Mr. Mike Schneider
Executive Vice President
TL Enterprises
2575 Vista Delmar
Ventura, CA 93001

Mr. Schneider,

        My company, Trailside RV Center, recently canceled our advertising relationship with your publishing company in response to your recent acquisition of Camping World and your continued practice of publishing RV financing rates.
        I now consider you a competitor. I have a philosophical problem with giving money to one of my competitors who holds too much influence over the gross profit margins in two of my dealership profit centers namely: finance & insurance and parts & accessories. For many years, dealers and others have expressed concern over the influence of retail mass merchandisers exerting downward pressure on prices making it difficult to maintain good margins on parts. I feel that your threat to the typical RV dealership is much greater due to the virtual lock that you have on the retail RV media.
        Your Highways publication benchmarks low finance rates throughout the entire market place and your Camping World direct mail and retail parts network establishes low price points. An RV dealer without having the same purchasing power and more service requirements may find it difficult to compete with such a monolithic empire. I personally can not imagine why an RV dealer would put thousands of dollars per month in your hand while you undercut his profitability with your other hand. Even more unbelievable is the thought of you betraying the RV parks and campgrounds which have given you your prominence via the GoodSam park organization. As a campground operator, this is no longer a "partnership" based on mutual benefit and trust but one of cutthroat competition. Competition is good. Business is business. That is why I am encouraging my RV dealer and RV park owner colleagues to remind you of your roots by finding other outlets for their advertising dollars. TV and radio has worked as a great replacement for me this spring and I don't miss those big TL advertising bills at all!
        Recently, an unnamed manufacturer told me a good joke. Question: "How many TL Enterprises does it take to screw in a light bulb? ... Answer: "ONE, it takes Trailer Life to hold up the light bulb and for the whole world to revolve around them."

Sincerely,
Steve Francis, Owner
Trailside RV Center
Grain Valley, MO

Dear Editor:

        I’ve just read the article Industry Reacts to Affinity Group's Acquisition of Camping World. Although my employers have yet to take a position, this situation reminds me of the movie Sleeping With The Enemy.
        Camping World has never claimed to be a friend of RV dealerships. Lazy Days letting Camping World open up a store on their property is like a Dodge dealership letting Pep Boys or Auto Zone open up a store on their lot. Although it may be in Lazy Days’ best interest, it undermines the industry. They are sleeping with the enemy.
        Affinity does claim to be a friend of the RV dealership. But their willingness to compete directly against those dealerships (for financing, service contracts and now even parts and service) belies any such claim. Affinity wants our customers and will do anything in their power to get them. Although they have the right to go after them, we are not required to support their efforts. If we do continue to support Affinity (through advertising, displaying their products and extending discounts to Good Sam and Coast to Coast members) we will make it easier for them to have these customers. We will be sleeping with the enemy.
        Affinity says that we should take a “wait and see” attitude. If they are legitimately concerned with dealer interest that may be fine; but what if they are not (which seems likely considering they couldn’t give RV News their undivided attention for the interview). Any delay in dealer reaction to this situation could do further damage to our position in the industry. Now is the time for us to ask ourselves, "Who is this lying next to me?"

Raymond Padgett
RV Parts Manager
Hill-Kelly RV Center
Pensacola, Florida

RV News and Coast Distribution

Dear Dan:

        The past few weeks I’ve been reading with interest some of the comments being made about RV News and Coast Distribution. Most who read your magazine realize DTI places a considerable amount of advertising in your magazine month after month. It’s interesting all the negative comments you’ve received in relation to questioning some of Coast’s moves in prior years and now accepting their advertising money all came basically from non-advertisers in your magazine. Comments also came from those companies pursuing the same piece of pie in the RV industry. I have yet to read a negative remark in your magazine from a dealer, the very ones my advertising dollars are trying to reach.
        I also find humorous comments like “Cancel my free subscription”. The fact is obviously the people canceling their subscriptions are the ones reading your magazine. I have received no less then 50 phone calls asking how I feel about this marriage between RV News and Coast Distribution because I am one of your major advertisers.
        First I would like to congratulate you on securing such a nice advertising contract with one of the largest distribution centers in the United States. Second, I would like to congratulate Coast distribution for some of the moves they have recently made in our industry to reverse some of the negative editorials attacking them. They have made another bold step forward to service and help dealers compete with mass merchandisers and consumer direct sales. They have reversed their decision to stand alone and rejoined the Warehouse Distributor’s Aftermarket Association in support of the industry. Even with all the negative press they have received, not only from RV News but from other publications and presentations across the country, they have taken these things under advisement and are working very hard to grow the RV aftermarket.
        We all make mistakes and poor judgement decisions in business on occasion. I feel at this point the judgement decision by Coast to advertise and approach the RV aftermarket is a good one. I feel RV News accepting this new concept in advertising and Internet is a good decision. I feel DTI’s participation by placing ads in both RV Tech and RV News has been a good decision. I feel by no dealers canceling their subscriptions because RV News accepted Coast’s advertising dollars is a very good sign. The only thing I perceive to be a poor decision are those who have chosen not to read your magazine because of views based on industry happenings and the fact RV News accepts advertising as part of its livelihood.
        At this time I would also like to congratulate you wholeheartedly for taking your magazine to the Canadian market and opening that market to all your advertisers. It’s interesting to note so far I’ve read no comments on this. I thank you for that and you can expect my continued support in your ads.

Hal Fowler
President
DTI RV Parts & Appliances
Middlebury, Indiana

GO RVing

Dear Dan:
        At the recent RVIA annual meeting in Scottsdale, I was presented with a great honor, the RVIA Distinguished Service Award (in the form of a beautiful desk clock) for my work on our market expansion effort. Unfortunately, I did not have an opportunity to make any remarks at the presentation. If I had that opportunity you can be sure I would have thanked all the wonderful people who made the “GO RV’ing” campaign a reality.
        The purpose of my letter is to be certain you know, I would have thanked you, Don Magary and RV NEWS for your unabashed advocacy throughout the long campaign that lead to the final vote. Were it not for the publicity and exposure you gave to the philosophy behind the effort and the creative execution of it, I don’t believe we would be blessed with the industry-wide program under way today. It is very important for me, that all the folks who were so instrumental in this movement, understand how very much I value and appreciate their leadership and how sincerely I feel that the award given to me, was in fact earned by you and all those who worked so hard to make it happen.
        Just so you know, whenever that clock chimes, it’s chiming your praises. Thank you.

Thomas G. Faludy
President
Carefree of Colorado
Broomfield, Colorado

McGuire

Dear Editor:

        I enjoyed the comprehensive interview with Tim McGuire of Coast Distributing in the May issue of RV News. McGuire comes across as an aggressive entrepreneur developing new strategies and assuming risk to grow Coast Distributing business.
        I question, however, McGuire’s philosophy on the Coast business relationship with WalMart (via Travelux). He views WalMart as ‘a market’ and fair game as long as RV retailers are given the opportunity to compete pricewise with like items purchased through Coast. In his words, “that’s the issue.” Is It?
        Given the realities of today’s retail market and consumer buying patterns, it isn’t the compelling issue in the controversy. Consumers buy where they feel they can conveniently obtain the best value on the products they need. WalMart excels at winning that battle.
        As McGuire well knows, every time WalMart adds a new Travelux item, they will generate a huge volume of business. Sugarcoat this end result with any description desired, but a large portion of this volume comes directly from the coffers of traditional, independent RV retailers, whether they compete pricewise or not. It’s an undeniable fact in today’s retail world. WalMart controls a good share of the national market of every item they stock. Unfortunately for RV retailers, WalMart skims the cream in the RV category by stocking high volume RV commodities.
        McGuire might develop a program giving RV retailers a 50% price advantage selling the same Travelux products, but the end result will be largely the same. The consuming public will buy truckloads of Travelux products from WalMart instead of RV retailers if they can be obtained there.
        WalMart clearly represents big volume to their suppliers and potential suppliers. But independent RV retailers still create the RV accessory aftermarket when they sell and service our nation’s rolling stock. We all benefit from the health and prosperity of our independent dealers. McGuire obviously knows this and walks a tight line by transferring capital from the shallow pockets of independent RV dealers -- and Coast’s customers -- to WalMart’s lofty bank accounts. It’s a dual-edged sword with negative long term implications for the RV industry, Coast included, and our RV dealers.
        McGuire's philosophy on WalMart is, "Yes, we sell them, but we level the playing field by allowing our dealers to compete." As savvy as Mr. McGuire may be, he can’t create a program leveling the field when pitting WalMart against independent, family-owned, single location RV retailers. No surprise there, but it is unusual to detail the reality of the situation in response to comments from the head of a large distribution firm generating most of their business through RV dealers! WalMart wins. Independents lose. Always...
Greg Russell
Progressive Sales, Inc.
Plymouth, Minnesota

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