How is NuWa's New Pricing Method Better for Me? Please explain how it works.

1.  It's more transparent, and easier to understand.

2.  It is intended to quickly offer you the lowest price.

3.  Eliminating most of the negotiating allows focus on your true needs.

4.  Reduced Asking Price s are determined by the factory and is the same at all locations.

5.  It eliminates the markup and pricing "games" inherent in the RV industry.

Two prices will be posted inside each 2011 trailer.

1.    One price will show the "Industry Standard" MSRP. This would be the MSRP price of this particular unit using the average markup percentage used by competitors.  We don't believe these artificially high MSRPs serve any benefit to the customer, and we won't support our dealers use of them.  Showing this price does give evidence of how much  NuWa prices have been reduced, and it reflects the significantly more expensive materials and labor costs necessary to build a truly more reliable trailer.

2.    The second price is the "Low Haggle / Near Wholesale Price".  We think experienced RV customers are ready for this more transparent method of pricing, which is controlled by the factory for the customer's benefit. We've changed from "no haggle" to "low haggle" to allow customers "to win" the negotiating process. This is the price range you will pay for a given trailer.  It's low, and trades are taken at wholesale ACV (actual cash value).  The best way to understand this approach is to recognize that you are buying the new unit for cash, and that the trade is really a sale of your used unit to the dealer at a price he willingly will pay to resell it.  Your used unit is worth what it is worth, whether you sell it or the factory or the dealer sells it.  If the factory or dealer sells it, they have to recover their expenses and a modest profit, and if they can't they would prefer you sell it yourself.  But think about the simplicity of this approach.  You are always buying for the lowest cash price available.  And then you decide whether you want to trade your old trailer, or sell it yourself.  That totally separates and simplifies the two transactions and assures you are getting the most fair deal available, which NuWa feels will build a trusting relationship between buyer and seller.

How about a realistic example of the three prices:

OK, assume you are looking at a 2011 HitchHiker model with Low Haggle/Near Wholesale Price of $65,000, which includes $6,960 of options.  Let's assume that your trade is truly worth $33,000 retail, whether you sell it or trade it.  NuWa's pricing method in this example might give you NADA wholesale value of $27,250 less 10%, but the excellent trailer condition and equipment brings the value back up to wholesale book.  Allowing $27,250 against the Low Haggle price of $65,000 making your difference $37,750. Today's used RV market actual wholesale and retail values are below the NADA book valuations, so don't be insulted by trade allowances lower than wholesale.  But the important issue here is to focus on the "difference", not the trade allowance.

If this same (or more importantly a competitive) unit were priced using the Industry Practice MSRP, the listed price at a dealership would typically be $84,700.  When they trade with you, are they going to willingly give you the "fluff" built into their "inflated" MSRP, or are they instead going to try to confuse you by offering more for your trade?  If you were offered $42,000 for your trade, in this scenario would that be a better deal?  $84,700 less $42,000 is $42,700 difference versus NuWa's $37,750 difference.  How can you trust you are getting a fair deal?  You can't, thus the reason customers don't trust most RV salespersons.

Industry Practice MSRP Trade Method			NuWa "No Haggle/Near Wholesale" Price  Method
MSRP Price of HitchHiker (if priced at typical Industry Practice MSRP)	$84,700		Unit with Options at NuWa's No Haggle/Near Wholesale Price	$65,000
Retail Trade Allowance	$42,000		Wholesale Trade Allowance	$27,250
Purchase Cost Difference	$42,700
Your Final "after battle" price	$40,200		Purchase Cost Difference	$37,750

Is there any question about which is the better "deal"?  These are realistic examples using real numbers.  Maybe you spend days shopping the first dealer to "beat down" his "X" brand price.  Even if you get the difference to $40,200, you still have wasted a lot of energy and spent more money.  Customers focus too much on what they will receive for their trade rather than the "difference," and end up paying more for a trailer than they should.  What so often happens is that a customer pays nearly as much for a lower cost "X" brand trailer, than he would have for a HitchHiker, which cost more to build and the NADA book shows has higher resale value.  NuWa's purpose here isn't to tell industry how they should make their living or to tell customers, who do not have the information to protect themselves from the "markup" practices of some manufacturers and dealers they should not buy those brands.  NuWa's purpose is to create a more transparent method of pricing of Hitchhiker trailers, which better protects our customer and allows a transaction that both parties would do again.  We're simply doing what our customers have asked us to do.  Focus on buying the trailer that meets your needs and decide whether you want to trade or sell your old unit yourself.  The price of the new unit is as low as we can make it and still allow the factory or the dealer to cover the overhead costs that studies show are necessary to remain in business.  

NuWa has created a formula that greatly protects the customer from possible abuse, helps him to understand and trust the process, and causes the dealer and customer to be negotiating over maybe $1,500 of trade value at most rather than $15,000 where someone is going to win big and someone is going to lose big.  In NuWa’s case you are talking about negotiating within hundreds of dollars what your trade is worth.  If you come to NuWa’s factory to seek a trade/purchase, we are going to trade from our low No Haggle Price and offer you as much for your trade as we can.  And we will offer advice about what your trailer is worth, if you should decide to sell it yourself.  In either case our purpose is to complete what we call a “good deal”; one that both parties would do again, and we invite our dealers to operate with a similar concept.  

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