Louisville in the rear-view mirror …
By: Bob Zagami
Once again dealers and manufacturers are back at their desks after the industry’s premier marketing and sales event held annually in Louisville, Kentucky.
One of the most amazing things to me in the RV industry is the ability to attract thousands of professionals to a breakfast meeting at 6:30AM on the opening day of the show. The staff at RVIA does an incredible job of providing an interesting and motivational program to launch the big event. I know of no other industry that can pull off a similar type of meeting and get the top corporate executives, and their customers, all in one room as the sun is just coming over the horizon! Did you attend the meeting this year? What did you think of it?
On the show floor, the traffic appeared lighter than in recent years and I’m guessing that many dealerships cut back on the number of people they allowed to attend the show this year. I have not seen attendance figures yet, but would be surprised if attendance actually increased this year over the 2006 show.
Most of the industry veterans that I spoke with in the press room also felt traffic was lighter. However, traffic doesn’t always equate into dollars so it may not have any bearing on the amount of new business manufacturer’s wrote or the number of new dealerships they signed up to carry their products. Even when dealerships cut back on people, the owners are there with the checkbook and they are buying. Most reports were positive, although many preferred to say they were cautiously optimistic with their purchase decisions as they wait to see what the economy does during the holiday season. They purchased plenty of stock for their winter and spring shows and rallies and are hoping that will be the springboard for a reversal of fortunes in 2008 that will send RV statistics in an upward direction once again.
Some highlights from the show are noted below, but the real input should come from the readership of this blog. Collectively, all of you have more eyes and talked to more people than all the trade press in attendance at the show. So we are counting on you to provide us with your comments, good or bad, about what you liked about the show, what you didn’t like about the show, and what new products really caught your attention – so don’t be bashful, let us hear from you now!
Some highlights and lowlights from Louisville:
- A lot of great new products built on the Sprinter chassis showed up on the floor. This has got to be one of the hottest products that consumers will be looking at in 2008, whether they are first time buyers or veterans that are ready to downsize.
- The most innovative technology I saw at the show was the Winnebago double-slide (on the outside) that gives you a full-wall slide appearance on the inside. This wins the creativity and great engineering award in my book!
- I was impressed with the Dura-Hull design introduced by National RV on the new Riptide and Nautica models introduced at the show. The company may disappear but somebody is going to want to pick up the assets that include many devoted employees and some interesting technology that other motorhome manufacturers could use.
- The Keystone Loft was an excellent use of upward mobility with an additional room at roof level, accessed through internal stairs.
- Host Campers, following in the footsteps of their fathers (Hogue and Storch) that founded Beaver, showcased a quality four-wheel drive Type C motorhome (four seats and four doors upfront) and a three-slideout truck camper that attracted a lot of attention back in Broadbend Arena.
- Speaking of Broadbend, did you happen to see the architectural masterpiece, The Cottage, which was introduced by Breckenridge as an ultra-modern park model? That has a lot of potential in our industry, and may also to get the attention of real estate developers looking for the next big thing in vacation homes.
- The new American Coach Allegiance was the hottest thing in the Fleetwood display, giving their dealers a new entry level luxury motorhome – if you can call $340,000 an entry level unit!
- Late to the table, but worth the wait, was the new front kitchen motorcoach unveiled by Country Coach – an outstanding addition to their luxury lineup.
- Pop-ups keep popping up. The rumors of their demise are obviously false. This category of RV continues to show its staying power and may even show increased sales this year as consumers still want to enjoy the lifestyle, even if they have to do it on a reduced budget.
I could go on and on but a blog is supposed to entertain you and inform you and the most important part of this blog will be your comments about your show experiences this year and what caught your attention. Let’s see what you have to offer for the readers of the blog.
Go at it!
December 19th, 2007 at 10:54 pm
Thanks foots77 for getting the train back on the track here. You are right on target with your analysis and prognostication of the success that we will see with motorhomes built on the Sprinter and Dodge chassis this year. This could be the story of the year for the RV industry in 2008!
I must admit that I did not see the SMEV Cookers but did review their web site and thank you for bringing it to our reader’s attention. People do cook in their RV’s, its just that some manufacturers don’t believe that statement and feel they can throw anything in that opening in the kitchen and the owner’s will not know the difference. Guess what, they do, and despite claims to the contrary, they will buy convenience if it is associated with quality - they do know the difference!
I do not think manufacturers, or consumers for that matter, really want do deal directly with the factory. If some manufacturers are having difficulty providing dealers with the right parts and level of service expertise needed to keep consumers happy, then how would they ever deal with the consumers directly - who will know a lot less about their unit and problems then the qualified service professionals they have been communicating with and still having problems? This is not going to be an easy problem to solve, but the industry must grab hold of it and fix it once and for all.
Thanks for the great input.
December 19th, 2007 at 5:06 pm
Bob, in an effort to actually do you what have asked many times in this post, I think the single most impressive RV would have to be the Sprinter based units. No real specific OEM in mind; I think all floor plans and designs have real merit. As for the most impressive supplier/aftermarket product that caught my attention…it would have to be the SMEV cookers from Italy (www.smev.com). I know that many people say, “nobody cooks while traveling in their RV,” but I am personally glad to see that we are at least starting to get some decent cookers. It is especially nice for once not to have the same “hot-tin box” cooker in a $250k Class A as in an entry-level toy hauler.
At the same time, warranty issues seems to be the topic of the masses. I am very interested in knowing how a warranty administrator at a dealer would design the work flow for claims. Another person commented about having the consumer be responsible for obtaining reimbursement from the OEM; would you consider this a viable solution? Would you prefer product knowledge by working directly with each OEM supplier, or would you prefer the “one-stop” approach by coordinating claims to OEM suppliers through the OEM? Is the current model acceptable and the main problem simply prompt reimbursement? Thanks and Merry Christmas.
December 15th, 2007 at 11:13 pm
Thanks Kevin, it’s nice to have this input from RVIA.
Can you break this down further by manufacturer, dealer and supplier numbers?
December 14th, 2007 at 2:21 pm
Hi all, I’m from RVIA. Thought I’d pop in with attendance figures from the Louisville show.
Total attendance was 13,694, which is about the same as it was in 2006 (13,609).
Traffic may have felt a bit lighter because this year there was 925,000 sq. ft. of show space vs. 740,000 sq. ft. in 2006.
December 10th, 2007 at 2:09 pm
It looks to me like the show is outgroing that venue. Smaller suppliers were shoved in every nook and cranny they could find. I met several folks who were on the waiting list (I can’t imagine paying the expense to go to the show without the certainty of a spot!).
Other than that, I thought the show went well. Traffic was light, but interest in new or unique products was high, especially among Canadian dealers.
December 9th, 2007 at 7:21 pm
Perhaps, but every once in awhile you find creative people that bust through the cul-de-sac and put a road out the other side! There has to be an awakening in the RV industry and maybe it will be RVDA and RVIA that decides the time is right to build a new road and bust through the clutter that has gathered at this cul-de-sac! What do others think? Are you still out there?
December 9th, 2007 at 3:44 pm
“A committee is a cul-de-sac down which ideas are lured and then quietly strangled.” ~ Sir Barnett Cocks (1907 - 1989)
December 9th, 2007 at 9:48 am
You are on the right track, but the train has already left the station! The industry has a vehicle (no pun intended) to facilitate exactly what you have expressed here and it’s the annual RVDA Convention/Expo and the RVIA Committee Week. The real question is when the industry is going to get serious about addressing the significant quality issues, warranty claims, and parts availablility.
Although some committees and task force’s have been formed to “talk” about the issues, it’s really time for everyone in the RV industry to stop “talking” and start “doing.” I truly believe that today’s educated and highly influential consumer is about at wit’s end with the way the RV industry treats them after the sale is made.
On a quick trip through cyberspace this weekend I found far too many negative stories, videos,and blogs relating to these three issues that will challenge this industry in the Web 2.0 world. Everyone should know how news travels over the Internet and the impact it can have on individuals, companies, and an entire industry when the bad stories are now read by millions of people in a matter of hours or days.
The consumer is speaking loud and clear, but is anybody in the RV industry really listening?
The structure is in place now with RVDA and RVIA both having events that could foster direct interaction between all interested parties. Some of this activity has already begun, but the rhetoric and name calling must top and the action must be quick, effective, and successful if we want to really solve the industry’s critical problems before it is too late.
I know we have the time, resources, and talent to do it, but that’s not the issue - the real issue is do we have the guts to do it.
December 9th, 2007 at 12:10 am
Bob, reading your question in your last comment just inspired a thought that I think has some merit.
We’re rooted in this whole Louisville, show your new product idea, get attention for PRODUCT ideas mentality. It’s all so PRODUCT focused that none of the real issues get taken care of.
Maybe we should put together a “Louisville” event focused on people and processes instead of annually churning out new products for the sake of new products while we continue to have bigger issues.
Just a thought.
December 8th, 2007 at 7:54 am
Well I hope the dealers have figured it out also and keep contributing! Perhaps RVTD could add a note at the top of the blog and highlight the fact that the order of posting has changed and an explanation, especially since many of the bloggers may not be participating elsewhere in cyberspace.
Here’s a question for everyone.
What was the single most impressive RV that you saw at Louisville and what was the most impressive supplier/aftermarket product that caught your attention this year?
December 7th, 2007 at 11:44 pm
Hey Bob, you’re not the only one that was confused. And, imagine if you had been partaking in a few adult cocktails. It took me a few extra minutes to figure it out!
December 7th, 2007 at 11:23 pm
I really wasn’t drinking when I made that last posting. I didn’t notice that RVTD had changed the format on the postings and put them in chronological order starting with the very first post, so the most recent input will now be at the very end of the blog. This is standard on a lot of blogs so that readers will see the sequence from the beginning without having to go to the end and work their way back up the charts.
December 7th, 2007 at 3:04 pm
I was going to repond to Doug’s comments but it appears that they have been removed from this blog - not sure why though!
Doug presented a methodical and well thought out plan that seems to be an excellent model for smaller suppliers that are a little further down the food chain that the companies with big budgets, and even bigger problems, when it comes to warranty issues and parts availablilty.
Nonetheless, I did want to keep this particular blog to Louisville activities. I have not seen any posting from dealers that got excited about new products or even manufacturers blowing their own horn to get more attention in case they were missed in Louisville.
Let me give you some more food for thought - did you see the creativity at the Newmar display? An interesting rear kitchen motorhome. I say interesting because it is a dramatic concept that you are probably going to like, or hate. How are you customers going to react to a motorhome that would have the driver walking through the bedroom and bathroom to get to the kitchen? In fairness to the folks at Newmar, there are two doors streetside so you could walk outside and come back inside. What do you think?
They also had a great tailgating unit that could be your ultimage party coach with family and friends outside the stadium.
Ultra lightweight and lightweight trailers were all over the exhibit hall, which ones did you select for your dealership, and why?
That’s too big a show for so few comments - don’t be bashful, stick your two cents in here someplace.
December 6th, 2007 at 10:02 am
In response to Brad’s comments on warranty issues:
Our experience as a supplier has proved to us that the manufacturer and dealer seem to be in a battle of wits over warranty and have lost complete regard for the actual customer.
We have been very successful with a few OEMs that follow our warranty procedure and insist that the dealer conform to clearly written and easy to understand procedures.
The first thing that has to happen is the dealer or tech has to call us first to get an RMA. If they do not, then they automatically get denied. We then request that the technician get on the phone so we can troubleshoot the problem together. This usually takes 5 minuets or less. If a part is required we ship the part directly to the dealer. If the customer wants the part faster than UPS ground they have the option to pay for it. In most instances we do not require the part be returned because after troubleshooting with the tech the actual problem is diagnosed.
We send the OEM a monthly report on all warranty calls so they can keep track of warranty issues with our company.
I have talked to many suppliers that believe the industry spends excessive money chasing a warranty claim and when they finally get the product on their test bench only to find the unit tests good.
I am aware that not participating in the industry standard way of dealing with warranty issues denies the dealer of a 30 plus percent mark up on the parts needed which again only costs everyone in the loop more money; however, this is NO reason to penalize the customer that purchased the RV that is keeping all of us in business. Simply by focusing the effort to get the customer back on the road in the shortest possible time, at the least expense, will help the industry as a whole succeed.
It never ceases to amaze me that this industry does everything it can to do drive the customer out of our business, but they stay with us! Can’t we all work together to resolve these issues and eliminate this frustration from our customer’s RV experience?
Look in the mirror. Would you tolerate what we ask our customers to put up with once they buy an RV? I don’t think so. If I am right, then it is time to change the way we do business and fix these problems once and for all. We should always remember “The customer is king, without him there is NO business”
December 6th, 2007 at 12:23 am
Hey, don’t be so harsh on the picture! They couldn’t figure out how to get rid of Greg and get me in there because I am only the “guest” for this one. We did have discussion with RVTD about joining their team but negotiations did not work out so this is my one and only gig for RVTD but it’s an enjoyable experience!
You know what - you should appreciate the outline, the real thing is worse!
Bill - you are the man! The Outlook breakfast is a one-of-a-kind event and should be continued just as it is. RVIA does a great job of bringing some new and exciting to the event, like good ‘ole Chubby Checker - WOW!
Brad - You hit the nail on the head, straight on. The dealer should not be the last step in quality control for the manufacturer … period! Build it right the first time, check it in your own factory, and don’t expect the dealer to clean up your sloppy workmanship and defective parts before he/she can even deliver the unit to the new customer.
This is the most important area of the RV industry that needs immediate attention and correction for far too many companies building RVs today. What if we stop bragging that we are “only” ten to twenty years behind the automobile industry when it comes to quality engineering and manufacturing techniques. What if we take full advantage of the engineering design software and manufacturing processes that will guarantee quality workmanship at the factory that does not require the dealer to spend more on time, resources, and people than he/she could ever hope to get paid for from the companies he represents? Believe me, Brad is not the lone wolf crying in the forest, he is the voice of the industry as we know it today and it has to change now!
DR Johnson - Sorry DR, this sounds like a lot of sour grapes here and I’m not sure what your real message is. There is no law that says prospects can not shop dealers and there is no law that says dealers have to accomodate this type of customer to the extent that you proclaim to service. I am an advocate of exceptional customer care and service, but the customer you describe is not the norm and the service that you provided is not the norm. Something is missing in this story and I don’t sit on your side of the table so I’ll leave it up to your peers to either agree or disagree with you - but I certainly appreciate your input and thank you for taking the time to contribute to the blog.
Dave - you do an outstanding job with Pop UP Times (www.popuptimes.com) and if you start covering all the guys that go up, then you have to cover all the guys that go out! Pops up are the very foundation of this great industry and you provide an incredible service to the manufacturers that have stuck with this product segment and they had some great units at the show this year. I hope that the dealers that have looked down on pop-up campers rethink their strategy and take a serious look at adding this RV to their product mix. Their is nothing wrong with selling ten $15K pop-ups while you are waiting for somebody to come on the lot and buy that $150K motorhome, and I suspect that when the final tally is in you have made more money on the ten pop-ups than you made on the one motorhome!
Mark - Thanks for the welcome, but it’s a one-shot gig! I could never replace Greg - he did an outstanding job of getting this blog off the ground and it will be tough for RVTD to keep up the tradition, but I wish them well but it won’t be me! I guess I’m not the only one that disagrees with DR, but that’s great input and I’m glad to see other manufacturers have equalized transportation costs and that is something that all dealers - and manufacturers - should be loooking at given the economics of our industry today.
Sean - nice to see your input, and you are right on target. I know a lot of dealers that are located near a manufacturing facility and nobody has told me that the prospects (not customers yet) expect them to be the factory showroom! A dealer is a dealer, period, and they will stock what sells, not what the prospect or manufacturer thinks they should have on the lot.
Great input, but we should be hearing from more of you on the show and what you like, what you didn’t like, what you bought, and what you would never buy! Let’s take it up a notch folks.
December 5th, 2007 at 10:25 pm
Bob, great to see you writing here! Nice picture on the home page. Are you in some sort of witness protection program?
DR Johnson, it sounds like you should stop servicing other dealers customers if all that is happening. Unless there are some other business reason you want them coming to your lot. I have also never heard a customer or factory rep say, “I expect you to stock every unit because you are close to the factory.”
All considered, one rate for every dealer, regardless of location, would be a good thing for customers. THAT is the bottom line.
George, I have also been hearing great things about K-Z. I think you are one of many that has noticed. I have also been hearing a lot about Glacier Bay RVs and they are only a little over a year old.
The warranty issue needs to be addressed and some standards need to be established. A certification program should be put in place. That certification could be marketed so that the customer KNOWS the manufacturer follows the procedures and practices for trouble free warranty.
December 5th, 2007 at 8:04 pm
As a Pacific Northwest dealer, who is about as far from Elkhart as it gets, I would welcome averaged freight. Airstream does it and it certainly has put us all on equal footing. We get some help from K-Z and a few others, but equalizing freight would get a “Yes” vote from me!
About Louisville…we attended this year and enjoyed every moment. Lots of new ideas are starting to surface and we think it will bring customers out of their caves. The Keystone Loft looked awesome, although up here the rain/leak issue would drive me crazy. I thought Airstream’s Pan American toy hauler was terrific. I want to commend K-Z for their turn around! I have never seen a company do such a flip from boring to outstanding in all my years of doing this! It is nice to handle products that are Industry leaders. Funny that the Host Camper would be mentioned (three slides). We sold our first one last Saturday and it was a great deal for all concerned.
The Outlook Breakfast was outstanding. I was surprised more factory people were not there?
As far as the time, it’s difficult enough for the West Coast guys to get there at 3:30 am as it is, don’t move it any earlier or you may lose allot of us.
Merry Christmas everyone!
George
December 5th, 2007 at 5:20 pm
Hi Bob, Warranty is still my number one concern, as it continues to show the unchanged complacency of the industry. Lip service is abundant, results from manufacturers is scarce……that being said, my compliments to PACIFIC COACHWORKS of California. They are walking the walk as far as our relationship is concerned.
Regards, Bill Miller, President, Courtesy RV, Inc.
December 5th, 2007 at 5:17 pm
Bob;
Welcome to the blog (have you replaced Greg?).
~~~~~~~~~~
Regarding the averaging of freight, it is done with Holiday Rambler towables.
In response to DR Johnson… Blah, blah, blah…
While your comments might be truthful, your logic carries no weight. If you are a dealer in the Elkhart area, I do my absolute best to route MY customer away from your dealership!!
I have had MY customers stolen away by the Elkhart price hogs that are overstocked and will do any desperate thing to steal MY customer when they make the mistake of venturing on to your lot!!
Sell your product, your people and your dealership, but quit giving away your product!!
We all know that if MY customer strays onto your lot, you understand that you have one (and only one) shot at stealing them away, after I have invested years of building trust and relationship with this customer. It always comes down to PRICE and the Elkhart area is all too willing to slide under MY customer!!
All your whining is nothing more than ungrounded excuses for cowering under to skilled selling techniques!! If your sharks don’t latch on to MY bait, there is a steady stream of hundreds more “up’s” coming into town to feast on!!
Use your competitive advantage of factory proximity to try winning MY customer over, rather than buying down your cost through a freight advantage that equates to an additional price discount.
After all, the whole reason you set up shop in that area was based on being the “closest XYZ dealer to the factory”, so quit whining if you have to work a little, now and again!!
Merry Christmas, everyone!
December 5th, 2007 at 2:25 pm
Bob, I also agree that pop ups are not on the demise as some say. As the publisher for Pop UP Times magazine my only reason for attending the show was to meet with the pop up camper makers and see their new products first hand. I had to make several trips back to some of the booths because they were always crowded. That was OK with me because the better they do the better we do.
I took a long look at Keystone’s Loft and wondered if I should feature it as the industry’s biggest pop up.
December 5th, 2007 at 11:27 am
In response to the “averaging of transportation” comment, I do feel the dealers (like me)close to the factory have a advantage others a distance away do not have. You Dealers that feel that the “averaging” needs to happen, think about this. When YOUR customers come to my store,and want to look at all the models you don’t stock,(but I am expected to because I am close to the factory,) or the factory has told them they don’t have people to show them and send them to me to look at, I just say “sure come on we will show you”. Then on the way to the units YOUR Customer tells me they have purchased 3 units from you, and you sponsor their club,(no chance of selling them a unit) I just say that’s great I’m glad you like your dealer.( Then after 2 hours of going from unit to unit (I usually have 100+ units in stock)they say “while I am here, and you are so close to the factory, could you look at a problem my dealer has not been able to fix.” To which I respond, ” Sure” “Oh and by the way, I need a ????? part (under warranty) that was going to take 2-3 weeks for my Dealer to get, since I was coming here anyway, and you are right close to the factory, can you pick one up for me today?” “We have to leave to go back tomorrow” So we respond “Let me see if I can get it that quick” ( It is a $8.00 part) To which they respond “Surely you can, the factory is ony 5 miles away” “Can’t they just pull one off the line, they must have thousands of them” ” Will it be OK for us to say in one of your campsites tonight since you and going to look at our problem” (under warranty of course) I also forgot to say they had brought friends with them that might be interested in trading for a new $45,000 5th wheel. ( Thats why we were looking at all the different models) We find out from them that owe $22,000 on their $11,500 trade in and want to be at the same payment they are now.
So to wrap up here. We spend 2 hours showing, 1 hour fixing, 1 night staying, 1/2 hour traveling,1/2 hour submitting a claim for $48.00 to find out it was denied because it had been fixed before by the selling dealer.
Now, Is it still unfair?
December 5th, 2007 at 10:51 am
Bob, Chuck,
The warranty issue continues to be huge. The amount of time it takes to do all aspects of the job, from service writer, manager, yard person, parts dept, warranty writer, and office staff, many who have to touch these tickets multiple times is excessive and arguably a “no win” for the dealer or manufacturer.
If the manufacturer sent us dealers products that were better from the start I don’t believe we’d be having this conversation!
Some manufacturers believe we are using warranty to add profit dollars to our bottom line. Some dealers feel that with adjusted time allowances that serious money is lost (hmmmm why don’t we work on orphan owners units?)
Fix the issue at the point of manufacturer and most of the problem goes away.
December 5th, 2007 at 9:57 am
Yes of course I attended OUTLOOK 2008. I have been attending the OUTLOOK breakfasts for many years now. I think this year’s was one of the best yet. Kempthorne, Gardner, Wallace and Hillary–all very inspiring. The surprise “Twist” of the Show… Chubby Cheker naturally; what a hoot what a hit! These kickoff events are a great way to start the annual Louisville Show and worth rolling out of bed way before the crack of dawn to attend. Keep them coming.
December 4th, 2007 at 10:28 pm
Chuck,
You bring up valid points on an issue of dispute among many RV industry constituents, but that problem isn’t going to get resolved on the floor of the Louisville show. The Go RVing committee has established working groups to address this, and other, key issues facing the industry but as of now a lot of this information has not been released to the press.
I have seen sloppy paperwork and abuse on the dealers side and I’ve seen incredibly poor customer/dealer service from several manufacturers. As you point out, the real victim here is the consumer - your customer - and you are the manufacturer’s customer.
If the industry doesn’t get very aggressive about resolving these issues, it will continue to reflect poorly on the industry and people will abandon the RV lifestyle they truly enjoy.
Parts are the problem, people are the solution!
December 4th, 2007 at 10:23 pm
M.G.
I didn’t say that we should change the time of the Outlook Breakfast! Why change something that works so well for the 1000-1200 people that show up each year? The fast-paced event brings everybody up-to-date with RVIA activities and takes them right up to showtime.
On your other issue, Host Campers (mentioned above) are equalizing transportation costs for all dealers so that there is not a disparity based on distance from the facotry in Bend, OR. I have not had much experience with this issue so it would be helpful if others post some information on other manufacturers that also try to equalize this cost across all dealers.
December 4th, 2007 at 5:26 pm
Bob yes the show was again well done by all RVIA members.
The major objective of RVDA members is when is RVIA going to address the problems with parts, and payment of the right amount of warranty incurred by dealers that are not trying to stick them? When a RVDA dealers wants to talk about this subject the RVIA members have more pressing matters to take care of. When you want to talk about buying then they have all the time that you want plus. We as dealers don’t want to have to spend the enormous amount of administrative time it takes to document,take pictures, send e-mail, and then have to do all over again because they lost the stuff. I understand that this is a long talked about subject but when is the RVIA going to stand up and say enough of this and start getting the customer first and not the dollar, and yes I understand they have to make money, but so do we and the customer has to be taken care of or the RVIA will have much bigger problems. My thoughts thank you
Chuck
December 4th, 2007 at 5:23 pm
Your right! The 6:30 meeting needs to be moved up a bit.
What we need to incorporate, is averaging of transportation across the country like the automotive industry has done forever.
It’s unfair competition for dealers that have their stores further away from the maunufactures. Especially dealers trying to compete on the internet.