Voices

Tom Dewalt
Dewalt's RV Inc., Easton, PA
tdewalt@dewaltsrv.com

RV sales over the Internet are starting to go where we all feared--price!

A new Internet company recently contacted me. They asked my dealership to participate in a program that would deliver us "free quality leads". The idea was the customer would pay a $49 membership fee to gain access. The member could then specify the make, model and equipment desired. Dealers in the network would be contacted by e-mail and asked to provide "best price" quotes. Only the three best prices would be forwarded to the member (with no dealer identification). The member would then pay $499 to get the full information about the dealers. Dealers incurred no cost. However they are required to agree to respond timely and give a credit to the buyer for the $499 fee off the selling price.

There is no mention of service support, pre-delivery checks, full fuel tanks, orientation, or anything else except the price. How can this do anything for the end user except be sure he/she gets as little as possible except a low price? What does the buyer expect? Will this transaction meet those expectations or exceed them? NO WAY!

Our industry has always had its share of price-only "sell'em & forget'em" sellers, but have we not learned anything? Are we doomed to becoming a price-based commodity?

Dealers wake up!
It's not the price!!!

If price alone were the issue, Wal-Mart would be selling RVs.

Our customers want more. They expect more. Sure they want to pay as little as possible for it, but they expect care. They want to be educated on how to use their RV, how to maintain it and they want someone they can count on when the RV has a problem. They expect to be RV ready when they pick it up. It's not the RV they're buying- it's all the fun they're going to have with it that they want. That's what we are selling. Hassle free fun!

Are we really meeting that need???

The RV industry's commitment to service and support is spotty at best. What manufacturer has a program that produces competent, trained technicians? What dealers are willing to pay for that kind of training? Where are the people to fill those positions? We can't even attract students to our RVTI training schools. Most RV manufacturers still do not pay retail labor rates, or a reasonable markup on parts. Parts availability is suspect. Quality remains below customer's expectations and the dealer is often relied on to be final-finish station for the product. Service is a losing proposition for many, many RV dealerships. The hassle factor is high!

Our industry is facing a support crisis!!!!

RV sales revenues support service operations. Where will we be if price becomes the sole focus? How long will we survive when our customers are unhappy with their ownership experience? What happens when price only competition erodes margins? Who will invest in the service and support? Will we wait until the problem is overwhelming and our industry's reputation is severely damaged to really do something??? We cannot afford to let price become the sole issue upon which we are judged.

Dealers need to act:

1. Understand and meet the buyer's true desire- easy to use, trouble free fun!
2. Develop a marketing plan to sell to the buyer's needs. Offer more value.
3. Refuse to participate in price-only competition. Emphasize ALL you offer.
4. Insist on a fair warranty labor rate and parts mark-ups for warranty repairs.
5. Invest in training, facilities, tools and parts inventory. Build support value.
6. Be accountable for your work and your customer's ownership experience.
7. Insist on reliable parts availability.
8. Measure your customer's satisfaction.
9. Commit to continuous improvement.
10. Treat customers the way you would want to be treated as a minimum standard.

Are we willing to really do what it takes to take full advantage of this unprecedented demographic opportunity?