Posted by rbryan4

That's precisely the point. With one price, in CAD, it doesn't matter what country you purchase from. You may benefit from the exchange rate, and you may not, but it's fair across the board.

Apparently Escape would have continued this model but people from the US were clamoring for pricing in US currency. That’s there line and they are sticking to it.

[sclifrickson]

Originally Posted by kdelaney

Apparently Escape would have continued this model but people from the US were clamoring for pricing in US currency. That’s there line and they are sticking to it.

Who? What people? Is there anyone on this forum who will admit to being one of these clamorers? I’ll bet 10:1 that precisely zero people here claim to have done so.

[tgunter101]

Originally Posted by sclifrickson

Who? What people? Is there anyone on this forum who will admit to being one of these clamorers? I’ll bet 10:1 that precisely zero people here claim to have done so.

I did a search to see what I could find. I couldn’t find anything where people were requesting pricing in USD, but I did find threads where there was considerable confusion on the best way to pay from the US. So ETI probably dealt with the issue frequently.

Interestingly, if you read through the threads (see 1 link below), you’ll see that many people were content to send USD payments to ETI and allow ETI’s bank to convert. Those that dug into the conversation found that there were considerable fees being charged, even if they tried to convert with their own banks. Seems that some found TransferWise and XE as the best (lowest cost) solutions.

All of this leads me to believe that a number of people were oblivious to the exchange rate conversation and/or fees being charged and were happy with the value of ETI. Others saved additional $ by doing the research on the best way to pay.

Seems that an unintended consequence of ETI’s US pricing policy is that they brought all of this to the surface for all to see, but eliminated the ability to save $ by managing the payment process on your own.

https://www.escapeforum.org/forums/f...-us-12731.html

[Greg A]

It wouldn’t have been my decision to make this pricing model change at this historical time, but isn’t my company so they’ll do what they think will work for for them. They have a lot of experience at the helm and are closer to more information to make those kind of decisions, but the feedback so far isn’t good from the existing customer base.
Inventory units if accurate are now showing over 23 and ETI has never had inventory sitting, maybe that is a factor in the decision or indicates they’re moving in a different direction. Perhaps a test entry into a US Dealer? The auto manufacturers are facing inventory piling up on a much grander scale so if you are needing a new vehicle hang on because they typically fire sale it at some point when this happens.

[cpaharley2008]

I remember in 2009 government bailout picking up a new Ram 1500 with a "lifetime" warranty. Too bad I traded it in 5 years later for my 2014 Ram, Hmmm, maybe time for a new truck as they will give you top dollar for your trade in just to make the sale.

[M & M]

Can anybody help me understand the last sentence in this ETI announcement?

Pricing for 2020
The base pricing we display on the website and in brochures moving forward will be in US funds. Canadian prices will be displayed as well, and for Canadian customers your build sheets will still be in Canadian funds. The reason why we are switching is to improve our pricing competitiveness in the US market. More than 70% of our business is US based.
Customers can pay in either USD or CAD.
Is from 10/05/2019 "Escape 2020 Update"
https://www.escapeforum.org/forums/f...ate-16424.html
Mario

[cpaharley2008]

I believe the new management felt that the older pricing, in Canadian dollars was sending the wrong signal to maybe 75% of their customers, since Canadian price have traditionally been higher. So to appear more competitive to other US manufacturers, they list their prices in US dollars. If you are Canadian you can pay in your own currency and US customers can pay in US currency.

[M & M]

Sorry Jim, according to Karl, US customers MUST pay in US currency, even those "currently in process".
I'm one of them, and no very happy about it.

[Oldtimer]

I don’t care for the new pricing guidelines but would I buy another Escape, you bet. Just remember the quality and flexibility of options AND their willingness to do personal modifications so one get the Escape they will be proud of. But the new pricing does stink to put it nicely

[Jim Bennett]

Originally Posted by M & M

Sorry Jim, according to Karl, US customers MUST pay in US currency, even those "currently in process".
I'm one of them, and no very happy about it.

Was it raised in USD after you signed a contract?

[Jim Bennett]

Originally Posted by cpaharley2008

Hmmm, maybe time for a new truck as they will give you top dollar for your trade in just to make the sale.

I hear this from the dealers all the time, yet after receiving a price with what they will pay, go out and sell it myself for a much higher price. This is especially true if you first make a new vehicle deal, then ask about the trade in. If you set a better price beforehand you cannot then negotiate a good of a sale price. Just check out how much more they sell them for compared to what they paid.

[Ronn]

When we bought our trailer we took the exchange rate risk, not ETI. We sent our money into ETI at various times prior to completion and each of the payments in US$ was adjusted according to the then exchange rate (plus charges and any slippage).

If we had paid the total amount at the beginning and the rate dropped substantially as it has now should I have considered it "unfair" due to the fact that ETI made extra on me. Had it gone the other way would I have been smiling all the way to the bank? ETI took that risk and didn't ask anyone for more money due to the exchange rate at the time of delivery.

I think what most of us did was live with our payment timing decisions and were happy when the exchange rate was in our favor but if it were unfavorable we would have said "should of could of would of". I doubt many buyers forfeited their deposit due to the fact the exchange rate moved against them.

Seems we are wanting to "have our cake and eat it too".

[sclifrickson]

Escape Trailer Industry currently refuses to sell US customers the same trailer for the same price that they will sell it to anyone else. If a customer makes or loses money by exchanging currencies has no bearing on this equation. If Escape were to offer their product to ALL customers for the same $CAN, then they would not be guilty of discriminating against one specific subset. This objection has nothing to do with the vagaries of the currency exchange game. Escape is treating people differently based on citizenship. This is discrimination.

[Ronn]

Originally Posted by sclifrickson

Escape Trailer Industry currently refuses to sell US customers the same trailer for the same price that they will sell it to anyone else. If a customer makes or loses money by exchanging currencies has no bearing on this equation. If Escape were to offer their product to ALL customers for the same $CAN, then they would not be guilty of discriminating against one specific subset. This objection has nothing to do with the vagaries of the currency exchange game. Escape is treating people differently based on citizenship. This is discrimination.

To be short on this, I think ETI is selling a product made in Canada and delivered in the US to US customers at US pricing.

That said, I would tend to agree if the US buyer were to take delivery in Canada. I don't know the implications of that. Maybe someone can chime in who has bought a new vehicle in Canada and registered it in the states.

[azjack]

All I know is that one time I bought a very nice leather jacket in Canada and was charged an additional tax of some sort that I could do the paper work to get a refund. I didn't do the paper work but I did enjoy that jacket for years and I believe I passed it on. For nearly 10 years time I bought three Escape trailers and I can't tell you now what the exchange rate was each time but I have certainly enjoyed the trailers at whatever the price ended up being.
Azjack

[Ronn]

Originally Posted by azjack

All I know is that one time I bought a very nice leather jacket in Canada and was charged an additional tax of some sort that I could do the paper work to get a refund. I didn't do the paper work but I did enjoy that jacket for years and I believe I passed it on. For nearly 10 years time I bought three Escape trailers and I can't tell you now what the exchange rate was each time but I have certainly enjoyed the trailers at whatever the price ended up being.
Azjack

[cpaharley2008]

Originally Posted by azjack

All I know is that one time I bought a very nice leather jacket in Canada and was charged an additional tax of some sort that I could do the paper work to get a refund. I didn't do the paper work but I did enjoy that jacket for years and I believe I passed it on. For nearly 10 years time I bought three Escape trailers and I can't tell you now what the exchange rate was each time but I have certainly enjoyed the trailers at whatever the price ended up being.
Azjack

Make that 4 Escapes ...........

[M & M]

Originally Posted by Jim Bennett

Was it raised in USD after you signed a contract?

Jim, when I paid the USD 2,000 deposit, I received an email from ETI titled "Thank You For Order" in it there was a lot of information, under Payments stated:

Escape Trailer Industries has the ability to process payments in both Canadian and US Dollars. All payments received in US funds are processed and added to the buildsheet in Canadian Funds. Escape Trailer Industries cannot guarantee or promise an exchange rate. The exchange rate used to convert US to Canadian funds is calculated on the day the money is received. (The best option to guarantee an exchange rate is to have your bank process the payment in Canadian Funds prior to sending).

This email was sent December 2, 2019.

Mario

[rbryan4]

Originally Posted by M & M

Jim, when I paid the USD 2,000 deposit, I received an email from ETI titled "Thank You For Order" in it there was a lot of information, under Payments stated:



Escape Trailer Industries has the ability to process payments in both Canadian and US Dollars. All payments received in US funds are processed and added to the buildsheet in Canadian Funds. Escape Trailer Industries cannot guarantee or promise an exchange rate. The exchange rate used to convert US to Canadian funds is calculated on the day the money is received. (The best option to guarantee an exchange rate is to have your bank process the payment in Canadian Funds prior to sending).



This email was sent December 2, 2019.



Mario

I would take that to mean the terms were agreed to, but later changed by one party without the other's consent. But then again, I'm no lawyer.