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Old 01-29-2016, 08:57 PM   #61
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Makes you wonder if ETI knows how many people are waiting to get on the wait list!

Maybe if we made a poll of the number of people watching the website for (pick your choice of Escape), it would give them incentive to get the expansion finished earlier.
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Old 01-29-2016, 08:58 PM   #62
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I must be in the small minority to think that is a reasonable exchange rate hit.
... or in the mostly silent majority of those who looked at the numbers objectively.

Since the increase in list price is less than the decrease in cost to US buyers due to the change in currency exchange, an Escape is still cheaper than it was a few years ago - obviously, no improvement in specs (such as standard equipment) is needed.

Since the increase in price corresponds at least reasonably to the increase in cost to the manufacturer, no substantial increase in the value of included components (such as more standard equipment) is economically possible. It's nice to hear that some new standard features will be included anyway.
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Old 01-29-2016, 09:40 PM   #63
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Originally Posted by tdf-texas View Post
Makes you wonder if ETI knows how many people are waiting to get on the wait list!

Maybe if we made a poll of the number of people watching the website for (pick your choice of Escape), it would give them incentive to get the expansion finished earlier.
I'm sure they have a good idea. When we were at the factory in Sept two guys would have purchased right then and there if they had one they could get right then. They might have put down a deposit later on after thinking about it.

I'm sure they also keep track of the folks that email or call them about availability. You would want to have a very good handle on your potential customers when you're planning an expansion, as well as forking out tons of money for new molds (which are needed for a new look on the trailers), plus tons of money for the new building. Didn't someone quote $40,000-50,000 for a new mold or something like that? Not cheap, put it that way.

And I'm sure they're hustling along with that as fast as they can. When we were there almost 2 weeks ago the current tenants needed to move out and then they needed to swoop in to start cleaning (I will not volunteer for that chore - HA!). Plus get the permits lined up. And everything else involved.

I'm sure they're chopping at the bit as much as lots of other folks are in waiting for their order books to open up.
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Old 01-29-2016, 10:58 PM   #64
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Originally Posted by tdf-texas View Post
Makes you wonder if ETI knows how many people are waiting to get on the wait list!

Maybe if we made a poll of the number of people watching the website for (pick your choice of Escape), it would give them incentive to get the expansion finished earlier.
Regarding the speed of expansion and production, we have an old saying in construction. Good, fast, or cheap, pick any two.
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Old 01-29-2016, 11:02 PM   #65
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Originally Posted by Brian B-P View Post
... or in the mostly silent majority of those who looked at the numbers objectively.

Since the increase in list price is less than the decrease in cost to US buyers due to the change in currency exchange, an Escape is still cheaper than it was a few years ago - obviously, no improvement in specs (such as standard equipment) is needed.

Since the increase in price corresponds at least reasonably to the increase in cost to the manufacturer, no substantial increase in the value of included components (such as more standard equipment) is economically possible. It's nice to hear that some new standard features will be included anyway.
Well said I've been watching the numbers for quite a while thinking what it would be like from the manufacturer's side, with so many of the materials being imported from the U.S. Seems really reasonable both given those conditions and the way it's being implemented.

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Old 01-30-2016, 01:55 AM   #66
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Well said I've been watching the numbers for quite a while thinking what it would be like from the manufacturer's side, with so many of the materials being imported from the U.S. Seems really reasonable both given those conditions and the way it's being implemented.

Ron
When I got wind of the "beat rate" to get the trailers through the production line it was sort of a sad recognition that to grow a company one has to set some baseline rules to project a funding budget. Need to constrain the options costs until you can figure out how to make your product at a profit.
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Old 01-30-2016, 03:53 AM   #67
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I really found it interesting reading all of the posts on the price increases announced by ETI. One must recognize that Canada’s economy is driven by commodities. When oil prices along with minerals, etc. tanked the $CAN followed suit. The bad news for Canadians importing goods from the US was an increase in pricing of approx. 46 - 48% . Thus ETI now incurs this increase for components for their trailers imported from the States. However, as an exporter of finished product (trailers) to US, it becomes a bargain for Americans. A US poster was concerned that if the $CAN fell to $0.62 US, it would be even worse for a US buyer. Wrong... it would even be better! For Canadians, not so!

The challenge that ETI now has, and even more so if the $CAN goes down in value, is to keep up with the US demand. Keep in mind that the US marketplace is 10 times that of Canada’s... Canada’s total population is less than that of California’s, although we had a much larger country in size of area.

As the $CAN increases in value to the $US, ETI’s trailers become more expensive for US potential buyers. I don’t envy ETI the challenge they have in developing their business case. With currency fluctuations, it’s like rolling the dice.

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Old 01-30-2016, 11:27 AM   #68
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For US buyers this is just a "price correction", for Canadians were are basically getting screwed again. ETI shows that Canada can export a finished product and do it well when the right person is in charge. As Canadians we need to drop our Colonial mentality of exporting all our raw materials only to buy the finished product back at an "inflated price" because weak demand for our commodities has made our dollar tank. I just read on the CBC website that one of the reasons out gas price is so high, compared to the US, is that we export a lot of our crude to the US to be refined then buy the finished product back!!

Quite frankly the opportunity for the Canadian dollar to at par or higher than the US dollar is there for the taking but we just have the wrong people in charge. I doubt that Reace and Tammy are concerned though at this point in time, one has to wonder what their US to Canadian customer ratio is. :-)

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Old 01-30-2016, 12:18 PM   #69
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As Canadians we need to drop our Colonial mentality of exporting all our raw materials only to buy the finished product back at an "inflated price" because weak demand for our commodities has made our dollar tank. I just read on the CBC website that one of the reasons out gas price is so high, compared to the US, is that we export a lot of our crude to the US to be refined then buy the finished product back!!

Quite frankly the opportunity for the Canadian dollar to at par or higher than the US dollar is there for the taking but we just have the wrong people in charge.
Some good points. Ironically, I've always found goods manufactured in Canada to be of very high quality, and often far superior to US made. There's no reason why a company like Escape should have to buy things like internal components to their trailers from a foreign market - those things can be made and made well right there in Canada. You're also right that it's about leadership. The loss of manufacturing jobs here in the US is a big problem too.

I like to tell this story from time to time to illustrate the point: I was browsing the "Old Country Store" at a Cracker Barrel restaurant a few years ago. Almost every single product in the store had a tag 'made in China'. Yep, nothing says good ole' fashioned Americana like made in China. I wrote to Cracker Barrel and asked why basically every item in their stores is made in China, and they replied that "they try to source US made products for their stores whenever possible." Hmm.
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Old 01-30-2016, 12:20 PM   #70
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Definitely have been curious how ETI would deal with conditions, especially when the rate exceeded 40%. No one has 40% margins these days. I'm assuming US$ that come in to ETI are kept in US$ and US parts are paid for with US$, thus they don't eat that exchange rate for supplies ordered in US.
The challenge down the road is when the exchange rate comes back down. Oliver has proven there is a ceiling that molded fiberglass trailer folks are willing or able to pay. I think the new Bigfoot has proven that as well as no one I've seen or heard seems to be rushing to buy new Bigfoots, at their over $40k pricing. For now, it is only the Canadian buyer that is having to evaluate if they're willing and able to pay between 40-50k for a new Escape, but that will cycle back and reach par or a small exchange rate and then we'll all be evaluating that. I.E. Our options ran approx $8500 and if I add that to the new base of $30,300 if the exchange rate were par or 10% would I have been a buyer? I love our new Escape, but we wouldn't have been able to swing it at that price point and our current situation.
It will be very interesting to watch in the years ahead, but ETI has shown excellent flexibility in doing business to date and I'm sure they will adjust to whatever the current conditions are. Did I say I love our new Escape!
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