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Thanks for the support. Greg contacted me within minutes of my posting and I filled him in on the whole story.

With Greg’s blessing, I WILL gladly share the name on this blog. I agree that the dealers need to know when this back-handed stuff happens and who’s doing it.

We’re still reeling from this one because it truly hurts to believe in a manufacturer and to invest in that manufacturer by growing it in the local market, only to be cut off at the knees!!

Being the little guy, we’ve had it happen before, but it was always the big companies that did it. Never a big deal, because there was always another carbon copy brand out there to replace it.

By now, most people have moved on from this posting, so maybe it could be a future topic for Greg!

Greg, what do ya think?

Happy Independence Day to you all!! Support those troops, please!!

Mark

You told a great story but left one thing out … the names of the products and company you were dealing with. Maybe we can read between the lines, but this is the kind of information that is important to the dealers that put their future in the hands of people they think they can trust, only to be betrayed when changes occur.

I agree with Sean, the real important element of the story is how you do business and the reputation you have earned in the industry. I’m sure there are other manufacturers out there that would give anything to have this kind of loyalty and capability in a given market.

At least you can look in the mirror and get a good nights sleep after a hard days work!

You can also be a historian for your customers and prospects. Just teach them how in EVERY SINGLE EXAMPLE of a company doing what you describe, the company produces an inferior product.

We are the little dealer. The mom-n-pop that has scratched out a decent living in this industry for 40 years. Two generations of experience that lives and breathes the RV life. The handshake generation.

Unfortunately, little dealer is surrounded by the self-proclaimed “Super Centers” that put immense pressure on the manufacturers to cave in to their promises of huge numbers.

My most recent loss came from a highly regarded, very high-end, old manufacturer. They had gone through some hard times but were building a great product and had some VERY good people in place. They were non-existent in our market 5-years ago. They needed dealers.

We took on the line with a stocking/on-order commitment of five units. We maintained a three turn on inventory for four years and a 100% CSI rating with the company. We built market awareness for that manufacturer.

Things were great, customer/dealer and manufacturer were happy and dealer was making good money.

Suddenly, the management changes at the old manufacturer. Their old names start showing up at other companies. “Beware of looming changes at the old manufacturer” they warned, “they want to be the Big guy!!”

In comes the inevitable runny-nosed, cocky, twenty-something industry “veteran” as our new rep, setting up a new dealer within 75 miles; then a few months later a “Super Center” with a carbon-copy sister product just 12 miles away!!

Then, lo and behold, the carbon-copy sister product name gets dropped!! Soon after, we (the little dealer) get a cancellation notice from the “veteran” rep (now promoted to runny-nosed, cocky, twenty-something National Sales Manager for two years of loyal service!!) that we are being dropped in favor of the “Super Center’s” commitment to carry the entire product line!!

Our State has no binding recourse for us as a dealer because non-motorized RV’s are essentially not even recognized by the State, unlike motorized vehicles.

So, even though we have (had) a dealer-manufacturer agreement, I’m out of a great product line and have to explain to my loyal customers why we no longer carry such a highly regarded product.

Bottom line Bryan of Peterson Industries, yes, there are two sides to every story, but we need binding legislation to protect the roots of this industry.

Ironically, I spoke with Bryan’s company when this all happened and inquired on getting his Excel product line. To his credit (and to my disappointment because I was unaware of this other dealer), he held to his dealer commitment and turned us down because of an existing dealer about 90 miles away!!

He protected that dealer and his store’s profitability by honoring the existing dealer!!

Kudos’ to Peterson Industries! I wish there were more like you.

Mark

i think you realize that you are the exception and not the norm in the RV business today, as you pointed out some of the issues that complicate the relationship game in today’s environment.

You cerainly can run a successful business and have great relationships with dealers as you have proven time and again. However, the opposite is more the norm and people forget, or never knew, how do do business on a hand shake, a promise, and a commitment to do what is right whether it was in the favor of the manufactuer, the dealer, or the customer.

All industries are going through the relationship breakdown and it is probably not going to go back to the “good old days.” However, I’m the eternal optimist and hope that many of the manufacturers and dealers will really take a serious look at this issue and get together to make it work so that the consumer is not hurt, the dealer can make a good profit and will service anybody that shows up on his lot, and the manufacturers will make a good profit, build quality products. and support them once the transport driver pulls out of the plant driveway!

Congratulations on refusing to follow the trends of the past five to ten years that have resulted in the deterioration of the manufacturer/dealer relationship. As you have pointed out, it really doesn’t have to be this way.

Year after year, we see some new spin-off manufacturer bringing their wares to the National RV show at Louisville. Sure enough, their booth is the “buzz” of the show. It seems nearly every dealership is there wanting to be the first in their territory to sign up for this all new (same as every other cookie-cutter model on the market) unit that is going to turn them unbelievable profits. Afterall it’s just as good, maybe even better than “________” only it’s CHEAPER!!! with even more bells & whistles.

Then within a short period of time, when the manufacture is faced with the reality of warranty issues, design issues, dealer AND retail customer service, employee health care, work comp, rising distributor prices, etc. they begin to fall behind in the “optional” areas. Paying your help and suppliers is NOT optional. Paying your dealer warranty claims is (for a short period of time anyway).

Then, when the manufacturer isn’t even around for as long as the warranty they were offering, dealers feel slighted, cheated, and betrayed, leaving a bad taste in their mouths for all manufacturers. Not to mention the effect this has on that customer base that the dealer has spent so much money nurturing and caring for. What is the customer suppose to think when you have sold them a product that is suppose to be the “next best thing” and you can’t get parts to repair it, or can’t get paid from your manufacturer to do the warranty work? Or, worse yet, the company who built the unit you told them was great, now is out of business! Are they going to trust you next time around? Perhaps not.

Now here is the good news. The good old days are NOT gone (as stated by Mike Ingram). There are still manufacturers where the owners are personal friends with the dealers. There are still manufacturers where the owners are actually RV’ers and do spend time in their coaches. Nu*Wa and Numar come to mind. I am proud of the fact that Peterson Industries still has the dealer we sold the very first unit ever produced to back in 1966! And they are still in our top 10 year after year.

So, this year when the Louisville show rolls around, don’t forget to stop and visit some of those “old reliable” manufacturers who have built their businesses on hand shakes, becoming friends with their customers, and taking care of business with integrity. Then there will be no need for franchise laws.

Bryan Tillett
President
Peterson Industries, Inc

Franchise agreements are an attempt to create equality with a standard of performance between dealers of a specific product to give its consumers consistant service. In an industry where manufacturers court the biggest and best dealers but eventually settle for anyone that remotely qualifies, there developes a society of the haves and have nots. A franchise agreement will never equalize this situation until the manufacturers become true partners with their dealers in regard to service and operate as one in the customers best interest.

The biggest problem with the RV Industry is self-interest. Survival of the fittest at any cost. Cooperation and communication are anathema in its environment no matter how loud it’s screamed for.

I can remember when our industry had only ONE association. That didn’t work so we went to two and more. We’re now in so much discord that we’re going to turn over our mess to the States and the Fed.

Self-interest is blocking the very solutions that are available to every segment of this industry. It appears that it will remain so.

Why did Norcold and Dometic play their protracted games on their respective recalls, years before they became public? Communication at the time of discovery could have saved everybody millions, not to mention several lives.

If anyone has an answer to the self-interest dilemma, I have a solution for the communication problem. Call me if you like.

Mike Ingram
Huntington Beach, Ca
714-840-8002