Dealers turned out in record numbers for distributor firm Stag-Parkway Inc.’s “Magic of Success” Aftermarket Show Jan. 7-10 at Disney’s Coronado Springs Resort near Orlando, Fla.
And the dealers were in an upbeat mood, according to Stan Sunshine, president and CEO of Atlanta-based Stag-Parkway.
“Dealers enthusiastically placed orders (during the show) in anticipation of a busy summer selling season,” Sunshine said. “I was very pleased with the attitudes. We have to be sure we have the appropriate products our customer need.”
Dealers placing qualified orders at the show also will enjoy the same show discounts through the end of August, according to the company.
Stag-Parkway does not reveal its specific forecast for the RV aftermarket, but Sunshine said the performance of the sector will depend “on the (general) economy and a rebound in consumer confidence.”
All variables tracked by the University of Michigan’s Consumer Research Center are favorable to the RV industry, except for consumer sentiment, although Sunshine said, “It (consumer sentiment) has shown an upward trend after several months of decline.”
During the show, Stag-Parkway executives encouraged dealers “to get better retail turn rates,” which Sunshine defines as gross profit multiplied times the cost of goods sold (CGS), divided by the cost of inventory.
Because it is difficult for a dealership to improve its gross margin on the sale of aftermarket products, dealers need to focus on their inventory management practices, in other words, the CGS divided by the cost of inventory portion of the equation, Sunshine said.
A dealership gets a maximum return on its investment in aftermarket products inventory by ordering name brands and reducing or eliminating slower-selling brands, he added.