RV PRO

February '19

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rv-pro.com February 2019 • RV PRO • 45 "We are looking to reduce inventory levels to be more in-line with our sales numbers and be in a better financial position through the first half of the upcoming year. We have added a few new brands to our product offering, to replace under-per- forming brands that we will no longer be carrying. So, going into the new year, I feel cautiously optimistic. "Generally, I feel the RV industry is still in a good position. It's a great industry to be in. The first four months of 2019 will tell us a lot, and that will dictate how we budget for the remainder of the year. We hope to have a better year than we did in 2018 – not that 2018 was a bad year – we just want a little more." Scott Krenek, president Krenek RV Center Coloma, Mich. "Dealer inventories are already maxed out, sales have been slow – especially for motorhomes – in the last two months (of 2018), and RV manufacturers' lots are jammed. "Thor reported the third quarter of 2018 was down 83 per- cent and I predict that will only get worse as they continue to compare to last year's record sales. OEMs are calling and cut- ting us deals, saying 'dealers are out of money and we need to move these now.' "Higher interest rates have definitely slowed purchasers' decisions, as they look at making bigger payments on large purchases. And if the Fed keeps on raising rates, it could get much worse. With that in mind, dealers should think about ways to cut inventory levels to save money on interest on money borrowed from banks to purchase inventory. "I do not see any way 2019 will be a better year for sales, but rentals should be up, as more people delay buying but still go on vacation. "Consumer confidence seems OK, but now everyone wants to wait until spring to buy, because winter weather is already here. We got snow early and it was on the ground for the whole month of November! While it has since melted and warmed up to the 40s, which has improved our lot traffic a bit, for most people it's too cold to think about RVs. "Overall, the economy seems all right, but people are getting cautious because the media keeps saying 'Beware!' And the mass media can convince people it's bad even when it's not. "Currently, we are short at least two salespeople, so we will definitely be hiring in the beginning of the year (2019). We also always need more techs. We're very busy, even now. Our service department has not slowed down yet. In fact, we're just starting to get caught up on reconditioning the trade-ins we took in way back last summer. "As it's not hard to get replacement parts in a day or two at most, we're keeping our parts inventories low for now, but we Keep those quiet country roads QUIET thermotec.com | (800) 274-8437 Dealer inquiries welcome eliminates cabin NOISE & HEAT Suppressor Heat & Sound Mat #14620

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