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You can hear the rumbling
now. You can see smoke off in
the distance, and it’s not a bonfire,
but the steam coming out
of the ears of the dealers. The
ground will soon be shaking as
new models roll off the assembly
line and on to dealer’s lots
before they have even had a
chance to profitably sell off the
inventory of the prior years’
models.
The model year change
argument brings out the best
and the worst of manufacturers
and dealers and their respective
associations.
For all the meetings, and all
the committees, and all the conferences
… the dealers and
manufacturers, even with the
good intentions of RVDA and
RVIA, still can’t get everybody in
the same room, around the
same table, and come out with
a mutually acceptable agreement
that settles the argument
once and for all.
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Why can’t this industry
agree upon a formula that
would not really hurt anybody,
but would help many people,
including the very dealers and
manufacturers who spend so
much time arguing against such
a plan?
I think back to my youth
and the excitement that always
awaited us after the Summer
school vacation. Back then, all
new automobiles were introduced
after Labor Day. The
new cars came in on auto haulers
and were covered with
tarps so that you couldn’t see
the new designs and exterior
embellishments. The newspaper
ads announcing the arrival
of the new models were just
teasers that would show a headlight
or taillight and leave the
rest to the unbounded enthusiasm
and excitement that everyone
looked forward to.
Yes that was many years
ago. But guess what … it
worked. Look at the automobile
industry now, and learn
from the decisions they have
made.
New models are released
randomly throughout the year
and with no logic or forethought.
New models carry a
nameplate and year that could
be two years away without any
comprehensible reason, except
self-preservation and confusion.
There is no such thing as a
model year in the automotive
world anymore. Neither is there
any youthful enthusiasm associated
with new model introductions.
Is there a lesson to be
learned from all of this? Can
the RV industry, before it is too
late, realize the importance of a
standardized program and
model year introductions that
will serve the best interests of
the manufacturers who have to
make them, the dealers who
have to sell them, and the RV
consumer who we hope will
continue to buy them?
I think so.
There are many ways to gain
a competitive advantage over
others without causing confusion
in the marketplace. Of the
three groups that are critical in
the selling of an RV, the manufacturers,
dealers and consumers;
the two that always win
are the manufacturers and consumers
and the one that always
loses is the dealer.
By the time you read this
editorial, many dealers have
already seen the new model
year offerings at private dealer
days being held throughout the
country. With less than half the
year gone from the calendar,
dealers have been forced to
switch their thinking process
and begin to focus on what is
coming to their lots in the next
few months. The next thing
that hits them is the need to
empty the lot of existing inventory,
even if it means they must
give up precious profit to stay in
tune with the dictates of the
manufacturers they represent.
Consumers are smarter
these days, and realize that if
they didn’t buy during the
Spring show season, then they
might as well wait until the
dealer reaches the panic point
and must dump inventory and
start the cycle all over again.
Utopia isn’t that far away, if
everybody would just agree to it.
I believe everybody wins if we
change the way we do business.
How would life be in the
perfect RV world, with perfect
manufacturers, perfect dealers
and perfect consumers?
If the industry would simply
select the month that makes the
most sense to introduce new
models, and then have the guts
to implement it, then all manufacturers
would agree not to
release new models to the public
until the first day of that
month. Let’s select September
as the ideal month, and let’s do
it like they used to do it in the
automotive world. Let’s decide
that no new model introductions
would be allowed until
after Labor Day, and that new
model must carry the model
year of the next calendar year.
This will allow manufacturers
to maximize their production
capacity over a longer period
of time and reduce the cost per unit that would be realized
by volume purchasing, operating
efficiencies, and a longer
manufacturing cycle.
Dealers could then extend
their selling season and maximize
their profits because they
would be less likely to get
caught with last year’s models
when a competitor has the latest
and greatest sitting on the
lot down the street.
Consumers would quickly
learn, and appreciate, the
industry-sponsored standardization
and could plan their first
or future purchase in accordance
with an established pattern
that is the same, year after
year.
Manufacturers obviously
want to retain their right to
bring out a new product whenever
they want, and put whatever
model year on it that they
decide will serve them best.
But is that really what is best
for the industry?
Don’t we have industry
associations to plan and enforce
what is right for the industry,
not any one particular member?
Let’s work harder at making it
work with new model year introductions.
Dealers would sleep better
and make more money if they
could rely on a standardized
system that would allow them
to plan a full year of business
without wondering what was
going to happen next Summer
and which manufacturers, that
they represent, would change
everything with decisions that
they have absolutely no control
over, or input to.
Consumers would appreciate
logic to the buying process
and would not feel like they are
out of sync with the rest of the
RV world with new product
introductions coming randomly
throughout the year, and in
some cases, with model year
designations that make
absolutely no sense at all.
Why does the industry have
this discussion each year and
then do nothing about it?