Escape 2020 Update

[cpaharley2008]

Thanks for saving me, Dave. I was about ready to edit, delete, and just write the word "poutine", or maybe "Look! Squirrel!".

Here I thought the golden ratio was "Tinker to Evans to Chance".....

 

[stratos175]

One thing for sure they seem to be very upfront with their plans which I appreciate as a consumer and also like the fact they listen. They seem to understand how much this forum played a role in their growth to get to this point, nothing like positive free advertising.

As far as US location don't know if you would consider the SE but I know what I think is a perfect location, Doraville GA and have the piece of real estate for it. The building next door to me is for rent and I know who owns it 6915 Gilleland Lane. Its about 30,000 square feet (don't think you would have to take it all if not needed), easy access to major highways, warehouse with street level and truck level doors, finished showroom space and warehouse space. Plus you have an Escape owner right next door that would be more then happy to sing the products praises.

Glad to know I own a trailer manufactured by a company that does business the right way.

Enjoy the journey.

Steve

 

[Dave Walter]

...Since the base prices and option prices are published in both currencies, and the ratio between them will not match the exchange rate of the day, which one is authoritative? One of those lists is only an approximation, and I suspect that it will be the CAD list... so I wonder why that one is published at all.

I'll take guesses at the answers to the questions which I asked:

The price in the quote will the USD price.
The price is fixed in USD, so Canadian buyers will take the exchange rate risk of any changes from the quote date to the final payment date.

I also want Escape to answer this question. I assume that since ETI is a Canadian company in Canada, the prices for their products will be fixed in Canadian dollars, and any currency fluctuations between Cdn$ and US$ would be reflected by changes to the posted US$ prices. Is this correct or not?

 

[Seneca]

Guys, about this currency stuff--

All of ETI's costs are not denominated in $CDN. That's a misconception. A trailer is assembled from components, and I'd bet that most of the components used by ETI are imported into Canada and their cost to ETI is denominated in USD--whether axles from someplace in the Midwest or appliances from someplace in the Far East.

So, 70-80% of ETI's revenues derive from a USD market and some large fraction of its costs are also denominated is USD. In that respect, ETI is just like any other Canadian manufacturer on the border selling into the North American market generally. I'm sure the new owners are financially sophisticated enough to have a commercial banking relationship with one of the major Canadian financial services firms, and that currency hedging is a service on offer in that relationship.

It's relatively easy for ETI to hedge this kind of exposure.

As far a the customer facing aspect of the hedge, I'm pretty sure ETI can accommodate both Canadian and US customers, except for the clowns who want a 'heads I win, tails you lose' arrangement. My suggestion would be to denominate the price in USD and, give customers the option, when they put down their deposit, of paying the full purchase price in either USD or CDN currency. Then the company works those customer choices into its cash flow projection and instructs its bank to hedge against those anticipated cash flows.

Voila! ETI is hedged (to the extent its owners want it to be). And customers get to pay in the currency of their choice. BTW . . . keep the Maple Leaf.

 

[JStelly]

Guys, about this currency stuff--

All of ETI's costs are not denominated in $CDN. That's a misconception. A trailer is assembled from components, and I'd bet that most of the components used by ETI are imported into Canada and their cost to ETI is denominated in USD--whether axles from someplace in the Midwest or appliances from someplace in the Far East.

So, 70-80% of ETI's revenues derive from a USD market and some large fraction of its costs are also denominated is USD. In that respect, ETI is just like any other Canadian manufacturer on the border selling into the North American market generally. I'm sure the new owners are financially sophisticated enough to have a commercial banking relationship with one of the major Canadian financial services firms, and that currency hedging is a service on offer in that relationship.

It's relatively easy for ETI to hedge this kind of exposure.

As far a the customer facing aspect of the hedge, I'm pretty sure ETI can accommodate both Canadian and US customers, except for the clowns who want a 'heads I win, tails you lose' arrangement. My suggestion would be to denominate the price in USD and, give customers the option, when they put down their deposit, of paying the full purchase price in either USD or CDN currency. Then the company works those customer choices into its cash flow projection and instructs its bank to hedge against those anticipated cash flows.

Voila! ETI is hedged (to the extent its owners want it to be). And customers get to pay in the currency of their choice. BTW . . . keep the Maple Leaf.

So true. Good summary. And keep the Maple Leaf. [emoji4]

 

[gbaglo]

So true. Good summary. And keep the Maple Leaf. [emoji4]

How about an optional Oak Leaf? ;D

 

[escape artist]

How about an optional Oak Leaf? ;D

Hi: gbaglo... How about a Laurel branch?
The only hedging we do is about 150 ft. of Privet!!! Alf
escape artist N.S. of Lake Erie

 

[Brian B-P]

All of ETI's costs are not denominated in $CDN. That's a misconception...

I doubt that anyone who cares about this subject is under that misconception. It is entirely Escape's decision how to determine their pricing - I just want to know what it will be now. We can all speculate, but only Escape staff can provide the answer.

 

[JStelly]

How about an optional Oak Leaf? ;D

As a retired LtCol, USMCR, I’ll take a Silver Oak Leaf. [emoji4]. But that’s not what you were probably thinking of. [emoji6]

 

[gbaglo]

I was thinking to match my interior. And definitely not laurel.

 

[stratos175]

Seneca I'm not sure I 100% either understand or agree with what you say about the $$$$.
I own a US company that sells a product with a printed price in US dollars. I purchase most of this product from Taiwan but one part of it comes from China. When I pay either of them the amount I pay them does not change in US dollars but will assume what they actually receive fluctuates based on the exchange rate the day I pay them.

I will assume if they buy axles from someone in TX the company quotes them in US dollars and up to Escape to understand what that cost them in CA $$$$.

I represented a Canadian office furniture manufacturer for many years and back when we had the debate about the 'hanging chads' he was getting rich, best exchange rate ever. If memory serves me correctly $1.00 US got him $1.54 CA so you see why.

Enjoy the journey.

Steve

 

[75thRanger]

As a retired LtCol, USMCR, I’ll take a Silver Oak Leaf. [emoji4]. But that’s not what you were probably thinking of. [emoji6]

Thank you for your service. Used to party at the MCRD O-Club in San Diego. Many years ago!

I remember the young Marines flattening themselves against the wall at the Base Exchange when I walked by.

"Just being Marines" my friend told me.

 

[JStelly]

And you as well! The MCRD O-Club San Diego was quite a hopping place back in the 70s and 80s. I suspect not so much these days.

 

[75thRanger]

And you as well! The MCRD O-Club San Diego was quite a hopping place back in the 70s and 80s. I suspect not so much these days.

Had a friend who retired as O-5 in Corps. Jerry Boston, went to Carson Newman College in east TN. I think he retired in early 80's.

Can't remember things as well anymore.

 

[Old Fulica]

Just checked out the new ETI website. I was pleasantly surprised to see our trailer front and centre on the home page (Jellicoes). It's pretty good when they can use a nine year old unit for their first impression model. Now we just have to wait for the residuals to roll in

 

[daviddesjardins]

Just checked out the new ETI website. I was pleasantly surprised to see our trailer front and centre on the home page (Jellicoes). It's pretty good when they can use a nine year old unit for their first impression model. Now we just have to wait for the residuals to roll in

It's a great image!

 

[davidmurphy02]

Just checked out the new ETI website. I was pleasantly surprised to see our trailer front and centre on the home page (Jellicoes). It's pretty good when they can use a nine year old unit for their first impression model. Now we just have to wait for the residuals to roll in

Well, mine that used to be front and centre on the website is gone....but then they redid the brochure and included two photos of our trailer so I guess we are all happy

 

[Old Fulica]

It's a great image!

 

[godspeed-ESC]

Escape 23

Thanks so much! We look forward to the 23 floor plan, specs and pricing!

 

[Brian B-P]

Given no response, I'll assume that my guesses are correct...

I'll take guesses at the answers to the questions which I asked:

The price in the quote will the USD price.
The price is fixed in USD, so Canadian buyers will take the exchange rate risk of any changes from the quote date to the final payment date.

Effective with the start of 2020 pricing, any CAD prices shown are meaningless (just rough conversions), since the USD price will be the one which is actually charged.