Opinion: EverLogic Exec Sees Opportunities in Down Market – RVBusiness – Breaking RV Industry News

Matthew Copeland

EDITOR’s NOTE: The following guest opinion was written by Matthew Copeland, who serves as the content manager for EverLogic, a dealer management software (DMS) provider based in Jacksonville, Fla., catering primarily to RV and trailer dealerships. Copeland holds a degree from the University of Alabama and has prior experience in local news before transitioning to EverLogic. In his free time, Copeland works as a tour guide in St. Augustine, Fla., spends quality time with his wife Tegan and dog Marty, and cheers on his beloved Crimson Tide every Saturday. 

The year 2023 will be one the entire RV industry would like to soon forget. Yet these last few years will also be indelibly etched into the minds of those who work in the industry for years to come. While it is a cliché now to blame COVID-19, it seems the bubble brought on by the pandemic has burst.

The RV Industry Association (RVIA) reports that more than 600,000 units were shipped to dealerships worldwide. The decline began last year when 493,000 units were shipped, representing a decrease of about 18%. However, it was still the third-best year on record.

In RVIA’s August report, new shipments were down 45% this year compared to the YTD in 2022. Travel trailer shipments are down nearly 50%. Simply put, it was a rough year.

The factors causing this recession in the RV industry are hardly a secret to anyone who works in the business. First, in the aftermath of COVID, people were so eager to travel that an RV seemed to be the answer to a dream for consumers looking to experience the vastness of the outdoors. That bubble was inevitably going to burst. But the COVID bubble is just one factor.

To curb inflation, the Federal Reserve began raising interest rates to the highest levels since the 2008 recession. For those dealerships who floor-planned a unit, now the interest they pay on a unit is more than 5% greater. Meanwhile, inflation has turned consumers’ focus to their necessities rather recreation.

For example, in a study published in April by Bankrate, 37% of U.S. adults said they would not take a vacation during the summer. More than half of those, 58%, cited affordability as the reason why they would not go on a summer vacation, more than double the next closest reason in the survey. When asked why they couldn’t afford a vacation, 62% cited inflation and 59% cited insufficient income.

The survey also found most of the likely vacationers would either go to a cheaper destination or take part in cheaper activities. And while Bankrate did not cite any questions related to RVs, it is reasonable to say these statistics reflect consumers’ habits on owning or keeping up with an RV.

Yet struggles with sales and floor-planning still don’t tell the entire story of the industry’s struggles. Many dealerships are finding it hard to keep themselves fully staffed. This is not specific to the RV industry but the dealership industry as a whole.

One study by Fisher Phillips found that 87% of automotive dealerships had difficulty in finding and retaining employees in 2021. In May 2022, Power Sports Business reported that 62% of power sports dealers were understaffed. While finding qualified technicians seems to be the hardest, dealerships still must fight to find qualified salespeople, accountants, and back-office employees as well.

With fewer employees, you have units bottlenecking while waiting for service, an accountant who may not be very experienced with your software or how you run books, potential buyers waiting in the showrooms, and even less material for marketing.

In addition to all this, independently owned and operated dealerships seem to be losing the battle against larger cooperations that are buying longtime community establishments.

However, there is light at the end of the tunnel for dealerships that use this time to their advantage. In a time when business is slowing, the best action for your prosperity is to reinvest in your business. This is not a time when the status quo is acceptable, hoping the ship will right itself.

First, reinvest in your staff. Yes, ultimately it comes down to money and time off. Evaluate your budget to find room for increased pay rates, especially guaranteed pay. You can also explore better benefits, add an extra week of time off, or offer incentives like a free gym membership.

Then there are the small things that show you are ready to look after the employees you have. Those employees who stuck with you through so much adversity, knowing the reality of the industry, clearly are loyal to you. Reward that loyalty with more than the bump in pay. Do an event with your employees, invite them for a Sunday cookout, and even write them cards letting them know you support them. A strong commander and a loyal and motivated army are nearly impossible to stop when they get into battle.

Second, invest in your systems. The worst thing you can do is just assume the systems you have in place today will serve the needs of your dealership tomorrow. If business is slow for you, take that time to explore new software, new equipment, new marketing, and maybe a new look inside your showroom. Like a great football coach, it is important you adjust to the rapidly changing times. During a time of so much change in the industry, the time act is sooner rather than later.

Finally, invest in yourself. This cliché might sound overly simple at a time when the industry is so chaotic. But a positive mental attitude, always seeing that light at the end of the tunnel, has saved everything from football games after a bad first half to businesses during a dry spell, and even lives during times of great adversity.

The RV industry is not going anywhere, and there are signs of a strengthening market. The economy will recover. Business will return. And when someone looks for the chance to “See America First,” you will be there to create that memory for them.

Source: https://rvbusiness.com/opinion-everlogic-exec-sees-opportunities-in-down-market/