"A lot of these people are paying off within a year by refinancing. The problem is that the lender doesn't make its money in one year. They make it over a period of 42 or 48 months. When that term is shortened, they have paid a dealer reserve, they are administering an account, they look at that and say, this was an unprofitable loan. The more unprofitable loans they have in a total portfolio is going to determine the relationship they are going to have with the dealership.

"If rates go up because they need a bigger spread or reserves are cut due to the fact that they can't afford the higher reserve then it negatively impacts all dealers nationally as the Ganis-Good Sam program is doing right now. The contribution of F&I can match the above line operating percentage. If a dealer is working on a four percent net, he could put another two to four percent due to F&I. To me it's huge.

"As people like Affinity create their little oligopolies within the marketplace, not only do they make it so that it impacts our bottom line, it negatively impacts our ability to pay and compensate our personnel to allow for the kind of service that perpetuates the RV industry. And once we begin to erode the service base of knowledgeable employees we will critically impact the future of the RV industry.

"One of the reasons why we have been able to be successful in our market, I believe, is because of the professional people we have in our dealership. They are very committed and dedicated to the RV lifestyle. And they should be; they can enjoy a good life for themselves and their families because of it.

"I want somebody in the parts and accessories store that has a better calibre of answers than a hamburger-flipper ó and isn't that where we are forcing this industry to be because of people who are infiltrating the normal course of marketing?

"We spend thousands and thousands of dollars marketing to the consumer. How do we do that? Through various sources of media ó newspaper, radio, television, RV shows and others. At some point in time as these groups such as Affinity continue to gain strength, we will have diminishing returns on those investments. It negatively impacts our market ó economically and the customer's standpoint.

"Good Sam and Ganis tell us: We don't target your customer until six months so we are protecting your reserve. They might be protecting short term reserve, but on long term reserve they are croaking us.

"I have a very good friend of mine who I sold a coach to that we financed and had our normal spread. On the deal I picked up $380. I'm sitting there in his living room one day, and he says, "Good Sam sent me a flyer and I can save myself $30 a month payment ó and I'm going to refinance it. I said: Gee, great. What else am I going to say? I don't think that he actually blamed me for charging him a higher rate, but you know what? I think in the back of his mind he wanted to know why I couldn't be competitive. So here again, Affinity and Ganis continually put the doubt in the consumer's mind that this dealership is the best alternative for their purchases.

"I have spent the last 31 years building a reputation in the marketplace, then you have an outside source that doesn't know the market and comes in on price alone and negatively impacts my credibility.

"It's going to hurt my banks' attitude because they are not going to be able to provide us with the kind of service that we need. And ultimately, it's going to impact the customer's ability to get the right product and service.

"Affinity is a company that has a motivation for profit. If they can come up with a way that is self-serving, they are going to do it. Why should they have a loyalty to the dealer. Their pipeline has been advertising and consumer subscriptions. We have provided a means for them to be in business. It's all a circle or a pie. They are taking a look at that outside parameter of the pie, so to speak, and they just want more pie. Maybe that's free enterprise. They have a right to do that. The unfortunate part about it is that if you look at our distribution, the way that it is set up, it will have an impact on our dealership and our consumer.

"We make decisions all the time not to do things because of how it disrupts the marketplace ó for example, bowing out of a show in someone else's back door. There are a lot of ways you can make money, but if it hurts others, how successful are you really? Maybe the Affinity Group has a great game plan and maybe it is going to turn out real good for them, but there are a lot of other people who could be hurt.

"I'm responsible for 80 families, not just 80 employees ó 80 families of the employees that work here. When you take that responsibility in our heart, that's an awesome responsibility. I don't take that lightly.

"Maybe as dealers, we have to look at who our partners are and who our partners are not."

Competition From Within

Jim Fogdall, president, Ace Fogdall, Inc., a dealership in Cedar Falls, IA, said, "We will always have competitors, and sometimes the worst competitors can come from within. We have to be ready to compete if want customers to come to us."

It's a Little Scary. We Are Competitors.

Jim Bracco, owner, Campers Barn of Kingston, Kingston, NY, said, "When I first heard about it, it brought up the antennae. They say they want to be supporters of the industry, but I strongly feel now that they are going to be one of our competitors. They are going to be selling the parts as well as doing the advertising.

"We had a problem with Affinity in the Good Sam as far as selling finance and service contracts. I know that they have to have benefits for members, but it makes it so that the dealer can't compete.

"It's a little scary. We are competitors. We are out here competing with other dealers as well as Camping World and the Affinity Group.

"I strongly feel that eventually they are going to take in units and start selling some rolling stock on their lots.

"My thing is, I have a large parts store. I have more sku's than Camping World. My problem, or any RV dealer for that matter, is that I cannot sell as inexpensively as they do because they are eliminating the distributor. They are buying directly from the manufacturer. My prices are going to be a little higher, but I have the availability. My concern is that I was a competitor of Camping World before but it may be harder now. We have to be able to compete and I support Coast Distribution because they are committed to helping us compete with Camping World.

"As far as dealers, they have to make up their own minds about whether they still want to advertise in the magazines or other programs. I know that they have a large readership, but when you advertise you put more money in their pocket to do more things to compete with you.

"If I continue to do target inserts in the Good Sam magazine, what is it going to do to me? I just feel that anything we do with Trailer Life or any of the Affinity Group companies, it's just going to give them more clout."

Competition is Good

Rick Horsey, president, Parkview RV Center, Smyrna, DE, said, "Competition is good. What we have to focus on is building life-long relationships with our customers ó customers for life."

Where Are They Going with this Whole Thing?

Bob Schriever, general manager, Curtis Trailers, Inc., Portland, OR, said, "I'm not sure that the Trailer Life family of companies is the RV dealers friend any more.

"They want us to discount all the Good Sam members ten percent on our parts. Camping World doesn't discount Good Sam members to my knowledge. They send our customers information on refinancing their rigs or financing them from the get-go. And they also market extended warranty and RV insurance programs, it just goes on and on and on. Where does this stop. We see them diving pretty deep into the retailers pockets here.

"They don't seem to have a conscience. As a dealer there's no way I am going to be doing any advertising with them.

"We are coming out with our own program, a Curtis Frequent Buyer plan. Customers will earn points through purchases ó there'll be no more Good Sam discounts.

"I'm sure RV manufacturers do not think this impacts them, but they have to realize that what's good for their dealers is good for them.

"These are my personal views, and I'm sure there are other views. I just hope that manufacturers and suppliers stop paying for advertising to a company that is in competition with their dealer networks.

"I just recently joined the Good Sam Club just to see what's going on. In 30 days, we have a file folder an inch-and-a-half thick of mailings. Much of the promotion is in direct competition with dealers: 'Loan by phone,' 'Finance your RV for lower payments.' '15 year terms.' It just goes on and on. They are enticing the Good Sam members to come to them for everything they can. It's taking more and more out of the dealer's pockets. And now they own Camping World. Where are they going with this whole thing?

"I also hope that all the manufacturers and suppler vendors will stand behind those that are selling their products."

Could Be Scary or it Could Be Nothing.

Glenn Starkey, president, Wes Los RV Center, Vacaville, CA, said, "I don't know what effect it will have -- it's too early to tell. It could be scary or it could be nothing.

It Appears the Motivation for the Acquisition Is the Database

Stan Sunshine, president, StagParkway, a national warehouse distributor headquartered in Georgia, said, "It appears the motivation for the acquisition is the database, and the combined TL, Good Sam and Camping World list is awesome. It's more important than ever in the parts and accessory business to build relationships with customers and build lifetime relationships. It also points out the importance of individual dealers building and maintaining their own databases." Continued