Reply
 
Thread Tools Search this Thread Display Modes
 
Old 05-04-2007, 06:08 PM   #1
3 Rivet Member
 
Sean Michael's Avatar
 
2003 25' Classic
Birmingham , Alabama
Join Date: Mar 2007
Posts: 121
Why the factory price increases?

Not that I'm complaining, mind you.

I have a 25-foot 2003 Classic. A 2008 Classic of this variety would cost about $68,000!

But back in '03, I think the going rate (new) was mid-40s.

Seems like a HUGE jump in price from the factory.

I mean, I can understand annual price increases, but it seems that new prices have really lept upwards in recent years.

I'm just curious why this happened, and how people feel about it.
__________________

__________________
Sean Michael is offline   Reply With Quote
Old 05-04-2007, 06:13 PM   #2
Rivet Master
 
cosmotini's Avatar

 
1963 24' Tradewind
Highland , Illinois
Join Date: Jan 2004
Posts: 1,057
Images: 83
In addition to Thor being a publicly traded company and shareholders wanting a return on their money, the cost of materials, energy, and labor have a lot to do with the price increases. I understand aluminum prices have gone up a lot in the past couple years.

Then you are dealing with the "cool" factor of the Airstream and paying a premium for that.

Just my 2 cents.
__________________

__________________
Dennis

Air #4056

"Oooh - They have the Internet on computers now!" - Homer Simpson
cosmotini is offline   Reply With Quote
Old 05-04-2007, 08:08 PM   #3
Rivet Monster
 
wahoonc's Avatar

 
1975 31' Sovereign
1980 31' Excella II
Sprung Leak , North Carolina
Join Date: Jun 2003
Posts: 7,174
Images: 40
All metal materials are escalating rapidly in price. I price metal products for my company on a regular basis. I have seen increases in the double digit range for steel, stainless steel, zinc and aluminum sheet goods. As well as the freight to get them to the jobs. FWIW my current project is at an Alcoa Primary Metals plant and they ship over 5000 tons a week, needless to say business is very good for them at the moment.

Aaron
__________________
....so many Airstreams....so little time...
WBCCI #XXXX AIR #2495
Why are we in this basket...and where are we going
wahoonc is offline   Reply With Quote
Old 05-04-2007, 08:15 PM   #4
Rivet Master
 
rseagle's Avatar
 
2004 22' International CCD
Spotsylvania , Virginia
Join Date: Mar 2004
Posts: 663
Images: 33
And don't forget labor costs too. Skilled craftsmen are hard to come by in a competative market. They cost $$$. Also, those Quality Control guys that watch over those skilled craftsmen to ensure that your Airstreams don't leak and the cabinets don't fall off the walls demand more money for doing such a wonderful job.
__________________
Bob
---------------
"THE BAUXITE BUNGALOW"
2004 22' CCD
1997 F-150
TAC VA-12
AIR# 4749
ex WBCCI# 1430
rseagle is offline   Reply With Quote
Old 05-04-2007, 08:17 PM   #5
Rivet Master
Commercial Member
 
lewster's Avatar
 
Vintage Kin Owner
Naples, FL , Hood River, OR
Join Date: Dec 2005
Posts: 7,282
Even the cost of brass, along with aluminum and other metals. I just got a shipment of Marshall Brass LP fittings, and they were 65% higher than the last time (Jan.) when I bought them.

Bummer!!
__________________
Lew Farber...ABYC Certified Master Marine Electrician...RVIA Certified Master Tech ...AM Solar Authorized Installation Center...AIRSTREAM Solar & Electrical Specialist...Micro Air 'Easy Start' Sales and Installations
lewster is offline   Reply With Quote
Old 05-04-2007, 09:25 PM   #6
3 Rivet Member
 
Sean Michael's Avatar
 
2003 25' Classic
Birmingham , Alabama
Join Date: Mar 2007
Posts: 121
Interesting...it sounds like these price increases are being driven by supply prices (increased cost of materials, etc.) rather than by brand management.

I've seen some companies (Porsche comes to mind) that basically charge what the market will bear irrespective of cost.

BTW, I was mistaken when I said my Airstream would cost $68k today. Actually it would cost around $71,500. Wow!

If my math is correct, the cost of this model Airstream has risen about 60% in four years!

Airstream :: Pricing
__________________
Sean Michael is offline   Reply With Quote
Old 05-04-2007, 09:27 PM   #7
AIR #8691
 
2006 25' Safari SS SE
Northern , Virginia
Join Date: Jul 2005
Posts: 381
I’m not an economist but it appears to me that Airstream Inc., and many other companies, are run by economists.
Are they testing the market, seeing how high they can go until consumers reduce the number of new trailers they buy? Isn’t that called ‘price elasticity?’

I agree there are fixed and variable cost factors and the cost of materials are raising.
But by what percent does materials & labor cost increase MSRP?
What is the average per cent people pay for under MSRP? (15 – 20%?)

How about the status or prestige factors that effect demand for Airstream vs. competitive SOBs?
Has the overall quality and the fit & finish increased with the price?
Could it ever happen that some day a bright economist comes up with a plan to start producing a line of Airstream in a modern & automated factory in China to be sold through Wal-Mart?

Personally I think the currently listed MSRPs are way too high, but what does my opinion matter where they sell every one they make. Maybe I should buy some shares of Thor stock.
__________________
JStanley is offline   Reply With Quote
Old 05-04-2007, 09:30 PM   #8
Rivet Master
Commercial Member
 
lewster's Avatar
 
Vintage Kin Owner
Naples, FL , Hood River, OR
Join Date: Dec 2005
Posts: 7,282
The up-side of these price increases is that your 'slightly used' .......pardon me........'pre-owned' Airstream will bring more on the resale market than before the price increases.

Who knows, if they keep raising the prices, we might even get back what we paid for them back in ..................
__________________
Lew Farber...ABYC Certified Master Marine Electrician...RVIA Certified Master Tech ...AM Solar Authorized Installation Center...AIRSTREAM Solar & Electrical Specialist...Micro Air 'Easy Start' Sales and Installations
lewster is offline   Reply With Quote
Old 05-04-2007, 09:54 PM   #9
Rivet Master
 
2003 25' Safari
Eden Prairie , Minnesota
Join Date: Nov 2002
Posts: 765
Images: 3
Product pricing, including Airstream, is only indirectly related to the cost of raw materials or labor. Things are market priced to maximize profits. Look at it this way...

If a thing costs $5,000 to make...

- You can sell 100 units for $10,000 each, generating $1,000,000 sales and $500,000 profit
- or you can sell 75 units for $12,500 each, generating $937,500 sales and $562,500 profit

Businesses will go for the higher profit. Believe me, I'm an MBA and work for a large company.

But remember that the "list price" of an Airstream is only loosely related to selling price though. This is because Airstream has put a very large dealer profit into the list price. Consumer purchases at ~25% off list are possible.
__________________
Dan
dmac is offline   Reply With Quote
Old 05-04-2007, 10:29 PM   #10
3 Rivet Member
 
Sean Michael's Avatar
 
2003 25' Classic
Birmingham , Alabama
Join Date: Mar 2007
Posts: 121
Quote:
Originally Posted by dmac
Product pricing, including Airstream, is only indirectly related to the cost of raw materials or labor.
That's what worries me a bit.

Porsche is the world's most profitable auto maker. In addition to outrageous base model prices, they nickel-and-dime customers for options that most manufacturers include as standard. For example, on a $100,000 Porsche, floormats are not included! Porsche charges $140 extra if you want mats (which, by the way, are made of cheap plastic!).

We all want Airstream, Inc. to be profitable and prosperous. But I also hope they keep the things somewhat affordable and keep parts & accessories reasonably priced. I hope Airstream doesn't start charging us $100 for a doormat.

I guess I shouldn't worry too much. As someone pointed out, these increases only add value to our trailers.
__________________

__________________
Sean Michael 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
Sticker Price Tag kzener40 Airstream Motorhome Forums 6 01-08-2006 03:10 PM
Price guide for site? ViewRVs General Motorhome Topics 7 01-05-2003 12:06 AM
Questions about the 2003 International. Would you buy again/fair price. Debbie 2002 - 2005 International 29 11-07-2002 05:11 PM
Factory Recalls George Gibbon Off Topic Forum 1 08-26-2002 05:19 PM
Great Flooring Price melprice Floor Finishes 0 07-08-2002 09:48 PM


Virginia Campgrounds

Reviews provided by




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 09:41 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.