Aged, overpriced and obsolete inventory
By Jeff Agans
National statistics say that one out of every “12″ auto owner in the United States owns an RV. Those are big numbers! That means that this industry isn’t going away anytime soon. We are still getting customers on our lot, however financing is getting tougher and our selection isn’t what it used to be. Most dealers that experienced the slowing down last year were forced to cut back on ordering new inventory. Flooring costs have sky rocketed! It is getting harder to make payroll and many RV dealers have gone out of business.
There have been an increasing number of RV manufacturers filing chapter 11. The manufacturers that filed chapter 11 are selling their inventory for pennies on the dollar at bank liquidation auctions. The dealers that have new inventory in their stock are unable to compete unless they are willing to lose tens of thousands of dollars. The used inventory is affected similarly. Most dealers are unable to survive under these circumstances. To add insult to injury, the lot traffic with potential buyers have slimmed way down. When they have a qualified buyer, they have to jump through a number of hoops, including financing.
Anytime there is a downturn in our economy it brings opportunity somewhere else. For every downside, there is an upside. Knowing there are opportunities available the deal seekers come out of the wood works. These deal seekers begin their search online, looking for the perfect RV. If the dealer doesn’t have his website designed with SEO (search engine optimization) the customer will never find his RV! The fact is that for every RV there is a buyer somewhere. The trick is getting the two of them together.
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