The RV Industry & How I Got Started

[Mojo]

I got started by need for some things for our own RV. In 2005 we bought a new 40 ft. Monaco diesel pusher / motorcoach, locked up our home and hit the road and traveled for a year. We wintered all over in the Southwest and in 2006 my wife got a job offer in Florida so we parked our coach at an RV resort there and lived in that. I was going nuts so I bought a commercial machine for my wife who let me know she had no time for it. So I started sewing, making solar screens for our coach.

Then a neighbor asked me to make some for them. And another neighbor and another neighbor and soon I had a nice little business. I was sewing inside our enclosed trailer. I was doing solar screens for all kinds of RV's from towables to gas motorhomes to big buses. Then someone asked me to do a slide topper and the rest is history. Now it is all I do. I no longer do solar screens simply because I make much more money doing slide toppers and awnings.

I am very selective in my work and who I market to. I basically have two motorcoach owners associations I market to. I do numerous rallys and events with them every year and between the two organizations I stay extremely busy. I really could not take on anymore work if I wanted to. I selected these two assoc. because the owners have expensive motorcoaches and have the financial capability to afford my work. Most are former business owners or professionals. They are pretty much no BS people. I am firmly entrenched in both associations and have a great relationship with the directors and officers of both associations.

The only time I ever got burnt was by doing a job for someone with an inexpensive gas motorhome. He packed up and left on me before I got paid. Some may think I am a snob but I no longer do work for towables or gas motorhomes. If your going to have problems with payments or jobs, this is the class of RV'ers you will have them with. I am not saying they are all deadbeats as some of them are awesome people but many can be a royal PITA to work with. I did an old $ 15 K motorhome last year and that guy drove me nuts. Constantly calling, changing fabric color, having me re-measure. He ate up alot of my time and profit by driving me nuts.

With the richer group of motorcoach owners they call, place their order and thats the end of it. I make it, bill them, they pay, I ship and never hear from them again. And these are the guys who own 1/2 million dollar ( or more ) buses. My profit margin is MUCH higher with this group and class of RV's and since I am running a business I have to go where the money is. The reason I quit doing solar screens is because my hourly rate dropped to $ 65 per hour when making them versus up to $ 135 per hour for toppers and awnings. I did a topper order the other week and it was one of those days where everything went perfect. I kept track of my time and when I finished the order my hourly rate equaled out to be $ 150 per hour. It was the fastest order I ever turned around. I should make it clear I do not set market prices, the large manufacturers do. I am actually cheaper then they are on competing products.

I suck at marine work, autos and furniture and I admit it. I think I suck because I have no interest in any of it. I do turn out awesome RV products though so I would be crazy not to stick to what I know and what I am good at. I have a huge amount of respect for many of you. Doyle does cars, RV's, furniture, etc. Mike and June can do marine or whatever they get through the door. Mike802 is a true master at not only upholstery but building furniture. Dennis, Ed, and Gene are also masters at their niche. Mine just happens to be RV's and I love my work ( most of the time ).

So in a nutshell I got started in the RV industry simple because I was an RV'er myself and needed some work done and I was to cheap to hire someone to do it.  :P  I also was retired and going out of my mind with nothing to do. It has been a great experience and I now stay busy and feel productive. It all worked out great for me.

Chris

[Mojo]

In regards to the current State of the RV industry, things are not great. Manufacturers have lost boat loads of money during this recession and the higher the fuel prices go the worst the industry gets.

Back in the late 1990's / early 2000's big expensive motorcoaches were starting to sell very well. Each year they got fancier, bigger and quad slides were the norm. By 2005 they were moving big buses like no tomorrow. Then fuel prices went up, the recession hit and people lost alot of money on their 401k's. Sales of big units slowed to a crawl and many manufacturers went bankrupt. Lots in swanky 60 x 100 RV resorts were selling for $ 150 K back then. Today that same lot is worth less then $ 50 K and even then it probably wont sell.

One popular RV sales site for used RV's currently has 50,000 motorcoaches and 500,000 towables listed for sale. The market price for used RV's has hit rock bottom. Most people are stuck with their RV's because they are so upside down. In other words they could be 50 to 100 K in the hole on what they owe versus what they could sell them for. So most hold on to them. A few just call the bank and do voluntary repo's.

I personally believe it will get worse. I think many campgrounds will close their gates because of terrible occupancy rates. Many RV'ers are taking short trips close to home and even more are now parking their RV's to Florida RV parks that they winter in and leaving them there year around instead of driving them back and forth from North to South.

Sales of new RV's is basically in the toilet. So I personally believe what people currently own will hold on to them and continue maintaining them.

Just for kicks and grins, here is a breakdown on ownership of a nice motorcoach. New price - $ 500,000. Annual insurance - $ 1,500 - 2,000.  Annual oil changes and maintenance - $ 400 - 800. Fuel mileage 5 mpg to 10 mpg depending on engine and coach size. One night stay in RV resort - $ 30 - 80. Set of new tires for a 45 ft coach - $ 7,000

It is expensive to run one down the road but there are still many who wouldn't trade the lifestyle for the world. :)

Chris

[Mike]

Sounds like the rv industrie is in the same boat and the marine sales. We had one of the nations latges dealers close a local
Shop that was planning a new building. But then  losed shop. If you sell your boat its a. Ig loss so mny just kept them then last  ouple years  ive been getting cAls on big  boats again.

Just S you needed work on your rv and got into the work i was kinda the same my dad after being hadicapped and bored sitting at gome was passing time with my moms
Old sewing machine the  he decided to replace the canvas on his boat   Being in a sheelchair i had to do the legwork installing  and i ended up helping and self learning how to do it then he steped out of the way.
This past year has realy been good so i hope it keeps on and not a new resesion i was hoping that was all overand rebounding. 

[Rich]

Some may think I am a snob but I no longer do work for towables or gas motorhomes.

Snob? no, I think you're smart. You go where the money is from the people who give you the least headaches, and in today's economy, as I've said many times before on this forum, I don't see how anyone keeps their doors open making anything much less than $100.00/hr.

As for your post on the down state of the RV industry, I thought that was true too, but why is it that every time I go to book a site at a campground (we prefer State parks) all the good sites are taken? The places also are fairly well occupied when we arrive during the camping season.
Rich

[baileyuph]

You gotta do what you gotta do, whoever made that famous had it right.

If you really enjoy something and seek to become better, usually those ingredients will propell one to become "not bad". 

Then, making a decent buck will follow if the craftsman is a decent business person as well.

That is my story, in short, and I guess I will just stick with it.

These days "price sells", it can be easier if one can find something that hasn't been tapped into by Walmart.

But, it is almost that way in any trade/business these days.

Go Chris!

Doyle

[Mojo]

I struggle somedays with this business. I have days I feel like I am a crook because I make a healthy hourly rate. I sometimes feel I should drop my prices instead of being greedy. But then I need to remind myself that the big boys ( my competitors ) set the rates and prices of the products, not me. I am still $ 100 - 200 under their price so I guess I am really not gouging anyone.

I sometimes struggle with the snob label too. I like people and I try and never judge others based on their wealth but damn it the RV'ers in the lower classes are a royal pain to deal with. They bitch the most, they are demanding and they eat up loads of my time and then they also want to beat me up on price.

The wealthy customers / RV'ers could careless. Like one customer told me " I spent almost a million dollars on this coach so $ 800 for a set of toppers is a drop in the bucket. ". :) These people seem to put everything into perspective and what I really like about them is that they call, place their orders and that is it. If I have a question for them most times they simply say " your the expert, do what you think is right and bill me ".

I just do not want people to think I am a snobby jerk because I respect and appreciate everyone in RV'ing. I just do not like dealing with the lower end RV's. :)

Chris

[Mike]

Dogle when i was up in Nh along with canvas inhad a small  bait shop. A neighbor who owned s oocal marina told memwith the canvas ill never be put out by walmart.
Chris you mentioned the lower class people sort of
Ive been burnt 3 times   The first years ago a guy wanted a sale a month after it was over and although had a contract for a small $600 job asked again on the final payment insaid  o but the. CHeck bounced  tye second a guy salman renting a house on the water was. Real pain finding things to pick on delayi g payment to the point i walked away. The third a rednect signed the largest contract on new canvas on a boat interior hulliner a d once i eas near done with the  canvas pick on stupid thing like how i laced on a weather cloth. And offered me to quit befor i did the hulliner i said  no but should have  after i started  i ended up stoping and he was going to finnish.   I think the guy inhereted some money and was blowing it two years lTer i just saw the bost forsale at a marina the house was for sale and his small boat also.  The guys with money just pay even if there out of town in the winter check is in the mail.