Why The Doom and Gloom?
Thursday, February 28th, 2008BY DANA NELSEN
If you believe what you read each morning about the overall economy, it seems that the nation has reentered the Great Depression. The business section of many national news media Web sites have been a buzz with lots of depressing news of late. Inflation is rising. Consumer confidence indexes are down. Energy costs are through the roof. Basically, the sky is falling.
While I can’t argue the truthfulness of those macro-level economic stories, I can tell you that dealers say that much of the doom and gloom really doesn’t apply to the RV industry. Sure, some areas of the country are down more than others, but an astounding number of dealers I spoke with recently at the distributor shows told me that so far they are actually doing more business in 2008. Many dealer shows in January and February did pretty well, according to many I’ve talked with.
It seems the dealers who struggle the most are smaller dealers who may not have invested in their facilities, employees, service operations or aftermarket inventory. Dealers with a history of offering a top-notch buying experience with excellent customer service are weathering the storm just fine. In fact, they are taking market share.
At the recent Stag-Parkway show, during the opening comments, they showed a slide of how business “opportunity” is greatest during an up-turn or a down-turn of business. If what Stag says is true, present market conditions are perfect to seize market share.
While I’ve talked with a good number of dealers, I think it would be really interesting if we could get as many dealers as possible to post what part of the country they are in and give a small snapshot of how RV sales are doing in their local market. I suspect that things aren’t nearly as bad as what national news organizations would lead us to believe.
