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The Recreation Vehicle Industry Association (RVIA) Board voted Thursday (June 13) to approve almost a 60% increase in next year’s Go RVing advertising campaign budget along with fee increases to fund the additional spending.
The board approved a $15 million budget for next year’s ad campaign and it agreed to increase the RVIA certification seal fees for travel trailers, fifth-wheels and motorhomes to raise additional money.
This year, the budget for the Go RVing national ad campaign is $9.5 million and it is funded by a $44 per unit fee paid by the manufacturers for the RVIA seals that are attached to each of their new units.
But beginning possibly as soon as Oct. 1, the fee for the seals for travel trailers and fifth-wheels will go up to $55 each and for motorhomes, it will become $66 each. The fee for RVIA seals for folding campers and truck campers will remain at $44 each.
The RVIA represents RV manufacturers and their suppliers. In approving the bigger Go RVing budget and higher seal fees, the RVIA board ratified the decision made Monday (June 10) by the Go RVing Coalition to recommend the purchase of more advertising next year.
The Go RVing Coalition includes representatives of the RV dealer body and campground operators and the dealers, in particular, want to spend more on advertising next year to take full advantage of the positive momentum that Go RVing created the last few years.
Also, the Richards Group, the Dallas-based ad agency hired in March to create new advertising for the 2003 through 2005, believes advertising rates will increase sharply during 2004. Consequently, the Richards Group told the coalition on Monday that increased ad spending in 2003 should be more beneficial than in 2004, when predicted higher production volumes would provide more revenue for Go RVing.
The decision to leave unchanged the seal fee for folding campers and truck campers was made because those product types have the lowest retail prices and, thus, are more likely to have their sales negatively impacted by dealers passing the cost of higher seal fees on to the retail buyers.
The decision to create a three-tier fee system will require the RVIA to design at least two new seals to make the price difference easily recognizable.