Will 2017 production be sold out on April 1st 2016? - Page 9 - Escape Trailer Owners Community

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Old 03-15-2016, 07:34 PM   #81
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Originally Posted by freespirit View Post
another random thought..
if the 2017 Escape price increase included rising costs associated with components sourced in USA & the current USA/CAD exchange rate being less than 1 to 1
...if the exchange rate creeps back to 1 to 1 will the Escape price decrease?
I can think of at least one time when Escape actually decreased the purchase price. That was several years ago when they were able to negotiate better prices for the products (appliances?) they were using to build the trailers. So it can happen. Whether it does or not
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Old 03-15-2016, 07:38 PM   #82
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I'm sure Escape purchases a set number of units at a set price for a contract term.
I expect that they have been losing money having to sell trailers for less, with components that they paid for at par.
So, I wouldn't expect prices to be adjusted weekly as the dollar goes up or down.
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Old 03-15-2016, 07:39 PM   #83
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Don't forget that the E21 is only 8" shorter than the largest Ollie.

The E17 is 1" longer than the smaller Ollie.

This is for cabin to cabin measurements as given by the factories, not overall lengths.
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Old 03-15-2016, 07:40 PM   #84
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Thanks, Donna. You took the wind right out of my sails. I was going to mention that price decrease.

Only Escape can answer that question for certain anyway. Though our dollar may strengthen somewhat, based on everything I have heard, it will not likely be very much, not for some time yet.
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Old 03-15-2016, 07:45 PM   #85
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I can't help but wonder what the impact if any of Rice Texas sales would be on Escape sales if the exchange rate was 1 to 1 and if they had any interest in offering a tandem axle trailer either 19 and /or a 21 with some improvements and even while lacking the Escapes custom ability.
I assume that this is a reference to Casita; since this is an Escape forum, some readers may not recognize Rice as the Casita company's location.

As far as I recall, Casita hasn't added a model or made a significant design change since the introduction of the 17-foot model... which I don't think was in this century (interior furnishing changes may be the exception). The most recent Scamp model change (the introduction of the 19') was some time before that. The relative value of Canadian and U.S. currently was close to at par for much of the time since those model additions.

Both of these competing companies (Casita and Evelands) seem to have settled on what they have been building for decades as the only models of interest to them... and if those models suit a buyer, then those companies are providing good products for that right buyer - they certainly should have worked out any kinks by now. Asking what the effect would be of Casita building a 19' to 21' tandem seems to me to be a bit like asking what the impact on the world would be if it started to spin the other direction: interesting, but irrelevant to reality.

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Originally Posted by freespirit View Post
... if the 2017 Escape price increase included rising costs associated with components sourced in USA & the current USA/CAD exchange rate being less than 1 to 1
...if the exchange rate creeps back to 1 to 1 will the Escape price decrease?
One might guess so. Since Escape kept paying increased costs for imported materials and components for a long time before raising prices, it seems reasonable to me to expect that a return to previous pricing might take a long time, too.
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Old 03-15-2016, 07:50 PM   #86
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And some of us have stories about the wonderful customer service one of those other 2 firms offer
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Old 03-15-2016, 08:18 PM   #87
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One might guess so. Since Escape kept paying increased costs for imported materials and components for a long time before raising prices, it seems reasonable to me to expect that a return to previous pricing might take a long time, too.
With the changes and upgrades to standard features that Escape is doing (though all details have yet to be revealed), a good percentage of that increase is irrespective of the exchange rates effect on pricing. For example, should the new windows cost Escape twice as much as the previous ones, that extra cost is included in the price increase. If these windows are sourced through a US company, and the Canadian dollar strengthens a bit, only a very small percentage of the price increase would be affected, not the entire upgrade amount.
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Old 03-15-2016, 09:33 PM   #88
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Freespirit, that's what I've been wondering. Escape would have a backlog of items they've already purchased outside Canada so they couldn't drop the prices on that. It's really tricky for them.
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Old 03-15-2016, 09:56 PM   #89
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Just in time ordering is what created Wal-Mart. As a cellphone retailer starting in 2011 when smartphones began to take off I was ordering daily rather than weekly to better manage inventory because prices and handsets were constantly changing...and there was no price protection or returns beyond a paltry amount.
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Old 03-15-2016, 10:23 PM   #90
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With the changes and upgrades to standard features that Escape is doing (though all details have yet to be revealed), a good percentage of that increase is irrespective of the exchange rates effect on pricing.
Good point - price drops due to the cost of imported goods would only match the rises due to the same magnitude of cost increases. Of course, over the last few years that's a meaningful fraction of the cost of the trailer.

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Just in time ordering is what created Wal-Mart. As a cellphone retailer starting in 2011 when smartphones began to take off I was ordering daily rather than weekly to better manage inventory because prices and handsets were constantly changing...and there was no price protection or returns beyond a paltry amount.
Just-in-time ordering offloads inventory management to the supplier, and requires transportation of variable small quantities of stock on demand. For huge companies such as Walmart (and auto manufacturers), they buy so much that they can force the supplier to absorb these costs, and the "small" daily quantities are still truckloads. For Escape, having each stovetop separately delivered doesn't seem reasonable or economically feasible. I'm guessing that they buy months of components and materials at a time.
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