EDITORIAL

Storm Warnings?

It's been an interesting business year so far and now it's time to start planning for next year. As we look back a few months we've seen motorhome shipments fall off dramatically from last year as a result of higher interest rates and fuel prices. This should send us, as an industry, a strong signal that while we have been riding the crest of the wave of baby boomers coming into the market, we are not completely insulated from some stormy seas on this voyage.

But it's not time to panic. As we talk to dealers around the country there's no doubt that many have felt the soft motorhome market; however, towable RV sales remain high. We've seen several dealers drop their motorized lines and intend to concentrate on towables.

To put things in perspective, remember how great 1998 was?

RV shipments were soaring and everyone was elated. Now this year, motorhome shipments are down and the sustained growth has stalled. But if you compare the year-to-date motorhome shipments for June 1998 with the year-to-date June 2000 shipments, you get a completely different picture. For example, Class A motorhome shipments in 1998 for June were 20,700 units and June 2000 shipments were 23,700. Three thousand more Class A's shipped in 2000 than 1998 ­ not too bad, right? Class A motorhome shipments for 2000 are running 4.9% ahead of 1998 figures. And overall the year-to-date motorhome shipments in June 1998 were 31,600 units and in 2000, 35.300, or 11.2% ahead of 1998. It's only when you compare the 2000 numbers with the 1999 figures that we see motorhome shipments are down. And total RV shipments are still running 2.3% ahead of 1999. It's a dip in motorhome sales in a steady growth pattern; it's not a disaster.

Anyone who has been in the RV market for more than a couple of years recognizes that traditionally the industry fluctuates, and the business is especially vulnerable when consumer confidence erodes or if fuel prices and interest rates go up.

So I wouldn't suggest that we go into survival mode; however, I do think this little storm should wake us up to the realities of doing business in this industry and reinforce our commitment to make sure we are prepared to capture as much of the market as possible.

The key to all of our success, it seems to me, is as it has always been ­ and that's the RV dealer. A dealer depends on manufacturers and suppliers to give them competitive products to sell, but it all finally boils down to the dealer's professionalism and selling ability.

And it's not just interest rates and fuel prices that might erode profits for dealers; there are some other factors in play today that could have a negative impact on a lot of dealers' profits. We've discussed here before the potential, loss of sales to Camping World now that this mass merchandiser has gotten into the rolling stock business.

Another potential hazard for the dealer's bank account is the Internet. The good thing about this "hazard" is it can be a positive rather than a negative.

For a dealer to be successful today, he or she must not only have a strong Internet presence, but also understand how to maximize this new medium and make it a standalone profit center.

With organizations such as IRV.com trying to take a dealer's sales and the effective marketing of other organizations that have figured out how to use the Internet, knowing how to compete in this marketplace is becoming more and more important every day.

Another of the keys to a dealer's success is customer care, taking care of that RV buyer ­ your customer. I think we all could learn how to do this better.

And then, as always, dealers need to be good business people. Running an RV dealership is growing more complex all the time so the dealer can never know everything there is to know about business, it simply changes too fast and too often

Now the good news is that RV dealers don't have to run down to the nearest college and enroll in business courses, although that would never hurt.

Fortunately, the national dealers' association, RVDA, is standing in the wings ready to lend a helping hand.

Later this month, the annual RVDA dealer convention will be held in Orlando, FL, and there will be opportunities to learn more about almost every item we discussed above.

RVDA's Convention/Expo is probably more important now than it has ever been. Changing market conditions, customer attitudes, and even new competitors make it essential for RV retailers to stay on top of the latest information available. And RVDA's convention is really the only national educational event organized by RV dealers . . . for RV dealers.

Some of the educational opportunities this year include, Tom King's "Sales Techniques" seminar. King will focus on enhancing dealer presentation skills and helping them maximize their follow-up skills.

Then there's a seminar on "Planning Your Dealership". RV dealers will be able to learn strategies and layouts for expanding and relocating their dealerships. Industry expert, Chuck Marzahn, is presenting this seminar. Marzahn will provide cost effective dealership expansion tips that will help increase sales and save time, effort, and money.

And who better to learn from than Disney on customer care. The Disney Institute will present "Customer Service -- Disney Style." This is ideal for dealers and managers who want to learn proven methods for providing world-class customer care. The Disney Approach to Quality Service explores philosophies and strategies for understanding customers' needs and expectations, implementing a sound service infrastructure, and communicating service standards throughout your organization. The Disney Approach to Quality Service has many useful applications in the RV industry and is designed to address specific "real world" business issues.

And the Internet is not being overlooked either. In addition to a presentation by a successful Internet marketer in the automotive market, RVDA has planned a "Cyber Café."

Dealers will be able to check email, browse their favorite web site or even learn how to surf the Web from computer experts.

Traditionally, only about one in ten RV dealers take advantage of the annual dealer convention, but with so many challenges and opportunities looming on the horizon, it has never been more important for dealers to keep themselves informed and get as much education as they can, and there is no better place to accomplish this than this event.

One dealer who knows the importance of RVDA and the opportunities the national convention offers is current RVDA president, Randy Biles, Pikes Peak Traveland in Colorado Springs, CO. He said, "I attribute much of our dealership's growth to our involvement with RVDA and our participation in the convention. We've been able to take the ideas presented at the various workshops and educational sessions and mold them to fit our market.

"While the RVDA Convention/Expo is a great source for educational workshops, I feel that I have learned as much from my fellow dealers who also attend. At the convention we have many opportunities to learn from our peers and to share success stories, so I'm looking forward to the morning "chatroom" sessions and the other opportunities for networking throughout the convention.

"I have found that many of us share common business problems and often someone else may have found the resolution to the same dilemma. Many times we are not breaking new ground and some of our contemporaries have already solved a similar problem and are happy to share their success stories with others."

If you want to be better equipped to weather the stormy seas that are sure to come, you owe it to yourself and your business to get to this year's RVDA convention ­ and it's not too late to make the decision to attend.

RVN