How to hedge exchange rate?

[cpaharley2008]

Actually there are 23 Escapes in stock ready for purchase, each with cad/usd pricing, on edit 22 as one was sold.

[brad2002]

If they’re selling to US buyers they can easily wait for the stated price since they’ll be making an extra 10% on each purchase.

[cpaharley2008]

One thing we all are overlooking. Prior to the take over Escape had only one stock interior. Reace just started the maple interior. If anything else was wanted, you had to custom order the upholstery, the flooring, the countertops, all at extra cost to the purchaser and extra cost for installation. Now you have a choice of interiors and colors and floors and everything else, all standard. That surely is worth something, is it not? One could have easily spent $2,000 for custom combinations, now it cost is -0-

[tgunter101]

Originally Posted by Brian B-P

As Karl has explained, they did it to please U.S. customers by simplifying the process and making the cost to them more predictable.


As the rate fluctuates, if it at some point favours U.S. buyers will you retract this statement?


Obviously, to please some people ETI should recalculate one of the price lists (or both of them) continuously, so that the displayed price varies minute-to-minute, making it fair for everyone. Would that stop the complaints? No, I think it would just cause different ones.

Sorry - no intent to offend. I’ve only recently started to evaluate ETI, so I wasn’t aware of requests for USD pricing. I suspect those requests were based on the assumption that pricing would be based on a fair exchange rate, not one that was more than 2 years old.

[brad2002]

What price would a Mexican citizen pay?

[Greg A]

Originally Posted by brad2002

What price would a Mexican citizen pay?

Good question. Guess it would be in pesos, but how many?

[rbryan4]

Originally Posted by Greg A

Good question. Guess it would be in pesos, but how many?

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.

[kdelaney]

Originally Posted by cpaharley2008

One thing we all are overlooking. Prior to the take over Escape had only one stock interior. Reace just started the maple interior. If anything else was wanted, you had to custom order the upholstery, the flooring, the countertops, all at extra cost to the purchaser and extra cost for installation. Now you have a choice of interiors and colors and floors and everything else, all standard. That surely is worth something, is it not? One could have easily spent $2,000 for custom combinations, now it cost is -0-

Or 5K, for 2K worth of customization?

[rbryan4]

Originally Posted by cpaharley2008

One thing we all are overlooking. Prior to the take over Escape had only one stock interior. Reace just started the maple interior. If anything else was wanted, you had to custom order the upholstery, the flooring, the countertops, all at extra cost to the purchaser and extra cost for installation. Now you have a choice of interiors and colors and floors and everything else, all standard. That surely is worth something, is it not? One could have easily spent $2,000 for custom combinations, now it cost is -0-

Jim, the cost of having those options as part of the base price was factored into the base price by Escape. It really has nothing to do with the change in the pricing/currency policy IMHO, but as always, YMMV.

[cpaharley2008]

Originally Posted by rbryan4

Jim, the cost of having those options as part of the base price was factored into the base price by Escape. It really has nothing to do with the change in the pricing/currency policy IMHO, but as always, YMMV.

I'm not sure about that. I compared my build sheet dated 4/19 and the base price was $33,150 CAD. The 2019 CAD price on the inventory one is $33,600. However the base price jumped to $36,200 for 2020 models or $2600 CAD for the new models. But the new 2020 models include extra insulation and thermal windows as standard, a $1500 option under the older system.

[Oldtimer]

So it looks like we now pay more for the option now that it is standard ....... fubar

[Donna D.]

CAD 72 cents

[Donna D.]

CAD 71 cents

[Brian B-P]

Originally Posted by rbryan4

Brian, my objection has ZERO to do with jealousy or resentment that someone is getting a better deal. My objection is simply math. The old pricing method would mean several thousand more dollars in my pocket. That's it.

In the past, ETI has raised their prices (expressed only in CAD at the time), to reflect the effect of their supply purchasing cost of the changing exchange rate; there is no reason to expect that reality to change.

ETI announced their intention to switch to USD pricing only long ago. On that basis, it is unlikely that they would lower the USD pricing to match CAD pricing and the current exchange rate; instead, they are more likely to raise CAD pricing to match unchanged USD pricing and the current exchange rate - the same number of the same US dollars would have to leave your pocket to get a trailer.

The resentment appears to result from understanding math, but not the economics of cross-border business. Maybe buyers should only be allowed to see pricing for their own country - that way they wouldn't get upset about things that don't affect them.

[brad2002]

If you are visiting Canada and decide to purchase an Escape why would you be paying in US dollars? Are there other businesses that use this model?

[Jim Bennett]

Originally Posted by rbryan4

If they start selling Escapes on US dealer lots, then of course fixed pricing in USD makes sense. Otherwise, to put it kindly, I think of it as a finger in the eye to US buyers.

If you reverse this thinking, and look at it from a Canadian point of view, you will understand what we deal with on a regular basis. We are forced to buy many things from the US, and we end up paying big for it.

[rbryan4]

Originally Posted by Jim Bennett

...look at it from a Canadian point of view, you will understand what we deal with on a regular basis. We are forced to buy many things from the US, and we end up paying big for it.

Yessir, and if I could change that, I would.

[barry]

Originally Posted by Jim Bennett

If you reverse this thinking, and look at it from a Canadian point of view, you will understand what we deal with on a regular basis. We are forced to buy many things from the US, and we end up paying big for it.

And, ............ when you really take a good look at what's going on in the States is their dollar really worth that much more than ours in the big picture of things. I read on the BBC website that investors are scrambling to buy US dollars and then read the US news in the same aforementioned website and am left scratching my head!
Someone's going to chime in and mention our resourced based economy now ....................
Barry

[M & M]

Sorry Brian, my resentment came from the fact that on 2 December 2019, when ETI accepted my deposit on the trailer it give me the option, in writing, to make the payment in CAD or USD, now in 26 March 2020 they want to take it away.
Yes I'm, resentful.
Mario

[cpaharley2008]

Bigfoot does not sell direct and your price is set by the dealer here in the states. when you look at it that way, what Escape is doing may not be as bad as buying from a US dealer.