Editorial

Dealers -
Give Yourself a Report Card

Don Magary, Editor

In these times of prosperity for the RV industry there is a hypnotic hum of business being done, and as a result everyone seems to be focused on taking advantage of the opportunities. As we talk to people around the industry, it's almost universal -- business is booming and from what we hear from dealers across the nation they report sales at the shows have been outstanding.

Several dealers we've talk to indicate that their January business was record breaking. And when you consider that the year just completed was the best since 1978, these reports make us wonder just how good can it get. How good was it? RVIA's shipment to retailers was a solid 15% higher than 1997. Total RV shipments rose from 254,500 units in 1997 to 292,700 units in 1998.

And while the theme of the column this month is dealers giving themselves a report card, let's first take a closer look at how the industry is faring.

It's interesting to look at RVIA's year-end market report of RV shipments. One of the areas that deserves close scrutiny is the folding camping trailer figures since this gives us a strong indication of possibly new and/or younger people joining the RV lifestyle. While the growth from 1997 (56,700 units) to 1998 (63,300 units) shows a strong 9.9% increase, the comparison is even more interesting when you consider that 10 years ago in 1988 folding camping trailer shipments were only 42,300. That's 33% growth in 10 years.

At the same time, the total shipments for all types of RVs in 1988 were 223,100 units so compared to 1998 there has been a growth of 24%. Folding Camping trailers obviously outperformed the total industry.

It's hard not to be encouraged by our good fortune as we look toward the future. Not only are consumers joining the RV camping lifestyle in record numbers, we see the trend to stay with it and move into more expensive models as further reason for optimism. One of the biggest winners last year was the motorhome segment. Class C motorhomes were up 25% from 1997, jumping from 13,600 units in 1997 to 17,000 in 1998. Class A's were up over 14%. Even though Class B motorhomes saw slight decline in 1998 compared to 1997, overall motorhomes outperformed the total industry shipments by scoring a 15.5% jump.

On the towable side the conventional travel trailer segment was the big winner -- up over 25%. That's a huge increase considering the travel trailer segment is traditionally the largest single group year after year. In 1997, nearly 79,000 units were shipped, but in 1998 that number jumped to just under 100,000 units - 98,600.

Now let's get down to some serious business -- grading ourselves. These year-end figures are a report card for dealers. I suggest you look at the percentage increases in the various segments of the industry and compare that to your sales figures from 1997 to 1998. If you surpassed the industry averages in any one category, give yourself a B. If your sales growth surpassed the industry average of 15% overall, give yourself an A+.

For those who fell short of the industry averages, you'll have to score yourself a D. And if you match the industry growth, even though you had a 15% growth, that's only average. Give yourself a C.

The purpose of this exercise is another way to analyze your business. Even if you had a 10% increase in sales from 1997 to 1998 and were pleased, you in fact may be falling behind because the shipment figures suggest that the industry grew 15% -- you may not be getting your fair share.

So the question really is this. Those scoring A's and B's are doing a lot of things right. Those that had to give yourself D's, may need to look at how you are doing business. Perhaps, your sales team needs more training. Maybe there's a better way to manage your business. Dealers that plan to be around to enjoy the prosperity that the future promises need to prepare for that success today.

RV News encourages every dealer that is not participating in the industry's education opportunities to take a serious look at attending seminars and programs such as those offered by RVDA and RVIA. A lot of people in the various organizations are devoting time and money to help dealers become more professional in the businesses. But if history can be the judge, the dealers that are more successful are those that are already taking advantage of these opportunities. And maybe those that need these opportunities the most are missing the chance to become part of that elite group of successful dealers.

We've come a long way and the RV lifestyle continues to appeal to large numbers of people who are looking for freedom and adventure. Our message to our dealer readers is simple - prepare to be part of this great and changing time

RVN