| Bankruptcy Can Cause Direct Selling |
| RV Blog - General |
| Posted by Kyle Yocky |
| Thursday, 16 April 2009 14:00 |
|
Today I realized the extent of some of these companies going bankrupt. I was talking to some of my co-workers about Country Coach. You see, the company I work for carries or use to carry Country Coach, until they filed chapter 11. The problem, besides not having any warranty on the product on our floor. We now have to face the issue of getting rid of what is left in stock. Country Coach has just came out of Chapter 11 and is now starting back up production but, they are only selling factory direct now. What does that mean to any dealer that stocks their product? That RV dealer will now have to blow out what is left, just to compete with the manufacture. Dealers are in a bind, how can a dealer compete with a manufacture that has gone direct selling to the public? The simple answer is, They Can't! Dealers have a mark up on top of what they pay for the product, this is turn keeps their doors open. The manufacture can sell it for less than the dealer ever could, unless the dealer takes a huge loss which is going to have to happen. This issue is causing turmoil in the RV Industry. Lot's of dealers are going to be unhappy with situation's like these. Some dealers may refuse to service these RV's, which could cause the public not to buy that product. Who would want to buy a product where you have to drive all the way to the factory just to get service done ( Not Me ). I picture this will be what will soon happen and then the manufacture's like Country Coach, and others will have to sign up dealers again, other wise the average consumer will shy away from their product. We Shall See... |
| Last Updated on Thursday, 14 May 2009 13:22 |



