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| CrossRoads RV National Sales & Marketing Manager Cal Jones. |
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| CrossRoads RV Vice President of Finance Robin Levitz. |
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| CrossRoads RV President Mark Lucas. |
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The road to success continues to propel upwards with no obstacles in their way. CrossRoads RV explosive growth has completely hurtled the figures off the charts.
In the beginning, it was all about quality construction. Contrary of how times have changed, not only has the quality remained; but their core strategy of dedication, is truly serving their customers. With this code to live by has truly built a solid foundation that will last them a lifetime.
CrossRoads began in rural Topeka in 1996 and for its first few years remained a relatively small towable manufacturer that was nonetheless building a solid reputation for well-made units. Then, in 2003, with the introduction of its new Cruiser line of travel trailers and fifth wheelers, things started to take off. Or, you might say, blast off.
Mark Lucas, the 35-year-old company president, lets the numbers tell the story:
“We made 1,347 fifth wheels and travel trailers in all of 2003. We made more than triple that many in the first six months of 2006,” noted Mark. “Our sales have doubled in each of the last two years and should double again this year.”
With gas prices soaring, the RV market took a plunge this year. Through the crawling growth – CrossRoads has managed to rise above the industry with a 46 percent increase in retail units and a 40 percent increase in market share, according to data on retail registrations as reported by Statistical Surveys, Inc., of Grand Rapids, MI.
The impact on CrossRoads’ operations has been enormous. Employee numbers have increased from 75 in 2003 to 425 today. With one plant when it began in 1996, it now runs six, and is looking for more.
The quiet but rapid growth in CrossRoads sales caught the eye of Thor Industries and it purchased CrossRoads in late 2004. Thor bought new financial resources to support CrossRoads’ market burst.
The real key, says Lucas, is CrossRoads taking its mantra of “quality, service and value” seriously and finding the “niche within the niche” where RV consumers are not being served with what they want.
“All this growth has been exciting,” said Mark. “But the real excitement has been to see this kind of growth based on the valued of the company. Quality, service, value is what we preach. We do things the right way. That’s the legacy of the original ownership that we carry on. We increased our warranty and stand behind it. We pay our dealers well. To see such growth happen for the right reasons, as opposed to treating people poorly and making a quick buck, has been very rewarding. You don’t often hear that story. You hear the Enron story or about the back-dated stock options. But to hear someone do it the right way is refreshing, and it’s exciting to be part of that.”
Mark, vice president of sales and marketing, Cal Jones, national sales and marketing manager, and Robin Levitz, vice president of finance, are three of the six owners at the time of the Thor acquisition who are still with the company, although the others check in with advice from time to time.
Mark grew up attracted to any vehicle that moved. His father and brother both worked in the automotive industry. However, after his brother got a job at Winnebago Industries he advised Mark to give the RV business a whirl. “He told me, this is less political. The industry is about selling fun. And it’s done on a much more relaxed level." So I took his advice!
Mark started out in sales at a Campers Inn dealership in Massachusetts and then took sales positions at Coachmen and R Vision before coming to CrossRoads. He was hired in as the lightweight division general manager in 2002 before assuming duties as overall general manager. He became president after Thor acquired CrossRoads.
In 2004, Cal came on board. He had 31 years of experience in marketing and sales, the last six with a manufactured housing firm. Before that he had spent 25 years with Maple Leaf Farms, a vertically integrated food producer and processor that had grown from a $3 million to $150 million company during his time there. So he was acquainted with expanding operations and, as Maple Leaf vice president of sales and marketing during his last nine years, he handled major national accounts such as Wal-Mart.
Part of CrossRoads’ distinctive appeal rests with its ability to maintain high-quality construction standards in a lightweight towable. “We still pride ourselves at being the lightest in any category we’re in. But we’ve done that without giving up the quality construction we had — like 16-inch on-center screwed aluminum, and plywood floors. With some ingenuity we were able to combine low dry weight with high quality construction,” said Mark.
When CrossRoads launched its Cruiser fifth wheel and travel trailer line in 2003, it was off to the races. ”It was in that half-ton, mid-profile towable market that was pretty hot at the time,” said Cal. “The Cruiser was well-built and had a good warranty” among other things, Cal noted, such as a spacious living area and extensive storage space.
“We just really hit the market at the right time with a nice alternative to what was out there,” said Mark. “People wanted value, and they got it with the Cruiser.”
How key has positioning their products been? “You have to make sure you’re covering all the different categories,” said Cal. “There are some products for the mid-profile buyer, and then we have the Zinger for entry level and the Paradise Point for the high end. Our new Sunset Trail covers the ultra-lite market.”
Beyond that, said Mark, the key is CrossRoads taking its mantra of “quality, service and value” to a new level and finding the “niche within the niche” where RV consumers are not being served with what they want.
“Our philosophy is to complement our competitors by positioning our products to meet needs that are unmet in a particular category,” said Mark. “We don’t move competitors off their ‘sweet spot,’ we fill gaps they have missed in meeting consumer and dealer demands.”
“Our designs are built on this philosophy. We see what is already working in the industry and we listen to customers about what is missing. Then we provide the best quality, service and value we can deliver.”
The new Sunset Trail travel trailer is an example. It’s an ultra-lite, but it’s built with hung walls rather than laminate common to ultra-lites and other towables. It has innovative storage solutions for RVers who are always looking for more space. It has room for extra bunks and for extra bikes. It moves the LP gas bottles off the front hitch to a special storage hatch, and has other standard features, such as a regular 60 X 80 queen bed, often not found elsewhere.
“But it all starts with treating ‘quality’ as something more than a marketing buzz word,” said Mark. “That’s why we put hung walls on 16-inch on-center aluminum framing even in an ultra-lite. When you really make a quality unit people notice it. Dealers are the first to notice. We hear a lot about how the fit and finish of our product makes their inspection and setup time minimal, if anything.”
Providing dealers with good service is another key emphasis. CrossRoads pays dealers weekly for inspections and warranty claims at posted labor rates. It immediately resolves product issues. “We believe that if we serve the dealer well, we ultimately serve the customer well,” said Mark.
CrossRoads’ investment in dealer service includes a recently opened 25,000-square-foot Customer Care Center near its main plant. “The facility is designed to help the dealer speed repairs, ensure quality repairs, and get the customer back on the road as quickly as possible,” said Mark. “The younger RV buyer, especially, is demanding a quality service experience as well as a quality product. Every RV company and dealership needs to address that. It’s all part of doing it right.”
“And you know what?” said Mark. “If you do it right, you’ll be successful.”
Part of that success is also managing the input from a diverse range of perspectives.
“We have a good team,” said Robin, who joined CrossRoads in 2002 after working in the manufactured housing industry. "Everybody has his or her own qualities and different strategies for our products, which is another good part of our business, because everyone brings to the table a different outlook. We like to think that when we analyze all the different ideas, the best one comes to the top.”
Mark credits Robin with bringing a particularly valuable perspective to their product development. “It is completely not a sales perspective,” said Mark. “She brings the perspective of any average retail customer that walks into a coach. When she says this kitchen isn’t going to work to make a meal, that kitchen isn’t going to work to make a meal. When she says an interior is ugly, it is flat out ugly.”
Of course, finance is her forte. “When it comes to numbers and figuring things out, she just really understands the inner workings of a company and can see things on the horizon,” said Mark.
For Robin, it’s important that CrossRoads remain grounded amid its recent success. Although CrossRoads has quickly expanded its employment and operations in recent years, “we still try to operate our business the same,” said Robin. “If every department remains focused on their own daily jobs and watches their pennies, then the dollars will take care of themselves. Our history is really great, and we all feel very good about it, but we know we need to stay focused on the future.”
So where does CrossRoads go from here?
“We want to continue to expand into open markets,” said Mark. “We want new dealers that are just as service-oriented as we are, and just as proactive about business growth. We define protected sales territories to ensure they have an approachable and welcoming marketplace. Our present dealerships are among the biggest assets we have.”
“Our next strategic goal is to build on our strong foundation with innovation. Current innovation allows us to make towables more lightweight with more amenities while retaining solid construction standards. We have unique floorplans and features not found in many competitive products. We maximize design, storage and conveniences in ways you don’t see elsewhere.”
“We want people to know that we’ll continue to expand product lines with innovative products that are meaningful to specific consumer segments. And we’ll continue to fine-tune existing products to do the same. We don’t want to get fat. We’re not going to rest on our laurels. There’s much more to come.”
For more information about CrossRoads RV, call 888-226-7496 or visit www.crossroadsrv.com.
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