Thursday, July 17, 2008
RV dealers not giving up
The cost of RVing compares well with airfare and hotel rate increases, dealers say.

Photos by Eric Brady |The Roanoke Times
Ron Wright of Tonie's RV in Salem places a new rubber gasket around a window on a RV brought in for service.

Photo by Eric Brady | The Roanoke Times
Gary Thomas (left) and Ron Wright service an RV at Tonie's RV in Salem. Tonie Canipe, the shop's owner, says she now focuses on parts and service rather than new vehicle sales.
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With summer here and gasoline prices rising with the temperature, recreational vehicle dealers and buyers are finding ways to adapt.
People are still buying RVs, despite the year's record-high gas prices, said John Crocker, a sales consultant with Snyder's RV in Salem.
While Crocker admits that sales volume is down, the drop in the number of units sold isn't that severe in his eyes.
Customers are more receptive than ever to smaller, more fuel-efficient models, he said.
"Just about every customer now will ask about fuel mileage, which has never happened before," Crocker said.
The TrailManor, a lightweight travel trailer that users tow behind their vehicle, has become a popular option for buyers, he said.
Owners report gas mileage of 15 to 24 miles per gallon, depending on the tow vehicle, which is significantly more cost-efficient than a full-sized RV, which can dip into the single-digits.
Tonie Canipe, owner of Tonie's RV in Salem, has changed her business plan to compensate for the industry's sales decline.
Tonie's RV opened in 1997 as an RV rental business -- but now serves as a parts and service shop.
Canipe said RV travel on Interstate 81 appears to be the most scarce it has been in years, which played a role in her decision to discontinue rentals and focus on parts and service instead.
Neither Canipe or Crocker had sales figures available to compare this year's revenue with previous years.
But Winnebago Industries, a leading RV manufacturer, announced last month that its profits dropped 73 percent to $3 million in the quarter that ended May 31, compared with the same quarter in 2007. The company expects no improvement for the rest of 2008.
Canipe specializes in parts for RVs made from 1979 to 1995. She said that manufacturers began making the RVs lighter in the late '90s -- making them more fuel efficient but sacrificing some quality.
"People don't want to buy new RVs anymore because they don't build them like they used to. Used parts are where the money is now," Canipe said.
She said the majority of her more that 1,000 customers are dealing with gas prices by taking shorter trips to campgrounds.
The national average of regular unleaded fuel is currently a little more than $4 a gallon according to AAA.
"It's a shocker when you're filling up" an RV, Canipe said.
Many RVs hold about 38 gallons of gas. At $4 a gallon, filling up the tank would cost $152.
The downturn in the RV industry may be an indicator for a much bigger economic trend. For the past 30 years, RV sales have struggled immediately before the U.S. economy hit a decline, according to media reports.
Because RVs are considered a luxury item, people tend to shy away from the vehicles when the economy isn't doing so well.
Richard Savage, owner of C&L Campers in Radford, said he isn't worried about the state of RV sales, though.
With 2008 marking the 36th year his shop has been in business, C&L Campers has lived through every period of economic hardship that the slumps in the RV industry have heralded, he said.
"The RV industry goes up and down along with everything else," Savage said.
Crocker said gas prices will change the nature of RV trips, not hinder them. Many of his customers choose to camp within three hours of their home, as opposed to taking lengthy trips across state borders.
"People are still going to take vacations, they'll probably just be taking shorter ones," he said.
Savage said he believes his business will continue to prosper because RV enthusiasts view the friendliness of campground owners as a major selling point.
Plus, he said, the positives of RV trips are enough to outweigh the hassle that travelers face at the pump.
"If you ever go RVing, you'll fall in love with it and it will be with you the rest of your life," Canipe said.
The cost of hotels, flights and restaurants have gone up along with gasoline, she said, which makes it hard to rule out an RV trip as a vacation option.
She said she feels more comfortable on RV trips because the vehicles are cleaner, more cost efficient and convenient than hotels.
"You have your own little resort right there. It really is the best bang for your buck," she said.
For any RV travelers concerned about the rise in gas prices, Savage said that his 36 years in the business have given him the only surefire solution to this problem.
"Stay home," he said with a smile.




