Sifting Out the Chaff
The next 18 to 36 months are likely to be the most definitive in our industry’s history. A process is underway in which the wheat is being separated from the chaff not only by consumers but by dealers as well. Whether it is on a dealer’s lot or at a manufacturer’s show, many people seem both excited and nervous about the developing situation.
As we have reported before, Baby Boomers have been instrumental in defining industries throughout their life cycle. They have repeatedly demonstrated their power to make or break companies.
Many firms in the RV industry already recognize this fact and are taking bold steps to ensure they have the infrastructure and support services in place to exceed Boomer expectations. Today’s customers are telling us loudly and clearly they aren’t going to settle for business as usual.
Yes, there are still people who shop price alone, but many more buyers appear willing to reward dealers who make professional investments in their facilities, staff and Internet presence. They are choosing firms that convey the excitement and fun of the RV lifestyle as well as those capable of delivering on the promise of service. Buyers are using the Internet to educate themselves, select products and narrow down dealerships they’ll visit.
Buyers are rebuffing dealers that simply advertise the lowest prices and provide the lowest level of service to support the discounts. They’re concluding that if a dealer’s website is substandard, so is the business.
In the same light, RV dealers are becoming a more discerning about the companies they do business with. I’ve talked to dozens of dealers who are either dropping manufacturers �?? or are about to �?? because they are suffering from battle fatigue.
They’re tired of fighting about warranty claims, trying to get the correct parts delivered on time, and investing a lot of manhours prepping new units to the point they can be displayed. Rather than offering a wide array of product lines, these dealers are opting to focus their attention on a few manufacturers who cater specifically to their needs.
Some manufacturers are also being proactive by developing special programs to help their dealers create more professional business and exceptional buying experiences for their customers.
I’ll predict this year’s National RV Show will be a big surprise for several manufacturers who have been comfortable telling dealers to take a hike, because many of them will do just that.
Within three years, our industry will see megadealers dominating their markets selling a few brands for manufacturers that provide the level of support RV users demand. The low-price dealers will be left carrying product from manufacturers who could care less about their long-term success. And most consumers today are smart enough to notice the difference.
October 9th, 2006 at 8:50 am
Owners and managers that are paying attention have already reduced the number of name brands that they choose to represent. I disagree that only mega dealers will allign themselves with fewer companies. Consistently good quality and strong support from the manufacturer remains one of our biggest challenges, but in the end, most dealers have to ask themselves “Am I making money with this product”?
October 4th, 2006 at 7:11 am
This is so true.
I was one of the first to have a website for the RV business.
Service and quality products are where it is at. I have been doing this in the san Jose area since 1985 and wseen the dealerships fold from 13 in our area to now 2 of us!!
We carry only quality products for our customers that the factories support.
Simple quality and service, price is important but not the first factor in any sale
October 3rd, 2006 at 1:47 pm
Not sure I agree about your assessment that the industry in 3 years will be dominated by megadealers. The bigger a dealer gets the more product lines they want to tie up and the more fragmented the management becomes and less customer oriented because the guy running the store doesn’t always have a financial interest in the dealership like someone who owned the store and was there everyday dealing directly with customers. Lots of the big guys seem to lose the personal touch really needed with the RV type customer.
Manufacturers and dealers need to move towards a single source warranty to shortend the process for processing claims and headaches from the dealers point with the exceptions being motors,chassis and transmissions on motor homes. If dealers are not able to get warranty work done chassis type problems than the responsbility for warranty should revert back to the manufacturer that built the motorhome. We are presently in the process of passing such a law in Louisiana with lots of support from other state associations. Some manufactures already follow single source warranty procedures but only a couple and RVIA needs to get on board and should strongly work towards getting the manufactures accept single source warranty. Standardized forms would also be a major help. Online filing of claims works great for a few manufactures but if more manufactures would attempt to handle claims online maybe someone would design a program for everyone to use. Great use of RVIA and RVDA resources if they could get together.
October 3rd, 2006 at 12:21 pm
Same is true of RV Parks and RV Resorts. If the park has too narrow of sites, too little amperage, and poor cutomer service, Baby Boomers are moving on.
As an industry we need more modern parks. We are putting together an investment group to build modern parks and Resorts throughout the USA.
Any suggested locations will be looked at.
Thanks,
Rich
September 14th, 2006 at 2:45 pm
There is going to be more fatigue between the Manufacturers and Dealers in the near future with RVUSA’s better price button. We know the flaws of it and what will happen if not corrected.
Just so the record is straight, Tim Lowry of North Trail RV Center Ft Myers FL. found the dealer/mfg agreement loop-hole! RVData.com just implimented it in for them and many other RV Dealers last May with “e-mail me a better price!” As we only allowed this for the dealers web site and not to the classifieds and Portals we will now be providing this feature for ALL RV Web sites with dealers as RVUSA.com has it now.