RV Manufacturers Shutting Down

[cmikal]

Originally Posted by videoarizona

Don't like to see a small business get into trouble like this!

Consider this. Those businesses that either are in trouble now or will be in trouble shortly, didn't care about their customers when times were good. It was (and is) all about profit profit profit, and more profit. There isn't a dealership in the country that cares about you. They want your money. That's it. If they cared about you, they would say, "you know what Mr and Mrs customer? I know you just offered us 10% off MSRP, but we are still making 20% on the deal. I can afford to knock another 10% off the price and still have a decent profit, so thats what I'm going to do. Knock another 10% off, because I want to earn your business".

That conversation has never happened.

[Onyrlef]

Originally Posted by videoarizona

That's need to me! Thank you for the clarification.

Regardless, they're overwhelmingly likely still being floor planned by somebody, unless a dealer has very deep pockets. So you're right, unsold units cost the dealer interest , whether it's to Jayco or a bank is irrelevant. Interest is interest and unsold inventory accrues interest.

[Wireman]

Originally Posted by 1911Garand

More great info here. The economic ninja is a great channel.


https://youtu.be/KSJUDCc8Jno

The video say's they are eliminating some quality control jobs.

Bad idea.

[Yooper906]

Originally Posted by Wireman

The video say's they are eliminating some quality control jobs.

Bad idea.

In most cases, yes. In the manufacturing plants I worked in most of my life, eliminating QC meant more work load for the operators that now have to stop production and do their own inspections. Sounds good on paper, It's a cost saver for sure, but the end result may not be what is expected. As always, a good machine operator already knows what is being produced from his job.

[Grumpy]

Originally Posted by Onyrlef

Regardless, they're overwhelmingly likely still being floor planned by somebody, unless a dealer has very deep pockets. So you're right, unsold units cost the dealer interest , whether it's to Jayco or a bank is irrelevant. Interest is interest and unsold inventory accrues interest.

True, but the dealer asked for the inventory. Unlike some other manufacturers that send out 2 or 3 additional rigs with every one or two ordered rigs. I know that was how the industry operated in the early years anyway. "You take these to get that". Not sure if that still happens or not. That was my point.

[Wireman]

Originally Posted by Yooper906

In most cases, yes. In the manufacturing plants I worked in most of my life, eliminating QC meant more work load for the operators that now have to stop production and do their own inspections. Sounds good on paper, It's a cost saver for sure, but the end result may not be what is expected. As always, a good machine operator already knows what is being produced from his job.

I always thought that a QC inspection on every unit would eliminate a lot of headaches for dealer's and the consumer's who buy the RV's.

Of course every issue wouldn't be found, but plenty of problems could be fixed and would help with the backlog of warranty claims by the owners. Losing months of use while their RV's sits idle, makes no sense.

I don't see how these companies think paying out warranty claims to dealers
is beneficial to anyone. There not stupid and know what the quality is like now, but turn a blind eye and the buyer suffers in many ways.

I can't think of any other industry with that attitude. Imagine HP or Dell thinking that way.

Remember the American auto manufactures in the 70's and the crap they built. It took the Japanese to show them how it should be done.

Sure, these are rolling houses that take a lot of abuse. They should be engineered and built for their intended purpose. Nothing is perfect but with all these brands under one umbrella and when that company puts the consumer at the bottom of their priority list, it's take it or leave it for everyone.

[TaftCoach]

Originally Posted by Wireman

The video say's they are eliminating some quality control jobs.

Bad idea.

Both guys are out of work?!

[Onyrlef]

Originally Posted by Grumpy

True, but the dealer asked for the inventory. Unlike some other manufacturers that send out 2 or 3 additional rigs with every one or two ordered rigs. I know that was how the industry operated in the early years anyway. "You take these to get that". Not sure if that still happens or not. That was my point.

The manufacturer has salesmen who have a certain number of dealerships in their area of responsibility, even if the dealer is exclusive it's up to them what they take into inventory. The manuf. sales rep. has to sell to the dealer, just like the dealer sales rep. sells to the public. The dealer is paying for whatever they get from the plant, just like you're paying for what you get from the dealer. Regardless, in whatever case, the dealer is floorplanning his inventory and paying interest on the floorplan. That's why whoever is toting his paper, regularly sends an auditor to make sure the SN's on his floorplan are physically on the premises and he hasn't sold them, pocketed the money and is paying interest on non existent collateral. It's called being in "trust", fall out of trust and they'll be auctioning of the office furniture next week. Ever see "Fargo", the car dealer was selling inventory and not reporting it sold, kinda like if you sold your house and didn't pay off the lien.

[Onyrlef]

Originally Posted by TaftCoach

Both guys are out of work?!

I've worked in the plants, you're more right than you might imagine. A QC guy gets too ambitious and he's back on the line post haste. QC in those plants is mostly good ole boys looking out for one another and not making waves. It's 99% slogans and banners, the other 50% is b.s. and as pointed out QC is the first to be eliminated when there's no money in the budget for sloganeering and pretending the company cares.

[Wireman]

Originally Posted by Onyrlef

I've worked in the plants, you're more right than you might imagine. A QC guy gets too ambitious and he's back on the line post haste. QC in those plants is mostly good ole boys looking out for one another and not making waves. It's 99% slogans and banners, the other 50% is b.s. and as pointed out QC is the first to be eliminated when there's no money in the budget for sloganeering and pretending the company cares.

10-4 All those fancy brochures with promises and B.S.

I sure would like to see a turn around with quality. It starts with management first and till they want to do it, it's more of the same.

[Murff]

Quality work, for sure!

[gypsmjim]

Originally Posted by Yooper906

In most cases, yes. In the manufacturing plants I worked in most of my life, eliminating QC meant more work load for the operators that now have to stop production and do their own inspections. Sounds good on paper, It's a cost saver for sure, but the end result may not be what is expected. As always, a good machine operator already knows what is being produced from his job.

Quality complaint company targets are $XX per $1000.00 of sales. If the complaints are lower than that, they minimize QC. If they are still less than the company target, they eliminate QC all together and let the operators do their own QC.

If the operators complain about extra work, they give them a minimal raise to compensate. If the complaint $ percentage + raise is still within the target, its all good to go.

If its an oversold market and the competitors quality is equal or worse than yours, forget everything and full speed ahead.

There is only ONE thing that is important - that is that the stockholders are getting their just reward. It has been that way for 50 years now.

[Onyrlef]

[QUOTE=gypsmjim;1063

There is only ONE thing that is important - that is that the stockholders are getting their just reward. It has been that way for 50 years now.[/QUOTE]

And there you have it.

[2edgesword]

Inflation in general, much higher gas prices, higher interest rates all make for a declining number of RV's being sold. I've passed dealer after dealer in FL that had RV's packed in from fence line to fence line so I'm not believing the business as usual story.

[Jopopsy]

My local Jayco dealer has had some used motorized units on his lot for awhile now. Just last week, they have all seen a modest price drop; that just didn’t happen over the more recent couple of years. The fact that these units have been there for months, and now, a price drop.

A short while ago people grabbed them days after they arrived and paid whatever was on the sticker.

[muckinfuss]

Originally Posted by Onyrlef

The manufacturer has salesmen who have a certain number of dealerships in their area of responsibility........ Regardless, in whatever case, the dealer is floorplanning his inventory and paying interest on the floorplan. That's why whoever is toting his paper, regularly sends an auditor to make sure the SN's on his floorplan are physically on the premises and he hasn't sold them, pocketed the money and is paying interest on non existent collateral. It's called being in "trust", fall out of trust and they'll be auctioning of the office furniture next week.

Back in the 70's I was a district manager for one of the M/C manufacturers. Back then, in addition to floorplanning requirements,(dealer contracts required a certain amount of $$ in product at the dealership at all times!) manufacturer's were constantly over producing product since the forecasts were almost one year old by the time product hit the dealership. The way they figured around it....'pay as sold' or as we coined it, "10% of something is better than 100% of nothing". The manufacturers would offer packages, large ones, of product and bypass the bank floorplan entirely while still requiring that the floorplan was used to it's contractual obligation. It was the field's job to do the audit(me), but the units had a better chance of getting sold if in a dealership than in storage somewhere. We did cram them down their throats too. No ticky no washy, if you don't accept our offer, you may end up without enough product to sell next year. This was all learned from the auto manufacturer's and I doubt that much has changed since then.

[RAurand]

Originally Posted by curver900

everything that goes up comes crashing down...

$5+ gas, increase in insurance, taxes going up, food up, interest rates up...

You have storage fees for something most people use 3-4 times a year.. They need to collapse their expenses... Sell after they paid too much....

Glut comes and prices crash... Unless a change does show up it will be a big crash... I just saw an advertisement for house lending with zero down.. That went so well last time lets try that again ...

so the old adage slow and steady.. don't jump on every tulip bulb express train...

Edit - pretty nice of the company to give them a 2 month notice...

slow is smooth..... Smooth is fast!

[Grumpy]

Originally Posted by curver900

i just saw an advertisement for house lending with ZERO DOWN.. that went so well last time lets try that again ...

There's actually a Senate Candidate in FL that is suggesting we do that again too as a way to solve the housing crisis.....She is now a Congresswoman.

[Onyrlef]

The problem with zero down on mortgages is the purchaser starts out with zero equity. Larry Summers said "No one in history ever washed a rent car". In my opinion no truer statement has ever been said. Of course then when equity mattered was when lenders held the paper. Now they just bundle the crappy stuff in with the good (tranches) and sell it off to investors, so they don't really give a rip what happens to the loan next year. ( back to the rent car thing).

[muckinfuss]

VA has been doing those loans for many, many, many years. No PMI either. Seem to be working out ok.