RV maker to sell direct

[markopolo]

RV maker to sell direct

Interesting idea. (this is not a Class B RV manufacturer by the way)

http://www.newswire.ca/en/releases/arch ... c3722.html

Travelaire will also be selling a selection of recreational vehicles factory direct which will also allow it to be more price competitive on a select number of units.

Obviously more details would be needed for me to give an informed opinion on this but I don't see how you can cut out the RV dealer.

Dealers, manufacturers, purchasers - we're all in this together.

[VernM]

With the bad rap most dealers and service centers seem to get (and many, I have observed, deserve), maybe factory direct wouldn't be all that bad. I know I've had to deal with the factory to get things right on the most expensive of my problems with RVs (trailers and motor homes). That's why I was pleased to get rid of 'em and "roll my own" with the van.

In many cases, I think, survival will depend on quality of both manufacture and service and who can control that better than the guy who has the most invested? It worked that way in the airplane business too.

Boils down to quality versus quantity?

[markopolo]

I guess I was thinking more of the logistics of display, delivery, dealer prep & warranty work performed by the dealer.

Most people like to look at the unit they're buying. I suppose you could visit the factory......... I doubt any dealers would carry the "factory direct" models. They'd just be taking up space on the lot.

If the dealer is cut out of the sale will they want to perform any warranty work for that manufacturer?

I've been reading a dealer blog lately. There a problems on all ends. Some manufacturers take forever to reimburse dealers for warranty work performed. Some dealers bill manufacturers for warranty work that was never even done. Some work has a set price. The dealer gets $40 for doing the work on the latest Dometic recall for example. It doesn't matter if it takes 20 minutes or an hour and a half.

The whole pricing scheme for the end purchaser is frustrating. You can get from 0 to 25% off MSRP depending on manufacturer / model / dealership / etc.

RV dealers normally finance their inventory by paying lending institutions a monthly inventory cost and reimbursing the lender each time a vehicle sells at retail, said Bill Baker, senior director of communications and publications for the Recreational Vehicle Industry Association (RVIA).

Basically, dealers buy the RV from the manufacturers then sell the RV's for a profit before their financing costs get out of hand.

Interesting business to say the least!

Interesting times right now also.

Some new ideas are needed.

[markopolo]

Here's the link to the dealer blog I mentioned:

http://www.rvtradedigest.com/interactive/