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Topic: Price Increases due to Tariffs (Read 951 times) previous topic - next topic
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Price Increases due to Tariffs
I'm hearing that some RV manufacturers are increasing prices due to recently imposed tariffs. Has anyone heard anything about Lazy Daze increasing their prices beyond their normal annual increase?
Greg & Victoria
2017 Mid-Bath  “Nocona” towing a manual 2015 Forester
Previously a 1985 TK
SKP #61264
Re: Price Increases due to Tariffs
Reply #1 –
Quote from: HiLola  - 
I'm hearing that some RV manufacturers are increasing prices due to recently imposed tariffs. Has anyone heard anything about Lazy Daze increasing their prices beyond their normal annual increase?
Possibly the aluminum would cost more
Discuss anything with anyone and disagree agreeably. Always be polite and respectful.
Re: Price Increases due to Tariffs
Reply #2 –
While I'm sure they pay attention to the cost of materials, my wild guess is that LD doesn't need to use those costs when coming up with a selling price.

Lazy Daze is the Ferrari of motorhomes in that they have limited production and a substantial waiting list.  They can keep increasing the price until they shorten the waiting list.

When you have demand like that, price is determined by what the market will pay instead of input costs.

Rich
'03 MB in NC

 

2003 MB
Re: Price Increases due to Tariffs
Reply #3 –
We paid our deposit in August for a 2019 LD.

Our price was $2,000 higher that the 2018, which was $2,000 higher than the 2017 which is still on their web site.

So far I've seen nothing to indicate that LD makes any precipative move.

I'm sure if costs increase in the future more than 2% per year LD will be faced to make an adjustment their normal $2,000/year adjustment.
Steve and Annette
2019 TK 24
Re: Price Increases due to Tariffs
Reply #5 –
Quote from: rich  - 
Lazy Daze is the Ferrari of motorhomes in that they have limited production and a substantial waiting list.  They can keep increasing the price until they shorten the waiting list.

As a former race car driver and current motorhome owner, I must disagree in the strongest terms! Ferraris are luxury cars (LD's are not luxury motorhomes), very, very expensive (LD's are not expensive), and produced in far higher volume (8,000 vs 200 per year), and their brand "In 2014, Ferrari was rated the world's most powerful brand by Brand Finance" (LD is not known well, even among RV people). LD has nothing remotely like Ferrari's history with very high performance race cars.

There's got to be a analogy the makes sense, but it sure isn't Ferrari!
2005 Jayco 24SS
Re: Price Increases due to Tariffs
Reply #7 –
Quote from: Eric Greenwell  - 
There's got to be a analogy the makes sense, but it sure isn't Ferrari!

The only comparison I was making, as I said, was that they both have more buyer demand than production and can price accordingly. 

Go into a Ferrari dealer ready to write a check and the  best you can do is to get on a list and plan to wait a year or more.  Visit the LD Mothership ready to write a check and the best you can do is get on a list and plan to wait a year or more. 

Companies with demand like that don't set prices based on the cost of raw materials. 

Rich
'03 MB in NC
2003 MB
Re: Price Increases due to Tariffs
Reply #8 –
Quote from: rich  - 
The only comparison I was making, as I said, was that they both have more buyer demand than production and can price accordingly. 

Go into a Ferrari dealer ready to write a check and the  best you can do is to get on a list and plan to wait a year or more.  Visit the LD Mothership ready to write a check and the best you can do is get on a list and plan to wait a year or more. 

Companies with demand like that don't set prices based on the cost of raw materials. 
I know that was your intent, but that is not what Ferrari is known for; in fact, it is a common business strategy for expensive, low production items. It's not inherently true that "they both have more buyer demand than production", because the price is deliberately set so the demand produces the backlog they desire. A year long backlog is desirable because they can have a steady production, stable workforce, and predictable ordering of components. High performance glider (sailplanes - my hobby) manufacturers in Europe use the same business strategy for the same reasons.
2005 Jayco 24SS
Re: Price Increases due to Tariffs
Reply #9 –
One of the other big three factory direct companies, Phoenix Cruiser raised their prices 8-10% last April.  They specifically said it was due to the Tariffs.  Several of there forum members feel it was due to the ownership change.  After 25 years the owner sold the company to a group that brought in an extra 10-12 people to do the job of 3 people.  I believe there is some truth to that.
2003 MB
Re: Price Increases due to Tariffs
Reply #10 –
Just to flog a dead horse,   here is a recent Reuters post on Tariff Related Price Increases

How much does this affect LD pricing?

joel
Joel & Terry Wiley
dog Zeke
2013  31 IB   Orwan   / 2011 CRV Tow'd LWEROVE
Re: Price Increases due to Tariffs
Reply #11 –
Won't affect pricing at all....  Aren't the Chinese paying for the tariffs? 
2006 RK
Re: Price Increases due to Tariffs
Reply #12 –
Quote from: rprice  - 
Won't affect pricing at all....  Aren't the Chinese paying for the tariffs? 
No,  the people who recently bought the Brooklyn Bridge are, or so I read in the Internet.
joel
Joel & Terry Wiley
dog Zeke
2013  31 IB   Orwan   / 2011 CRV Tow'd LWEROVE
Re: Price Increases due to Tariffs
Reply #14 –
Interesting, this conversation began while i was awaiting the building of my LD. I should note that i know a little about supply chains nationally and internationally dealing with a lot of the goods discussed in this thread, primarily metals like aluminum, nickel and steel. At that time many companies were blaming tariffs while increasing prices when i knew very well the tariff  increases were not in effect let alone in theirs or anyone elses supply chains yet. I had even mentioned to my wife i was wondering if LD was going to make another increase due to their use of aluminum and blame it on the tariffs. They did not even mention it and the conversation did not come up. I was glad because i really believed (and still do) in the company as being on the up and up. As many of you in this forum know far better than i, the rv industry in general is very shady except for a few exceptions. I did read many articles about some of the other manufactures and even our local rv dealers blaming increases on tariffs long before the tariffs affected their product or process. Many other industries did as well. Be careful about what you read.

Just sayin
Randy

2019 MB
Re: Price Increases due to Tariffs
Reply #15 –
I think a lot of companies might hide behind tariffs as an excuse to raise prices . " Don't  blame us, we had to do it"
Discuss anything with anyone and disagree agreeably. Always be polite and respectful.
Re: Price Increases due to Tariffs
Reply #16 –
Not to get into the politics of the issue it just explaining pricing policy.   As an owner you have to raise prices ahead of projected costs of projected material use.   If you don't you will not have enough money on hand to get the materials you need.   So it's good business practices to increase prices ,as the market can stand it, when forecast prices are going up.   BTW your business can get squeeze badly when the opposite is happening.  

What markets need in a capitalism market place is stable predictable material costs. 

I'm saying all that is that it is not always a bad thing when a company blames cost increase ahead of actaul cost.

Glen
personal fine art photo stuff
TF Mack | Flickr
It's all good .......
2014 Twin King
Re: Price Increases due to Tariffs
Reply #17 –
Quote from: colddog  - 
Not to get into the politics of the issue it just explaining pricing policy.  As an owner you have to raise prices ahead of projected costs of projected material use.  If you don't you will not have enough money on hand to get the materials you need.  So it's good business practices to increase prices ,as the market can stand it, when forecast prices are going up.  BTW your business can get squeeze badly when the opposite is happening. 

What markets need in a capitalism market place is stable predictable material costs. 

I'm saying all that is that it is not always a bad thing when a company blames cost increase ahead of actaul cost.
Along the same lines: I've read many businesses set prices for already manufactured inventory in part on the anticipated "replacement cost". So, if steel is rising in price, buying another chassis (or appliance, etc) will cost the company more, so why sell a chassis they currently own below market price?
2005 Jayco 24SS
Re: Price Increases due to Tariffs
Reply #18 –
Before retiring I based the cost of my service largely on cost of fuel  and equipment  while I was doing the job not anticipated cost of those items sometime in the future. Maybe I was a poor businessman and should have priced my jobs on what a new skidder, chainsaws, pickups etc would cost in future jobs. Oh well too late now. Lol
Discuss anything with anyone and disagree agreeably. Always be polite and respectful.