KK Second Hand Market...

[Darren253]

I was going to post this on someones for sale thread but then thought otherwise, however, I do think it's worthy of discussion...

I think KK have really done one on owners and the second hand market with the current classic and pricing/marketing... I know when I was selling my 2009 Classic for $25k, people were comparing it to the new price tag of $36k.

There is no doubt the new classic is a bargain, for circa $40k you can get a brand new pretty specked unit with diesel hot water and heaters, tropical roof, quick awning and 200ltr of water that will exceed 99% of buyers expectation. I believe the gap is now at the price of the other extra luxuries that KK add to the platinum and LE. Their optional extra pricelist is just ridiculous but I actually don't think there is much in it for KK as a business. It would be interesting to know what the volume of Classics vs LE's vs Platinum's is currently.

My guess would be as a business model to compete with other manufacturers and hold off the overseas manufactured market, Kimberley need manufacturing volume of core KK product. Chassis, Kampar bodies, kitchens, gullwing boxes, tents etc... I don't think they can cover overhead costs in Oz from margin dollars on additional batteries, inverters, fancy electronics. Australia is an expensive place to manufacture! This probably explains why the classic is so competitively priced in comparison, so they can build up the volume to reduce costs per unit. IMO.

Now, KK might be happy not to sell so many of all of the bells and whistles platinum campers because 80-90% of there "overhead recoveries" comes from the manufacturing of core "classic" elements of the kampers, but they have really done one on the second hand market.

Previously when you paid $50k for a KK you were pretty safe that it would be worth $40-45k in 5 years time (KK even put a page on there website boasting about it). Now, KK's new strategy has released a brand new, fresh out of the box camper, with diesel hot water and a quick awning as standard for $4-9k less than that...
Unfortunately for those that have previously invested, that $36k unit is perfectly fine with majority of the consumers today and don't forget, everybody loves a "new" car smell!

They have also done this to the Karavan and the Krusier. The new Kruiser S class has dropped the previous price by $40k! I'd be spewing...

Thoughts? 

[oldmate]

Yep agreed mate. And I think it's not just KK. Look at modcon, I think he has done a similar thing by bringing in the ecomate. 

[Woodsie]

Yep, its happening everywhere, I Paid $38000 for my Aussie built Camper Trailer and had to go back for a warranty issue and
noticed the latest of my Model was selling for $29000. When I asked if this was a mistake, I was told "No ,we had to drop the price to
compete with the Chinese Campers".........now that's a lot of Mark up!!! ...and left me with an overpriced Camper that I will not be able to
get a good resale on.

[Darren253]

Yep, its happening everywhere, I Paid $38000 for my Aussie built Camper Trailer and had to go back for a warranty issue and
noticed the latest of my Model was selling for $29000. When I asked if this was a mistake, I was told "No ,we had to drop the price to
compete with the Chinese Campers".........now that's a lot of Mark up!!! ...and left me with an overpriced Camper that I will not be able to
get a good resale on.

If it was all margin then that's pretty rough... I'm not suggesting that is the case with KK and hopefully not for your manufacturer either. I'm looking at it as a change of manufacturing strategy to bring costs down, but either way it is leaving the second hand market for higher value "outdoor lifestyle investments", high and dry!

[V8CRSA]

We just happened to be in dealer in melbourne's office on the weekend, and did notice that on the wall all of the deliveries where classic's for the foreseeable future.
We have been looking around for a hard floor for a little while and have been checking out the second hand market, but for the price of the classic it's too hard to pass up.
You could spec up a classic to the same level as a platinum for nearly $10k less.......
It's all most like they let the work experience kid make up the new price list......good time to buy a kimberley before they realise their mistake I think.

Matt

[CRW]

In comparrison to others Complete Campsite have not dropped their prices and their second hand ones still retain quite a reasonable resale price, they are not trying to compete with Chinese Models


Cheers
Carl
Sent from my iPad using Tapatalk HD

[oldmate]

In comparrison to others Complete Campsite have not dropped their prices and their second hand ones still retain quite a reasonable resale price, they are not trying to compete with Chinese Models


Cheers
Carl
Sent from my iPad using Tapatalk HD

Yes right mate, as he same with ultimate, it also helps that theirs is also nothing like other campers also

[bully]

Personally I don't have a problem with what kimberley does. I didn't buy my kimberley to sell it. With the current market they had to do something otherwise they would have gone out of business. There are lots of things that happen in business that doesn't suit people but that is the world we live in. I am proud to own a kimberley as it is an Australian made product employing Australians and creating jobs. 

[heath74]

I have to say I had noticed the price drop, and can't help but feel for the owners of the original units, which have just been devalued.

I'm not hugely surprised though, looking at the Kimberly, I always thought there must have been a huge margin there. So in an increasingly competitive market, a price slash was always an option for them.

[Darren253]

good time to buy a kimberley before they realise their mistake I think.

I place my money on them knowing exactly what they're doing...

But,

Do they know, that we know, that they know? 

I'm not bagging KK at all as a business... If they folded tomorrow people would probably lose a lot more than an inflated resale market for sure.
Business is tough in all fields these days but the KK investment isn't what it used to be financially! Now as a lifestyle investment, that's a differant story!!!

[Coiled]

In comparrison to others Complete Campsite have not dropped their prices and their second hand ones still retain quite a reasonable resale price, they are not trying to compete with Chinese Models


Cheers
Carl
Sent from my iPad using Tapatalk HD

Carl, didn't CC just release a bare bones to compete with the imports?

On a side note, I don't blame these businesses for making the business decisions to stay in business. It is better than them cutting corners on build quality or aftersales service.

It probably hurts some owners but I think the impact is negligible unless you are in a rush to sell. I say this as there is quite a bit 'cut out' of the classics and if you start optioning them in then you see where $$ go and some buyers are educated and recognise this. I think the same can be said for any Aussie manufacturer offering entry economy models.

[CRW]

Michael, Complete Campsite have released a basic soft floor to mainly compete withe the likes of Trackabout etc, they are not competing against Chinese which was my comment along with others, basic model so you can build up to what you want

They have also released a smaller version of the Exodus to compete with the T Van, however for the price the Exodus has more features, again not competing against Chinese


Cheers
Carl
Sent from my iPad using Tapatalk HD

[D4D]

Michael, Complete Campsite have released a basic soft floor to mainly compete withe the likes of Trackabout etc, they are not competing against Chinese which was my comment along with others, basic model so you can build up to what you want

They have also released a smaller version of the Exodus to compete with the T Van, however for the price the Exodus has more features, again not competing against Chinese

I think you'll find that is exactly the same as what KK did. Develop a more basic camper at a lower price to attract a new market segment

[gronk]

I think you'll find that is exactly the same as what KK did. Develop a more basic camper at a lower price to attract a new market segment

I didn't know KK developed a lower priced more basic camper ??

I can only see the range they have always had...the Classic, Limited , Platinum and a new model Special Edition that slots in between the Limited and Platinum..

In fact I can't see their cheapest model listed anymore....the Sports RV ?

Going back 6 yrs, the biggest seller seemed to be the dearest...the Platinum....and I don't know their current sales figures, but the top end campers still seem to attract people who know what they want and are prepared to pay top dollar for all the extras..