Price increases – This is currently a topic that is hot discussion on all social media platforms. We wanted to share with everyone some of the changes that have been happening in the caravan industry and behind the scenes in manufacturing.
There is no doubt the last 12-18 months have tested all of us, and for most businesses. Not only have we struggled with supply and labour shortages, but we’ve also endured a constant stream of cost increases, which to date we decided to absorb. As a guide, the materials used to construct a caravan have increased significantly, steel for example is up 43% in 12 months, timber and joinery up 21%. Freight is up 300%. Labour is up 20%. Unfortunately, the increase in cost has reached a point that we can no longer absorb and we must pass some of that onto our customers. This is not a decision we have taken lightly. It has taken us 18 months to reach this point.
To decrease this risk moving forward, we are working even closer with our manufacturers and suppliers to get better visibility and control of the supply chain to better manage cost and supply. These price increases and componentry delays are some of the reasons the decision has been made to streamline the options available in each model. Every week we send a team interstate to meet with each of our manufacturers and key suppliers. Their goal is to review component shortages, make decisions to achieve positive outcomes in the build process, improve quality control processes and plan for on going future price increases that we have been advised are coming.
We know it’s a difficult time for many. As a family business, we remain committed to providing our customers with the best off-road caravans available with value for money. Thank you for your understanding.
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