OPINION: I Have Never Seen a Market Like This

A picture of Keller Marine & RV's Michael T. Keller

As 2025 winds down, OEMs, dealers and distributors will take a hard look at what this year has taught us about inventory management and how we can apply those lessons to make smarter decisions heading into 2026.

I have never seen a market like this, but I have said that each year since 2020, so we will see what 2026 has in store.

Stabilizing Inventory: Lessons Learned

After several years of volatility, distributor stocking levels are now more in line with the realities of today’s sales environment.

There has been a clear trend toward right-sizing, both in terms of what RVs are being built and what RVs are being stocked. We are no longer in a build-it-and-they-will-come market.

Dealers and OEMs alike are learning that they need more than one turn on inventory to stay financially healthy. Focusing on multiple turns means prioritizing quality over quantity, ordering and stocking products that will move rather than just products that fill a shelf.

Hope remains that 2026 will be a bounce-back year, but that optimism needs to be tempered with discipline. The worst mistake dealers and retailers could make would be to overbuild or overstock based on expectations rather than actual data and buyer behavior.

Tariffs, Timing and Pricing

One factor influencing inventory this year was the looming tariff threat.

Some managers stocked up early to get ahead of possible disruptions. Now, with few real interruptions in 2025, some are left holding more inventory than they need. Building a dealer/retailer’s inventory stock is not necessarily bad, but carrying extra inventory underscores the importance of timing and planning.

Keller’s Marine & RV Show will take place Dec. 1-2 in Hershey, Pennsylvania. Having one of the last major industry shows of 2025 gives attendees a potential pricing advantage, especially with pre-Jan. 1 price increases looming.

For many, this is a strategic time to buy for 2026, when pricing is expected to normalize.

Buying Smart at Shows

In today’s environment, dealers’ and retailers’ focus should shift from quantity to GMROI, which stands for gross margin return on inventory.

Dealers need to prioritize big-ticket items with solid margins and turn potential, such as:

  • Air Conditioners (including new models like the 18,000 BTU Furrion AC)
  • Washer/Dryers
  • Surge Protectors
  • Inverters
  • Hitches
  • Hughes Power Centers
  • Air conditioner soft start features

While no dealer can out-buy the internet, they can out-plan it.

To out-plan online orders, dealers and retailers should start with smart, data-driven purchasing strategies, especially at trade shows, where deals are sharp and timing is critical.

Distribution: Speed Matters

Another key consideration for 2026 is fulfillment speed.

Depending on location, not every dealer and retailer can count on 48-hour delivery for lower-turning parts. If a distributor cannot supply those items quickly, then stocking at least one or two becomes essential.

Improving repair event cycle time (RECT) should also be a top priority.

Focus your stocking strategy on “hard parts,” the parts that hold up warranty repairs and delivery processes. By stocking hard parts, your goal is to reduce delays that frustrate service teams and consumers.

OEM Leadership and Discipline-Driven Inventory

The path to a more efficient 2026 starts upstream at the OEM level. The lessons of 2025 are clear:

  • Do not overbuild
  • Build higher-quality RVs
  • Force distribution to stock products that are truly needed
  • Deliver key items to dealerships in ready-to-sell quantities

Dealers do not need 10 to 15 items of every product. One or two of each high-demand product, coupled with tight inventory controls, can dramatically improve dealers’ cash flow and reduce dead stock.

The key is discipline in your ordering team and your systems. Inventory systems, not gut decisions, should drive your 2026 stocking strategy.

You should use computer systems as inventory controllers, enabling parts managers and associates to spend their time selling.

Looking Ahead

This year taught us that stability is returning, but the industry is not going back to “the way things were.”

The winners in 2026 will be those who embrace smarter inventory strategies, hold their teams accountable to data and plan ahead. Dealers and retailers should not just plan ahead for the next season, but plan for the next shift in market behavior.

By applying this year’s lessons with discipline and strategic thinking, dealers and OEMs can make 2026 a more profitable and predictable year.

 

Michael T. Keller is the director of sales at the Keller Marine & RV distributor. He has been in the role for the past 12 years. Keller graduated from Susquehanna University in 2014 with a degree in entrepreneurship and Economics.

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