Travato price increase?

[Raxel7851]

We went to the Hershey RV show yesterday. Our goal was to check out a Minnie Winnie 22M. On the way, we stopped to look at the 2020 Travato since we currently have a 2018 59K. The sale price for the show was 97K!!!!!! Seriously!! It’s close to 20K more than what we ended up paying for ours, comparably equipped, 2 years ago. And that’s not the KL model with the lithium batteries.

Is it the popularity of the class B’s, or the tariffs, or both driving this huge price increase? The Minnie Winnie had a price more closely aligned with last year’s price. At that price we will look more closely at the Class C’s. The Era’s and Blodts were way up there as well.

[powercat_ras]

Winnebago RV production capacity is limied by their current manufacturing capabilities, both physical and people. Lots of job openings in Iowa in the various Winnebago facilities.
At least some is related to sub-assemblies costs rising faster than inflation, due to only a few companies controlling most of the RV sub-assemblies market reducing price competition.

I believe that they have increased prices much more than their costs have increased because:

They brought in a new CEO and other leadership whose primary task given to them by the Winnebago Board of Directors was :
- to increase the stock price and improve the gross profit margins
- to generate cash flow that can be used to diversify into more lines of business

I think they are raising prices trying to find the point where the prices reach the point where they can't get enough dealer orders to keep their factories 100% scheduled. They apparently are not there yet.

All that said, it's free enterprise - it's the American Way. If you think the price is too high, look elsewhere or buy used.

My two cents is they went past the tipping point with their price increases for the 2020 models, but only time will tell.

[Sun_Seeker]

Man, I'd think you'd be jumping for joy! That news pretty well has insulated you from a large depreciation, if you choose to sell privately, off your driveway. I'd love to read that about my current model...