RV Weekly

While new units sales are down it is obvious that RVers are still using, maintaining and upgrading their existing units. NOW is the time to take advantage of this increase in the continued activity by supporting our dealers to build the accessory side of their business. NOW is the perfect time to place that special emphasis on customer service and customer loyalty that will pay dividends. Not only in the immediate time but, if done in the constructive manner and with the correct focus, loyalty can be developed and preserved well into the future with endless possibilities. RV Trade Digest will be working with RVAA to assist in helping our dealer base continue to grow, learn, nurture and maintain their core customers.

In February 2009, the association initiated its “Aftermarket NOW” outreach campaign to provide the RV dealership community with additional tools and support for improving their aftermarket sales. In a teleconference meeting with, Karl J. Etshied, Executive Director RVAA, Piar Adams of Carefree of Colorado, Aaron Engberg of Winegard Company, Kevin Phillips of Thetford Corp. and RV Trade Digest asked how we could be an integral part of the campaign and help place our resources to use for the continued education and prosperity of the RV industry. By stepping up to the plate I feel that we can help supply a vital connection and conduit to the RV industry. RV Trade Digest has a history of serving the RV dealers with RVAA through our Aftermarket Success program. By continuing to partner with RVAA’s Aftermarket Now program we can help effect vital change in the industry that will pay off for the entire industry, not only NOW, but carrying on in the long term.

The RVAA Education Committee, chaired by Aaron Engberg and Kevin Phillips will oversee the campaign in presenting dealers with tangible tips and education to improve the aftermarket aspects of their operations.

Look for more information to appear on RVAA’s site, www.rvaftermarket.org and in RV Trade Digest’s print publication and our various interactive resources as well. NOW is time for change and information to ensure our customers will continue to return to the RV dealership that can provide the best that our industry has to offer. The answer is Aftermarket.

I recently had a conversation with Colin Iwasa, of Yamaha Motor Corp. on the subject of RV dealers being able to adequately maintain accessory items in their stores. We were both unsure how many dealers were using an automated stocking system and if they were able to identify the faster, more popular accessories and more importantly have the capital to maintain an adequate level in stock? This is a major concern for all business persons and part of the dilemma in a down economy.

Colin Iwasa of Yamaha Motor Corp., U.S.A. Power Equipment Division stated:

• “In 2008 Yamaha Corp. saw generator retail sales shift from the RV channel to the motorsports channel.

• The end user customer did not change. The end user customer remains RV/camping customer.

• In mid-2008 RV dealers started reducing inventory as sales and floor traffic slowed.

• Magazine and distributor ads were successful in driving customers to the RV store but customers were not able to find what they wanted because dealers reduced their inventory. The customer then went to the Yamaha motorsports dealer and often found the generator they wanted.

• Customers were more likely to find what they wanted because the motorsports dealer had it in stock.”

So, when is enough, enough? With rolling stock sales down, many dealers are reporting that repairs, accessory sales and add-ons are beginning to rebound. However, are we actually losing sales because we don’t or are unable to have adequate stock?

Where do we place our resources to be sure that we can take advantage of every opportunity?

We don’t want to lose RV accessory sales to other markets. Often when the consumer finds another supply channel they could drift away from us. It’s natural for us all to go where we can get the best service. We need to make sure that time and again it is the RV dealer. I am curious to hear your thoughts on this timely matter.

As we prepared our budget and plans for 2009 we initially intended to give you more edit and information. However, in keeping a diligent watch on the economy and, the RV industry specifically, we have revised our 2009 projections several times since the third quarter of 2008.

For 2009 we have slightly changed the number of issues of RV Trade Digest in 2009 to seven. January/February, March/April, May, June/July, August/September, October and November/December. We have carefully chosen issues and time frames that will provide the maximum coverage at the proper times. We firmly believe that this is the right move for 2009 and this will allow us to better serve the industry through sound fiscal responsibility.

Though we are right-sizing our print issues, we remain committed to providing more information through our interactive delivery system. This will help ensure that we maintain our high level of presenting timely and pertinent information on and to the RV industry.

Point of fact, Jackie and I will be working closely together to deliver more information, services and articles throughout the year utilizing both of our media systems. As we continue this voyage through somewhat uncharted waters, please keep us informed of your thoughts and also please pass along any suggestions for industry coverage that you feel will help provide value to your workday.

And, be sure to check out the redesign of both the magazine and our Web site in February.

Rodney Simmons of Blue Moon RV in Carrollton, Texas, called me yesterday to tell me about a customer, a Mr. Peter Sorrell, who allegedly drove off in the middle of the night without paying his $4,000 repair bill. The customer was staying in the RV parked on the business’ lot while multiple repairs were being completed on the forest green ’97 Safari Continental. According to Simmons, the RV had been scorched on the exterior by a fire and had melted the AC unit, vent covers and king dome. Blue Moon was repairing the Aqua-Hot system and was waiting for a new control box to arrive. The customer had been staying at the repair shop for several days and was going to California from Florida.

The Blue Moon RV lot is enclosed with a fence and Simmons had locked the gate the first couple of nights Sorrell had stayed, but decided not to lock the gate that night in case the customer had to run to the grocery store.

“I went out last night and closed the gate, it was dark and I thought, ‘Ahhh, he may need to go to the grocery store. I’m just going to leave it unlocked in case he needs to go somewhere. I was just being nice,’ Simmons says. ‘Today we were going to work out all the financing.”

Blue Moon does not require a deposit or down payment from its customers prior to repair. Its policy is they do the work and then the customer pays for it, according to Simmons.

Sorrell did leave a note stating he would return in two weeks and left a forwarding address to send the repair bill to. Simmons says calls to the customer’s cell phone go unanswered and the e-mail address the customer gave is invalid.

When filling out the police report, the police officer reportedly said, “Man, he is gone.”

Simmons wants other dealers to beware in case this gentleman attempts to get repairs at their facility. He suggests immediately calling the authorities and asks that if dealers encounter Mr. Sorrell, they contact Simmons on his cell phone at 888-800-5050.

This story presents an interesting question: “Is it legal for dealers to lock customers onto their lots to prevent this sort of thing from happening again? If not, how do dealers ensure they will be paid for repairs and customers don’t skip out?

If you have suggestions or comments for Mr. Simmons or would like to discuss your your dealership prevents this time of thing from happening, please share your comments below.

I recently received a link to a webinar the North American Trailer Dealers Association (NATDA) did on how dealers can secure wholesale financing from local sources. In the webinar, they said merely showing up at the local bank with your financials leads to failure. To be truly successful, it is important to understand the process banks use to make lending decisions and then present your case in a way that addresses what they look for when making their decisions. You can view the webinar by going here and first filling in some basic information. I thought the webinar was really great and that RV dealers could certainly take advantage of this advice as well. I’d recommend checking it out when you have a free 45 minutes.

The RV associations are also actively trying to address the credit crisis. The Recreational Vehicle Industry Association (RVIA) and Recreational Vehicle Dealers Association (RVDA) have been working at the federal level on several fronts.

Richard Coon, president of RVIA said in a recent letter to members, “Staff, in conjunction with our government affairs consultants, member companies, and stakeholders in the recreation industry, has explored various programs and legislative/regulatory initiatives the association could undertake to lessen the current economic crisis for RVIA members. Of the identified possibilities, three specific actions have been selected for immediate legislative/regulatory action.”

Coon’s list included the following:

• First, credit markets are not functioning normally, dampening vehicle sales from a shrinking pool of willing buyers. The Treasury Department recently announced plans to use the federal Troubled Asset Relief Program (TARP) funds to infuse capital into specialty lenders and nonbank institutions to improve the availability of car loans, student loans, and credit card loans. RVIA has asked the Treasury to include RV consumer and dealer floor plan loans in this liquidity facility.

• Second, part of a stimulus plan to be considered next year permits the deduction of sales and excise taxes for new car purchases. RVIA has begun to ask Congress that this proposal be modified to include RV purchases as well, or alternatively, request an incentive for the purchase of diesel motorhomes that operate on B5 and/or B20 biodiesel.

• Third, to help ensure the availability of credit, the U.S. Treasury Department should require that banks and nonbank financial concerns receiving TARP funds use this newfound liquidity to actually make consumer and business loans available. Action is needed, perhaps stronger than mere urging, to require that a portion of the remaining TARP funds be used for consumer and business loans. Economic recovery depends heavily on a rebound in consumer confidence, and consumers who are credit worthy and that encounter barriers to financing purchases will make this rebound more difficult.

A new Web site www.rvact.org has been set up to help industry members determine who they should contact in the federal government to encourage enacting these initiatives.

Richard Coon said in his letter, “Your assistance in supporting passage of the above three legislative/regulatory proposals is requested. Please contact your U.S. Congress members today by going to www.rvact.org and sending an e-mail letter. Once at the site, simply input your zip code and the names and e-mail addresses of your Congressional delegation will appear along with a sample letter which should be customized with your company-specific information. The website sends your letters directly to your members of Congress.” You can read Coon’s entire letter on everything RVIA is doing to improve the credit crisis here.

According to RVDA’s website RVDA has joined more than 75 Net Operating Loss Coalition partners to support federal legislation that would extend the net operating loss (NOL) period for small businesses. RVDA says an extended NOL carry back period is a proven economic stimulus measure, one that can deliver vital help to our nation’s struggling economy. Because capital to continue operations (payroll, debt payments, etc.) is extremely tight, if available at all, the need to transform a future tax benefit into cash today is critical to maintain otherwise viable businesses. Extending the carry back period to five years would allow companies to carry back losses to earlier profitable years.

RVDA has some comprehensive information on their Web site under the “RVDA Lender’s Toolbox link. You can access that by going here. At the site you will find advice on how to approach lenders, questions you should ask before approaching lenders and lists of lending institutions and services. This site is definitely looking into before you approach a bank for retail or flooring options.

Additionally RVIA and RVDA put together a list of lending institutions that currently offer prime lending to the auto industry that might be sources for RV retail lending. Phil Ingrassia, vice president of communications says that there are a number of dealers who have had success in securing lending from local institutions.

The question I have for bloggers today is what more can the associations and us as business owners do to do our part to overcome the credit crisis? Let’s brainstorm…