Partners in profitability
Having just returned from the StagParkway dealer show in Las Vegas, it’s hard to understand how the company can continue raising the bar of excellence year after year, but they do.
As wholesale distributors, one would expect StagParkway to be concerned only with selling parts and accessories and quickly shipping them to dealers at the lowest prices possible. After all, that’s what most of their competitors strive to do. But, the staff at StagParkway takes distribution to a whole new level.
The company invests a considerable amount of time, effort, energy and money in offering first-class educational programming to help dealers become more profitable and more efficient in the long-term. To the best of my knowledge, NTP Distribution is the only other wholesale distributor to take an active interest in dealer education. Both NTP and StagParkway work hard to prepare dealers to compete today – and to take advantage of emerging trends so they can effectively compete tomorrow, too.
The educational sessions at this year’s Stag show helped parts and accessories managers see how product mix, promotions and merchandising could improve sales performance. Dealers learned how to compete against online retailers, big box stores and how to beef up their businesses in tough markets or during a slow economy.
Any forward-thinking distributor knows that better managed RV dealerships are better able to move products for their supplier partners, which in the end helps the wholesaler make more money. Unfortunately, there’s a shortage of forward-thinking distributors. Yes, the purpose of a buying show is to take orders for supplier products, and dealers are expected to step up and make purchasing commitments.
But dealers and suppliers who participated in this year’s StagParkway event walked away with far more than good bargains. They left confident in knowing that StagParkway is a unique business partner truly concerned about their success. And it’s clear that StagParkway considers dealers and suppliers to be their partners. It’s a symbiotic relationship in that by helping dealers and suppliers make more dollars, StagParkway earns more pennies from every transaction — and that’s the key to everyone’s long-term success.
Talking to dealers, I’ll hear that StagParkway isn’t the cheapest distributor in the RV industry. But their business partners (dealers and suppliers) get their money’s worth for their affiliation. For example:
- StagParkway doesn’t have its own proprietary line of knock-off products they use to compete with their supplier partners. I cannot imagine hosting a buying show and making suppliers pay a lot of money for booth space, only to take that money to pay for the distributor’s own exhibit space so their staff can take orders for their own line of products that undercut the suppliers supporting the show.
- StagParkway’s strategic acquisition of DTI gives them the ability not only to deliver repair parts quickly, but to use technology to show dealers which part to order, then to place the order and later find the right part in the right bin.
- With 11 warehouses, the dealership can virtually guarantee next day delivery of most parts to almost every dealership in the country.
- Their annual aftermarket show not only brings buyers and sellers together, but it does so in a fun environment in which success is celebrated and everyone can enjoy a good time.
- They sponsor the annual Lifetime Value Award which recognizes RV dealers who are committed to seeing each transaction as a foundation for developing future business and creating a lifetime revenue stream for the dealership.
- They are one of only two wholesale distributors which actively invest in the RV Learning Center, thus supplying money to develop curriculum to train people at all levels of an RV dealership. Not surprisingly, NTP Distribution is the other wholesaler stepping up to support the industry which drives its business.
- Stag, like NTP Distribution, derives 100 percent of its income from the RV industry which allows both companies to focus their time and expertise in serving RV dealers.
- Stag is the only wholesale distributor on Go RVing’s Go the Extra Mile contributor’s list. They donate at the Pacesetter level.
- They launched an initiative last year to help RV dealers reduce buyer’s remorse – and sell more aftermarket products – by helping consumers select lifestyle products from a catalog while waiting for the finance manager to complete paperwork to close a sale.
- StagParkway give suppliers an opportunity to promote their products through product training seminars at their dealer show.
- While NTP Distribution may have pioneered the store-set concept to give RV parts stores a makeover, StagParkway pioneered the bolt-on electronic parts catalog which makes it possible for dealers to offer a full line of thousands of RV parts and accessories online without having to stock the inventory themselves.
In my opinion, NTP Distribution’s commitment to excellence is similar to Stag’s, and its influence in the RV industry is growing as demonstrated by the agenda for their buying show which takes place Feb. 26 to March 2. Competition is a good thing because it makes everyone stronger. Hopefully, RV dealers are smart enough to see which wholesalers are truly helping them to build strong businesses for the long haul, and then reward that investment in their success by helping the distributors achieve theirs.
Next year, StagParkway will be hosting their dealer show in New Orleans, a fitting location since most other distributors who compete against them are already singing the blues.
January 25th, 2007 at 10:20 am
Here’s a suggestion Greg. I tried to make this work when I was with RV News but we were not strong in the advertising department!
Many of us have seen the full page ads in the airline magazines for “The ten best steakhouses in America” or the “Ten best sushi restaurants.” The ad cost is then split among the ten establishments that participate in the ad.
I think you should make such a page available to the regional distributors and however many want to participate would then split the cost. The message on the ad could promote the capabilities of the regional distributors (personal service, local warehouses, same day or early next day delivery, etc.)
This would lessen the burden of costly full page advertising and they would the have an opportunity to compete on the same level as the larger national companies. You get a full page of ad revenue and then you’ll have a good reason to promote the regional distributors as well as the national players.
The burden is on the regional guys though … they have to start working closer together with a common message to the dealers that will allow them to grow their business and earn the business of new customers.
Just an idea, but it might level the playing field if they see merit in it and are willing to spend a few dollars to make it happen.
January 24th, 2007 at 3:15 pm
Trent raises a good point about pay-to-play advertising. Yes, magazines like RV Trade Digest do promote the products and services of our advertisers first, but we also feature other firms, too. After all, our advertisers are paying for the ink, paper and postage — it’s only fair that they benefit from the free publicity as well.
However, we never turn down good news stories, articles about business expansion, information about trends, personnel changes,etc. We’ll post news on our website for any company, regardless of whether the firm is an advertiser.
Have a dealer who is doing an exceptional job selling aftermarket products? Then pass along his or her name. Has your company made a signifcant investment in a new building or new way of moving products? Then let me know. Are sales up for your company this quarter? We’ll let the world know. I’ll always find a way to publish a good story.
Along those same lines, I try my best to attend every show/event to which I am invited, provided it fits in my travel schedule and budget. I had planned to visit the Bell show in Wisconsin Dells earlier this month, but wound up at the Consumer Electronic Show instead. My assistant editor did attend the Bell show.
January 24th, 2007 at 11:37 am
Greg let’s be frank. The regionals do not spend the money in advertising in your magazine like Stag and a few of the other Nationals. Therefore, you feel compelled to attend their shows and embrace their offerings so you have something to write about. You would not be doing your job if you didn’t. However do not lose sight or diminish the tremendous role Regionals like Bell play in the overall scheme of things! Bell is a Regional with Huge horsepower! Bell has led & championed many innovative Value Added features over the years that make it easier for our Dealers to do their business. All in all we are all trying to accomplish the same thing in different geographies that feed one important premise; delivering our Dealers with tools that make their business profitable!
The fact of the matter is we rarely benefit from accolades in the printed word like the Nationals because we do not spend the money in advertising they do.
That’s not to say some of us Regionals would not consider spending some more given a cost effective plan that focused on the regions we serve!
January 24th, 2007 at 10:00 am
Stag Parkway is everything good you say about it! The best part is its people. Without such inside reps as Molly Early in Arlington, Texas, and warehouse people who get it right, Stag would not be what it is, so give credit where credit is due!
January 23rd, 2007 at 7:00 pm
I had a hunch this might get a little action after challenging Greg on his commentary. Glad to see Mike and Jess jump in and contribute. I’ve spoken to many regional distributors and have addressed their dealer groups at annual meetings and they obviously get defensive when talking about the “big guys”. I think that could be considered an earned right for companies like Stag-Parkway and Coast. We should always recognize achievement and respect success, but that doesn’t mean that the regional distributors shouldn’t be doing something about the real or perceived market forces that are in play when it comes to distribution.
I have often suggested that the regional distributors form their own little association and take the best ideas of the group and share best practices to retain their vitality in the marketplace. Why aren’t the regional distributors joining forces on one catalog instead of many individual projects? Why aren’t the regional distributors making combined purchase decisions that will allow them to work with the margins of the large national companies?
I believe in small business driving great success when they work within their capabilities and provide outstanding customer service to their dealers. Sometimes I think the regional distributors don’t want you to know just how successful they are.
It would be interesting to hear from some of the regional distributors and see what their viewpoint is. And they should certainly take Greg up on his offer to be included in press releases, product information and regional shows.
This has always been a problem for this industry. Many companies are their own worst enemy because they don’t know how to work with the press to maximize exposure and get some free PR along the way.
Have to stop typing now … my arm still hurts!
January 23rd, 2007 at 4:20 pm
Greg, I believe your kind words are right on the money. Stag Parkway deserves your recognition for the leadership position they have taken and the substantial investment they continue to make in the RV industry. References to being a big company or small company is clearly not the issue and frankly that distracts us from the real issues of providing service and tools to the dealer and ultimately the end user.
Having attended my first Stag show I will respectfully correct my friend Bob on his reference to arm twisting as a method to supply products to RV Dealers as simply untrue.
January 23rd, 2007 at 3:31 pm
We’ve been offering sales,product,personal and technical training and educational seminars at our annual show for the last 16 years along with competive pricing and dating programs, all in a fun atmosphere without a buy in required to attend.We now offer the technical training quarterly at our facility and also provide store set-up and merchandising assistance. You don’t have to be bigger to be better. I don’t recall bumping into you at any RV shows either but maybe you’ll get an invite to our next show. Northern Wholesale Supply, MN
January 23rd, 2007 at 3:18 pm
Greg,
We certainly appreciate your kind words and reference to some of our initiatives. Ultimately, each distributor must decide which business model works best for them. For us, we know that consolidation is occuring in the market. Independent RV dealers are asking for more training - product and business! If we (distribution) don’t step up to the plate and assist at some level, we will ultimately lose … ALL DISTRIBUTION!
I do take issue with some of the blog comments that reference us as the “big guys”. Keep in mind we were a small regional distributor for much of our existence. We made the decision over a decade ago to listen more carefully to our customers and to become more involved in the success of the industry we serve. We chose a business model based on mutual success for all of our trading partners - suppliers and dealers.
January 23rd, 2007 at 2:17 pm
You’re probably right, Bob, about the outstanding regional distributors. But, I never receive any news releases, catalogs or flyers from them. I can’t recall bumping into them at any RV shows, and I am never invited to attend any of their dealer events.
That may mean they are doing the same positive things I see at Stag and NTP, but I’m just not aware of it. If there are any outstanding regional distributors doing the right things, please let me know who they are and what they’re doing. They deserve a place in the spotlight, too.
Companies don’t have to be rich or big to be a player in this industry, but they do need to be active. It’s hard for me to judge or promote what other warehouse distributors are doing when they’re not telling their own stories — and their dealers aren’t publicly singing their praises either.
January 23rd, 2007 at 2:16 pm
The advertisement for Stag Parkway was real nice. I would recommend the writer attend a regional distributor show and see firsthand the attention to detail the regional distributors put into their shows. Dealers receive valuable education, information from their vendors and all in a well organized and relaxed atmosphere that does not twist the arm of the dealer for massive spring orders. All the good shows are not in Vegas and Orlando!
January 23rd, 2007 at 2:15 pm
I agree with Bob Zagami … it sounded like a commercial …
We do business with both Bell Industries and Northern Wholesale out of St Paul, Minnesota … they both do a great job putting on their buying shows, educating our parts and service staff and offering us very competitive pricing and excellant service.
January 23rd, 2007 at 1:59 pm
Greg, I love your blog and forums and you are to be commended for opening up new channels of communications for the RV trade community, but this reads more like a commercial for Stag-Parkway with a token reference to NTP.
There are many outstanding regional distributors that give these big guys a run for their money and put a whole lot of that money back into the pockets of the dealers they support locally. The big guys may put on fancy shows but how many dealers come home with sore arms from the pressure received to write more orders to pay for the tickets and entertainment at a high class venue?