Another price increase...

[Robc inWI]

I too, didn't appreciate Karl's nervous laughter. While some Escape buyers are discussing which $75K tow vehicle to buy for some of us this is a major life decision. This originally started with me getting tired of sleeping on the ground/ sleeping in the car during thunderstorms, to building a teardrop, to looking at RPod stickies. That led to Scamps, Casitas, and Escapes and we put our deposit down within a month after hearing about Escape.

Had planned to go full solar, u shaped dinette, custom fabric but likely will go 1 panel and duel 6 volts, no AC, and U shaped dinette. I still think that Escapes will hold their value and are a decent buy but 20% price increase in less than year leaves me questioning whether this is still a wise decision for us. I don't retire for 4 years and my yearly pay raises average about 3%. Decisions decisions...

[NCBill]

Originally Posted by MichaelS78

When I discovered Escape I was enticed by the value of the trailer compared to other fiberglass trailer manufacturers. It seems ETI is aware of this and they're actively closing the gap. It's a business and I get it. What I don't get is why they're now doing twice yearly price increases? How long before they're doing three a year? more.

Welcome to high inflation. Having lived through the last time of high inflation, where prices went up every month, twice a year, three times a year, even more, could be coming. Inflation is sneaky. Some don’t notice it until it hits a big ticket item.

Various parts and supplies are up sharply. Wonder how often Escape sees price increases? Where I live, securing and keeping workers has become nearly impossible. Wage rates on the low end have doubled, they still can’t find workers.

[oldwave]

Escape was the best value in Fiberglass trailers which is why the wait list is so long. It’s a common theme in corporate policy these days, blame the pandemic then increase prices and roll in maximum profits. It’s happening everywhere. So far my quoted price for my upcoming Bigfoot is holding steady, there were major price increases in 2021. Bigfoot is still family owned and my interactions are more like it was with Escape in 2017. Yet too be seen if this holds until the proposed September delivery. Of course the original date was June. When we got the Escape the budget was just right, I’m feeling for the buyers of modest means as the increase will certain price a number of buyers out of the market. All bubbles will burst and the demand will diminish at some point. As will the truck market.

[Eggscape]

I think some people will give their heads a shake and realize that it is a lot of money to go camping for a few weeks a year especially if you have to buy a new tow vehicle as well.

I would think that there will be some that drop their orders knowing that there are further increases before they get to lock in the price.

This may move others up in time and they will get less bumps in price.

I expect these increases will be a correction factor and Escape wait times will come down on price point alone.

[Ron in BC]

Wow, I guess that we're lucky that both times we bought our Escapes there were incentives and discounts that made the prices very attractive.

I'm a cash on the barrel head type of person. I'd be very loath to sign up for anything when the final price wasn't cast in stone. The long wait and potential price increase would be a massive turn off for me.

From the sound of it I think the "ouch factor" is going to come into play. I had a friend whose services had a base price. Then he started quoting all the extra costs involved. After quoting a few extra costs he could see the customers reactions starting to get a bit unhappy. That's when he knew he'd reached the "ouch factor" and the probable limit to the extras before the customer would walk. Sounds like ETI is reaching that point.

Ron

[Eggscape]

Originally Posted by Robc inWI

I too, didn't appreciate Karl's nervous laughter. While some Escape buyers are discussing which $75K tow vehicle to buy for some of us this is a major life decision. This originally started with me getting tired of sleeping on the ground/ sleeping in the car during thunderstorms, to building a teardrop, to looking at RPod stickies. That led to Scamps, Casitas, and Escapes and we put our deposit down within a month after hearing about Escape.

Had planned to go full solar, u shaped dinette, custom fabric but likely will go 1 panel and duel 6 volts, no AC, and U shaped dinette. I still think that Escapes will hold their value and are a decent buy but 20% price increase in less than year leaves me questioning whether this is still a wise decision for us. I don't retire for 4 years and my yearly pay raises average about 3%. Decisions decisions...

There are plenty of people that either can’t afford or don’t want to spend $100,000 on a tow vehicle and trailer. Then there is our single mom daughter that loves camping but does not want to drive a big vehicle every day due to convenience and rapidly rising fuel prices. She also does not want to loose (get stolen) her E-bike and needs to carry a few kayaks.

This year she will have something better than tenting as in your goal. I am building her a Square Drop, light enough to be pulled by her current vehicle and she can transport her E-bike(s) securely inside and kayaks on top. It has a queen bed as well as port-a-potty so she and our granddaughter will be good to go.

If you want any further info on the topic feel free to private message me.

[Centex]

Originally Posted by Dave Walter

I do empathize with those being hit by these latest price hikes on the new Escape trailers. On the bright side, the resale values of my 2013 Escape 19' and 2013 Escape 15B have once again increased.

Resale value is of course very dependent on what the market will bear at the time of resale.

Sure, if you (anyone) were to put your trailer(s) on the market today it's likely you would do very well, and your statement suggests you would take full advantage of that opportunity if inclined to sell at this time.

But surely you also recognize that market situation can change direction in the future, potentially requiring a significant downward adjustment to your price relative to what it would be today.

By all indications (your statement) you (and likely any of us) would respond to the (re)sale and revenue opportunity today in much the same way that ETI is responding, eh? I seriously doubt that in doing so you would consider yourself avaricious or concern yourself with other's perceptions of your motives.

Is there anything 'wrong' in any of that? I suggest not, and your comment suggests you would agree.

Sure, some folks are left out in the cold when market changes occur (buyers when the shift is upward, sellers when the shift is downward); that's unfortunate and for them understandably disappointing; but it's a harsh reality of the market absent 'artificial' stimuli like subsidies or externally imposed price caps.
________________

All of that notwithstanding I must agree with folks who have commented negatively in regard to Karl's delivery of his message. By any objective standard of what constitutes effective consumer messaging and public relations, that video is a grossly abject failure, and that certainly has an adverse impact on ETI's image. Very poor corporate judgement that was, IMO.

[MrLynn]

Originally Posted by Centex

It's very hard to run the clock back and imagine how the reality of this would have affected my Escape opportunity.

But it's easy to understand that for some the bottom line dollars mean they are 'priced out' of the opportunity, all other things notwithstanding.

Shattered dreams are always a sad situation, empathy can be (and is) offered but there's no solace for anyone in that unfortunately.

[Alan's chart did not copy in the quote. Please go back and look at it.]

Where are your numbers from? Are you using Canadian $? I'm looking at an Escape 19 Build Sheet for a US buyer (not me) from 2018. The Base Price is $31,500.

The new Base Price ('Starting from') is $32,625. That's a fairly modest $1,125, or about 3.6%, much less than even the 2%+ annual inflation we had before 2021.

What am I missing?

[nepaweb]

Originally Posted by MrLynn

What am I missing?

The 2018 pricing was done in Canadian dollars only. You need to compare that to the $40,180 base price charged in Canadian dollars today.

[Ron in BC]

Originally Posted by Centex

Resale value is of course very dependent on what the market will bear at the time of resale.

Sure, if you (anyone) were to put your trailer(s) on the market today it's likely you would do very well, and your statement suggests you would take full advantage of that opportunity if inclined to sell at this time.


All of that notwithstanding I must agree with folks who have commented negatively in regard to Karl's delivery of his message. By any objective standard of what constitutes effective consumer messaging and public relations, that video is a grossly abject failure, and that certainly has an adverse impact on ETI's image. Very poor corporate judgement that was, IMO.

I'm not sure taking advantage has anything to do with it. For most people their lives evolve and from time-to-time circumstances change and they make a decision to go in a different direction. I don't think very many folks view when they're going to sell their Escape in a similar manner of taking advantage of selling a stock that's up.

I took a Master's elective in video production. I always cringe at some owner's of businesses who do their own commercials. Very rarely do they come across as well as professionally done productions. I've only watched a very few ETI productions, that's all I could stand. Yes, ETI should go professional, especially given the importance of the topic.

Ron

[Centex]

Originally Posted by MrLynn

[Alan's chart did not copy in the quote. Please go back and look at it.]

Where are your numbers from? ....

I thought the chart reasonably self explanatory, but apparently not, please see the added notations in red:

[MrLynn]

Originally Posted by nepaweb

The 2018 pricing was done in Canadian dollars only. You need to compare that to the $40,180 base price charged in Canadian dollars today.

That would certainly account for the difference, but suprisingly, nowhere on the Build Sheet does it say the dollars are Canadian. So I assumed that, for a US customer, the amounts would be in US dollars.

[Mike G]

My deposit is in for a 17B, but even before this increase it was going to cost more than I earn in a year. I would be happy to find a reasonably priced pre-loved Escape and bail out of the order.

I can't help remembering the one I almost got (about 3-4 years ago maybe?) for around $11k. I was first in line, but the seller decided to let someone else buy it just because they lived closer than me.

[Fender]

I think that it's worth pointing out that while Escape resale is exceptionally good, people are likely still losing money.
I don't think many are selling their trailer and recovering sales tax and delivery costs (if applicable). These costs can be significant and probably should be considered at risk if you buy and then sell.

[Chasing Trials]

Originally Posted by JeffreyG

Well, clearly ETI is taking the under.

This dynamic is happening everywhere. CEO's are saying "supply chain issues" as they raise prices, and then saying "Record revenue and profits" when they make shareholder reports. Here's a hint, supply chain issues are real and are also a wonderful excuse for raising prices.

As the great Yogi Berra once said "Nobody goes there, it's too crowded." As long as ETI is sitting on a two year wait list, don't expect pricing to soften or even slow the ascent. Prices are up because demand is up, period.

You hit the nail on the head. The build Move ups happening faster & faster, also says there are a lot of backing out & a lot more used being sold. I know, I heard way out here in NC of 2 "thinking of selling" & ended up buying a 3rd.

[hugh]

Originally Posted by Ron in BC

I took a Master's elective in video production. I always cringe at some owner's of businesses who do their own commercials. Very rarely do they come across as well as professionally done productions. I've only watched a very few ETI productions, that's all I could stand. Yes, ETI should go professional, especially given the importance of the topic.

Ron

FWIW, I actually enjoyed the informality and down to earth feel of Escape's videos. I chucked at all the unedited goofs and back-and-forth in the videos. To me at least, it seemed they were trying to use an open, nothing to hide approach.

That works great, until the nothing to hide approach gives the impression that you lack empathy for your customers. The price increase video was at best, tone-deaf. I couldn't help but think that Karl was chuckling because he just got out of a meeting where he found out about the big bonus he was getting as a result of the price increase.

I don't think that's what was actually going on (or at least, I hope not). It might actually be a stress reaction to the increasing likelihood that a combination of inflation, supply chain problems, and the greed of your investors could quite well ruin your company.

[sofmerc]

I think any company building with fiberglass is feeling the pain... I know the boatbuilders are...scarcity of materials and big cost increases on the available product will continue with all petroleum cost issues..

[Sean2a]

Originally Posted by Fender

I think that it's worth pointing out that while Escape resale is exceptionally good, people are likely still losing money.
I don't think many are selling their trailer and recovering sales tax and delivery costs (if applicable). These costs can be significant and probably should be considered at risk if you buy and then sell.

Yeah karl mentioned resale value will go up as well and emphasized that there's no middle man, which is true. However, without a middle man, you do get stuck with the delivery cost, which since the trailers aren't all going to a single dealership, is probably a bit pricier. And delivery is not going to factor into resale value, so that one almost "stings more". This is just "harder to swallow". See every kind of cost increase gets it's own idiom! 😆

[Sean2a]

Originally Posted by hugh

FWIW, I actually enjoyed the informality and down to earth feel of Escape's videos. I chucked at all the unedited goofs and back-and-forth in the videos. To me at least, it seemed they were trying to use an open, nothing to hide approach.

I agree, the transparency is the thing, besides quality and value that drew me to Escape. I’d rather they be candid and callous than closed off as many manufacturers their size and larger are

[JeffinBC]

I can’t speak to whether or not Escape is taking advantage of market conditions, or of the quality of the video in terms of messaging. However, the decision was made and I do appreciate that the company communicated it to their customers…thereby giving everyone some notice and time to consider whether or not they wish to stay on the wait list. I personally feel that the company should return 100% of your deposit if you choose to back out based on this new information but perhaps that’s just me.

I read an article awhile back that implied many other companies are changing pricing on a monthly basis or even biweekly due to current market conditions. As those companies work through dealers, the end user will never know if the price is 10%, 20%, or 30% higher than last year. Just saying Escape isn’t alone in raising their prices, just that perhaps they are more transparent about it.

I just paid for my trailer on Monday, to be picked up next Friday. I guess that means I got a 10% discount? ��

Seriously, though. I’m fortunate to be able to afford such a nice trailer and I’m sorry to hear that this increase may push the limits of some other customers. Take care and stay safe.