Two of the biggest RV dealers in California’s San Joaquin Valley, Dan Gamel and Paul Evert, experienced sharply higher sales in recent months, according to the Fresno Bee newspaper.
Gamel said sales at his Dan Gamel’s RV Centers Fresno location are up 50% while sales at his Modesto location are up 25% and his Chico location is up 15%.
However, Gamel added that sales at his Morgan Hill location in Silicon Valley are down 7.5%.
Meanwhile, Evert, whose Paul Evert’s RV Country Inc. location is next to Gamel’s in Fresno, said he had more sales in November than during any other month so far this year.
Gamel also said he’s having his strongest fourth quarter since 1996, the newspaper reported.
“In an economy where many are laying off people, we’ve hired people and sales are growing,” Gamel said. “We have cheaper operating costs and can keep people employed.”
Gamel carries around $25 million worth of inventory, but his interest expense has been cut in half by the numerous interest rate reductions enacted by the Federal Reserve so far this year. That leaves him with $1 million more a year to re-invest in his dealership or to cut prices.
Sales are up because more people have decided to buy RVs to travel around the U.S. instead of going on cruises or flying on commercial airlines to distant places, Evert said.