Reply
 
Thread Tools Search this Thread Display Modes
 
Old 02-19-2014, 08:18 PM   #43
Rivet Master

 
Southwestern , Ohio
Join Date: Nov 2006
Posts: 1,669
Quote:
Originally Posted by ALANSD View Post
I agree with robwok. When I started as teacher in 1975, my annual pay was 9000. My rent was 125 a month, and i drove a 500 car.
Things change...prices go up, incomes go up all that is relative.
The only trouble with that statement is that it doesn't mention savings. A dollar that you saved back when your annual pay was $9,000 is now worth about ten cents.

Of course, you look for investments that beat inflation, but right now they are hard to come by. Inflation is running 2 - 3% and bank savings accounts are paying about 0.01%.

Bottom line is that inflation is a sneaky way of transferring wealth from savers to borrowers. And, the biggest borrower--the US government--also happens to control the money supply, which determines inflation. . .
.
__________________

__________________
Nuvite-F is offline   Reply With Quote
Old 02-20-2014, 05:42 PM   #44
3 Rivet Member
 
2014 22' FB Sport
Atlanta , Georgia
Join Date: Jan 2014
Posts: 203
Blog Entries: 1
Quote:
Originally Posted by eubank View Post
I get the feeling that this is supply/demand with a twist. Airstream seems to have oriented itself to appeal to niche-market status involving high quality and historical status, and part of that business plan included raising prices above merely keeping up with inflation. The plan has worked out very, very well for them, and I congratulate them for their success!

Of course, I'm speculating about their business plan, but my gut-feel hunch is that I'm right about it. And given the success of this presumed business plan, would anybody reasonably expect them to lower their prices? Not on your life!


Lynn
Lynn et al: I don't know anything about Airstream or Thor. But I can contribute this: sometimes raising prices is a way to reduce demand to a bearable level. If you could sell (just making these numbers up) 1000 units a month, but can only build 100 units a month, then you raise prices until your demand is only slightly over 100. It's true that to customers the rising prices look like jacking up the prices to whatever the market will bear; but it can actually be a defensive move.

In one week last year, I had a world-class artist in Puerto Rico and a world-reknowned luthier in Atlanta tell me that they raised prices to reduce their market. Now it's true that they reduced their market to the wealthier part of the market, but it's hard to argue with that.

Now you could say that they should just increase production to satisfy demand. But that creates all sorts of problem. Like--the greater the production, the shoddier the products. We all can name bunches of examples. I'll just take one: the large American musical instrument makers, let's say guitar makers. Once they decided to go for the volume to capture the lower end of the market, their quality started to decline. Sometimes that's the beginning of the end for a company, because they seem to start chasing increased profit by increasing volume, and it seems that you can only increase volume by cutting costs, i.e. quality (or workmen).

Anyway, that's just my impression. I don't really know what I'm talking about.
__________________

__________________
Belbein is offline   Reply With Quote
Old 02-20-2014, 05:56 PM   #45
4 Rivet Member
 
spenfolder's Avatar

 
2006 16' International CCD
Salt Lake City , Utah
Join Date: Feb 2008
Posts: 269
Images: 3
Quote:
Originally Posted by Mexray View Post
AS's can't build enough of em' currently to match demand...Raising prices is taking advantage of this market - profit while you can...!
Charge what the market will pay. Sounds like a pretty good business model to me.

Stan
Salt Lake City
__________________
spenfolder is offline   Reply With Quote
Old 02-20-2014, 06:10 PM   #46
Rivet Master
 
switz's Avatar

 
2014 31' Classic
2015 23' International
2013 25' FB International
Apache Junction , Arizona
Join Date: Sep 2012
Posts: 4,799
Images: 8
One makes hay while the sun is shining.

When Airstream quality tanks due to inadequate factory floor space for the sales volume they are trying to build, then these inflated prices will have to be discounted a great deal just to get them off the dealer's books. The dealer's line of credit is charged when the trailer is "released from production" and the Manufacturer's Certificate of Origin is printed the next day from my unit information.
__________________
WBCCI Life Member 5123, AIR 70341, 4CU, WD9EMC

TV - 2012 Dodge 2500 4x4 Cummins HO, automatic, Centramatics, Kelderman level ride airbag suspension, bed shell

2014 31' Classic model 30 twin beds, 50 amp service, 900 watt solar system, Centramatics, Dill TPMS, disc brakes, 16" tires & wheels
switz is offline   Reply With Quote
Old 02-20-2014, 07:27 PM   #47
Rivet Master
 
Alphonse's Avatar

 
2010 28' Flying Cloud
Lower Alabama , USA
Join Date: Mar 2012
Posts: 649
Quote:
Originally Posted by Nuvite-F View Post
The only trouble with that statement is that it doesn't mention savings. A dollar that you saved back when your annual pay was $9,000 is now worth about ten cents.

Of course, you look for investments that beat inflation, but right now they are hard to come by. Inflation is running 2 - 3% and bank savings accounts are paying about 0.01%.

Bottom line is that inflation is a sneaky way of transferring wealth from savers to borrowers. And, the biggest borrower--the US government--also happens to control the money supply, which determines inflation. . .
.
Well said

Sent from my SAMSUNG-SGH-I747 using Airstream Forums mobile app
__________________
Alan
"If you must choose between two evils, pick the one you never tried before!"

Air #64439
Southeastern Camping Unit WBCCI #5033
TAC AL-8
2017 Canopenian
Alphonse is offline   Reply With Quote
Old 02-24-2014, 04:39 AM   #48
3 Rivet Member
 
cdmagda's Avatar
 
Join Date: May 2004
Posts: 100
Images: 51
Quote:
Originally Posted by Protagonist View Post
That sure came out of the blue! No one on any prior post on this thread mentioned the Military Industrial Complex, only "grandiose government programs."

So what are the gradiose government programs, really? You would be surprised. According to the Center on Budget and Policy Priorities, the breakdown of the Federal budget in 2012 went like this:
22% Social Security, which I'm sure a significant fraction of Airstream owners draw.
21% Medicare, Medicaid, and the Children’s Health Insurance Program. Again, many Airstream owners benefit from this.
19% Defense and "International Security Assistance"— i.e. what in the days of Woodrow Wilson would have been called "Foreign Adventurism." But I'm one to talk, since I work for DoD.
12% so-called "Safety Net Programs" such as the oxymoronic Earned Income Tax Credit for people who earn just enough income to not qualify for direct handouts.
7% Benefits for Federal Retirees and Veterans. Which will include me starting next year. Interestingly enough, the old Civil Service Retirement System, which I still fall under, is self-sustaining, the way Social Security was pre-Nixon. Most of this 7% goes to veterans, and I don't begrudge that.
6% Interest on the national debt
3% Transportation infrastructure. Waterways, highways, rail, air.
2% science and medical research. Which happens to include NASA under the "science" part, by the way.
1% International humanitarian aid such as earthquake and tsunami relief.
7% everything else
Not meant as a political statement, just a bunch of statistics, to hopefully defuse a previous political statement.
Which of these doubled since 2001?
Defense 2001: 0.37 Trillion
Defense 2013: 0.82 Trillion
Not meant as a political statement, just statistics...
__________________
cdmagda is offline   Reply With Quote
Old 02-24-2014, 05:22 AM   #49
4 Rivet Member
 
Luigi123's Avatar
 
2018 30' International
2014 30' Flying Cloud
Los alamos , New Mexico
Join Date: May 2012
Posts: 321
The price for Brand Equity. Beats the alternative. I could have bought three SOB's for the cost of my AS, but I still would not have owned an AS. Somewhere down the road is a tipping point AS is not there yet. So dance with what you got, the true value lies in its use and longevity.
__________________
Luigi123 is offline   Reply With Quote
Old 02-25-2014, 06:44 AM   #50
Rivet Master
 
switz's Avatar

 
2014 31' Classic
2015 23' International
2013 25' FB International
Apache Junction , Arizona
Join Date: Sep 2012
Posts: 4,799
Images: 8
Unfortunately, calling social security and medicare an entitlement is a lie. Both the worker and his/her employer paid in all those years to fund an annuity. However, the real annuity money was spent so there is just IOUs in the till.
__________________
WBCCI Life Member 5123, AIR 70341, 4CU, WD9EMC

TV - 2012 Dodge 2500 4x4 Cummins HO, automatic, Centramatics, Kelderman level ride airbag suspension, bed shell

2014 31' Classic model 30 twin beds, 50 amp service, 900 watt solar system, Centramatics, Dill TPMS, disc brakes, 16" tires & wheels
switz is offline   Reply With Quote
Old 02-25-2014, 06:50 AM   #51
Rivet Master
 
Currently Looking...
Nowhere , Somewhere
Join Date: Jul 2005
Posts: 6,417
Blog Entries: 2
Swift you are correct. We paid in so a whole generation can loaf. And now they complain because we recieve what we earned! Jim
__________________
avionstream is offline   Reply With Quote
Old 02-25-2014, 11:09 PM   #52
TinCan
 
graysailor's Avatar

 
2016 30' Classic
Apache Junction , Arizona
Join Date: Aug 2011
Posts: 798
Social Security and Medicare should be considered untouchable by our Congress. They are not entitlements as we earned both. I get very annoyed when politicians bring the subject up. There is nothing to talk about other then just leaving it alone.
__________________
TinCan
graysailor is offline   Reply With Quote
Old 02-26-2014, 10:42 AM   #53
Moderator
 
blmitch5's Avatar

 
2006 19' International CCD
Olathe , Kansas
Join Date: Oct 2009
Posts: 4,221
Images: 1
Ok, MOD hat on......again. Please leave politics out of the conversation. The last several posts have nothing to do with Airstreams pricing structure. Now back to our regularly scheduled program.
__________________
Get involved and sign up for a Rally!
http://www.airforums.com/forums/calendar.php
WBCCI 4973
blmitch5 is offline   Reply With Quote
Old 02-26-2014, 11:01 AM   #54
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 280
Yes, AS is a premium brand, but that distinction is rapidly fading. Just like automobiles, every car today has a minimum level of creature comforts and safety feature (beyond mandtory ones). It started I think, with power windows.

What really makes a luxury car a luxury car these days? Even the cameras and radars are becoming standard or soon will be. Many of us can remember when radios were an option. Airbags were optional in the mid 80's by golly.

So too with AS. I think the most significant leap came when the Safari SE morphed into the FC. Lots of stuff became standard in what used to be a low end model. Now we have the Sports to take up the slack on the low end, but minus some real things that used to be standard like BUMPERS.

Its happening all around us and is a product of marketing and upselling. They call it Affluenza. Living beyond our means began with the use of credit accounts. You can probably thank Sears & Roebuck for that.

Its a bigger problem than Inflation IMO.
__________________
Tomzstream is offline   Reply With Quote
Old 02-27-2014, 02:15 AM   #55
4 Rivet Member
 
Luigi123's Avatar
 
2018 30' International
2014 30' Flying Cloud
Los alamos , New Mexico
Join Date: May 2012
Posts: 321
Once it it's the magic number of $100,000 after all discounts the bubble can break. Or building and selling at 50 units per week may slow down. Simply look at the housing market.
__________________
Luigi123 is offline   Reply With Quote
Old 02-27-2014, 06:36 AM   #56
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 280
That 100K marks is significant. Look at the B-vans. AS made the case for being premium and uses exclusively the upgraded Sprinter chassis (A couple of years ago these were Sprinter upgrades with things like side airbags). However, these days, most "upgrades" like generators and the like are de facto standards as you probably can't find a unit without them, unless you special order. The price blew right through 100K with the first round of chassis upgrades and is now sitting above 140K mainly due to the latest round of Chassis upgrades which include the safety features like Lane Keeping as well as their decision for exclusively building with the 3.0L 6 cylinder diesel.

The ERA is still the value leader, and it remains to be seen what they will do with the latest Sprinter options. The other competition has also embraced the safety features for the most part, but offer as "standard" the 2.1L 4 cylinder. But their prices are creeping well above 100K as well.

Bottom line is if you want a sub 100K van, you are probably going to be looking at the used market or possibly one of the custom builders where you can delete some of the things standard on the AS. I love the new features, but paying a price the equivalent of a nice house is a bit discouraging.
__________________

__________________
Tomzstream is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Prices seem to be up lately perryg114 Trailer Values 9 10-31-2011 06:53 PM
A funny thing happened on the way to the farmer's market GinMame Member Introductions 23 09-21-2011 02:57 AM
Solar Panel Prices Dropping tbro Generators & Solar Power 11 03-30-2011 09:21 PM


Virginia Campgrounds

Reviews provided by




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 07:06 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.

Airstream is a registered trademark of Airstream Inc. All rights reserved. Airstream trademark used under license to Social Knowledge LLC.