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07-25-2017, 10:44 PM
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#2
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Platinum Member
Join Date: Aug 2010
Location: Minnesota
Posts: 12,387
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And on it goes!
Will all the excursion into dealerships be a good move, or over extend them and make it all crash and burn? I hope they have sense enough not to finance everything without enough income to service the debt in slower times.
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07-25-2017, 11:47 PM
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#3
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Platinum Member
Join Date: Nov 2015
Location: CA
Posts: 1,668
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Quote:
Originally Posted by gregmchugh
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There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
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07-26-2017, 03:39 AM
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#4
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Platinum Member
Join Date: May 2014
Location: Greer, South Carolina
Posts: 2,611
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Note to self: Never shop at American RV.
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07-26-2017, 05:03 AM
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#5
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Platinum Member
Join Date: May 2016
Location: East
Posts: 2,483
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.
Not all the Camping World are bad.
I know most of them have bad reputations,
but there are good ones too. Probably they are bought-outs just like this American RV.
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07-26-2017, 08:35 AM
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#6
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Platinum Member
Join Date: Feb 2016
Location: Portland, Oregon
Posts: 3,271
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Quote:
Originally Posted by booster
...................or over extend them and make it all crash and burn? .......................
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Yes, just a hiccup in NA economy and fall could be dramatic.
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07-27-2017, 03:41 AM
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#7
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Platinum Member
Join Date: Nov 2006
Location: Virginia
Posts: 764
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CW is really on the move, be it good or bad, for them or customers! I read where they have taken over Overton's Marine Supply, McGeorge RV in Richmond, and a few others I can't remember. With the gobbling up, I wonder how much cash is really going to the seller. I have never been a fan of CW, but wonder what their business plan has for sustainability if tight times come? Ron
__________________
Ron J. Moore
'15 RT210P
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07-27-2017, 03:58 AM
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#8
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New Member
Join Date: Jul 2017
Location: Tampa, Florida
Posts: 16
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Quote:
Originally Posted by cruising7388
There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
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Hmm, it would only be fitting that you brought this question up, cruising7388. I was wondering about the same thing.
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07-27-2017, 06:12 AM
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#9
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Platinum Member
Join Date: Sep 2014
Location: Missouri
Posts: 113
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Quote:
There's nothing to stop Camping World from acquiring American RV but doesn't Roadtrek have the final say regarding whether and/or where CW becomes a full fledged RT dealer? I would think that established Roadtrek dealers might not be too happy about an invasion into their market territory.
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Just because Camping World bought a Roadtrek dealership in Grand Rapids wouldn't necessarily give them the right to sell Roadtrek RVs anywhere else. I imagine Roadtrek's contract with American RV spelled out where they were allowed to sell Roadtreks (and for how long), and Camping World would still be bound by that.
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2003 Roadtrek 190 Popular
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07-27-2017, 02:41 PM
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#10
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Platinum Member
Join Date: May 2017
Location: California
Posts: 674
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If a crash comes, they have effectively already put their competition out of business and they can then close some of the dealerships and direct traffic to the remaining ones. Seems pretty smart.
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2018 Coachmen Crossfit/Beyond
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07-27-2017, 03:32 PM
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#11
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Platinum Member
Join Date: Aug 2010
Location: Minnesota
Posts: 12,387
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Quote:
Originally Posted by Phoebe3
If a crash comes, they have effectively already put their competition out of business and they can then close some of the dealerships and direct traffic to the remaining ones. Seems pretty smart.
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Except that only works if you haven't built up too much debt by financing all the acquisitions, as you still need to have enough income to service all the debt. The only way would be to do a bankruptcy to reduce the debt, along with closings, to make it viable going forward.
The debt load is always the big risk in this kind of expansion program.
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07-27-2017, 03:57 PM
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#13
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Platinum Member
Join Date: May 2014
Location: Greer, South Carolina
Posts: 2,611
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You always set up your corporate structure to firewall the holding company from subsidiary debt. I would be almost certain that American RV will have their own debt and operating expenses. They will pay corporate G&A each month as support to the organization. If bad things happen, they collapse American on it's own and it doesn't drag down the rest of the corp. Same is probably true of Gander Mountain and the Camping World stores. The cash cow is most likely the Good Sam club and all those sweet dues payments that roll in each year.
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07-27-2017, 06:32 PM
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#15
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Site Team
Join Date: Jul 2013
Posts: 5,424
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Quote:
Originally Posted by Gryphon
So I think these acquisitions are about making the Good Sam membership more attractive and getting access to potential new members at the same time.
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I think this is a correct analysis, but I wish them luck. The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years. I wouldn't know. I had to write a letter to their president's office to get them to stop sending me trash, years after I quit them.
BTW: Does anybody know whether Hymer owns or affiliates with a Camping World-equivalent in Europe?
__________________
Now: 2022 Fully-custom buildout (Ford Transit EcoBoost AWD)
Formerly: 2005 Airstream Interstate (Sprinter 2500 T1N)
2014 Great West Vans Legend SE (Sprinter 3500 NCV3 I4)
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07-27-2017, 06:40 PM
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#16
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Platinum Member
Join Date: Sep 2014
Location: Missouri
Posts: 113
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Quote:
Originally Posted by avanti
The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years.
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They're not that bad now. I get the occasional bit of junk mail, but it's very occasional, less than one per month I'd say. It's not enough for me to notice anyway, unlike, say, AARP, where it's rare for me to go even one week without getting one or more pieces of junk mail.
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2003 Roadtrek 190 Popular
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07-27-2017, 06:41 PM
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#17
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Platinum Member
Join Date: Feb 2016
Location: Portland, Oregon
Posts: 3,271
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Quote:
Originally Posted by avanti
I think this is a correct analysis, but I wish them luck. The Good Sam brand is (or was) in shambles due to their history of unbelievably obnoxious marketing practices--notably their habit of sending enough junk mail to heat your house with. It was so bad that their main competitor (CoachNet) has ads bragging about their lack of junk mail. I'm told that they have gotten better in recent years. I wouldn't know. I had to write a letter to their president's office to get them to stop sending me trash, years after I quit them.
BTW: Does anybody know whether Hymer owns or affiliates with a Camping World-equivalent in Europe?
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Camping World from UK doesn’t sell caravans or campers. Camping Store | Camping Equipment | Caravan Awnings
Hymer and all othr tend to use dealers ERWIN HYMER GROUP
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07-27-2017, 06:59 PM
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#18
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Site Team
Join Date: Jul 2013
Posts: 5,424
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Quote:
Originally Posted by GeorgeRa
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I ask because I have a sneaking suspicion that CW is fattening themselves up for an eventual acquisition by Hymer. All the OEMs are desperate for a solution to the lack of national repair networks for their owners. A well-managed Hymer/CW/RT empire could be formidable.
__________________
Now: 2022 Fully-custom buildout (Ford Transit EcoBoost AWD)
Formerly: 2005 Airstream Interstate (Sprinter 2500 T1N)
2014 Great West Vans Legend SE (Sprinter 3500 NCV3 I4)
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07-27-2017, 07:06 PM
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#19
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Platinum Member
Join Date: Aug 2016
Location: Northern VA, USA
Posts: 195
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Quote:
Originally Posted by Ron J. Moore
CW is really on the move, be it good or bad, for them or customers! I read where they have taken over Overton's Marine Supply, McGeorge RV in Richmond, and a few others I can't remember. With the gobbling up, I wonder how much cash is really going to the seller. I have never been a fan of CW, but wonder what their business plan has for sustainability if tight times come? Ron
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They recently took over Reine's RV in northern VA
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07-27-2017, 07:15 PM
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#20
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Platinum Member
Join Date: Feb 2016
Location: Portland, Oregon
Posts: 3,271
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Quote:
Originally Posted by avanti
I ask because I have a sneaking suspicion that CW is fattening themselves up for an eventual acquisition by Hymer. All the OEMs are desperate for a solution to the lack of national repair networks for their owners. A well-managed Hymer/CW/RT empire could be formidable.
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It could be formidable or The disaster à la Sears. It took Hymer long time to get into NA, it could be doubtful that a blitzkrieg style market penetration would be their strategy. It is taking them long time to take care of RT CEO, what if they have to deal with Lemonis.
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