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RV industry DYING?

Started by ltrcrr, May 19, 2008, 08:54 AM

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flyfisherman

Well, if it is, I own mine, it's small and if I were to put it up for sale there's no doubt in my mind it would sell quickly. Then I'd buy one of those highbreds that are supposed to get a zillion miles per gallon, load my trusty old tent aboard and get right back to my favorite fishing spots, where there's NFS C/G's right next to them! I came this way from a tent and I can go back that way again, too.




Fly

Jim K in PA

Whenever there is a downturn in the economy, "Chicken Little" makes her regular appearance.  After quite a few years where everyone was fat, dumb and happy in the business world, there is going to be a shakeout that will likely end with a number of RV companies closing or merging with others.  As to the entire industry "dying", I seriously doubt it.  In fact, after the "adjustment" period, the survivors will likely see growth for the very reasons cited in the article.  However, the big $$ sellers will probably weather the adjustment, since the people with the assets to buy them will still be able to buy them.  Those that may have thought about stretching their budget to get into them will probably not do so now.

I just hope the high gas prices keep the big rig population down at the cg's to leave more room for us pup'rs!! :p

wavery

It's been my experience that most all markets move the most off of emotion rather than logic.

If a person has a $300K class A motorhome and drives 10K miles per year @ 6MPG, he was paying $4666 to fuel his rig for the year @ $2.80 per gal. @ $4 per gal he is paying $6,666 per year. That's a difference of $2K per year or $20K over a 10 year period. The fact is, if a buyer walks into a dealer and asks for a $20K discount, due to fuel costs, they will surely comply.

The real "FEAR" is that fuel costs may go to $9 a gal within the next 3 years. That would put the fuel cost @ $15K per year or $150K over the same 10yr period.

However, the reality is that no market ever goes in one direction at the same rate over time. As soon as people get used to paying this $4 per gal, sales of these big rigs will resume. In fact, if fuel costs come down again, over the short haul, elation may just cause a big spike in sales.

The human brain tends to tell it's owner that the current state of affairs and trends will continue over time. That's why it is so hard for people with addictions to correct those addictions. Fear tends to be more temporary and the status quo, usually, soon returns.

I saw this same fear when gas passed the $1 per gal mark. It was a psychological barrier that many just could not get past and it took a toll on the American Car market that they never really overcame. However, the Japanese saw the psychology of what was happening and jumped on it. Look what's happened over time.

Used 2B PopUPTimes

I'm wishing for a spike in camper sales but so far it's been going in the opposite direction, most of the pup mfrs are down right now.

I think we'll see more big rigs parked on seasonal sites as gas prices continue to creep up.

denbert

I think we'll see more big rigs parked on seasonal sites as gas prices continue to creep up.

That's exactly what I'm seeing.

Old Starcraft

Quote from: Jim K in PAI just hope the high gas prices keep the big rig population down at the cg's to leave more room for us pup'rs!! :p
AMEN :o  to that.  I'd like to think it would be easier to get away from "bug rig alley" at any campground. Hopefully a reality that is a "wanted" sde effect of the gas prices. Although camping recently I have still seen a number of the big rigs in S.C. with California tags. I hope they will take fewer trips, or trips closer to home....we can hope anyway.
 
P.S. I plan to cave into the higher gas prices. I'm looking at buying a touring commuter motorcycle, like the Kawasaki Concours, to save some $$$. My friends at work, a level 1 trauma hospital, have my preferences if I need to make an unexpected visit.

Jim K in PA

Quote from: Old StarcraftP.S. I plan to cave into the higher gas prices. I'm looking at buying a touring commuter motorcycle, like the Kawasaki Concours, to save some $$$. My friends at work, a level 1 trauma hospital, have my preferences if I need to make an unexpected visit.

I tried to do the same, but DW is an E.R. nurse.  Let's just say she was not too keen on the idea of me commuting 40 miles each way on a "donor-cycle".  And I even have access/use of a BMW 1100/RT essentially for free.  Maybe if I keep it around the corner at a friends house and . . . never mind. :(

Popupper

I've been doing a little RV shopping and found //www.rvdirect.com 's prices to be pretty low.   I think I'll use them as leverage with my dealer and see if he'll match  the price, or get close anyway.

GeneF

I have met a lot of Class A owners that were once popup owners.

Seems like there are some prejudical statements in this thread.  Never say never, a Class A or a fiver may be in your future.

Shepherd

Quote from: GeneFI have met a lot of Class A owners that were once popup owners.

Seems like there are some prejudical statements in this thread.  Never say never, a Class A or a fiver may be in your future.

My wife's folks started out small and now drive a humongous rig.  At first you're glad to get off the ground and don't mind cranking up the top and cranking down the supports, cause that only takes 15 minutes to set up.  Then when you are in your 60's you like the fact that you can roll right up onto the pad, hit your automatic jacks that level the unit themselves and all you have to do is plug in the electricity and water.  Plus you live in the thing for 3 to 6 months, might as well have the king size bed in the back  :-()

Used 2B PopUPTimes

We have a new 19' Jayco hybrid. It's no $million motorhome but it's nice inside, plus I don't break a sweat setting up or taking down, though I have broken one several times towing in wind and rain.

We haven't gone to the dark side, but we will.  Someday Gene and I will be sitting in something big next to a propane fireplace sipping tomato juice. It's OK, we'll all be there someday.

D.

GeneF

Quote from: ShepherdThen when you are in your 60's you like the fact that you can roll right up onto the pad,  and all you have to do is plug in the electricity and water.  Plus you live in the thing for 3 to 6 months, might as well have the QUEEN size bed in the back  :-()

Pardon my editing of your post.

Our rig isn't that big but we are old enough to appreciate the easy setup and yes, we do snowbird in it.  One month last year, three months this year and four months next year plus our other trips.

GeneF

Quote from: PopUPTimesWe have a new 19' Jayco hybrid. It's no $million motorhome but it's nice inside, plus I don't break a sweat setting up or taking down, though I have broken one several times towing in wind and rain.

We haven't gone to the dark side, but we will.  Someday Gene and I will be sitting in something big next to a propane fireplace sipping tomato juice. It's OK, we'll all be there someday.

D.


I don't know about the propane fireplace, I like a wood fire better.  Since you are bringing the tomato juice, I'll bring some of the clear stuff.

Congrats on the hybrid.  I know you and dw are going to really like it.

wavery