Quote:
Originally Posted by EA37TS
I See it differently.
Dealers will not reduce prices to clear inventory. Dealers will cancel orders not already purchased which will reduce supply to coincide with demand and thereby reduce Thor’s backlog.
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We shall see…..
I have seen this cycle play out in the snowmobile industry multiple times. Granted a $15K - $20K vehicle but when winters are bad a couple years in a row, inventory builds up and dealers have to cut prices (with some help from the manufacturers).
In the snowmobile (and a few other recreational industries), manufactures also require a minimum annual order of inventory to carry their product line. I can’t speak to the agreements between RV manufacturers and dealers but a snowmobike dealer, SXS dealer, etc. can’t just cancel orders for inventory they have ordered. They have to order a minimum value if units each year and the amount increases every year.
The same demand and pricing surge has been occurring in the snowmobile, boat and other similar industries as well. Prices will go down when inventory stops moving. You can take that to the bank.