The answer is old fashioned trust and transparency of the trade process. Too many customers erroneously focus on how much they get for their trade. It’s the natural emotion of a person, who made a large investment. Even with certain facts in front of them some consumers still can’t get past the “how much will you give me for my trailer” issue. In fact these folks are focused on the wrong thing. It should be “how much difference will I have to pay”, that identifies a “good deal”. Do you notice how much discount typical RV dealers offer on their products? And how much they are able to give you for your trade? It’s so far from anything logical and seems too good to be true. That’s because it is. Mass production manufacturers started creating unrealistic MSRPs and package discounts to help their dealers confuse the buyer about the realistic value of the product and to provide a tool that recognizes that consumers are too focused on trade allowance rather than cost difference. There is no industry standard for MSRPs and no regulatory check and balance that provides the consumer with any information that helps him in his negotiations. Any wonder that consumers don’t trust sales people and dealerships? In fairness manufacturers and dealers may only be responding to what the consumer indicates makes him feel better, but that is not really in your best interests. Customers are unknowingly overpaying for some of the brands with excessive markups, because they are too focused on trade allowance, and many are “upside down” because the used value of their purchase is now substantially less than what is owed.
NuWa, who has always used a more conservative markup to retail is ready for a different concept, because we really don’t believe what exists promotes a good relationship between customer and dealer. And helping the customer become “upside down” on his unit is certainly doing no one a favor. As part of our business model “re-launch”, NuWa will do many things differently. First of all NuWa will sell retail at the factory for those who choose a primary relationship with the factory. And secondly much lower prices will result in more transparency of pricing and will eliminate the haggling between customer and sales person, so focus can be on guiding the customer to optimum benefit decisions and promotion of a positive ownership experience.
2011 model base prices have been factory set and "low haggle" negotiable, whether the customer buys from a dealer factory outlet or at the factory itself. Base prices are roughly 23% below those of MSRP prices. There is no better price for a HitchHiker, as these are extremely competitive prices when one considers the exceptional service reputation of the NuWa culture. But with these very low prices comes the difficulty of taking trades, something that is important to all of us. With prices established for low haggle sales, trades have to be taken at near wholesale. Trades have an “ACV” or actual cash value determined by condition and the market demand for the trade. The NADA book is a fairly accurate judge of wholesale and retail price, although in the present market environment used values are less than shown in the NADA book. The best way to view a trade at NuWa’s low haggle/near wholesale price is to recognize that you are buying the new unit at the lowest cash price available, and then in a separate transaction you are asking the factory/dealer to purchase your used trailer. The price offered will be that price which covers expenses and a modest profit to be made on the eventual used unit sale.
In order for the dealer/factory to justify taking a trade, they have to be able to make enough on the re-sale to pay the expenses of interest costs, insurance, sales staff time, administration costs, PDI and customer orientation. And hopefully have a little left over to support their business or family. Some customers want to sell a trade themselves and pocket the savings, which is perfectly fine with NuWa and most dealers. It takes some time and work, and often the resulting price is less than a dealer who has more traffic and will service the unit. Most states charge sales tax on the actual difference after the trade, so you need to sell yours for more to make up this indirect discount. But selling your trade can reduce the net cost of acquiring a new trailer. Consigning the unit is another alternative, which reduces the carrying costs for the dealer/factory. NuWa actively buys and consigns HitchHikers for resale at the factory. We offer a buy price to back up a slightly higher consignment price, so you know your trailer has found a permanent new home. We charge the seller for any repairs which are necessary to re-sell the trailer. Trading is the most common and easiest method of completing a new unit purchase, and because dealers and the factory have the ability to make repairs, add equipment and outfit a potential buyers truck, trading is the suggested optimum way for you to maximize your value with the least hassle.
As is shown by example in the “how does NuWa’s pricing method benefit me” FAQ, getting less for your trade often means you are in fact getting more. Focus not on how much you get for the trade, but instead on what is the difference between the cost of the new and the allowance for the trade. You will become a smarter buyer.
This question is also available for viewing online at http://www.nuwa.com/faqs/questions/56/