Investing In The Future

An Interview With Jim Calderbank

by Bob Zagami
Associate Editor

RV News caught up with Jim Calderbank, former director of marketing for an RV manufacturer, recently to discuss his investment in the RV industry, and how it relates to destination camping.

Calderbank, regarded as one of the new generation of industry leaders, recently purchased a picturesque and well-known destination campground in the Blue Ridge Mountains of North Carolina. He is a speaker, trainer, and now a campground owner.

RV NEWS: Jim, why on earth did you buy a campground . . . especially one as well known as Moonshine Creek?

Jim: My wife Dana and I had been looking to invest in some aspect of the RV industry. We found out about Moonshine Creek Campground being available from a friend, J.R. Caldwell.

It is beautiful, high in the mountains with a stream, and waterfalls. It's really an outstanding campground. Moonshine Creek was featured on the front page of The St Petersburg Times in 1991. Showcasing the campground as one of the more popular destinations for Floridians who head North in the summer.

The campground is located right off the Blue Ridge Parkway, close to all the Western North Carolina attractions and Asheville. The mountain location is peaceful and out of the way. It is everything you want camping to be.

RV NEWS: How did you actually acquire Moonshine Creek?

Jim: A bank was foreclosing on the property and surprisingly was not very receptive to selling it to me at first. I think the bankers were surprised to see someone inside the RV industry inquiring about the campground. We first purchased the land that controlled the access to the campground, which the bank and their lawyers did not realize. Once we pointed this out, they were very willing to cooperate with us.

We did not want to see the land be developed with home sites, or a mobile home park. Both ideas had surfaced due to the value of the land and its prime location. After awhile everyone became energized with the project. Dana and I were very blessed to be able to finally acquire it after almost a year of work and negotiation.

RV NEWS: Why invest in a campground?

Jim: The RV industry's strength is the sum of all it's parts and is only as strong as the weakest link.

Suppliers, manufacturers, dealers, and campgrounds are major links in the RV industry's chain. Without campgrounds, where would our customers go to enjoy their purchase and the promise of the RV lifestyle?

Buying the campground was a commitment to that idea. We wanted to invest in something we love.

RV NEWS: Why is Moonshine Creek known as a "Destination Campground?"

Jim: Moonshine Creek is a "Destination Campground" because of two reasons. First, being off the main roads, our campground is usually not an impulse stay as you drive at dusk. This is a place you plan to go to and want to go to . . . it's a destination. Families from the local area come back every weekend during the summer and Florida campers come back every year to escape the heat.

Second, the length of stay is longer. Some of our campers are seasonal and have Park Models on their sites. In fact, this is one area that we plan on expanding.

Whether seasonal or weekly, the bulk of our business is repeat and referral business. Our campers reserve sites and come back year after year . . . many now are second generation campers. Children that camped here years ago, now bring their children to Moonshine Creek. Many will reserve a camping cabin for their parents and have three generations there at the same time.

RV NEWS: Why is "Destination Camping" important for the RV Industry?

Jim: Being on various RVIA committees, we have documented studies that show a consumer is more likely to stay with the RV lifestyle the more often they use their RV. If a consumer uses an RV less than twenty days a year, they are more likely to leave our industry. The more you use and enjoy big-ticket discretionary RV purchases, the more likely you are to see the benefits and continue in that lifestyle. Destination camping helps realize this usage and will keep people in our lifestyle . . . purchasing and repurchasing RVs.

Second, in addition to usage, destination camping helps introduce others to this fun lifestyle and allows families and children to enjoy many happy camping memories. These treasured moments can propel a new generation of enthusiasts to purchase our products.

Finally not every RV'er wants to drive from place to place, site to site. There are many snowbirds and young, growing families that want a place to come back to and camp year after year. There are as many ways to enjoy camping and RVing as there are RVs. Destination camping fills one market segment's need.

RV NEWS: How do you manage a campground in North Carolina when your family lives in Indiana?

Jim: First, Dana does all the books and this is the bulk of the work for us as owners. Second, as with most campgrounds, we have resident managers that live on site and we employ workcampers to help with daily maintenance and upkeep.

Dana receives the paperwork weekly and processes it from home. Many of my co-workers spend much more time working on their stock portfolio than my wife does on the campground. I was surprised to learn that more people in our industry don't invest in campgrounds once I saw how efficient they are to run.

The culture and availability of campers willing and able to operate the campground make it a wonderful business to invest in.

RV NEWS: You said the benefits are much more than as an investment, what do you mean by that?

Jim: Yes, getting to do something you love is so much more than an investment; it is participating in the lifestyle that is our industry. We feel very fortunate to have this opportunity at this point in our lives and look forward to making meaningful contributions to the region improving the camping experience for all our customers and friends.

RV NEWS: Will owning a campground help you with your career in the manufacturing side of the RV business?

Jim: Absolutely, even more than I thought.

Prior to moving to Indiana I was camping and participating in rallies associated with my work while managing dealerships and on family vacations. I have also been directly involved in retail, first as a salesman, then as a sales trainer, and worked in most RV dealership management positions. This complimented what I learned in the automobile industry, prior to entering the RV industry over eight years ago. I have addressed thousands of consumers. We learned a lot from our customers. We learned what our customers wanted in a way far deeper than just working a weekend show or supporting a dealer. Maybe that is why I am so passionate when it comes to a product or service exceeding the consumer's expectations.

The campground is no different. When campers call to make reservations they are sharing the positive and negative experiences they have encountered with their RVs. When they find out that I am in the manufacturing end of the business, they really open up. This is going to provide me with first hand knowledge of what a cross-section of our industry is experiencing on a regular basis. So the process continues and I learn. It's the same in any successful business . . . we have to identify and exceed the customer's expectations of the RV lifestyle . . . in all aspects of our industry.

RV NEWS: How do you expect this information to be used for product or service improvements?

Jim: What you learn is sometimes difficult to convey to people new to the business. There are many people with RV experience but do not participate in the RV lifestyle. Some people in our industry have not camped extensively or attended rallies.

Enhancements in product and services are a trade off between functionality and cost. We need balance, but the customer's wants and needs must be met, or we will lose them. Most important is the connection with our customer to learn their expectations if we wish to succeed.

The campground will help me keep this connection. The connection that helps you understand, then satisfy that customer's wants and needs.

RV NEWS: What are your future plans for Moonshine Creek?

Jim: We have a five-year plan and a ten-year plan. The overriding principle for any plan or improvement is that it will not detract from the beauty of Moonshine Creek. We will preserve the natural setting and quiet relaxation the campers have come to expect from this destination campground. We will enhance what is there and exceed our camper's expectations . . . that is job 1! Moonshine Creek has very clean, relatively modern facilities in a natural setting, and we build on this and improve as we go.

Three major plans are in the works. First, we will build a nest of 8 or so sites next to the creek, near one of the waterfalls, with a small pavilion so that Boy Scouts and Girl Scouts can use it for camping trips.

Second, the top of the mountain overlooking the campground will be developed for seasonal visitors and Park Models. In fact the road and infrastructure is already in place and the views are spectacular.

Third, we are going to build a half dozen or so villas. These will be two bedrooms and fully stocked for couples and families to enjoy. They will be for the couple from Asheville that comes for the weekend or the family from Atlanta that comes for the fall splendor and changing colors of the leaves.

With these projects we have something for each market segment. A long-term goal is to build a small chapel where the campers can enjoy private peace and solitude. We will let the market determine other conveniences, such as access to the Internet that will enhance their visit to Moonshine Creek. We will never change the atmosphere that makes Moonshine Creek so special though.

RV NEWS: You are frequently quoted in industry publications and present seminars at our industry shows. Are there other issues you would like to address about the importance of all the players working together to bring the RV lifestyle to more people?

Jim: The industry needs the major segments to continue and improve their ability to work together.

Manufacturers, suppliers, dealers, and campgrounds. Without any one of these major players, the industry can't thrive or reach our full potential. As an example, nothing happens without the fundamental action of a customer purchasing the RV. Dealer training, product quality and functionality are critical here. This customer would leave the lifestyle quickly if there were no places to camp and enjoy the RV, so public and private campgrounds are critical for using the product. We are all responsible for each other's success.

Another example is with the new administration, we should all support the great work our various associations have done to keep public parks and lands open for camping.

RV NEWS: Don't some people in the campground industry believe public campgrounds are a direct competitor?

Jim: Yes, however it is more important overall to see public lands accessible for camping. A child that camps in Yellowstone in a pop-up, or a family that enjoys a motorhome at a National Monument, will enjoy the best our country has to offer. They will also learn to enjoy our lifestyle. These children will be the next generation of RV enthusiast, supporting our industry for years to come. So it is important for the industry as a whole.

RV NEWS: You stay quite busy in the RV industry. Do you and the family get a chance to relax and enjoy the lifestyle much?

Jim: (Laughing) I guess we are like most everyone else, we never camp as much as we like and relish the time we do. Dana and I have two teenage children that love to camp. Camping keeps the family close and we enjoy it immensely.

In fact last summer we put the tent up on the trampoline for my son and a couple of his friends. A few years back work kept us from using a vacation coach, so that weekend our daughter had a slumber party while it was parked in the driveway!

RV NEWS: With such a strong sales and marketing background, do you have any new or creative ideas to attract people to Moonshine Creek?

Jim: Well this isn't new or creative but first we believe in exceeding customer's expectations. We will build on that and give people facilities and an atmosphere that is a "Disney standard." Second, we will listen to our customers to learn what they want and how to satisfy them. Simple, but basic.

Creative marketing may get the customers to try a product or service, but ultimately the product or service has to stand-alone and meet each customer's wants and needs. To this end, we'll be bringing in local scouting and youth groups, as I mentioned earlier. We will also be targeting key markets to attract new customers to Moonshine Creek. We will also be partnering with local attractions for the benefit of the campers and developing a web site that brings the beauty and feel of the campground into the camper's home. We also have a few other ideas but we're not ready to share them with our competition just yet!

RV NEWS: Back to the industry...What do you see as the future for our industry?

Jim: I see our industry going into a critical period. We must evolve, like other industries, producing value and quality laden product that meets the lifestyle expectations of both Baby Boomers and Generation X. I see past that though and look to the day when RVs go from niche market to mainstream. We need that vision, that goal.

RV NEWS: Taking RVs mainstream? Isn't that a reach?

Jim: Perhaps, but it is a vision worth internalizing and implementing. Detroit did it with large 4WD SUV's and top of the line pick-up trucks. First they gave them the quality and functionality of the encompassing car market and then implemented lifestyle campaigns like soccer moms in SUV's. Before we knew it, trucks were the most popular vehicles on dealer lots. Trucks were everywhere, from farms and construction sites to nightclubs and boardrooms, trucks and SUV's were cool. Segment differentiation helped, compact trucks for kids and Suburbans for doctors.

Some may not realize that many RVs are less than most cars, and some motorhomes are less than those luxury 4WD SUV's or retro convertibles people are snapping up as third cars.

We need a piece of that; even a small piece would ensure our industry's future.

We should at least be one of the considerations for that discretionary dollar. And profit will be just one of the benefits.

RV NEWS: Industry profits, especially today, are attractive but what other benefits are you thinking of?

Jim: Profit and product drives the train, but go deeper and understand that we sell a lifestyle. We sell fun, help people realize dreams, give them memories and family bonding.

My good friend, D.J. Harrington, is a very smart man and as he was learning about our industry he said something I'll never forget. I'm paraphrasing here, but he said that if more people camped, more families would be closer, and maybe there would be fewer Columbines. This is the impact we have, and can have, on people.

RV NEWS: How do we improve our product?

Jim: We must make quality and functionality a commitment and a reality. We don't have to wonder how to do this either; we just need to follow the car model. Detroit did it.

Our customers have raised expectations from the other products and services they consume, the bar is high and is always being raised. In Detroit, customer service is problem solving from the bottom up, and installs processes to prevent reoccurring defects. Quality is a process installed from the top down. It starts with product engineering and is implemented with specifications and standards. There must be a system of measurement against the goal, with continuous feedback loops to correct deviation from the goal. In action, when you turn the key it works, when you have a problem it is fixed.

These are the consumer's expectations today. These are the minimum requirements to real industry growth and acceptance. It is a lot of work.

RV NEWS: How do we improve the buying experience?

Jim: The dealer or the salesperson has the critical and fundamental industry job, the retail sale of our product. The customer expects a process. The sales person must be professional, have knowledge and competency in both sales technique and product presentation. He or she must build a relationship with each individual customer, build trust, and make them feel important . . . because they really are.

They must discover their wants and needs. Show how the dealer, the salesperson, and the product satisfies those wants and needs. Prove value and benefits so it is easy for them to buy. Ask for the sale; ask again, then yet again. Follow up and service both the customer and the prospect. Again, it is a lot of work.

RV NEWS: Are dealers and manufacturers doing this?

Jim: To varying degrees, yes. I see some excellent products at industry shows. When I conduct sales and product training, I see dealers with the vision and discipline to turn prospects into buyers. I have seen manufacturers partnering with their dealers to provide tremendous customer service. So there are successes. However, when we fail, we can lose that customer and their purchases for life.

RV NEWS: What do you see in the economy in the next year?

Jim: I believe the industry will have a spotty climb back to the success of a year or two ago. This summer is critical. We have to see how the economy will absorb the stock market wealth losses and the fuel increases, and see what impact these have on consumer confidence.

Of course the higher the consumer confidence, the more discretionary purchases they make and we sell more RVs. I am hoping that RV sales can lead consumer confidence just as it appears the car and truck market has done, and outperform the indicators.

I am concerned with the electricity supply especially if a hot summer turns up the demand but also see the new administration taking proactive steps, which is a relief. We don't need further problems.

Floor planning and retail financing access may affect how fast we can gear up for an upturn and possibly slow the recovery. Dealers have to have product on the lot when the customer is ready to buy. All that said, I think by the fourth quarter it will have turned and pent up consumer demand for our products will pull us back faster than normal if the data that I see has merit.

RV NEWS: How did you handle downturns when you were in retail?

Jim: We used to tell our salespeople at the dealerships . . . don't let the customer know they aren't supposed to buy, work harder, and be more positive. Don't worry about the 10% not buying, get more of the 90% that are buying! We told our managers not to participate in the downturn, go in on more sales, work the lot and inventory harder, get someone else's share. By and large we did well. And you know what, I believe that dealers and manufacturers that have that attitude will always do well.

You can e-mail Moonshine Creek Campground at moonshinecreek@hotmail.com, or e-mail Jim and Dana Calderbank at jcalderbank@msn.com