|
It's All about Vision and Our Collective Commitment By Tom Faludy My appreciation is not just reserved for the outspoken, outright champions of the proposed effort: Tom Corson and Claire Skinner of Coachmen, Wade Thompson of Thor, Virgil Miller of Newmar, Larry Lawrence of Sunline, Martin Snoey of Holiday Rambler, Bob Strawn, Mike Molino, Tom Stinnett and Dan Pearson of RVDA. I am equally grateful for the thoughtful personal guidance of Wilbur Bontrager of Jayco,.. the objective stewardship of Carl Pfalzgraf of Atwood, Kelly Rose of Starcraft Automotive, and Paul Hanson of Winnebago,.. as well as the compelling contrarian views of Lance's Norm Jacobson. All these honest and well meaning voices helped to shape, round out and perfect the form of the proposed question at hand. Perhaps the most significant voice of all has been that of Fleetwood's Elden Smith. He has rendered a historic role in this debate; a protagonist on the issue of expansion yet unabash-ed in his differences on how we get there. Nonetheless it was Elden who helped to launch the RVIA Board's involvement in the Coalition. And it was Elden who, just days before the March Board vote on funding, forwarded a letter to reiterate his opinion that an industry wide movement focused on quality rather than advertising is the way to go, but in that letter he also expressed Fleetwood's fundamental commitment to industry unity and his assurance that Fleetwood would accept the collective wisdom of the Board. That letter, perhaps more than any other single event, unleashed the power of the idea behind the Market Expansion Coalition. And that letter also reaffirmed a fundamental priority for the Coalition (beyond an overt advertising /marketing campaign); every segment of our greater industry must work together to ensure that RV owners have a world class experience with every facet of ownership, from dealer amenities and service, to a suitably priced and appropriately appointed RV that exceeds expectations, to accessories and appliances that are simple to operate and work every time, to accessible public lands. We need ample and beautiful campgrounds, available and affordable qualified tow vehicles, favorable legislation, convenient and affordable storage sites, and white glove service ... or better yet eliminate the need for repairs. These issues will provide the Coalition with an ever evolving agenda as we promote our industry. I must also express specific thanks to the RVIA staff. Gary LaBella, Chris Morrison and Phil Ingrassia have done a tremendous job in educating our industry about the Coalition and sourcing Eisner & Associates as the creative marketing resource for our campaign. We should also be grateful to Dan Holt and Don Magary of RV News who made a significant contribution/ investment by publishing all five of the Eisner two-page spreads, full-size and full color. And without RVIA president David Humphreys, we could not have navigated the political and legal waters that at times threatened to capsize our endeavor. Finally, a tribute to RVDA for their dynamic leadership. They were as resolute about their conviction that mandatory funding on new units was the only practical solution,..as they were re- solved to respond to the funding challenge with an unprecedented effort to assess used units. So you see the real story about the status of our Market Expansion Effort is the process by which we arrived at it; the extent and diversity of dialogue; the wholesome unifying element of a shared commitment. The compelling power of a vision. And it is the vision that is the driver of this movement. Dr. Curtin underscored the dynamics and possibility of this vision in his address to the annual RVIA meeting. Yes, our market is two and one half times bigger than the market we currently serve. Yes, there is a demographic windfall in our favor. And yes, we are not the divinely ordained beneficiaries of that windfall; we have to fight to put any claim on that pool of customers because regardless of how predisposed they may be to RVs, they may be equally predisposed to a lot of other things and activities that compete for their discretionary and limited disposable income. He said we have no choice but to be active in our pursuit of these prospects and we are reminded that this is not a coming windfall. We are in it NOW; and ironically since we've had the benefit of the boom, (95 and 96) our industry shipment numbers have been and are forecasted to be, DOWN. Just because it's there doesn't make it ours. We can't get it if we don't go after it! Our current effort to individually capitalize on the opportunity is disadvantaged and disproportionate to the opportunity we seek. So now we are truly at the crossroads with the stage set for the first ever Special Membership Meeting in RVIA's 27 year history. The Board voted 18-2 in favor of the mandatory funding program with a $22 market expansion assessment (metered against RVIA seals). This special assessment must be approved by the membership of RVIA. On May 8th, in South Bend, Indiana we will once again air the issues, cast our vote and tally all the ballots. By May 9 we will know if the Coalition's effort is history or if it makes history. Although the measure has a good chance, it is premature to predict the final outcome. 74% of RVIA members who responded to a recent survey favored the campaign, however only 52% of the OEMs favored mandatory funding, 22% voluntary. How much these numbers will change now that the unity issue is no longer the central question and everyone will be able to focus on the merits of the program, is still unclear. What is clear is that RVIA's seal program is the only viable mechanism in place to generate funds via a mandatory program. A mandatory program is seen by most as the only fair way to spread the cost in proportion to the expected benefit. And the Board was insistent that we uphold a key doctrine of the Coalition, that all who stand to gain from the effort participate in the cost of the program. The mandatory new unit assessments will be supplemented by aggressive voluntary campaigns involving every facet of our industry - from chassis builders to financial institutions to suppliers, associates, dealers and campgrounds. It seems to me that there is more than enough support among RVIA members to make possible some industry-wide action to bring new buyers into our market - especially baby boomers - and to retain current owners. There is no question we can afford a $5 million campaign, after all this cost represents less than five one-hundredths of one percent of our collective revenues. In May we'll find out whether the industry can muster the resolve to actually do it. The real question is are we of the mind to do something out of the ordinary to cash in on an extraordinary opportunity? If there is a historic aspect to all of this it is that as an entire industry we may have gained a new sense of how much bigger and how much better we CAN be. If we've sown the seeds of discontent with status quo, if we aspire for a greater role within the American household, a greater share of our prospects leisure time, a bigger chunk of their discretionary income, then the membership will vote for mandatory funding. Few of us can now believe we're doomed to measure our industry's future as a fraction of our past. Fewer still can be content with shipment cycles that have us taking three steps forward and two steps back. Few can be pleased with the margin impact of cannibalizing market share in a static market. Most of us should now shudder to read yet another report from John W. DeWolf that would characterize yet another year as the second best or third best year since 1978. The issue has sparked a constructive debate that has tested and strained the seams of our current paradigms. The debate is less about what we do today, and more about how we feel about tomorrow. Clearly we are better off for having painted a grand vision,.. because if we get to the point of believing in it enough, or wanting it enough, we will at some point collectively resolve that we have not done enough to help us get there. The problem with associations and churches and community groups is that as much as you strive for consensus there will always be some legitimate disagreement about even the most well intended plan. As the debate on our industry issue comes to a final conclusion, we must be realistic and must not be deterred in our conviction or short change our destiny just to seek some conveniently benign position. I urge all RVIA members to exercise their right to vote on this key measure. I urge all dealers to participate in the process because dealers, too, will now be directly involved in the funding of the Coalition's program. Let's decide now whether we believe we have an extraordinary opportunity and whether we can muster an extraordinary effort to seize it. Let's not make this discussion a referendum on whether our quality is where it should be, or whether we need more tow vehicles or whether the Eisner creative meets every critical measure of our needs and expectations... clearly approval of the Eisner campaign becomes the catalyst for ALL the activities, ALL the concurrent actions that are required to better our collective product and sharpen the message to sell it. Finally, a personal note. For me, market expansion is not a new gig; it has been a professional and intellectual point of view since B.J. Thompson and I recommended a mass media advertising schedule to Dick Klingler at Holiday Rambler back in 1972. We wanted to take the message about the wonderful way of life RVs provide beyond the pages of the special interest vertical publications that catered to existing owners. I may be wrong, but I don't recall any RV ads in magazines like Readers Digest and Better Homes & Gardens or National Geographic since those days. And just think about all the strides our products and our industry have made since then. The fact is we still have a long way to go, and the very essence of a "Quality Mindset" would imply we will always be striving to better our products and services. But quality today is no longer a ticket for growth, it is a mandate for survival. And the truth of it is while we cannot be generally satisfied with our collective product, we can take general pride in the overall benefits and advantages our industry provides. Although I've been in the business for over 20 years, I've only been an ardent RVer for two years. In this time I've gained a new sense of enthusiasm and respect for our industry. I've tasted the freedom and adventure of the road; the excitement of pulling into a new campground; the fun of watching kids make new best friends in just 30 seconds; the enrichment of meeting fellow campers from around the country and the world. I've discovered how, above any other experience, taking an RV trip is the ultimate way to enjoy, practice and reinforce family values, all without ever giving up the comforts and conveniences of home. What a story we have to tell! What a market we've got to tell it to! What a future we have in store, if we dare to believe in the vision and make it happen. |
Back to RV News Contents Page