Expanding your RV dealership during a down market might seem counterintuitive, but it’s actually a strategic move that can set your business up for long-term success. Economic downturns, while challenging, offer unique opportunities that can benefit those willing to plan and act decisively.
One of the most compelling reasons to expand in a down market is the potential for lower costs. Real estate prices, rental rates, and construction expenses often drop during periods of economic uncertainty, providing a chance to secure prime locations or build out existing facilities at a fraction of what it might cost during a booming economy. Additionally, operational costs, such as hiring skilled employees, can be more manageable, as the labor market typically becomes more competitive.
A down market also tends to reduce competition, as many businesses are hesitant to take risks during uncertain times. This provides a window for innovation and differentiation. RV dealerships can stand out by offering creative solutions such as flexible financing options, bundled service packages, or loyalty programs designed to attract budget-conscious buyers. These strategies not only appeal to current customers but also build brand loyalty for the future.
Despite economic challenges, the RV lifestyle continues to appeal to many consumers. During a down market, people often seek more cost-effective ways to travel and vacation, and RVs can provide an ideal solution. Additionally, the rising popularity of remote work has made mobile living more viable, which further supports steady demand for RVs. Expanding your dealership to include options that cater to these trends, such as smaller, more affordable models or upgraded amenities for remote workers, can help you capture a growing niche market.
Investing in your business during a downturn also prepares you for future market recovery. When consumer confidence rebounds and spending increases, your dealership will be well-positioned to take advantage of the upswing. Expanded facilities, increased inventory, and a stronger brand presence will ensure you’re ahead of competitors who may have been overly cautious.
Furthermore, many suppliers and manufacturers may be more willing to negotiate favorable terms during slower periods, allowing you to secure better deals on inventory. This not only reduces your upfront and monthly flooring costs but also enables you to pass savings on to your customers, making your dealership even more attractive in a competitive landscape.
Finally, taking bold steps during a challenging market sends a powerful message to your customers and community. It demonstrates confidence in your business and a commitment to providing value, even in uncertain times. This can help to improve your reputation as a reliable and forward-thinking leader in the RV industry.
In conclusion, while expanding during a down market requires careful planning and risk management, the potential rewards are significant. By taking advantage of lower costs, reduced competition, and evolving consumer needs, your RV dealership can emerge stronger and better positioned for future growth. A downturn is not just a challenge, it’s an opportunity to invest in your business’ success.
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.