Role Reversal at The MHC Group:
Manufacturing from a retailing perspective

By Bob Zagami
Associate Editor

The new guys on the block have stepped up to the plate and are ready for all the curve balls, sliders and fast balls the veterans can throw at them. They've been sitting on the bench long enough watching the game. Now they want to play in the game.

In just the first few innings, the new team is showing that they know a little something about the game and seem to have saved their best performances for the games that really count.

The game is manufacturing, and the new guys are The MHC Group, Inc. A new management team, with a strong retail/dealer background, has launched a new RV manufacturing company.

Gordie Hakes purchased the company just about a year ago. He is the owner of Painted Post Car Mart RV dealership in Painted Post, NY, and brings more than 35 years of industry experience to the new venture.

The company recently added Jim Teeter as vice president, sales and marketing. Teeter also has a resume populated with many years of experience at the RV dealer side of the desk.

Manufacturing responsibility for the new company will rest with Fred Salazar, president, who has been associated with the former company under different ownership.

The company is very optimistic that better communications will result from the many years they have spent on the receiving end of manufactured products and support.

Jim Teeter says, "As a retailer, in the past we were always on the outside looking in. Now we are in the mix of things and we are going to produce innovative end user floor plans and products that will change the industry.

Skydeck Exterior	Skydeck Top

"Our new Skydeck and Desert Fox motorhomes are just two examples of the new kind of thinking we will bring to the marketplace. The Skydeck has a rooftop seating area with a built-in barbecue that is excellent for outdoor enthusiasts and race fans. The Desert Fox is the first motorhome built on the new Spartan ME2 mid-engine chassis and comes with a rear garage, four slide outs, two fireplaces and a cherry interior. It is indeed, your home away from home.

Teeter is working closely with his new dealers and listening to their ideas. The company is striving for innovations in manufacturing and new products that bring prospects and customers into the dealership.

Teeter noted that, "Although business was good for a number of years, there was nothing innovative since the slide out. Everything looked the same and there was very little difference in the way motorhomes looked to the buyers.

"The products themselves didn't give anybody a reason to trade. People held on to their coaches longer. When they did trade, it was just because they wanted something bigger or newer.

"We are going to give people a reason to trade. Our products will be different because we will listen to our dealers, who in turn are listening to their customers."

MHC Group feels that this is an excellent time to launch a new manufacturing company. The recent slowdown being suffered by many manufacturers allows them an opportunity to drive consumer demand with new products. They are finding a willing audience as they build their sales team and establish new dealers. The company is establishing relationships with dealers who are good marketers, creative, and willing to share their thoughts.

In return, dealers will be able to offer something different. A unique product line that will allow them to make higher margins because it will not be a stereotypical motorhome.

Jim added, "We are small and aggressive. If we think about it today, we do it today. We built both the Skydeck and the Desert Fox in less than 90 days."

At the present time, the company has about twenty active dealers. Some of these dealers had previous success with the former Mountain High Coachworks products.

All diesel motorhomes manufactured by the MHC Group are currently built on Spartan platforms.

The company is also focusing on individual dealer programs rather than launching a nationwide program that may not meet all dealer requirements.  

Teeter says, "Every dealer is different. We will develop programs that work for the dealer given their specific market and sales expertise. If we were to do a national racing program and the dealer doesn't have any sales reps that like racing, the program just isn't going to work and we both lose. We are going to build solid relationships with our dealers. If they tell me the kind of tools they need, then they will own the program and will sell it internally at the dealership level."

As this magazine is being delivered to your desktop the company will be completing a national tour of the Desert Fox. The tour took them to dealerships from California to Charlotte, Michigan and the Spartan Motors rally that was held May 29 to June 1.

Later this year MHC Group plans to introduce a Class-C motorhome and will also revamp their fifth-wheel product line. Teeter said, "We will have several innovative floor plans that consumers should like. Some companies offer so many floor plans that it just confuses the customer. And no matter how many you put on the lot; they will want the one that you don't have.

We will also private label our products if a dealer wanted their own brand name or came up with a special floor plan."

Jim concluded, "We have a unique opportunity to do some of the things that we have suggested to other manufacturers when we were on the dealer side of the table. I think it gives us a great perspective on the RV industry and we take this role very seriously.

"We are very excited about the dealers we have now. They are making a commitment to our products.

"The company is lean, trim and profitable. There is no pressure on our bottom line, so we don't have to put any pressure on their bottom line.

"It's fun, and it's only going to get better."

The company plans to show their innovative products at the Louisville show in November.

It's early in the game, but this team has every intention of winning the ballgame. Watch their lineup, it's going to contain a few surprises.