Price Increase

[tdf-texas]

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.

[Brian B-P]

Originally Posted by BCnomad

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.

[NW Cat Owner]

Originally Posted by tdf-texas

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.

[Jimrules]

Originally Posted by tdf-texas

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.

[Ron in BC]

Originally Posted by Brian B-P

... 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.

Ron

[tractors1]

Originally Posted by Ron in BC

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.

[Stargeezer]

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.

Cheers,
Larry

[barry]

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. :-)

Barry

[rbryan4]

Originally Posted by barry

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.

[Greg A]

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!

[BCnomad]

Please, dear lord, let my stock picks be winners!


/Escape upgrader (one day)

[Patandlinda]

Originally Posted by rbryan4

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.

Very good points Robert . We see a product made in Canada we buy it , besides food items ,our trailer . We know we are getting quality . Besides all the things from China in stores , We get excited if we pick something up and it says Made in the USA , that means someone here has a job . Wish we had a quality , same price range as Escape trailer made here in US , we would of bought instead .If we don't have jobs in the US , how are we going to purchase and keep our economy going ? I am getting depressed now , maybe I need to go camping real soon . Pat

[gbaglo]

US has one of the healthiest economies at the present time.

[AK snowbiker]

My Lori was made in Canada and she is my superior.

Scott, Lori, and Fritz
Moose are better in the freezer than eating my mountain ash.

[Iowa Dave]

If you ever want to purchase an extremely nice fixed blade knife, often called a hunting knife, look into a Grohmann knife made in Nova Scotia. Terrific workmanship , balance and great steel. Not cheap, but you could bet you life on it.
Dave

[Tford]

Originally Posted by tdf-texas

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.

Oh, I think they know full well there are plenty of future buyers out there, hence the expansion. "Wait list"!!! Don't get me started again on ETI somehow/someway keeping a list of folks who express interest in a future trailer that they could reference and contact those folks when the time came.....checking the website......waiting.......they say patience is a virtue! I just hope I don't miss a couple of days when production dates open back up and miss out!

[Patandlinda]

Originally Posted by gbaglo

US has one of the healthiest economies at the present time.

Glenn really if this a great ecomony we are in for big trouble . We have businesses closing here all the time . Jobs are being lost right and left . The figures for unemployment are being fudged . Some have just given up looking for work . The numbers are way more then they tell you . They say everything is fine but when you look around it is scary . Our middle class is getting smaller . We are turning into the have's and have nots here . I am OK but the kids are really going to be in for it . Some say we are at the brink of another recession . Pat

[Brian B-P]

Originally Posted by AKsnowbiker

My Lori was made in Canada and she is my superior.

Scott, Lori, and Fritz

Nicely done!

[bisonbill]

I'm glad ETI raised their prices. The exchange rate had to be killing them. They need to stay profitable. With the drop of the the $cdn vs the $usd, a $4,000 price increase gets them about $3,000 usd more to cover the cost of the U.S. Parts. All they are really doing is recouping the decline in the value of the Looney over the last two years.

The one thing they might want to do is have a U.S. price and CDN price on the website. Have a box asking which country. When you first look at a $40,000 price it's pretty intimidating. Leading U.S. customers with a U.S. price could be a good way to go

[NW Cat Owner]

Originally Posted by bisonbill

The one thing they might want to do is have a U.S. price and CDN price on the website. Have a box asking which country. When you first look at a $40,000 price it's pretty intimidating. Leading U.S. customers with a U.S. price could be a good way to go

It's known as looking it up on Google for a price from Canadian to US dollars. I do it about every day! I know it's not quite the same as what the banks may offer, but it gives me a good comparison.

Plus, listing it in US $ will only work if they have a US bank account set up and keep funds in it. I don't know if they do nor do I need to. I just know they'll take my US $ personal check and I'm happy with that.