Earth Day isn’t the only time buyers are concerned about the environment. Today, more than ever before, buyers are shopping with green RV’ing in mind. Eco-friendly RV shoppers are on the rise, and that’s not all. Operational sustainability and environmentally friendly practices are also affecting RV dealership valuations.
So, whether you’re planning to sell in the near future or down the line, having the most environmentally friendly RVS in stock, or knowing more about green RVs, will help. As sustainable consumers aren’t just a trend, they’re the future of shoppers.
To learn more about how eco-friendly RV practices can help boost your RV dealership valuation, we’ve put together the ultimate guide. Keep reading to explore what your RV dealership can do to attract eco-conscious RV buyers, and just how it’ll affect its value at sale, or for mergers and acquisitions.
Who Is the Eco-Conscious RV Buyer?
To better serve the green RVing buyer, you must first understand the consumer segment better. Millennials and Gen Z are to thank for the modern RV buyers being increasingly eco-conscious. The younger, more environmentally aware buyers value sustainability more than other group in overall purchasing, not just RVs.
However, when they are shopping for recreational vehicles, they’re seeking RVs equipped with green features like:
- Solar panels
- Electric towables
- Composting toilets
- Off-grid living capabilities
- Reduced environmental impact
Recent sales statistics support this shift, showing that 30% of RV buyers now prioritize environmental features when selecting their rigs, with demand for solar-powered RVs increasing by over 40% in just two years. Additionally, interest in off-grid solutions has surged, with 25% of RV owners opting for sustainable, self-sufficient setups. Lastly, the rise of electric vehicles (EVs) has further driven the market for EV-compatible towable recreational vehicles (RVs), resulting in a 35% increase over the past year.
No longer just a niche concern, sustainability is quickly becoming a priority for today’s RV buyers. That means manufacturers and dealerships alike are increasing their eco-friendly models and practices. To help you follow the future of buyers, let’s next cover sustainable features that’ll impact your dealership’s sales.
Sustainable Features That Impact Dealership Sales
Now that we understand eco-consciousness influences consumer purchasing decisions, incorporating sustainable features into RVs is essential. As buyers increasingly prioritize eco-friendly options, dealerships are adapting their inventory to meet demand. How can you gain the same competitive advantage in your market? Here are some of the most environmentally friendly RV features that buyers are seeking:
- Solar Panels and Alternative Energy: Buyers are seeking solar-powered RVs and those with lithium battery setups more than ever. These better enable off-grid lifestyles, reduce reliance on fossil fuels, and promote energy independence, all of which are important to eco-conscious consumers.
- Energy-Efficiency and LED Lighting: RVs that offer features that lower power consumption and enhance long-term operational savings, are major selling points for environmentally friendly RV owners.
- Recycled or Sustainably Sourced Materials: Just like their clothing or furniture, eco-conscious buyers are also seeking RVs with interiors made from recycled or sustainably sourced materials. This offers not only sustainability, but also durable materials without compromising quality.
- Fuel Efficiency: Another feature that eco-conscious buyers are seeking is lightweight and aerodynamic models. These characteristics reduce weight and drag, improving fuel economy and extending range.
- Hybrid or Electric: Of course, it should come as no surprise that green RVing buyers are also seeking our hybrid or electric models. These low-emission alternatives reduce the overall environmental impact for forward-thinking buyers.
How Sustainability Affects Dealership Valuation
As sustainability becomes an essential factor in consumer decision-making, dealership valuation models are evolving to incorporate green initiatives. Dealerships that embrace eco-friendly practices are not only attracting environmentally conscious buyers but are also seeing increased business value. So, there are a few specific sustainable efforts that are seen as value boosters across the industry. If you’re interested in positioning your dealership for higher valuations, here are the value boosters to consider implementing:
- A “Green-Forward” Inventory Mix: Offering a range of eco-friendly models, including electric and hybrid vehicles, appeals to the growing segment of sustainability-focused consumers and enhances dealership desirability.
- Solar-Equipped Show Models: Displaying solar-powered or solar-ready RVs showcases a commitment to sustainable innovation, drawing buyers interested in energy-efficient solutions.
- Energy-Efficient Facilities: Implementing green technologies within the dealership’s infrastructure reduces operational costs and showcases the business’s environmental responsibility.
- Participation in Take-Back/Recycling Programs: Engaging in programs that recycle or repurpose parts and materials from old RVs demonstrates corporate responsibility and appeals to eco-conscious customers.
Incorporating sustainability into dealership operations and inventory not only boosts short-term sales but also increases long-term business value. These green initiatives contribute to a dealership’s overall reputation, attracting more customers, enhancing brand equity, and positioning the dealership as a leader in sustainability within the industry.
Sustainability Beyond Inventory: What Dealership Buyers Want
Buyers aren’t just assessing the products you stock, but also how the business runs in the eyes of sustainability. To finish our guide, here are additional operational practices to prioritize that often influence buy/sell valuations:
Waste and recycling processes
- Digital-first paperwork and service scheduling
- Energy-efficient lighting and building
- ESG (Environmental, Social, Governance) reporting or awareness
Overall, dealerships that practice sustainability internally often enjoy higher margins and a better public perception, which is highly attractive to acquirers.
The Final Word: Green RV’ing for RV Dealership Valuations
Sustainability in the RV industry isn’t just a trend; it’s a transformation. If you haven’t started shifting your operations towards green RV’ing, this is your sign. As you’ve learned here, eco-conscious buyers aren’t going anywhere anytime soon, and those that serve them are positioned to be more valuable, resilient, and future-ready.
Three traits every buyer or merger will look for when you’re ready to sell.
Whether you’re seeking to simply build value, increase sales, or better serve the environmentally friendly consumers in your area, the dealership advisors at RVBS can help. Our team has over 60 years of combined experience in the RV industry, and an over 90% closing rate for their dealership buy and sell clients today.
Learn more or get in touch with the RVBS team. Happy Earth Day from our team at RVBS. We look forward to partnering on RV sustainability initiatives in the future!
Roger L. Nuttall served as President of Camping World, Inc. from January 2011. Prior to that, he was the Chief Operating Officer of FreedomRoads, LLC from January 2009 to January 2011, and the Executive Vice President and Chief Financial Officer of FreedomRoads, LLC from November 2003 to December 2015. From 1981 to 1983, Mr. Nuttall was a partner at McKay, Nuttall, and Reid, an accounting and consulting firm. Before that, he held various staff and management positions at Grant Thornton LLP from 1974 to 1981. From 1983 to 2003, Mr. Nuttall served as Chief Financial Officer and board member of Blaine Jensen & Sons, Inc., a multi-dealership RV company. He received a B.A. from Weber State University.
Mike has almost 30 years’ experience in the Recreational Vehicle (RV) Industry and provides advisory and consulting services to clients within that industry.
Scott Degnan is the Partner and Co-founder of RV Business Solutions and President of Degnan Management Group, Inc., a consulting firm.
Dom Bookman is the Chief Operating Officer and Investor Relations lead at RV Business Solutions. With 12 years of experience in the tech industry, Dom is a serial entrepreneur specializing in business development, marketing, and growth strategies for leading brands. He has successfully piloted startups and facilitated multiple exits for early-stage companies.