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Bob Zagami is the National Sales Director, Engineering InformationSolutions for Image-Max; a single-source, national provider of document management solutions. He studies the RV industry as a hobby and has owned trailers and motorhomes. You can reach Bob at 978-461-2143 or via e-mail (zagami@tiac.net)
After observing your industry from the sidelines for
almost twenty years, I had the opportunity to attend a major league event . . . the
Louisville RVIA extravaganza. Working with the staff of RV News and RV Technician,
I had an opportunity to meet many industry leaders, manufacturers and many of the dealers
who regularly receive these publications.
I've dedicated this article to some observations of the show and the items that have an impact on the sales activities at your dealership.
Go RVing Market Expansion Program
I attended the informative Outlook '99 breakfast and listened to industry spokesmen cover a wide variety of topics. The Go RVing campaign intrigued me -- but from a negative viewpoint. It was mentioned that only 500 dealers have actually signed up for the dealer package that cost only $125.00. Why so few?
They described a $6 million dollar market expansion program, but only $62,500 came from the individual dealers (not counting RVDA's contribution) who are delivering most of the manufactured products to the consumer. There have got to be several thousand dealers throughout the country, yet only 500 of them have chosen to participate at the $125 level -- that's about 1 percent from the group that stands to receive significant profits if the program continues to bring prospects on their dealerships.
It was mentioned at the meeting that almost 104,000 people have requested the Go RVing video and many of those people will become members of the RV community and start enjoying a lifestyle that will bring enjoyment and excitement to their families or partners.
One aspect of the program that I do not understand is the ability for a dealer to sign up to have their name sent to prospects in a given market area and they can select up to three states for such a listing service.
If I were a dealer that paid the $125 for the Go RVing Promotion Package, I would fight against anybody being listed that did not step up to the plate and support the full program.
If the industry removed the free listings, you might see an increase in support from the rest of the dealer community. Why should dealers pay money if the industry is going to list them free and provide their name to prospects that inquire about RVing?
I don't understand why every dealer would not want to be part of this program. I'm sure that most dealers who attended the Louisville show spent more than the $125 on food and liquid refreshments -- and that money didn't' help your sales and marketing programs at all!
I would urge every dealer (and there must be thousands out there) to get out their pen and become an active member in a program that can only help your dealership. What better way to show your support to the manufacturers you represent then by lining up side-by-side and doing your fair share for the industry?
Dealers will never gain the respect they deserve if they have a minor league mentality in a big league game. Maybe the program isn't everything you want it to be, but I'll tell you this -- if you are not participating in the program then you have no right to complain.
As the industry grows, dealers must bring their business operations to a higher level of professionalism, training, technology, and be willing to support the programs that are designed to generate new prospects and business opportunities.
I support our industry initiatives because it is the right thing to do for my business. I would like to hear from people who are not supporting this program if I'm way off base here. If I'm not, then there should be a lot more than 500 dealers participating in this program when we return to Louisville next December.
RV TECHNICIAN MAGAZINE
It was amazing to meet so many dealers who receive RV News magazine, but who will not subscribe to the only industry publication dedicated to the service technicians that your customers rely on to keep them on the road and in the campgrounds.
This is another small investment in your people that will provide you with a better rate of return than any other part of your business. A well-run service department, in a well-run company, will often be the biggest profit contributor. If that holds true for your company, then how can so many dealers make a conscious decision not to invest $20 in each technician on their staff?
What message do we send to our employees if we will not invest in something that will allow them to do a better job because they are becoming more proficient? How many more clients could you service if your technicians could do more work in less time?
This is not a commercial for RV Technician. Whether it is this magazine or another industry publication, how can dealers refuse to spend money on training?
I also spoke with several technicians who visited our booth, and they had never seen the magazine before. Keeping valuable information from your employees is a recipe for disaster. Poorly trained technicians are costing you money in your service department through inefficiencies and lack of proper information. They are also costing you something more important -- your customers. Today's sophisticated consumer will not accept poor quality and poor service . . . just ask the automobile industry. Fortunately, they recognized their mistakes and have significantly improved quality and service and regained business lost to foreign competitors.
Don't wait for the same thing to happen to the RV industry or your dealership.
Invest in your technicians, and you will see immediate results on the bottom line.
RV AMERICA ONLINE
Interest in the Internet reached an all-time high at Louisville this year. Non-stop demonstrations were the order of the day -- all three days. Many dealers still have not incorporated a web site into their marketing strategy but seem to understand that they must soon join their friends and competitors in cyberspace.
If you have not yet positioned yourself on the web, don't despair, you are not as far behind the technology curve as you might think. There is still plenty of time to familiarize yourself with various web options that will best fit your objectives. RV America On Line® is one option that should be considered because it is totally dedicated to the RV industry, and has been developed and managed by people who understand the RV industry.
Averaging over 200,000 visitors per month, the web site will bring prospects eager to learn more about the RV lifestyle to the many dealers who have selected RV America to host their Internet presence. Visitors, versus "hits," is an important measure of the true value of an Internet site. Many hosting services are quick to point out the number of hits they receive, but then count every click of the mouse as a "hit" when you navigate around the different site pages. The 200,000+ visitors each month will yield millions of so-called hits as people learn to explore the many interesting features of RV America and your individual site.
Don Magary, webmaster for RV America, announced that major equipment and software upgrades will now make it possible for dealers to have their own domain name for easy customer identification, searching, and reference on the Internet. If you are not familiar with domain names, it is the location by which someone can find your web site on Internet. A typical domain name would be www.rvamerica.com, and your web site would be www.yourRVcompany.com.
Computer Expertise
We had an opportunity to speak to many of the dealers in attendance at the Louisville show. It was very clear that many of the dealer principals and sales managers are not close to the computer decisions that are being made with respect to the Internet. Some knew that they had a web site in development but had no idea what the status was. Others knew "somebody" was working on a web site for them, but could not answer some very basic questions with respect to number of pages, content information, or the ability to interface with their manufacturer's web sites.
Just a word of caution here -- don't take your Internet strategy lightly. If you are going to play in computer land, then you must be intimately involved with the process every step of the way. It appears that many dealers, because they may not be familiar with computers, are all too willing to leave the decisions up to people who do not understand your particular business needs or lack a working knowledge of the RV industry. Big mistake! Get involved and find out what you are doing, and who is doing it. You are a professional in your field -- why wouldn't you work with a professional who understands computers and your industry? It's nice that your secretary's 15-year-old son or daughter can design a web page, but do they understand the business aspect of what you are trying to do? This is a business decision not a homework project.
Campground Directories
Why would The Affinity Group separate the Woodall's people from the Trailer Life people? The Trailer Life exhibit had all kinds of publications on display, but not the Woodall's directory -- you had to go to another area of the building to find them. Do they think that the dealers don't know that Affinity owns both companies? I'd like to think that the dealers are a lot smarter than this company gives them credit for.
All the more reason for the high level of activity at the Wheeler's booth this year ... a great alternative to the Affinity problem. Stop putting money in your competitors pocket -- make the switch and keep sending a message to the people who continue to take money out of your pocket and customers away from your dealership.
New Dealerships
It was interesting to see the number of "new" dealers who were in attendance at this year's show. Many of these people have recently opened a new dealership and were thirsty for ideas and systems that would allow them to compete against established veterans in their market area.
Several of the new dealers we spoke with have come into the industry from a totally unrelated business operation. Obviously, they see opportunities in the RV industry that encouraged them to start a new business operation from scratch. This is a good sign for any industry. People want to get into the RV industry because of the upside potential for dealerships who can change with the industry, adapt technologies that will help them grow their business, and deliver quality products and after-sale support.
NASCAR and RVing
Several months ago I wrote about the marketing opportunities available with the natural tie-in of NASCAR motorsports and the RV industry. Several manufacturers took advantage of their NASCAR contacts and showcased the cars and/or drivers in their exhibit area.
Fleetwood Enterprises drew the most attention by featuring Ned, Dale and Jason Jarrett at their breakfast meeting and later in their display area. Dale Jarrett addressed the breakfast group and spoke on the importance of teamwork in a competitive business environment.
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Following the breakfast the crowds followed Dale back to the Fleetwood exhibit area for a special presentation to a local ten year old who has raised over $7,500 for an area children's hospital. Dale presented the youngster, Eric Roll, with a Fleetwood check for $2,500. Eric's favorite NASCAR driver just happens to be Dale Jarrett, and the look in his eyes upon seeing his hero was priceless. This was an outstanding community service event and great publicity and exposure for Fleetwood. The display area was filled with local radio and television stations and a host of newspapers and industry trade publications.
Jarrett stayed and signed autographs for almost three hours to a never-ending line of fans and supporters.
Fleetwood switched sponsorship from Rusty Wallace to Dale Jarrett this year and he didn't disappoint them. Jarrett finished third in the NASCAR points battle behind Jeff Gordon's third Winston Cup Championship and an incredible performance by Mark Martin's team to take second place. Martin was so good, that his point total would have delivered a championship ring in any of the preceding sixteen years, but not when you are looking at the taillights of the #24 Dupont Chevrolet Monte Carlo and the Hendricks Motorsports team that has now captured four straight championships.
In other displays, Overland featured Craftsman Truck Series star Mike Wallace, NASCAR future-star Mike Skinner, and veteran race driver Cale Yarborough signing autographs at various times during the show.
The #50 Budweiser car was also on display in the Rexhall exhibit.
Although Winnebago has a large following and marketing relationships with various motorsports programs, they did not include them as part of their display at Louisville.
I think you'll continue to see an increase in NASCAR related sponsorships and direct tie-ins with the RV industry. Don't miss out on this unique opportunity to increase sales and traffic on your lot.
Big Trailers -- Big Trucks
A lot of consumers and manufacturers are getting serious about weight ratings and the problems associated with overloading a trailer or trying to pull one with an inadequate tow vehicle.
Louisville showcased several new and large tow vehicles based on medium-truck size platforms. Companies such as Cabriolet, American Star, Freightliner, Wiers, International, GMC, Chevrolet and Ford had spectacular trucks on display. This is definitely a trend to watch.
Although most dealerships do not carry trucks, you may want to consider an open house event where you invite these manufacturers to display this new generation of tow vehicles. I'm sure the truck dealers would be more than willing to participate with your dealership if it thought they could sell a few more of the $40K to $90K big trucks.
John Anderson's "A Weigh We Go" program is definitely having an impact on consumers and manufacturers. Many customers are finding out that the fashionable pick-up truck should not be the vehicle of choice when pulling heavy trailers. If you are going to pull a heavy trailer, then you better be pulling it with a heavy truck.
Summary
All indications are that the current growth trends in the RV industry will continue. Dealerships must now take the steps necessary to compete and grow their individual business operations. It's time to do an internal check of your sales process and support mechanisms to make sure that you are ready to handle the increased business.
Feel free to write, call or e-mail if you agree, disagree, or simply want to comment on an article. Thank you.
Good luck and good selling.
RVN
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