Good Sam Hits Home Run with Phoenix RV Rally

Good Sam Enterprises LLC, an affiliate of Camping World Inc., appears to have hit a home run this past week in hosting a bustling consumer rally Mar. 22-25 at the Phoenix International Raceway that was busier than anything the industry has seen in years.

Good Sam spokesmen report that the total coach count at The Rally – 3,370 units comprising about 7,500 people – was amplified by 9,000 to 10,000 day pass visitors during the four-day event. The result was an impressive crowd that drew heavily from the Southwest region and from an established base of Arizona snowbirds and spring baseball training fans.

Participating in outdoor displays were some 27 manufacturers. The indoor exhibits included about 350 10-by-10 booths, and both areas were sold out, reports Terry Thompson, vice president of sales for Good Sam.

Not since a Redmond, Ore., rally in 2005 had Illinois-based Good Sam, then known as Affinity Group Inc., seen traffic like this. “It was a great rally,” said Thompson, whose firm started hosting rallies in 2000. “It’s the biggest rally we’ve had in a number of years. In addition to the 3,370 rigs, we had a lot of drive-ups that came in and, fortunately, not a lot of cancellations. And so we haven’t had a rally like this in years, quite frankly.”

Beyond the social and commercial aspects, and the seminars and frontline entertainment — including Bill Cosby and Martina McBride – the Arizona location was the biggest factor in attracting a crowd, Rally Director Sue Bray maintains.

“It went really well,” said Bray. “People were very happy, and Phoenix is a great destination. We worked really hard to try to do some grassroots marketing to bring in the day traffic. We went around to all the campgrounds and left two-for-one coupons for day passes. We did some TV advertising and we also promoted at the local Camping World stores. That was all stuff that we had not really done before, and so I think it paid off. But also I think that people really want to come to Phoenix and I’m glad that we finally found a place that can accommodate the event.”

Bottom line, Bray agreed, the basic show formula with some tweaks seems to have survived the economic downturn – a fact that might be confirmed in subsequent Good Sam rallies this year as the company expands its consumer-centric rally schedule for the first time from one to three events. Upcoming venues are June 21-24 in Louisville, Ky., and Nov. 2-6 in Daytona Beach, Fla.

Good Sam/Camping World Chairman Marcus Lemonis says the biggest difference in opting for a racing facility in Phoenix vs. traditional show sites like Redmond and Perry, Ga., is that they had to build their own infrastructure.

“There was nothing here other than asphalt,” said Lemonis, “and I think we’ve proven that we can go into major metropolitan markets and not only serve the RV community and the snowbirds that were there, but also we were expecting a lot more people over five days in terms of day passes compared to Redmond, which was 2,000, because you have a base of four million people in Phoenix.”

One other noteworthy twist at Phoenix from an industry perspective was the rather surprising participation of rolling stock dealers not affiliated with Camping World RV Sales, a sister company to Good Sam and the nation’s largest RV retailer.

“You’ll notice that the Camping World presence was not that predominant here,” Lemonis told RVBUSINESS.com. “You don’t really see it. There were 19 dealers other than us in Phoenix, and that was a really important priority for me. You know, La Mesa, Lazy Days, Paul Evert’s, McMahon’s, Robert Crist and Orangewood were involved. The point is that this was not a Camping World event. This was a Good Sam event, and they really are different. Yes, Camping World had a (parts and accessories) store (at the Phoenix Raceway), like they do at a lot of events like FMCA rallies, and the Camping World dealership had a display along with 19 other dealers. So, it was really a Good Sam event.”

How did Lemonis, a controversial industry figure who had all but secluded his company from the rest of the industry a year ago, succeed in convincing those independent dealers to participate in a function sponsored by a Camping World affiliate, an arch-rival in effect for several of them?

“We didn’t really talk dealers into coming,” added Lemonis. “We gave the manufacturers our word that it would be fair and free enterprise. They are the ones that actually buy the space. They’re the ones who took the chance. They seemed extremely pleased. At the end of the day, if you (manufacturers and dealers) come and you have a good experience and sell product – whatever your opinion is — you don’t care. Selling RV’s is what matters.”

 

Pedata RV: Cash Purchasing to Continue in 2012

A Tucson, Ariz., online retailer sees a 2011 trend toward cash purchasing to continue into 2012. According to a release from used dealer Pedata RV Sales Center, buying consumers cite a variety of reasons for using cash for major purchases like recreational vehicles, including:

• Security: When paid in full there are no payments.

• Increased Buying Power: Some consumers indicate they felt that their buying power increases when they have cash in hand in comparison to purchasing with the use of financing.

Quicker Purchase: In many cases, a major purchase like an RV can be completed in a shorter amount of time when there are no financing needs. Financing often has temporary roadblocks and hurdles that must be dealt with and that often result in timing delays.

Gerard Pedata, owner of Pedata RV Center, said, “It isn’t necessarily a matter of not being able to obtain financing anymore. Many consumers paying cash have every opportunity to finance their RV purchase. They are using cash because they have recognized the benefits associated with a cash purchase.”

 

KZ RV Dealers Report Upswing in Show Activity

Based on customer sentiment and buying patterns, it looks to be a very good year for the RV industry, according to KZ RV LP dealers who saw encouraging activity during this winter’s RV shows.

In a press release from Shipshewana, Ind.-based KZ, dealers reported that show attendance was up and sales were “very pleasantly way up,” said John Gajewski, sales manager of King’s Campers in Wausau, Wis. “We almost doubled our record attendance at our open house, which we’ve had on the same weekend for the last 16 years,” he said. “We got maybe 6,000 people coming through over four days.”

John Petrie, president of Niagara Trailers in St. Davids, Ontario, had similar experiences. “Our first show, we had an 87% rise in unit sales over last year,” he said, noting that the Sportsmen Classic, Spree Escape and Coyote travel trailers by KZ did very well at his dealership’s three shows. But what surprised him was how well the bigger fifth-wheels were received.

“Fifth-wheels are definitely popular right now, particularly the Durango and StoneRidge, and there was lots more toy hauler activity,” Petrie said. “This season what’s doing really well is KZ’s 40th anniversary units.”

The release stated that the anniversary units “bring back some classic features of KZ’s historically successful RVs with contemporary presentation and technology.”

In addition, the “show stopper” models, fashioned and priced specifically for dealers to use at winter shows, found success at Niagara Trailers.

“The big thing that hit the market for us was the KZ show stoppers. Before, we only sold four the whole season. This year, we sold nine just during the first show. They seemed to really take off,” said Petrie. “KZ has lots more awareness in Ontario now. They’re a family owned company so they can make decisions about how to make what sells based on feedback from the dealers, and that really helps.”

Both dealers found an overall increase this winter in buyers new to RVing. “Maybe 30% of our customers were new buyers, which is a very nice number,” Gajewski said. “These shows definitely show us getting a good chunk of new customers.”

“There was an increase in purchases by people who are all new to RVing, but ironically we also had more trade-ins than before,” said Petrie. “These are people who used to be into RVing and are now coming back in, which is the opposite of the last two years.”

Whatever features and floorplans customers seek out, the recession-era shift to offering more for less in order to keep business flowing has made an impression on customer expectations. “What people really want is more amenities for less money, to be frank,” Gajewski said, and Petrie agreed: “As far as features, most RVs come with so many features in the package anymore, it’s almost the expected now.”

According to KZ, gas prices don’t seem to be dampening enthusiasm. “Customer attitude this year is surprisingly good. You don’t hear gas comments as much any more. It hasn’t been a focus,” Gajewski reported.

Petrie added, “There’s been no negativity about gas prices, interest rates, job loss, any of that. This year the weather in Ontario has been phenomenal. Traffic is higher at our shows and our dealership. Everything at this point looks like 2012 will be a very good year.”

 

Thor Led in RVs, Forest River in Motors, in 2011

Thor Industries Inc., headquartered in Jackson Center, Ohio, was the top U.S. retailer of towable and motorized RVs combined in 2011, according to Grand Rapids, Mich.-based Statistical Surveys Inc. Forest River Inc.’s combined subsidiaries placed first in motorhomes and second in total RVs.

In towables, Thor posted a 36.6% market share for 2011 followed by Forest River, occupying 31.1% of the market, Jayco Inc., Middlebury, Ind. (12.1%), KZRV LP, Shipshewana, Ind., (3.1%) and Nappanee, Ind.-based Gulf Stream Coach Inc. (2.0%).

The total number of towable RVs retailed in the U.S. in 2011: 172,617 units.

Elkhart, Ind.-based Forest River’s aggregate share for all motorhomes (including Class B’s) was 21.6%, while Thor’s combined divisional share was 19.8%, followed by Winnebago Industries Inc., Forest City, Iowa, (18.3%), Tiffin Motorhomes Inc., Red Bay, Ala. (11.3%) and Fleetwood RV Inc., Decatur, Ind. (10.3%).

Total 2011 motorized retail volume: 21,088 units.

As for a categorical breakdown:

• The travel trailer sector finished the year up 8%.

• Fifth-wheel registrations edged up 2.9% for the 12 months.

• Folding camping trailer sales declined 7.9% for 2011.

• Park model sales fell 5% through December.

• Class A overall sales grew 1.6%.

• Class C sales increased 2.3% for the full year.

• Class B motorhomes ended the year with a 15.3% decline vs. 2010.

Last year, Statistical Surveys also began tracking units sold for rental fleets, which reflected a 27% increase for the year.

 

 

Camping World Plans to Add 10th California Site

Camping World Inc. announces plans to open a new facility in Fresno, Calif. According to a press release, the new location will join 90 other Camping World locations, including nine in California.

With expected support of city officials, Camping World is in the final stages of planning the new location, which will encompass both a Camping World retail store and Camping World RV Sales dealership while generating tax revenue and new employment opportunities to the community. The release stated that early discussions have “shown strong support and interest from multiple manufacturers, suppliers and vendors looking for additional expansion in to this growing market.”

“Our growth plans across the country are consistent with Camping World’s philosophy of commitment to enhance our customers’ total RV experience,” said Marcus Lemonis, chairman and CEO of Camping World. “By increasing the growth of both the retail and dealership locations in our network, Camping World is getting closer to achieving our goal of truly being the one-stop shopping location for the RV and outdoor enthusiast across the country.”

Fresno is the second new market identified in the California area in 2012 with the recent Redding location announcement with plans to open in May. The company expects to open the new Supercenter in the Fresno area later in 2012 and to hire about 25 to 30 new employees to reinforce their sales, service and support needs for this local dealership and accessory store.

“Our goal is to expand our business into new areas, and we are very excited about serving the Central California community,” said Lemonis.

 

New York-based Wilkins RV Opens New Location

Wilkins Recreational Vehicles Inc., based in Bath, N.Y., opened its newest location last week in the village of Churchville. According to a press release, the RV business is just off Exit 3 of Interstate 490.

The Churchville Wilkins RV will have 125 new and used vehicles, with about 400 available between the two locations. There will be service bays and a selection of accessories and parts. According to the company’s website, an official grand opening at the Chruchville location is scheduled for March 19.

Wilkins RV is a third-generation dealership, founded in 1936. For additional information, call (585) 293-1001 or go to www.wilkinsrv.com.

 

RVers Still Upbeat at Pa. Show, Despite Gas Cost

Some visitors to the York Campers World RV Show in Pennsylvania last weekend said rising gas prices can have an effect when it comes to hitting the road, but those who want to camp will find a way.

The York Daily Record reported that in Pennsylvania, the average price for a gallon of regular gasoline is about $3.77, according to the AAA Daily Fuel Gauge Report. The national average has climbed from about $3.49 per gallon one month ago to about $3.78. This time last year, the national average was about $3.54 per gallon, according to the report.

Most gas-powered motorhomes average between 7 and 10 miles per gallon, according to the website RVTravelpro.com.

Some of those crowded into the York Expo Center said that their camping plans will go on, despite the rising gas prices. At the show, vendors displayed several styles of RVs, including units to tow or those to drive.

Dennis and Megan Schell, of Manchester, have an RV and are looking to upgrade. Megan Schell said it’s still cheaper to use the RV and go camping than it would be to pay for hotel rooms on a vacation. Prices at the campground are better and there are many things for families to do there like swimming and fishing, she said.

Ryan Reich, business manager at Susquehanna RV, said he hardly hears anyone talk about gas prices.

Some might take shorter trips than they used to, he said, and he’s seen some customers going for “v-nose” RVs that are more aerodynamic and are better on gas mileage.

Bob and Shari Small, of Hanover, said they would be sticking closer to home with the RV they bought last year, instead of traveling around.

“We can still enjoy camping but within our budget,” Shari Small said.

Cory Decker, salesman with Ben’s RV Center, said he thinks gas prices have maybe had a part in slowing down the industry in recent years, but “it’s coming back.”

This year, customers have been looking for lighter-weight units, he said because of gas prices and because some of the newer fuel-efficient vehicles can’t tow quite as much weight.

“I think people will still be getting out,” said Robert Klaus, owner of Paradise Stream Family Campground in Loysville. Gas prices might stop people from traveling very far or might cause them to do longer stays in one place, he said.

He thinks the “bigger rigs” are the area hurting, he said, noting that last year, he saw more small campers and pop-ups.

Virginia Aldinger, who works at Paradise Stream, said people book far in advance before they know what gas prices will be like. Someone could even lose a job unexpectedly.

“You can’t really tell until it gets here,” she said.

Karl Littman, of Candy Hill Campground in Virginia, said he’s trying to stay optimistic, hoping gas prices will stay where they are or go back down.

“We’re just hoping they’ll continue to camp and enjoy themselves, wherever (they go),” he said.

One of the new features that attracted interest at the show was an outside kitchen on the RV. “It saves the inside from smelling like food,” said Dennis Schell, of Manchester. “It keeps it all outside.”

Other popular features include electric bunks that offer extra sleeping room but conceal overhead when not in use, and keyless entry systems, said Ryan Reich, business manager for Susquehanna RV.

Many RVs are also now “green certified,” meaning they are more environmentally friendly, he said.

 

Baird: Thor 2Q Reflects Consumers’ Good Mood

Editor’s Note: Robert W. Baird & Co. issued a client newsletter to investors following Thor’s second-quarter financial report. The following offers a summary of the results.

Sentiment improving as early spring emerges. Thor results were slightly ahead of expectations as lower costs offset weaker gross margins (discounting). Retail sales are off to a good start this year as a mild winter and an improving economic outlook help demand – but it is still early. Thor is positioned to take market share and dealer inventory is healthy as sentiment improves.

• EPS ahead of expectations. Thor’s 2Q EPS topped our estimate ($0.25 vs. $0.24) and the $0.24 consensus forecast. Relative to our model, Thor delivered lower operating expenses, weaker gross margins and a higher tax rate.

• Sentiment and sales improving. Management noted “strong” retail activity in the first two months of the year. This is consistent with our recent dealer survey as well as checks in other discretionary categories (cars, motorcycles), which have revealed an early jump in sales. It is clear that the mild winter is stimulating some early consumer interest, but improving economic trends are likely contributing as well. Notably, the RVIA’s 2012 industry shipment forecast was recently raised to +5% from -2% — a further sign of improving sentiment.

• Outlook. Thor’s leaner cost structure is paying dividends and consumer confidence has improved from recent lows, stimulating renewed interest in RVs. Higher gas prices remain a risk – but we are growing more optimistic heading into the critical selling season.

This summary of a Baird research report is not intended as investment advice. To participate in Baird surveys and receive research reports, contact Craig R. Kennison, CFA, at ckennison@rwbaird.com.

 

Despite Tornado Threat, Ala. Show Draws Crowd

Despite a threatening weather forecast – including a tornado warning – attendance was up by 10% and sales increased 15% at last week’s Montgomery RV Show in Alabama, according to a press release. The event ran March 2-4 at the Renaissance Convention Center.

Organizers said that despite the inclement weather, attendees were drawn to the show by advertising touting “very aggressive pricing” on a wide range of the newest 2012 models.

Surprisingly, people came from farther distances to this year’s show, including Mobile, Birmingham, Dothan, Auburn, Columbus, Ga., and Panama City, Fla.

For the second year in a row, all marketing, advertising, promotion and public relations for the RV Show were handled by D.P. Ball Advertising.

 

 

Thor Posts 41% Rise in 2Q Income, Sales up 13%

Jackson Center, Ohio-based Thor Industries Inc. today (March 8) announced improved revenue and earnings for its fiscal second quarter and six months ended Jan. 31, 2012.

Sales for the second quarter were $597 million, up 13% from $526.2 million in the second quarter last year. Net income for the quarter was $13.7 million, a 41% increase from $5.7 million the previous year. Earnings per share (EPS) for the quarter were 25 cents versus 10 cents in the second quarter last year.

Sales for the six months rose 12% to $1.27 billion from $1.1 billion in the prior year period. Net income was $36 million, an increase of 23% compared to $29 million a year ago. EPS was 66 cents versus 54 cents in the prior year period.

RV sales in the quarter grew 15% to $501 million from $437 million in the second quarter last year. Towable RV sales in the quarter were $444.2 million, up 22% from $364.8 the previous year. Motorized RV sales in the quarter were $56.8 million, down 21% from $72.3 million in the second quarter last year. Bus segment sales in the quarter were $96 million, up 8% from $89 million in the second quarter of 2011.

“We are pleased to report improved earnings during the seasonally most difficult quarter of our fiscal year,” said Peter B. Orthwein, Thor chairman and CEO. “The Recreation Vehicle Industry Association (RVIA) recently revised its 2012 wholesale RV shipments forecast upward to a 5% improvement over 2011. We are also pleased with the strong retail activity we have seen over the first two months of 2012. However, factors tempering our optimism include continuing escalations in fuel prices as well as lingering discounting activity. We continue to see improvement in Thor’s bus segment, with increased activity among transit and private bus customers driving increasing order backlogs.”

To view the entire report click here.

 

 

« Previous Page — Next Page »