However, there is strength in numbers and there is nothing wrong with selling ten trailers instead of one motorhome, except that you have to work harder and longer to accomplish the same result.

The demographics of the industry and its potential customer opportunities support the logic of increased TT sales but it doesn’t seem to be happening.

There are clear indications that the dealers that focus on this market segment and present the product in a lifestyle setting, instead of squeezed together on the lot, are still doing quite well. They are focused, have developed an intelligent sales and marketing strategy, spend a lot of time with prospects to make sure they understand the RV lifestyle and the product that will best suit their needs, represent just a few manufacturers and do it very well, and have a dealership that is inviting, educational and non-threatening to the new customers we have to create every day. These dealers do not try to be all inclusive and sell a few of everything available on the market today. We have dealers in this industry that subscribe to this marketing plan and they do quite well every year, despite the economy, the gas prices, or the impact of the Go RVing lead campaign.

They have taken responsibility for their own prospecting, lead development and follow-up, customer presentations, educating their sales teams, presenting the products in a professional manner, and have made the purchase decision an exciting moment for the new RVer and not an intimidating or brow-beating experience by a sales rep that only wants to sell a product and has no clue as to why the prospect wants to buy and use the product.

UNITED RECREATIONAL VEHICLES LLC.
BUSINESS SALES PLAN

In twenty-five years the RV industry has developed into a powerhouse with or without wheels. The dealers and networks, associations, organizations and companies all are experiencing very impressive growth. Total RV shipments will exceed 384,000 for this year and the next coming one, relatively the same around 342,000 for next year. Even with declines because of fuel costs, equity line borrowing, consumers job outlooks, only smaller gains-adjusted incomes or even decreased disposable income more people in the thousands according GoRving are becoming interested ever single day.

More RVs will be shipped this coming year than ever before and this trend will not stop until the end of the decade. More than one source is reporting this. The dealers and networks of North Americas best stores operations are positioning themselves to be in the future customer’s direct sights.

The interesting parts of the RV Market are conventional travel trailers numbers are where to find the pockets of growth. Can we find vertical markets with prospective customers? The Recreation Vehicles Industry association (RVIA) data states: “The Travel Trailers market is expected to decline in 2007 due to and reflects a normal pattern of change and will then reflect strong second half of year sales.” The largest portion for the decline next year is because of size of trailers and required tow a vehicle not matching.

Small Travel Trailers are where the beginners RVers started. The University of Michigan released next years figures to support the shift and the great opportunity:
· Shipping from manufactures will increase 11.3%.
· The potential RV age group (Baby Boomers) 44-64 will reach 57 million by the end of the decade.
· That number is 11,000 people per day until the decade. That is a huge direct target market.
· Disposable incomes figures show increases are to be an estimate 3% more than last year.
· The best indicators after surveys of people still going to travel in this year in the USA is next year 16.4 million light weight cars & trucks will be sold here in the USA.
Purchasing shifts as a result of fuel and the fact that people are still doing things outdoors is driving our industry to look very hard to meet the demands of our customers. Next year the information tells us the people want a reasonably priced way to go outside for walking, camping, boating Rving.

I think people’s perceptions about motorized units is based upon the desire to appear more affluent than they may actually be. Remember the Dezi and Lucy movie [from the ’50’s] “The Long Trailer”? Basically, it poked fun at travel trailers. And for years, travel trailers have [subconsciously] been seen as “Joe Six Pack’s” preferred mode of RV travel (and the industry probably designs them for just such a market share.) That statement doesn’t mean to imply that travel trailers are, or should be, viewed as inferior. They are actually more practical in their applications. But the societally-viewed difference between driving an RV and towing one has created a class-distinction gulf in opinion. And that’s just human nature.

It really doesn’t matter what particular type of RV unit we’re talking about - the real issue to be discussed at this time should be “What’s the best way(s) for dealers to react to the economic landscape?” My ‘pat’ answer - stop thinking you’re going to get a 40% markup on everything you sell and focus on after-sales appreciation through various types of incentive programs geared towards making the customer feel satisfied that they chose you to do business with in the first place. Even if you offer a “Free oil change and filter” at the 5K mile mark to select [or not] customers (and how much is that really going to cost you?), what you’ll get in return could well be the very thing we all want to keep happening - continued good PR by word-of-mouth. Do whatever it takes (within legal boundaries, of course) to make your customers happy! Use your imagination and you’ll be surprised at how much people will appreciate your ongoing interest in their satisfaction. You’d want that, too, wouldn’t you?

“Ya’ll honk as you go by.”

The second consumer concern is escalating gas prices. I think this will be a major deterent to new purchases this Spring and Summer but will hopefully rebound in the Fall. It is giving people cause for concern and a reason to delay their discretionary income until they feel more comfortable about real estate, the economy, the war and gas.

I believe the greatest impact is on the very group of people the industry has seen an increase in sales activty over the past few years … young families and the 35-55 age groups. Young families because they can afford to wait a year and see what happens, and the 35-55 who now fear that the equity they are building up in their homes is rapidly disappearing and they will delay major purchases.

I sure hope I’m 100% wrong on both counts! Please tell me I am . . . . .

1) Years ago, people used vans and large cars for towing travel trailers. The one’s that used pick-ups found they were highway versions of farm wagons and woefully underpowered.

Today, everyone and their brother owns a Ford, Dodge or GM H-D truck (and now Nissan and Toyota are on their way), usually with a diesel motor. These trucks are just as luxurious as a luxury car and the majority now are crew cab (or in Dodge’s case, Mega Cab) trucks.

The pick-up truck is the family “station wagon” of the new “Boomer” millenium and is used as the everyday vehicle. Momma’s very happy with the new truck with that whisper quiet diesel!

Now add to that these factors:

2) The towability of a FW is still inherently better than that of travel trailers. If a person goes to the extreme of a Hensley (awesome hitch system, by the way) or a Pull-Rite, they will actually have more invested than they do in the FW system. They will also have much less stress as they head down the road pulling the FW during less than ideal weather situations. Momma’s happy with the FW!

3) We happen to be a Heartland dealer. I have to say it’s been more fun with this product than anything I can remember since we started back in the ’60s. The reason it is more fun is because Heartland realizes the artist’s pallet is unlimited when designing FW’s!!

They have completely abandoned the production of travel trailers to key on the never-ending strategy of coming up with ingenious ideas and the “WOW” factor in their FW’s.

With a travel trailer, the manufacturer is restricted by weight, length, interior height, exterior storage, balance, excessive hitch weights etc. which are simply not much of a burden on a FW.

Motor homes are now enjoying the luxury of higher GVW’s which in turn allows the manufacturer to be more creative.

I can imagine we will start seeing units with 6-7 slides, extending out the rear or up through the roof!!
The sky’s the limit for creativity on fifth wheels. Momma loves her luxurious new home and she’s very happy!!

That’s also why luxury travel trailers are nearly a thing of the past and trailers are almost exclusively relegated to entry level cost for first time buyers.

4) The FW chassis is also much sturdier to handle the ever increasing size of the unit. You can go to that private front bath/bedroom area without all the shakin’ and squeakin’ of about 99% of the travel trailers. Momma really likes that!!

5) Lastly, more and more people have us deliver that luxurious new FW to a permanent camp-site (right next to the Jones’ new one). It’s all about being “one-up” on the Jones’. Now that momma’s so dang happy, you can bet that daddy’s gonna be real happy!!

Take care and keep up the great articles, Greg!