East vs West Pricing advice?

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MichaelOB

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Joined
May 25, 2015
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5
New here but not new to RV life.  I've got about 450 nights on our 09 Keystone Outback 25rs.  We're ready to spend more time (but not full time, just yet) in our RV and are looking at the 277rs.  These units are priced around $43,000 on the west coast (yeah, in the $30s if you work hard for a deal) but are priced in the high $20s by some east coast dealers.  Why such a big discrepancy?  Is it worth traveling across the country to save this kind of money?  Can someone enlighten me?
 
In our case twice we drove the 900mi to Indiana for the best deal, it's like saving the shipping cost plus the difference between sale prices.  We couldn't get the local dealer to budge on price, they even said to us "I'll bet you're going to buy in the Midwest and then have us do your warranty work" . Yep, for the price difference we were quoted it's a no brainer. Good luck and make an adventure out of it.
 
Part of the price difference has to be cost of delivery - Keystones are made in Indiana. And eastern dealers can get faster turnaround too, and that may help their profit margins when sales are good. And there are a lot of Keystone dealers in the Eastern USA, so surely competition is a factor.

But make sure you are comparing apples to apples on the pricing. I don't see a reason for the size of the difference you have noted. If it is indeed large, definitely travel to buy. Most larger dealers have big service shops and are happy to do warranty work whether they sold the rig or not. It's mostly the small time places with limited services that feel they have to prioritize access to their shop and limit "foreign" warranty work. Besides, some warranty work can be performed anywhere - your appliances, for example, have their own warranty and can be serviced by most any RV dealer..
 
Thanks for the replies thus far.  A bit more information, a local (Oregon) dealer told me that west coast Outbacks are manufactured at a plant here in Oregon, east coast in Indiana.  So you'd think I should be able to get a good price living in the factory's back yard, right?  When asked why he couldn't close the deal, I said I was going to have to take a hard look at buying on the east coast for the price differential and making an adventure out of it.  He had two things to say to that.  He played the warranty card (we'll cater to those who buy from us) and he also said that the east coast models aren't insulated as well.  I find it hard to believe that an RV customer from Michigan or New York is going to be happy with a coach that isn't insulated as well as it could be ;)

I just surfed prices again, west coast from high $30s to low $40s.  East coast as low as $27m.  For $10m savings, seems like I should be taking a trip.

Now how do I sell my 25rs while I'm living in it?  ;D
 
Some of it is shipping.. Though they make RVs on the pacific side of the nation as well.

Some of it is "Rent" As in "high Rent District"  Seems the rent is often higher on the sunset side of the continental divide.
 
I'd ask the dealer to back up the insulation claim.  It may be true - options like single vs. double pane windows and an enclosed vs. exposed underbelly can make a big difference in the overall insulation value even if the amount of insulation in the walls are the same.

RVs built for the Pacific Northwest may indeed be better insulated than those made for the east, but I'd expect a manufacturer that makes different trailers to differentiate between them with different model numbers or designating an enhanced insulation package in the list of accessories. 

The problem is east coast and midwest winters are severe enough to overwhelm even the best insulated RV, so RVers in that part of the country simply put their rig in storage during the winter months and resume RVing in the spring.  Many parks in that part of the country also close for the winter.

Pacific Northwest winters are just mild enough to make winter RVing practical.  Most parks in that part of the country stay open even though it may be below freezing and have snow on the ground.  So an RV with enhanced insulation makes more sense there.

Arctic Fox and the rest of the Northwood RV brands (made in La Grande, Oregon) made their reputation by building for northwest conditions, including being one of the first brands to offer better insulation than the typical RV.
 
I wonder if Keystone would answer the question?  Maybe not on price per se, but ask the differences (if any) between units built in Oregon vs Indiana.

http://www.keystonerv.com/contact-us
 
Thank you all for input and thanks to Gary for the Keystone link.  I did contact them and received a reply a few days later.  Although Keystone makes several brands for the west coast in an Oregon factory, the Outbacks are only made in Indiana, so the information the local sales guy was feeding me was totally false.  Keystone said the difference in pricing was solely due to shipping.  Still, $34m west coast vs. $28m east coast sure seems like expensive shipping ;)
 
It is all market driven.  Cost of unit nor shipping has anything to do with it.  There doesn't seem to be any other factor ..it drives me nutz..

I discovered this when I started shopping trucks and 5th wheels...
Grassy
 
grassy said:
It is all market driven.  Cost of unit nor shipping has anything to do with it.  There doesn't seem to be any other factor ..it drives me nutz..

I discovered this when I started shopping trucks and 5th wheels...
Grassy

That was not my experience when we purchased our Outback trailer in 2008.  We bought it from a So Cal dealer for about 25% off list.  At the time, there was a Michigan dealer selling the same unit for approximately $5,000 less.  The Michigan dealer was very close to the Keystone factory.  I gave some thought of driving to Michigan and buying the trailer.  However, the cost of fuel and lodging to travel the 4,500 mile round trip was significant.  Not $5,000, but enough that I ended up buying locally.  The other consideration for me was warranty work.  I'd like to have the help of the dealer management if I had repair problems. 
 
Take a Ram 3500..off the same assembly line in Mexico...before exchange, there can be as much as 40K dollars difference..between the States and Canada and for a 5th wheel, on a 60K rig, I have seen over 25K difference...you guys have it great in the 'states for buying... 

For the 5th, there is no problem importing into Canada.. for the RAM, the Big 3 and our own Canadian government collude various ways so we won't import..

As for shipping, i know with many auto manufactures, the delivery price is the same regardless of the the dealer tells you...I cannot see it much different in the RV world...it is just a method to justify higher prices..
 
Grassy is correct about buying a new car/truck in the USA and importing it to Canada. The dealer network will likely refuse warranty service. However, buying a vehicle a couple of years old should not be a problem including motor homes, although some dealers will make a big deal over the CSA  (Canadian Standards Association) stickers or lack thereof on a motor home. There are very few (1-2?) motor homes made here, new ones made specifically for sale in Canada have a CSA sticker on them.
 
As for shipping, i know with many auto manufactures, the delivery price is the same regardless of the the dealer tells you...I cannot see it much different in the RV world...it is just a method to justify higher prices..

It's not at all the same. Cars are shipped in high volumes all over the country and are easily bundled onto a custom-designed car carrier to reduce the individual cost.  And some car maker use a regional or flat rate price for shipping, to simplify accounting and advertising.  RVs are handled individually. The dealer buys FOB at the factory and pays for transporting that one specific unit to his place of business, usually by having a delivery driver actually drive or tow (using his own truck) the unit. It's not unusual for long distance shipping of a single RV to cost thousands.  Fuel, driver time, insurance, and return travel expense are  big factors. Hauling a 5W from Indiana to the West Coast is not a inexpensive operation, even if the driver gets only minimum wage, peanut butter sandwiches for meals, and sleeps in his truck!
 
Shipping on our 14' high wall tent trailer we purchased 2 years ago was 1,500.00 and it was shipped from Indiana to Northern California. Just think what a 30'+ 5Th wheel would run??

Stan
 
Despite what I stated above, I'm still not sure that shipping alone can explain more than maybe a $3000 difference. Are we talking factory MSRP or dealer asking prices? MSRP doesn't have any shipping in it anyway, so MSRP should be the same if they came out of the same factory.
 
Some good friends of ours who live near us in San Diego, just took delivery of a 2015 Forrest River Forrester Class C (3171DS). They shopped for a couple of months before deciding exactly what it was they wanted (make, model, size, floorplan, features etc.) then they started looking online for the best price. They found several in the So Cal area and one in Arizona that were exactly what they were looking for, but then they came across another one at a Camping World in Ohio. Not only was it identically equipped, its sale price (not MSRP) was $12,000 less than the ones they were looking at out here.

He called the salesman at Camping World to ask why there was such a price discrepancy, and the salesman said, "What's your weather like in San Diego right now?" Ed told him it was sunny and 82 deg and the salesman said, "Well, it's 21 deg here and drizzly. This time of year we have to do everything we can to keep the inventory moving."

So Ed and his wife flew to Ohio and bought it. When they got it home about two weeks ago, there were a handful of things that needed to be fixed - all of which were warranty items. I told Ed that he was probably going to find himself at the bottom of the service center's priority list, since they didn't buy the coach from the dealer they taking it to for service. Wrong again. He got it in the next day and he picks it up as soon as he and his wife get back from a cruise they're on.

I don't know if that salesman was giving him a line of huey or not, but the bottom line is they got exactly what they were looking for, for a lot less than they were going to have to pay for it out here.

Kev
 
Getting sort of funny, actually ;)

Outback 277rl listed on Ebay for $23,281 at Lakeshore RV.  Now, we all know that sellers put up undisclosed minimums you can't see.  Called Lakeshore and was advised the sales price for this unit was $26,261.  They're a well-known dealer in Michigan, guessing most of their sales are to out-of-state buyers.  When I asked about shipping to Oregon, I was quoted $4,000, bringing the cost of the unit to $30,261, about $4,000 lower than west coast pricing. 

I'm still cogitating about taking a beat-feet drive out and a leisurely vacation back...
 
My wife and I just got back from picking up our new Keystone in Michigan. We saved over $8,000 by driving the 1,400 miles round trip over the dealer in Rhode Island. The folks at the dealership in Michigan could not have been nicer to deal with and the entire transaction was seamless. The Rhode Island dealer must be moving a lot of inventory as he couldn't be bothered to return my calls.
 
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