The “Extra Dollar” Campaign
After reading Mike Molino’s testimony before Congress regarding the sale of FEMA units, one of our readers contacted me with what I thought was a brilliant idea. What if the RV industry were to add just $1 to the price of the mandatory seals on all new units and then give that dollar to the RVDA for use in developing educational programming for all RV dealers. All in all, the extra dollar would have little impact on any specific sale, but it would generate nearly $400,000 per year to help offset the costs of developing curriculum and conducting more training courses around the country. It’s no secret that our industry is struggling to improve customer satisfaction scores. Although I agree there’s still a lot of work yet to do to improve consistent product quality, the most recent Roper study showed that dissatisfied customers at the dealer level poses a huge risk to the future profitability of dealers and manufacturers alike. Somewhere around 35 percent of customers who had a bad experience at a dealership admit they would not recommend the manufacturer or the dealer to other people. And it’s no secret the industry annually loses 25 percent of its customers who simply give up the lifestyle primarily out of frustration. While dealers certainly don’t deserve all the blame, it’s clear they play a significant role in ensuring happy, satisfied customers. RVDA has done a fantastic job in developing the RV Learning Center. They have brought on exceptional instructors, they have worked with top universities to develop effective curriculum and the RVDA convention/expo is second to none in its ability to deliver quality training, even though less than one in five RV dealerships is represented at that conference — primarily due to the cost of flying staff to Las Vegas.
But, new ways of getting training into the hands of more dealership staff are being developed all the time, whether the training is delivered by satellite or the Internet. The Extra Dollar Campaign could generate even more money to help offset the cost of providing that training to ensure more dealership staff could take advantage of the programming. Even if the money isn’t needed for more conferences or to develop more curriculums, money generated by the campaign could also be used to work with tech schools around the country to encourage more young people to consider careers in the RV industry, especially as repair technicians. There is hardly a dealership in the country that couldn’t use more trained technicians. The demand for service greatly exceeds our industry’s capacity to meet that basic customer need.
I doubt the RV Industry Association would be willing to part with any money allocated toward the Go RVing campaign, something the seal program is designed to fund. But adding a single dollar to the price of the seal to improve customer service by improving dealer education or recruitment ability is certainly worth a second look.
April 3rd, 2007 at 3:03 pm
Just another price item to be added to our invoice when we buy new units. Look at your invoices, the RVIA seal price is added as a seperate line item. The manufacturers are expecting the retail customer to pay for market expansion so why would this extra dollar be any different? They will just add it to the invoice and expect the retail customer to pay for this training anyway. The manufacturers could at least hide this cost in the base price and let us dealers think they are paying for it!
April 3rd, 2007 at 11:57 am
Well guys, I am going to have to get on my stump again, but this one causes me to speak up. It’s sad to say I don’t think the dollar will help, until the commitment is made to have a total quality industry. Let’s face it, our industry has to little accountability to the people. We don’t want the government to regulate us, but we also are allowing anyone to build almost anything and sell it. Anyone can take an Amish barn, and start a manufacturing plant with very little regulations, or expense. It makes the manufactures like Winnebago, and others have a very tough time Competing. We have too many manufactures popping up, building any kind of quality they want, with little or no parts and service systems, and no training. Then some dealer will pick it up, and some customer will buy it. It’s free enterprise, but at what, and who’s expense? Many times the dealer will then jack the price up to the level of a quality unit, and give a huge discount, or put huge money in the trade, and kill a quality product, and dealer. then that customer tells someone else, and make a qualilty dealer look like he’s ripping people off. That is a problem with manufactures. Next the problem with 80% of the dealers is all they want to do is sell something, and make a buck. We do not have enough commitment to customers for life. My dealership has made it 56 years, but it gets tougher everyday because many dealers sell junk, and more than 60% of the customers don’t know the difference. You can talk all you want about people doing research on the internet before they buy, but the statistics still show over 60% don’t know enough to make a good purchase Decision. They trust the dealer to be truthful, or they buy from an individual selling his junk because he is unhappy with the RV lifestyle. This RVving is a beautiful thing when done right, but I don’t see the commitment to do what is right by the total industry. Yes there are a few of us trying, but it’s tough, and hard to compete with the ones taking the short cuts.
To the manufacturers, and dealers who don’t take the short cuts, and do it right. My hat is off to you. Yes it take a lot of money, and work to do the right thing, but boy do you sleep good when you sell a quality product, keep your promises, and have a very high customer satisfaction rate. It is amazing how much you can get done in a day when you don’t have to talk to unhappy customers, and handle their complaints!
So somehow we have to teach the manufacturers, and dealers to do the right thing, and we must find a way to make it pay off, make them see the benefit.Our
livelihoods and future depend on getting this fixed. I say it has to be a passion for the whole deal, not just sell.
March 30th, 2007 at 5:49 pm
Yeah, stick the consumer for another buck.
March 28th, 2007 at 3:24 pm
I have to agree with Bob on this one. Another $1, or another $100 for that matter, isn’t going to solve the systemic problem.
One of the manufacturers need to step up and show some leadership in the areas Bob mentions. I think it will only take ONE and the rest will start to follow. Where is the ONE?
The funny, or sad if you really think about it, thing is that the history has already been written in the auto industry.
What is that about those who ignore history? That’s right, they are doomed.
March 28th, 2007 at 10:06 am
I am making an effort to purchase some of the FEMA trailers in order to defend myself. I hope the industry effort to auction or sell to dealers works.
They had on-site auctions for hurricane Andrew trailers which protects the dealer better because the customer has to go to auction site and wait to bid. The retail buyer turn out was minimal at that time. The on line auction throws us further in the ditch.
March 27th, 2007 at 7:08 pm
You can’t hide behind just another dollar bill. AS Wayne has pointed out, what about the revenue already beging generated on the backs of the consumer. You know every seal that goes on an RV is charged back to the buyer, so who is actually supporting the industry here?
Why can’t the suppliers, manufacturers and dealers just do what is right? Most of them do, but a lot of them don’t. Why should the manufacturers that build quality product be asked once again to subsidize the stupidity of the RV industry?
Hell, let’s put another ten dollars on every poor quality RV that leaves the manufacturing floor and winds up on the dealers lot … that will get somebody’s attention.
You can not simply keep adding more financial penalties to make up for the issues discussed over and over in these forums and Greg’s blogs?
Education should be a part of every training program, and not with another price tag attached to it. The manufacturers must train their people on how to build the RV the right way, the first time. Suppliers must implement quality control programs that assure that their products work, and don’t fail, causing problems all the way down the food chain.
Manufacturers must train dealers on selling value and not price. There’s a reason why some RVs cost $15,000, others cost $50,000 and some a whole lot more. They are priced different because they are built different. They are priced different because they use different components. They are priced different because there is value and quality built in the product. Why do we have so many sales people that can’t figure this out? Maybe because they were never taught how to sell value and quality and not make excuses for the larger price tag!
Another $400,000 in the bank accounts of Go RVing, RVDA, or RVIA is not going to make a dent in the industry problem.
When the industry, and its various constituents, decided that they are going to get serious about the poor quality that still exists in far too many products being sold today … then, and only then .. might we develop the image of quality that is unfortunately just lip service for many companies in the industry today.
No amount of money, whether it’s an extra dollar here and there, or an extra ten dollars here and there, is going to make people change their ways until they start doing, and stop talking, about QUALITY.
As I’ve said in other responses to some of Greg’s blogs, the Go RVing campaign is simply finding new prospects and customers that replace the frustrated and fed up consumers that abandon the RV lifestyle. If it was really doing what it was designed to do it would be “expanding the market.” If we are truthful with each other, we are not expanding the market. Oh we get a different demographic but they replace consumers leaving the life style. We get extreme outdoor enthusiasts that have gravitated to our toy hauler selections … but they simply replace other consumers leaving traditional travel trailers and motorhomes on the front lawn with a “for sale” sign on them!
Sorry Greg, another dollar isn’t going to solve this problem!
March 27th, 2007 at 6:35 pm
I believe any way to easily raise money for education in our field is an excellent one.As a career Master ASE - Master RVIA technician,I am primarily self -taught in my field as there is little on-going training available at most R.V. dealers and even less incentive to seek it out.The work ethic I was taught 35 years ago of personal pride and satisfaction in a job well done along with customer relations is not even recognized much less promoted anymore.Its all about the buck,No wonder our industry is struggling,our ship is sinking and we are passing out anchors ,People today STILL expect to buy a quality product and they are NOT getting it,After all, R.V.’s ARE bought with DISPOSABLE INCOME.It can very easily go somewhere else,we should be building and selling ENJOYMENT not Headaches.By the way,my 95 Bounder class A,,,,,,,Priceless
March 27th, 2007 at 5:48 pm
Tell me if my calculations are correct:
$1 extra will generate $400,000 !!
So, at $59 per seal we’re paying, x 400,000 units,
the present fee’s generate $2,360,000.
Maybe the RVDA could use a share of those funds to do the project you mention. In the few years since the fee started, it has already grown a lot.
March 27th, 2007 at 4:05 pm
I do not mean to sound jaded, but our culture values the dollar more than integrity so much so that we are not likely to see quality workmanship and service again until Jesus Christ comes back. I am looking forward to it.
March 27th, 2007 at 3:57 pm
Customer dissatisfaction comes from several different places: One, for sure is the dealer that really doesn’t care about giving real customer service or providing quality service in the first place; Second, salespersons that promise that a $15,000 product will deliver $50,000 vehicle expectations; Third, the poor Service Department that has to support that same $15,000 product; Fourth, a manufacturer that spends more time & effort in creating systems to make it almost impossible for a dealer to collect warrant claims; Fifth, which then results in the dealer possibly not providing warrant work for that particular manufacturer; and Sixth, there are some absolutely just stupid customers…I don’t mean just the ones that don’t know any better… but those customers that should have never been sold in the first place… and you knew that going into the sale. But, you also knew that if you didn’t sell them something, then someone else was going to anyway…so you might as well make the profit anyway.
Let’s see more manufacturers come up with Parts & Service programs like Winniebago. Let’s seem them make it easier & faster to handle warranty issues and eliminate the road blocks that may exist.
While I don’t see anything wrong with the $1 program, it’s not going to solve all the problem, but it can be a major step in the right direction from the dealer side of the issue.
A customer should be proud of their vehicle. The dealer should be proud to not only to sell & service his products, but how he does it as well. A manufacturer should be even more proud of their product & how it is made; and their dealer network. “Pride is a personal commitment. It is an attitude which separates Excellence from Mediocrity.” Quote from unknown source.
March 27th, 2007 at 3:16 pm
GREAT IDEA !
March 27th, 2007 at 2:29 pm
Greg,
I have been in the RV business for over 40 years. It is a shame that the RV buyer has to put up with so much repair work to be done on their new rv. I think the $1.00 per tag would be a great idea to fund education and training to keep them on the road to enjoy.
JJ
March 27th, 2007 at 2:09 pm
Greg, I doubt that anyone would want to give up the dollar. But I think we are facing a problem with the sale of these used up FEMA units. I had around 25 brought into my little town, and without any repairs, prep or clean up, they have rented a old service Station
and placed them out for retail. I made a trip over to inspect them, and found the biggest pile of junk, I have
ever seen. The stink will knock you down.
I am concered that the first time buyer will have such a
bad feeling( after purchasing one of these) that he will
never want to go RVing again.
several years ago I had a local Dr. that was looking at a
new Winnebago. But before buying, he decided to rent one
for a short trip. Nothing went right, Refr didnt work,
roof Air not cooling, and the list went on. Needless to
say, it killed my prospect. He called me when he got back
and told me it was the worst trip of his life. The story
will be the same on these worn out, dogged up trailers.