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RV Dealership
Owners Not Worried by Rising Fuel Prices
Rising gasoline prices aren't fueling sales worries for two Ankeny RV dealers
going into the strong spring and summer buying season. They note most Iowans'
favor short, in-state trips that are little impacted by higher fuel prices.
Both Wes Thorpe, general manager for Plaza RV Inc.
and Denise Roberts, owner of Imperial RV of Ankeny,
said rising fuel prices don't seem to be a major concern to customers. It may
even be a sales boon as some travelers look to offset fuel hikes with savings
on hotel and restaurant bills. "Customers seem to be accepting
higher gas prices," Thorpe said. "They balance
against savings on hotel and eating costs with an RV. "
Thorpe said he has noticed a big increase in the last decade of Iowans, especially
retired people, taking several weekend camping trips with maybe one of two larger
trips a year. "I'd say one-half of all camping is local
or short trip," Thorpe said. "Some recreational
areas offer half-price senior citizen promotions - that can be a huge savings
incentive." Plaza RV has a client base largely aged 50 or older, he said. "Many of our customers are retired service people - former police officers,
firemen and John Deere employees - who all worked hard for their entire lives
and are looking for greener pastures and for a chance to commune with nature."
Plaza's market niche is higher-end, top-quality RVs exclusive of larger motor
homes. The firm represents only three name brands - Hitchhiker 5th wheel units;
Alpenlite, another 5th wheel manufacturer; and Shasta Travel Master. "Our
philosophy is to favor a limited number of higher-quality manufacturers," Thorpe said. "We sell well-established name brands. Some
people will only buy one RV so they desire quality." Costs for those
units typically range from $50,000 - $81,000, he said. He said the firm, founded
more than 40 years ago in Urbandale, and has been in every market segment in
RV model lines.
The firm found its niche in the higher-end market and eventually relocated to
Ankeny in 1993 in search of more land to better display units to the public. "The units started getting larger and we needed more room
to display them," Thorpe said. "Our market area
is the state of Iowa. We have customers from Fort Dodge, Iowa City, etc. A lot
of that business comes from word of mouth - a friend buys an RV, enjoys it,
and others want to try it."
Plaza RV sells 120-150 units a year on average, Thorpe said. The most popular
models re the 34' and 35' foot "Premier" and "Premier Limited" models that include
a third "glide out" feature - an extension that increases square footage of
a unit and can be folded up for the road easily with the touch of a button.
Fifth-wheel RVs are popular with customers, he said, for safety. He said 5th-wheels
distribute the weight of the trailer evenly like a semi trailer does, which
limits sway and eases towing issues. Thorpe said Plaza even helped found a Hitchhiker
club called the "Wild Rose Hitchhikers" - a group of 30 families that normally
camp out once a month in good weather and hold monthly socials during cooler
months. "They have visited Adventureland, the Amanas,
and the Omaha area," Thorpe said. "They have a
lot of fun together and run independent of us now, although we still provide
things like door prizes, etc."
Plaza also sells used units accepted as trade-ins. Thorpe said these units are
more popular with people trading up from entry and mid-level RV units because
they are less expensive but still high in quality. "People
who buy quality usually trade-in quality," Thorpe said. "People maintain their investments in RVs."
Roberts, with Imperial RV, has her niche in the entry to mid-level market. Her
firm carries brand names such as Layton, Nomad, Trail Lite, Trail Harbor and
Cedar Creek. She said most units are either traditional pull behind or 5th-wheel. "Our customers are aged 30 and older," Roberts said. "In the last three to five years, we have seen a lot more younger families coming
in. There is not a lot for young families to do together, but camping is a very
family-oriented activity." Local camping is a common use of the units
Roberts sells. She said families might take one bigger vacation outside of the
state, but that most customers indicate they are doing shorter trip, in Iowa
camping. "I've also seen an increase in extended families camping together,"
she said. "Whole families will enjoy a weekend getaway,
for example. Or, four or five unrelated families will get together." The growth in sport utility vehicle sales has also been a factor in the rising
popularity of RVs, Roberts said. "SUVs have the power
and construction to easily tow. Plus, they have enough room for the family and
camping gear."
Roberts said family is a big part of her business by nature - she has
been at the helm of this family-owned firm since 1992. Her father founded it
in 1986. She said her father started the company because he wanted a new business
and knew he wanted it to be motor travel related. The most popular units at
Imperial, she said, are the ultra lightweights. These units weigh in at about
3500 pounds as opposed to traditionally constructed trailers that would come
in 1000 to 1500 pounds heavier. The lightweights use state-of-the-art construction
materials. One major change in the RV market Roberts has noticed in the past
few years has been the decline in pick-up campers - a mainstay on family camping
in the 1970s and 1980s. "They just got very expensive
with costs becoming the same as for travel trailers," she said. "Also, people who bought pick-up campers typically were towing something else,
like a boat. Very few dealers still handle them. You just can't be all things
to all people."
Roberts said Imperial sells about 300 units a year. She said the firm usually
has 130 new and used RVs on the display lot for customers to view. Customers
who favor used vehicles are usually looking for a little lower cost "because
they aren't sure if they will like camping."
She said the average price of a RV is $10,000 to $16,000 with the highest priced
unit on her lot at almost $39,000. Roberts said most units are financed through
the dealership rather than through a customer's bank or credit union. "We work with banks that offer longer terms than a person's bank or credit union
will offer, such as 10- to 15-years," she said. "And, the interest expense is tax deductible as a second home." She said
Imperial is a full-service center providing everything from product knowledge
to hitch and wiring installations. She said a typical hitch system costs from
$500 to $600. "We are very careful to match the vehicle
and the trailer for installing the hitch. Most people use vehicles such as Suburbans,
Exhibitions, etc." She also noted that women have a large impact on the
family buying decision and that they tend to consider more utilitarian aspects
of a unit. "They will look for floor plan design, storage
options and ease of movement while men, who are generally taller, like having
skylights and higher ceilings in the units," Roberts said. "But
women definitely make the buy decision."