Pricing: USA and Canada

[escape artist]

Originally Posted by cpaharley2008

Let's not get political now. Back to he subject at hand. I went back and found all 4 of my build sheets. In 2012 the Escape cost me $35,000 cdn and I sent $31,000 US. In 2014 the introductory E21 cost me $34,000 cdn and I paid $30,000 Us. Both of these had exchange rates of 88%. In 2016 with price increases I paid $38,000 cdn and sent in $31,000 US or a rate of 81%. Finally in 2019 the E21 unit costs $42,000 cdn and I sent in $31,000 or a 73% rate. The avg rate is around .82 over 7 years. One can see the increased Canadian cost to purchase due to the lower rate of exchange. Seems like a .80 rate now is reasonable, lets see if it changes.

Hi: cpaharley2008... Escape Trailers pricing seems to be a "Pull it a call" football. In this thread they're pricing policy has been kicked back and forth ad nausium. Those of us that actually own one know their true worth!!! Alf
escape artist N.S. of Lake Erie

[TTMartin]

Originally Posted by cpaharley2008

Let's not get political now. Back to he subject at hand. I went back and found all 4 of my build sheets. In 2012 the Escape cost me $35,000 cdn and I sent $31,000 US. In 2014 the introductory E21 cost me $34,000 cdn and I paid $30,000 Us. Both of these had exchange rates of 88%. In 2016 with price increases I paid $38,000 cdn and sent in $31,000 US or a rate of 81%. Finally in 2019 the E21 unit costs $42,000 cdn and I sent in $31,000 or a 73% rate. The avg rate is around .82 over 7 years. One can see the increased Canadian cost to purchase due to the lower rate of exchange. Seems like a .80 rate now is reasonable, lets see if it changes.

With the fixed US pricing it puts the risk/reward on Escape. I think U.S. pricing on the trailers are still a good value regardless of the exchange rate.

I priced many of their options on Amazon.com seeing if doing them myself would save me money. What I found was that the price difference for the things I wanted was NOT worth the time it would take me to do it.

I'm happy with my purchase decision. There are U.S. fiberglass trailer manufactures, but, IMO Escape trailer's U.S. pricing still make them the better choice.

[professorJ]

I don't currently own an escape but I was looking hard at a 17 when I realized the cost difference for US residents. At first I got a little miffed about, but then felt a little better when I looked into the history of the decision on these threads. It looks like Karl set the price equivalent when the CAD was about .78 to the USD. Then the virus hit and oil prices (a major Canadian export) plummeted. The CAD then tanked against the USD putting these causing the trailer prices to go up comparatively for US residents. My question is what will happen when the time comes to set the prices for 2021 if the CAD hasn't significantly risen against the USD? Holding firm to a set price so you don't tick off US customers who have already bought this year is understandable, but if this situation is maintained for another year, then we will know more about the motivation behind the decision. Another consideration (at least for the 17) is the price relative to the Casita. At the current exchange rate, you can get an 17 equipped similarly to a Casita for around the price of the Casita if you were allowed to pay in CAD. Arguably, the Escape is a superior product (no rivets, no carpet, etc), and should therefore cost more than the Casita. Things will get interesting if Escape's US manufacturing plans go through and there is a substantial difference in the price of US and Canadian manufactured trailers.

[cpaharley2008]

Welcome John, to our little Escape world. I stopped worrying about the exchange rate issues on my second Escape. There is too much value in these little units that outweigh mental minutiae and besides, the far west awaits for you. If you have not seen one in person, contact the factory for a viewing near you.

[75thRanger]

My policy has always been, If I want something, see the value, and can find the money to pay for it, I buy it.

What someone else pays for it doesn't concern me.

[EdColorado]

Originally Posted by 75thRanger

My policy has always been, If I want something, see the value, and can find the money to pay for it, I buy it.

What someone else pays for it doesn't concern me.

Same here.

Like the old saying

“The quality is remembered long after the cost has been forgotten “

Ed.
Heading to the mountains in the morning. First trip of the year.

[Jim Bennett]

Originally Posted by 75thRanger

My policy has always been, If I want something, see the value, and can find the money to pay for it, I buy it.

What someone else pays for it doesn't concern me.

Excellent way of thinking, in my opinion.

Looking for a good deal is always a consideration, but if it is something you want, at a price you are willing to pay..........

[TTMartin]

While the exchange rate may seem like as a U.S. citizen you are paying extra, remember as a Canadian manufacture that same exchange rate means that ETI is paying extra for every component that is not manufactured in Canada.

[cpaharley2008]

Originally Posted by TTMartin

While the exchange rate may seem like as a U.S. citizen you are paying extra, remember as a Canadian manufacture that same exchange rate means that ETI is paying extra for every component that is not manufactured in Canada.

Exactly, which is probably more than 50% of their cost to build.

[blue_bullet]

Originally Posted by 75thRanger

My policy has always been, If I want something, see the value, and can find the money to pay for it, I buy it.

What someone else pays for it doesn't concern me.

Good statement. They teach in basic economics that your utility function should be independent of others. Remember rational people satisfice.

[TTMartin]

Originally Posted by cpaharley2008

Exactly, which is probably more than 50% of their cost to build.

Maybe even more than that. Where is their resin sourced? Where is their glass fiber sourced? Where is the steel in their frames sourced? Where is their etc. sourced?

[stephen99]

Originally Posted by TTMartin

While the exchange rate may seem like as a U.S. citizen you are paying extra, remember as a Canadian manufacture that same exchange rate means that ETI is paying extra for every component that is not manufactured in Canada.

Sure but that applies to all Escapes whether priced in Canadian dollars or US dollars. I'm still curious what somebody from another country pays. Does someone from Mexico pay in US or Canadian dollars?

[TTMartin]

Originally Posted by stephen99

Sure but that applies to all Escapes whether priced in Canadian dollars or US dollars. I'm still curious what somebody from another country pays. Does someone from Mexico pay in US or Canadian dollars?

Why? It is what it is.

The prices were set before the change rates changed dramatically. By going to fixed U.S. pricing ETI takes the risk / reward associated with exchange rate fluctuations.

Are you worried what someone in China pays for an iPhone? Do you care what someone in Africa pays for a Nikon camera? I can tell you that almost all international manufactures have different pricing based on the country of purchase.

Seriously, if it bothers you that much you might want to try and get a better VALUE from a U.S. manufacturer. Price out an equivalently optioned Casita, Oliver, etc.

[stephen99]

Originally Posted by TTMartin

Why? It is what it is.

The prices were set before the change rates changed dramatically. By going to fixed U.S. pricing ETI takes the risk / reward associated with exchange rate fluctuations.

Are you worried what someone in China pays for an iPhone? Do you care what someone in Africa pays for a Nikon camera? I can tell you that almost all international manufactures have different pricing based on the country of purchase.

Seriously, if it bothers you that much you might want to try and get a better VALUE from a U.S. manufacturer. Price out an equivalently optioned Casita, Oliver, etc.

I told you why. I'm curious. That's all. And it doesn't bother me a bit since I bought under the old scheme and stand to benefit from an increase in the price. You buy a Nikon or an iPhone you pay in your local currency whatever the price. Escape seems to price in only 2 currencies as far as I can tell. So what does someone from another country pay in? It doesn't bother me, I'm curious by nature.

[TTMartin]

Originally Posted by stephen99

I told you why. I'm curious. That's all. And it doesn't bother me a bit since I bought under the old scheme and stand to benefit from an increase in the price. You buy a Nikon or an iPhone you pay in your local currency whatever the price. Escape seems to price in only 2 currencies as far as I can tell. So what does someone from another country pay in? It doesn't bother me, I'm curious by nature.

The reality is that ETI is not making as much profit on trailers sold to Canadians at Canadian Dollars. If ETI went back to Canadian Dollar pricing on all trailers there would be an increase in the price. Right now because of the of fixed exchange rate pricing ETI makes less on trailers sold to Canadians (the risk of fixed exchange rate pricing) and makes a little more on trailers sold to the U.S. Citizens (the reward of fixed exchange rate pricing). So the two balance each other out.

[Donna D.]

There's nothing fixed about ETI pricing. They can change their prices at any time. It even says so on the website, I'll see if I can find it....

[Artlady]

Just a little interesting “tidbit” of information here.

When we lived in Italy, England, and Germany (Air Force), the local nationals easily identified a US citizen via the military uniform, outfit one was wearing, language or accent, type of car/license plate, etc.

Whether we paid in US dollars (which they preferred), or the local currency, there was always a “special price“ for Americans...!

[professorJ]

Originally Posted by cpaharley2008

Welcome John, to our little Escape world. I stopped worrying about the exchange rate issues on my second Escape. There is too much value in these little units that outweigh mental minutiae and besides, the far west awaits for you. If you have not seen one in person, contact the factory for a viewing near you.

Thank you. I’ve decided that it will be a few more years before I can buy in and hit the road. Who knows how the company will have grown by then. I’ll go back into lurk mode. When you are stuck at home and dreaming about the future, reading forums and delving into minutiae gives you something to do.