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Fold-down Makers Working to Retain Market Share

Started by Tim5055, Jan 25, 2004, 04:01 PM

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Tim5055

RV Business News
Wednesday, January 7, 2004

Faced with declining sales and signs of an eroding marketplace, folding-camping trailer manufacturers are taking steps to retain market share and regain some ground lost to the robust travel-trailer sector.


jawilson

But I bet they don't smarten up enough to realize that to move product they're going to have to lower prices. Talk is cheap, but PU's sure ain't.  :D

garym053

It's true, Pop-ups are not cheap, especially when compared to lightweight TT that are nearly the same price!
HOWEVER, I'm betting that PU's are going to make a fairly strong come back and there are going to be a lot of big rigs selling very CHEAP! The reason? Gas prices! It was recently guessed that gas prices could be in the $2.50 to $3.00 range by this summer. Now that that "Trial Balloon" has been floated, it will be a self fullfilling prophecy! The fact that the news is reporting that China is going to require the oil of 2 or 3 Saudi Arabias to fill its need in the near future will not help lower prices either!
I'm betting that people will be going "back" to pop-ups and camping as a way of recreation without breaking the bank! The general camping public will like the idea of towing a pop up that doesn't cut your mileage down to 4 MPG!! That also means make your reservations early!
Just my (not very popular) 2 cents!

chasd60

Seems a little strange in most cases............retain their market share from whom? Themselves?
 
Are most of them not the same ones that are benefitting from people moving up to the TT's?

AustinBoston

It's not just price, it's also weight.  When you figure that many (IMHO, most) pop-ups can't be towed with a typical family vehicle, it wouldn't matter if they gave them away, many potential customers can't buy because they would need to spend 20-30 grand (or more) on a new tow vehicle.

Part of the problem is out of the hands of the pop-up makers.  Tow ratings have all but disappeared on the family car.  But I've never heard a pop-up advertize "New, lower weight!"

Austin (Behemoth pop-up tow-er)

mike4947

As with most corporate businesses, each division has their own profit and loss statement. Across the board PU divisions are losing sales to the divisions selling larger trailers/RV's.

Baby Boomers, The ME generation, and gen X'ers are wanting more home like "camping experiences" and have the disposible income to pay for it.
 
Just like in new housing sales, the average square footage of homes has more than doubled in the last 40 years. Around here new houses are know as Mc'mansions.
Even in TV's, the truck I want doesn't even come without power windows, door locks and a $1200 "Styling group" package.
 
As for light weight trailers, isn't anyone reading that new issue of PopUpTimes?
Dave got publicity and/or ads for at least 5 trailers under a 1000 pounds.
{sarcastic mode/on} of course with them you can't have the hot tub option{sarcastic mode/off}

B-flat

What, they've gotten rid of the hot tub option?  No way.  What will I do for a chili vat?;) :D :J   My take on all this is that with the big rigs, those who own them probably won't care much about gas prices because they can afford it.  There will always be people who can afford the supposed finer things in life.  At the same time people will have reasons to move up  or "move over," as someone has said, to a travel trailer from a popup.  There are lots of factors involved but I do think popups are around to stay for a long time to come.  I also think that people will continue to move up to TT and MH, too. It's complex but I think age, the timing of the economy, money, locations and so forth have a lot to do with it.  There's always the challenge of the popup camping industry to make the best at a low cost and making it easy to tow....all without sacrificing quality.

Y-Guy

I'd like to know how the hybrid portion of the market has done.  I wouldn't venture to guess if its gone up, but it would seem logical.  Look at the weights of the bigger Fleetwood/Jayco line and then look at the smaller Hybrid, not much difference really in weight or price.  Combined with easier setup and a family with a truck or SUV will probably opt for a larger camper, and we know how well trucks and SUVs have been selling

Thanks for posting Tim, good to hear what's going on.

forestwalker

They are expensive-That's why one should check out our 2002 Starcraft,in the classified forum.Less than 50% of what we paid for the unit .

garym053

I remember that in the gas crunch of the 70's when gas went all the way UP and OVER a dollar a gallon, that MH's could be bought very cheap! We had friends and neighbors who ended up selling theirs for less than they owed!
I agree there WILL be those who can afford gas at any price, but many of these MH's and BIG TT & 5ers are owned by people who are barely making the payments. If 40% of the cars, SUV's and Trucks sold get repo'd now (on average), I wonder what the repo rate will be on MH's when gas is up near $3.00?
It will be interesting to see what happens!
Me, I'm waiting for them to make an SUV that can pull 7,000 lbs and get 30+ MPG!!!
By the way, thanks for the thread, it takes my mind off the fact that it's been 25 below the last few mornings and today's high is quite warm at 9 above!!!