Arrogance!

      Don Magary, Editor

       Last month’s editorial addressed our concerns over the long term impact of the Affinity Group’s acquisition of Camping World, especially as it relates to the RV aftermarket, and specifically how it potentially damages an RV dealer’s ability to compete. Our conclusion was that the Affinity Group has a strangle hold on the industry since it controls access to the RV consumer through its publications — Trailer Life, Motorhome, Good Sam Club’sHighways, Woodalls publications, Coast to Coast magazine, and now adding a million more names through the Camping World deal. On one hand the Affinity Group solicits advertising from dealers and on the other hand they directly compete with them by offering financing, extended warranties, insurance and now aftermarket accessories and service.
        In our opinion, the arrogance of the Affinity Group is remarkable. To even consider that dealers, especially, should continue to support Affinity’s programs after insulting their intelligence and threatening their profits shows at best a naiveté beyond comprehension and at worst a gamble on a calculated risk — believing that it will eventually blow over. Well, trust me, the management at Affinity is far from naive. So it stands to reason that they weighed the possibility of a dealer revolt and are willing either to write the dealer off or they believe dealers would fuss and fume for awhile but after time it would be business as usual.
        From what we are hearing, there is somewhat of a dealer revolt. Several have communicated to us that they have taken everything out of their businesses that had anything to do with the Affinity Group’s companies and have thrown it into the trash. Others have vowed not to spend one dime with Affinity in the future. I cannot believe that Affinity didn’t anticipate this reaction.
        But the loss of a little business is one thing, the loss of respect is another — and that appears to be what is happening. And I am not sure Affinity fully realizes how important dealers and others have been to their success. Of course, when you are “king of the hill,” it’s easy to assume you got there by your own brilliance and power. In our opinion they had a lot of help from dealers and campground owners — the people the RV owner come in contact with on a personal level -- the people who put out the Good Sam signs and pay Affinity for the privilege.
        I bring up campground owners because we have been in contact with several around the country and there appears to be a revolt going on among this group as well. We have talked to several campground associations, as well as individual campground owners, and many are upset with Affinity over conflicts with the Good Sam Club and the TL Campground Directory staffs.
        One issue of major concern from campground owners is that in the February issue of Highways, an article entitled, “One Stop Shopping,” advocated Good Sam Club members using truck stops, ie, travel plazas, as a place for overnight stays — Free Camping. Wow! Talk about outrage. Private campground owners invest substantially to be Good Sam parks, advertise in the campground directory, give Good Sam card holders a ten percent discount on camping fees and subject themselves to a rating system they believe is unfair or at least out of date. To have a message go out in the official Good Sam Club member publication suggesting members camp in travel plazas shows little sensitivity to the business partners who Affinity should be supporting.
        And even though Affinity has apologized for the “misunderstanding,” the damage was already done.
        It appears that at least some private campground owners are becoming disenchanted with the Good Sam program. In California, a group of campground owners asked for a meeting with representatives of Affinity to address a list of ten issues that concerned members. The issues ranged from declining Good Sam Club business at parks to the quality, courteousness, and integrity of TL’s field representatives/ inspectors. Interestingly, the inspectors for these ratings also sell advertising in the campground directory and receive commissions on the sales — talk about a conflict of interest.
        Eventually, Joe Daquino, vice president/publisher (campground directory), TL Enterprises, and Marsha Monico, sales and marketing director for the campground directory, agreed to meet with owners. At the last minute, however, Daquino cancelled because of an emergency medical problem and sent Thaddeus Reycraft, business manager, in his place. According to some of those attending the meeting, Reycraft was arrogant and non responsive. As a matter of fact at the outset he immediately informed the group, many of whom traveled a good distance, that the meeting was not a problem solving meeting nor should they expect any resolution that night -- it was simply an open communication. This meeting was on February 19, 1997, but Affinity had the ten concerns since November 1996, so campground owners were disappointed that Affinity was not prepared to make any decisions. And we are told that since that meeting, Affinity has still not responded, unless, of course, no response can be considered Affinity’s response. We believe this underscores our impression of Affinity’s arrogance.
         Yes, campground owners are upset and who could blame them?
        As far as the travel plaza article in Highways, Affinity sent a memo to several groups stating, “It is not the intention or desire of any division of Affinity Group, Inc., to promote or condone overnight camping at anything other than established RV Parks and campgrounds. We in fact, discourage the use of truck stops, parking lots, rest areas and the like as overnight camping facilities.”
        Coincidently, Camping World invites RVers to stay overnight free in their parking lots — it will be interesting to see now that Affinity owns Camping World whether or not that policy changes — I suspect not. And the reason I don’t think so is that Affinity makes a big issue in saying each of the companies they own operate independently.
        Affinity touts the fact that each company is run independently as if it were some kind of virtue. It looks to us more like a crutch. When there’s an inconsistency such as with the article in Highways and the travel plaza issue, Affinity can simply throw up their hands in astonishment, apologize and say, "They're separate divisions."
        So rather than being lulled into some false sense of security by Affinity’s soothing rhetoric, it is for just that reason that maybe dealers and others should be concerned.
        Dealers have you heard about Affinity’s incentive plan offered to key management at Camping World as part of the acquisition?
        You need to be aware of what you are up against. It boils down to this: if Camping World can beat your socks off in the race for aftermarket parts and accessories and service, this management group stands to personally gain millions — $15 million to be exact. (See related story).
        Affinity has embarked upon a collision course with many who have contributed to their success. And while the Camping World acquisition spotlights that course, it’s a course they charted some time ago. Their traditional business partners are beginning to
question Affinity’s methods and goals, and even challenge their motives.
        If you read Affinity’s description of itself in the accompanying article and its plans for the future, it’s clear that Affinity is in the business of selling things — memberships, hats, advertising, finance programs, warranty programs, service and repair, parts and accessories and who knows what else or what’s next. If you thought they were in the publishing business or service business, you might want to rethink your impression. And if they happen to be your competitor, oh well.
        Obviously, Affinity has the right to pursue whatever business course it chooses, but likewise, dealers and others who see that course as detrimental to their futures have the right, as well as an obligation, not support that course.