Dear Editor:

Having read your fine editorial in the May 1999 issue of RV News, I find one point which needs clarification.

You state "Park trailer manufacturers fight hard to keep this market segment defined as a recreation vehicle. Otherwise they could possibly fall under the jurisdiction of HUD." The former is true; the latter needs the clarification.

As a matter of Federal Law, all park trailers are under the jurisdiction of HUD. The U.S. Congress has legislated that any trailer which exceeds 320 square feet in the set-up mode is, in fact, a manufactured house and is, thereby, under the jurisdiction of HUD and subject to its construction standards.

As a condescension to the industry, however, they declared that these units between 320-400 square feet would be defined as "small manufactured houses" and further instructed HUD to study the feasibility of setting separate standards for these units. HUD, lacking manpower, budget and intent, resolved the issue by regulation, exempting small manufactured houses as "recreation vehicles" from meeting the requirements of the HUD Manufactured Housing Code. Nevertheless, these units are, and remain, under the jurisdiction of HUD.

I hope this clarifies, rather than muddies, the waters.

Jerome C. Loftus, P.C.
Warrenton, Virginia

RV Brokers - Are They Destroying Dealer Profitability?
February 1999

Dear Editor:

We here at Bill Plemmons RV World would like to register our vote against all RV brokers. They rob customers from other states, telling them they can get service at home. Most even tell the customer that the dealer MUST service the unit by manufacturer contract!!! I have too many stories to tell. I wish as you said - manufacturers would step up to the plate, and make sure a dealer is a dealer, before they sign him up. It's causing the whole industry to lose customers. When these customers are inconvenienced by the service, or lack of, most get out of the RV lifestyle, and choose some other leisure. Ask RVIA if you don't believe me. They have the stats to prove more customers have tried the RV and got back out, than are registered RV owners today!! That in the area of 11,000,000 registrations. Ask RVIA!!! When polled, the reason was overwhelmingly SERVICE... Some because of lack of techs nationwide, some because of bad service, because many dealers only service their own. This way brokers don't use them, but legit customers traveling don't get service either. We screen the customer to find out the deal.

The industry needs to wake up, customers have other things to do besides RV's.

Thank you.

Steve Plemmons
Partner, owner
Bill Plemmons RV

Dear Editor:

I just read your past editorial on brokers. I think you are trying to solve the problem the wrong way....

A couple of thoughts... focusing on purchasing a class A or C, not a pop up.

Too many RV dealers do not act in the best interest of the consumers....inflated list prices.. ..refusing to give the consumer a list price...mark-ups, only to mark down...taking advantage of

the less than perfect knowledge of most consumers, high promises of service- yet low service given.

And the manufacturers, those that don't post a list price on the coach, contribute as well.

So when the manufacturers don't post a list price, the dealer is not telling as well, where does the consumer go for information to ensure they get a fair deal? A fair deal with a savings, or overpay potential of 1000's or tens of 1000 of $?

If the brokers weren't providing value then they wouldn't stay in business. You are recommending a sinister form of price fixing.

Look at the car business as the direction the RV business will go....:

Everyone posts the list price, the manufacturer and the retailer, minimum list price dishonesty.

The consumer can see if the retailer is marking the price up.

The manufacturers recue (sic) the sticker prices, and the retailer margins to drive sales increases, because many class A's are not sold at sticker anyway. It is the large fake gross margin that drives these negative behaviors.

You, or anyone else will not stop the trend to buy off the internet, or with brokers, at least shop for price and availability off the internet... a waste of time to try to stop this channel from growing.

Have the RV manufacturers drive improvements in minimizing the unethical retailers.

The other issue that needs to be addressed is: the retailer says buy locally at higher prices because I will take care of you with service, better prep, etc... yet the stories and reality is too many retailers don't deliver on those promises. Proof is the growth of Lazy Days.

If the local dealer in fact won't give me better service, why should I pay the higher price? Especially when the gross margins on the class A coach is up to 30%....of a very big $#.

When I bought my Winnebago Vectra in '97, I knew the list price, I could bargain fairly with the dealer and other dealers, and while I got a better price out of town, I bought locally, yet in retrospect I did not get the prep service I was promised, the service and the delivery was marginal, thus leading me to select a motorhome based on the quality of the manufacturer, the number of dealers and where they are located, and the price, with manufacturer reputation and ability to problem solve #1, and price #2.

Use your influence to solve the core problems and dynamics, not by trying to stop the brokers...which ultimately you will not be able to do.

Consumers will be better served by making it mandatory to post the list prices, having all the dealers post the list prices on their web sites and sites like yours.

Implementing a drive to improve dealer service...with both the dealer and the manufacturer responsible for that, give the consumers the info on which manufacturers are really not interested or willing to invest in service.

A class A purchase is too much $ to have the low level of consumer awareness and protection.

Thanks for the air time.

John Sargent
Gloucester, MA