RVDA’s Board Preparing for Strategic Planning

The Recreation Vehicle Dealers Association’s (RVDA) board of directors will meet March 7-9 in Fairfax, Va., to “review and adjust” the association’s strategic plan, the national association’s leadership reported in a news release.

“Over the past several weeks, RVDA surveyed its members on a number of issues and the board will use the input as a basis for implementing strategies designed to help dealers and the industry,” RVDA stated in a press release being distributed today (Feb. 25).

RVDA, in turn, is in the process of updating its committee structure, which includes Industry Relations, Government Relations, Convention/Expo, Dealer Financial Services, Market Expansion and a new Membership Committee.

“These committees, which include many members of the RVDA Board of Delegates, will play a crucial role in implementing the RVDA board’s strategic direction in key areas of dealer-manufacturer relations, dealer advocacy and advancing the Go RVing national advertising program,” said RVDA President Mike Molino. “With our partners at RVDA of Canada, the Convention/Expo Committee will also work to make the RV Dealers International Convention/Expo an even better experience for dealers and exhibitors.”

As part of the meeting, the RVDA board will consider a proposed RV service center certification program, which could be formed under the auspices of Go RVing. Currently, RVDA and the Recreation Vehicle Industry Association (RVIA) work together to certify individual technicians through the RVDA-RVIA Certification Governing Board.

RVDA Statement on SeeDealerCost.com Site

Editor’s Note: The Recreation Vehicle Dealers Association (RVDA) has released the following statement about the website www.seedealercost.com, whose sponsors say they’ll begin soon to post RV prices on their website.

RVDA is aware of the SeeDealerCost.com website. According to media reports, the proposed site is owned by former boat manufacturer executives. The company has stated it plans to include RV information on its site.

As the National RV Dealers Association, RVDA contends that RVs should not be sold like commodities, with a customer’s buying decision limited to price considerations. There is so much more to a successful RV dealer and RV customer relationship. Unlike automobile dealers, RV dealer agreements and RV franchise laws do not always require RV dealers to perform warranty work on all of a manufacturer’s vehicles under warranty. Customers who purchase an RV based solely on price may find they must travel to the selling dealership’s location to have warranty work performed – assuming that selling dealer’s location maintains a service department – or they are placed at the back of the warranty service line until the local dealership has taken care of all its buying customers.

It is important for everyone in the RV industry to note that invoice pricing information is sometimes addressed as confidential information in RV dealer and RV manufacturer dealer agreements. Sharing confidential information with a third party could be a breach of the RV dealer agreement and lead to termination of the dealer agreement for cause. RVDA urges dealers to review their dealer agreements and state laws on this issue. Many states prohibit or restrict a motor vehicle dealer’s ability to directly or indirectly advertise “invoice prices” since they conclude this advertising may be deceptive to the buying public.

RVDA has long fought for fair and equitable treatment of its dealer members, and there is much that can appropriately be done together. But as RVDA stated earlier this month, these efforts have been undertaken with the clear understanding that the relationships between dealers and joint actions by dealers regarding vehicle pricing against suppliers and competitors are rife with serious and complex legal implications. For this reason, RVDA’s activities are closely monitored by experienced legal counsel to protect both the association and its members.

Before an RV dealer or an RV manufacturer shares invoice price information with third parties for publication, we urge dealers and manufacturers to review their dealer agreements, and any related state laws.

RVDA: Use Facebook to Build Relationships

Facebook is usually the first foray dealerships make into social media, but if your page isn’t maintained correctly, it can actually turn off potential customers, according to a story in the March issue of RV Executive Today.

Knowing what to put on it — and what to leave off — makes the difference between an effective and inexpensive communications tool or a waste of time and resources.

To make Facebook work for you, say experts, first consider what draws people to this venue. Hint: It’s not a list of your inventory. As one savvy dealer says, customers go to Facebook to have fun, not get a sales pitch.

Instead, use Facebook as a tool for building and maintaining relationships with your established customers and for reaching out to potential customers. Change up the content frequently so people keep coming back to your page. Visual material is especially effective for attracting younger generations.

For tips on what kind of content to put on your page and where to find inspiration, read the March issue of RV Executive Today, which highlights social media.

Doors Open Soon for RVDA’s 1st Virtual Expo

Dealers and their employees can still register free of charge for the Recreation Vehicle Dealers Association’s (RVDA) first Virtual Expo, scheduled for March 15-17 and on demand through April 15.

This virtual event will allow RV dealers to form profitable partnerships with some of the leading companies in the RV industry without spending time away from home or the dealership, the RVDA notes in the current issue of RV Executive Today. Dealers can also access information on educational resources available through the RV Learning Center.

Click here to register.

RVDA Praises SBA on Upping Floorplan Regs

The Recreation Vehicle Dealers Association (RVDA) praised the Small Business Administration (SBA) for reviving its pilot loan program aimed at increasing access to inventory financing for RV and other vehicle dealers.

The rules and regulations for the pilot will be available Monday (Feb. 8) on the SBA’s website and through links from the RVDA Lenders Toolbox at www.rvda.org. Dealers can start submitting loan applications for the federally backed loans on Tuesday.

“We are pleased that SBA is moving forward with the program and that the maximum size for floorplan loans is now $5 million,” said RVDA President Mike Molino. “RVDA worked with the agency on a number of ideas to improve the program. We look forward to reviewing the new rules and providing useful information to members interested in exploring SBA loans.”

SBA said that borrowers interested in obtaining a DFP loan should contact their lender or their nearest SBA field office to get a list of SBA-approved lenders in their area who may be participating in the program. Local district offices and contact information, as well as information on this and other SBA programs and resources, can be found at www.sba.gov or by calling the SBA Answer Desk at (800) U-ASK-SBA.

The Small Business Jobs Act of 2010 included a provision for continuing the Dealer Floor Plan (DFP) Pilot Loan program, which is part of the SBA’s overall 7(a) loan guarantee program. The Jobs Act also increased the maximum size for 7(a) loans to $5 million, up from $2 million.

RVDA Comments on EPA/NHTSA Standards

The Recreation Vehicle Dealers Association (RVDA) has submitted comments to both the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) to address dealer concerns about proposed greenhouse gas regulations and how the rules would impact the RV industry, according to an RVDA news release.

The agencies are developing rules addressing greenhouse gas emissions on medium and heavy duty trucks. NHTSA exempts motorhomes from the rule; however, EPA decided to specifically include motorhomes under the same regulations that would apply to the commercial truck industry.

In the comments filed on Jan. 31, RVDA said the RV industry should not be regulated using rules intended for the trucking industry because motorhome uses and commercial trucking uses are extremely different. The end users are different, the vehicles intended purpose is different, and the economics and scale of the two industries is completely different. The EPA will need to look at the number of motorhome owners, duration of trips by motorhome owners, the number of hours they are on the road, and the number of miles driven by motorhome owners.

Following the Recreation Vehicle Industry Association’s (RVIA) lead, RVDA noted the price sensitivity of RV purchasers on these discretionary purchases, and the risks of additional injury to a recovering RV industry and RV employment.

RVDA also emphasized that the EPA should perform a separate Regulatory Flexibility Act analysis specifically for non-commercial motor vehicles and to pay particular attention to a recent Presidential Executive Order directing federal agencies that propose rules to reduce unnecessary burdens on small businesses. For the complete text of RVDA’s comments, click here.

RVDA coordinated its comments with RVIA and will keep members informed on the status of the proposed EPA and NHTSA rulemaking process.

‘Frugal Fatigue’ Drives RV Owners’ Dreams

Tim O'Brien

Editor’s Note: The following column, titled “‘Frugal Fatigue’ Drives Dreams of RV Ownership” was written by Tim O’Brien, chairman of the Recreation Vehicle Dealers Association (RVDA), and appears in the January issue of RV Executive Today.

‘Frugal fatigue’ is a fairly new term to describe the mental exhaustion caused by constant frugality during hard economic times. While it is not an officially recognized disorder, it does reasonably describe the feelings many people are experiencing as they cope with long term cost cutting and constant monitoring of budgets and spending both at work and home.

At the outset of the recession, it was necessary for those who were laid off to cut costs; for others, reductions in their investments, pay checks and benefits, plus concern for accumulated debt, led to frugal habits. The economic and employment uncertainty caused many to postpone or dismiss dreams of purchasing an RV. However, living in such austere conditions over an extended period of time can wear you down and, let’s face it, old spending habits are hard to resist forever.

The evidence of frugal fatigue is that consumer spending is increasing, and I just read that Americans’ total spending on goods and services (not including automobiles) has returned to pre-crisis levels. Upper income confidence is rising. Luxury automobile and upscale retailers reported sharp gains in October.

We experienced the beginning of our recovery in 2010, and as frugal fatigue grows, I believe the dream of owning an RV will become more powerful than ever. It’s our responsibility to make those dreams come true.

RVDA has many programs and services to assist you as you finalize your preparations for 2011. I encourage every dealer to sign up as a Go RVing dealer and take advantage of the new Leads-Plus program for 2011!

Happy New Year and Good Selling!

Molino: Balancing Optimism with Realism

Mike Molino

Editor’s Note: The following column, titled “Balancing Optimism With Realisim in the New Age,” was written by Mike Molino, president of the Recreation Vehicle Dealers Association, and appears in the current issue of RV Executive Today.

Happy New Year! Please accept the warm good wishes of RVDA’s leaders and staff for a healthy and prosperous 2011. Most expect this to be a better year all across the country than last year. Some don’t expect the real turnaround to happen until 2012.

Most of us didn’t expect too much from 2010, but it had trouble meeting even the low expectations we set. Although it was a better year for most, there remains much suffering within the industry and in most parts of the country. Indicators are brighter for 2011.

Economic bubbles, like upside-down loans, will make the road back bumpier than we would like. State and municipal bankruptcies are emerging as bubbles that will affect everyone, not just residents in those states. What former President George W. Bush said about Wall Street will be true of cities and states: They got drunk, and we will all have the hangover. These bubbles will have to work their way painfully through the system before we can get back to the levels of prosperity the industry enjoyed in the middle of the past decade.

Be optimistic! Signs of improvement are everywhere. At the same time, don’t be lulled into irrational exuberance. We don’t need to reinvent the bad habits that have accompanied good times in the past. Numbers that show year-over-year improvement fog reality. The percent of growth from miserable to bad is quite steep. Those big percentages in production from 2009 to 2010 make for good PR and can fake out the uninformed.

The truth is that RV sales have to improve well beyond 2010 levels in order to sustain the industry as we know it. History shows that to be healthy, the industry needs to produce and sell 250,000 to 300,000 new units each year. More than 300,000 is high performance. Less than 250,000 is danger.

Look at some recent forecasts from University of Michigan economist Richard Curtin. He expects 2010’s wholesale RV shipments to finish at 236,700 units, or 43 percent over the 165,700 units shipped in 2009. And looking ahead to 2011, Curtin sees RV shipments climbing by 4 percent, to 246,000 units. That’s a little short of my comfort level of 250,000.

Nothing says Curtin’s forecast for 2011 will be correct. In fact, in September 2009, he predicted total shipments of 185,800 units for 2010, a marginal upgrade from the 169,500 units he had forecast for 2010 at RVIA Committee Week in June 2009.When the books close on 2010, the industry will probably have exceeded his June 2009 forecast by more than 67,000 units, or 39.6 percent, and his September 2009 forecast by 40,900 units, or 22 percent.

A wise person once noted that no economist ever predicted any of the dramatic sales increases in the history of our industry. Veteran dealers know this well. They suffered through very long order ship times to restock hot products when sales were good.

There’s a lot of consumer demand out there, and it will increase thanks to some unexpected sources. Thank you, TSA, for the pat-down searches. Thank you, airlines, for bag-check charges. Thank you, hotels, for your “no pet” policies.

We are also getting help from our investments in market expansion. Thank you, Go RVing! The new leads classification system in Go RVing will help smart salespeople find consumers who are really ready to buy. This program will also help you find those who have shown some interest. Look at those folks as real prospects. They may be ready to buy now if you tell them the benefits they’re missing. Better yet, show them. It is up to every RV salesperson to get out there and prove the experts wrong. Sell something!

Thanks for your support and may God bless you all!

RVDA Sets 1st Virtual Expo for March 15-17

The Recreation Vehicle Dealers Association (RVDA) has set the dates for its first virtual expo on the Internet for March 15-17.

RVDA is still firming up details for this first-time event but wanted to get the word out now so dealers and others may begin planning for the event, Phil Ingrassia, RVDA vice president of communications, told RVBUSINESS.com.

“We think it’s going to be a pretty good event,” said Ingrassia.

The online event will feature displays by manufacturers, suppliers and service firms. Exhibitors will be charged to exhibit at the expo but registration for dealers and the general public is free.

The expo will remain in an “on demand” status through April 15.

Dealers and their employees can now register free of charge for the event.

RVDA began working earlier this year on the event. The virtual expo is gaining traction in the business world but is a new concept to the RV industry. A similar event was held Nov. 1-3 for the campground industry, but it experienced serious software issues. Ingrassia said he is confident RVDA’s software provider, 6Connex, will deliver a top notch program.

“This virtual event will allow you to form profitable partnerships with some of the leading companies in the RV industry without time away from home or the dealership. You can also access information on educational resources available through the RV Learning Center,” according to an RVDA release.

For exhibitor information contact Susan Charter at scharter@rvda.org.

To register for the expo, click here.

Molino: Why Not More Certified Technicians?

Editor’s Note: The following column was written and provided by Mike Molino, president of the Recreation Vehicle Dealers Association (RVDA) and appears in the December issue of RV Executive Today under the headline, “Why Aren’t There More Certified RV Technicians?”

The past chairmen of RVDA are helping the staff and boards solve some big industry problems. Many of the past chairmen met by conference call to tackle a big question: Why aren’t there more certified RV technicians?

All agreed that dealers want qualified employees. No one disagreed when one of the past chairmen made a definitive statement about certified RV technicians. He said, given a choice between hiring a certified technician or one not certified, he believed that every dealer would choose the certified technician. If that’s the case, why isn’t there at least one certified technician in every RV dealership?

It is difficult for the group of past RVDA chairmen to answer those questions. It’s like asking the choir of a church why so many parishioners don’t come to church every week. The choir comes to church. RVDA leaders employ certified technicians. Both groups can only speculate about why the others don’t participate.

Where have we been? Let’s review some background. About 22 years ago, dealers, manufacturers, and suppliers under RVIA and RVDA met with a goal of improving the competence of RV technicians. Trying to solve the technician competence gap was a logical first step in improving industry professionalism. RVDA and RVIA invested the time, energy, and money necessary to develop technician testing and certification.

RVDA and RVIA staffs adapted RV employee testing and certification from programs in other industries, e.g., the automotive industry which has the “ASE Certified” program. RV industry experts (dealership technicians, service managers, dealer owners, and technicians in the service departments of RV manufacturers and suppliers) developed a curriculum (DACUM) with standards and tests.

By passing the test the job holder/candidate demonstrates that he/she has the knowledge required to do the job. How the person got the knowledge is not very important. There is no requirement to attend any specific training course.

The RVDA-RVIA RV Service Technician Certification Governing Board administers the program. RVDA and RVIA name six members each to the board. The Chairman is always an RVDA dealer. The vice chairman is always an RVIA member. Find more on technician certification at www.rvtechnican.com.

Many dealers have taken advantage of this program to improve the knowledge of their technicians and the efficiency of their service department. Most will tell you, it more than pays for itself in the first year or two. Improving knowledge improves efficiency. Faster diagnosis and fewer come-backs improve the bottom line. One dealer told us, there is at least a 30% difference between certified technicians and those who are not certified.

There are not enough certified technicians to meet the needs of the industry. Chart #1 (at left, top) shows the growth of certified technicians from 2005 to August 2010. Don’t get lulled by the growth, however. Chart #2 (at left, middle) shows the total number of RV technicians employed in 2008 and 2009. The 2010 number won’t be available until May 2011. The chart also shows the number of those technicians who held certification through August 2010. Roughly 1/4 to 1/3 are certified.

How many should be certified? Many dealers find so much benefit in having their technicians certified that they mandate 100 percent participation. To stay employed, a technician has to be certified or working toward certification.

Chart #3 (bottom) shows where the currently certified technicians work. It also gives an indication that non-dealers value certification more than many dealers. Does that mean they are taking work from dealers? We report; you decide.

The past chairmen will send some recommendations to the RVDA chairman soon. Other industry leaders, such as Richard Coon of the Recreation Vehicle Industry Association (RVIA), are also working on recommendations. We expect the industry to soon have requirements for technician certification. Dealers who get their people trained and certified now will be way ahead of the “power curve.” They will also see improvement in the bottom line of the service department and in the true bottom lines of customer satisfaction and loyalty.

Thanks for your support and may God bless you all.

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