Integrated Dealer Systems (IDS) released its 2024 RV Dealership Industry Trends report. The report provides industry data and 2024 projections.
IDS General Manager Frank Tamburrini said softer RV sales are expected in 2024. Tamburrini said the market is more stable and sales volume may be similar to pre-2020 years.
The report said cost increases may lead customers to become more selective with their spending. IDS suggested dealer collaboration with lenders to offer financial solutions.
The IDS report highlighted new RVers entering the market. An IDS survey showed 34% of interested buyers today were families with young children, with 28% millennials/Gen Z and 25% retirees.
As millennials and Gen Z have entered the RV market, the report emphasized dealers’ need for technology-friendly features, environmental consciousness and remote workspace importance. Tamburrini said younger buyers will begin their research online, so having updated websites is important.
Tamburrini said, “really effective dealers are really targeting the demographics slightly different.”
IDS reported consumers valuing simplicity and cost-saving options over luxury. As a result, consumers have expressed increased interest in towable RVs.
The report also addressed aged inventory issues. Tamburrini said dealers “should have easy access to the reports that will actually show” inventory. Tamburrini said dealers can apply the data to marketing and sales departments and steer customers toward aged inventory.
The report suggested using proactive selling instead of reactive selling. Tamburrini said reactive selling was seen during the pandemic, when a limited number of RVs was available while demand was high. Proactive selling, by contrast observes customer wants and needs and connects them with a matching RV.
“You are satisfying the need of the buyer,” Tamburrini said, “but you are also satisfying the need of the dealership to sell those older units.”
The IDS report highlighted the importance of maintaining low repair event cycle times (RECT). The report said past years’ sales abundance will lead to increased repair services.
Tamburrini said reducing RECT is important to maintain a positive customer relations. Low RECT promotes dealership efficiency and productivity.
Among steps to improving RECT is order management, Tamburrini said. Leveraging technology tools people expect also can contribute to lower RECT.
Tamburrini said technology use can reduce the touch points, resulting in lower RECT. Tamburrini said data-based education and training are other ways to improve RECT.
The report also advised dealers to invest in F&I and cybersecurity protection.
“To capitalize on consumer willingness to finance RVs,” the report said, “dealerships should offer competitive interest rates, flexible payment options and form partnerships with a variety of financial institutions.”
