RV PRO

March '16

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38 • RV PRO • MARCH 2016 rv-pro.com It was easy when it was NTP-STAG; it seemed to fit together. We had a nice solution for that. … So, maybe we just retain NTP-STAG, or maybe we just start with something new alto- gether to keep it fresh. RV PRO: To what extent do you see the combined company keeping any of the specific elements that were distinct to NTP and Stag and Coast? Rogers: We have taken a good examination of each of the businesses and gotten input from each of the organizations to say: What do we do well? What do we not do so well? How does it fit into the logistics structure that we'll press on with? In terms of things like the shows, the marketing, how we set up, and who we put in place in terms of the inside and outside sales force: All of those things are where most of the opportuni- ties are to get feedback from both our internal folks and from our customers. Whatever elements of the businesses are retained will be the result of that input. RV PRO: Of course, Coast had its own line of branded products, such as the Husky towing products, the Faulkner furniture and the Powerhouse generators. Has there been a determination yet as to whether the combined company will continue to sell those products? Rogers: Yes, they will be offered moving forward. There's no reason not to continue to support those lines. There are customers that are depending upon those lines today. They are a brand that Coast created. Whether we would have taken that same approach, who knows? But our ownership of those brands is certainly something that we wouldn't do anything to hurt. What I will tell you is that, on the branded products, those are our focus. We won't put a Coast proprietary product ahead of a branded product in terms of emphasis. But if a customer likes the Coast products … and likes the value proposition that goes with those, then we completely support that and we're not doing anything to change that part of the business. We'll support it and we'll see how it goes. RV PRO: Meanwhile, Stag-Parkway was always known for its strong educational emphasis, especially its Professional Retailer Organization (PRO) program. Will that continue to be an emphasis for the combined company moving forward? Rogers: For 2016, it is absolutely a priority for us to support the industry in education. As we mentioned this morning, we've done a lot of work to try to get the PRO offering to be consistent and approved by the (RV Dealers Association's) Mike Molino Learning Center. It's under review now and we're pretty confident it will be helpful in terms of those certifications … for parts manager and service manager positions. Those are the current things I think will contribute to us helping in that area. What we are challenged now, though, to do – and this is some- thing I feel very strongly about – is how do we get more techs into the RV market? Because, there is a real supply issue with techs. One thing I hear consistently from all the dealers is: 'There's not enough techs. And, we have a hard time getting and retaining techs.' To the extent that we can help increase the supply of techni- cians, I think it's a huge win for us, personally, and for the dealers. Because they'll write more business and we'll get some portion of that. So, I think it's a win-win. Our intent is to work with RVIA, work with RVDA, and work with any other organization that we can help support with our training facilities, putting parts in place to help with training, maybe facilitating suppliers getting together. So, there's lot of help we can provide and we are very interested in doing it. RV PRO: If you would, talk a bit about what kinds of facili- ties you have in place now to serve dealers, and what your plans are moving forward. Rogers: We had six distribution centers in place to serve dealers. We added a seventh distribution center, just outside of Detroit, in Brownstown. The square footage on that is 360,000 square feet, and that started operation at the first of the year. That warehouse will service the whole Canadian and upper-Midwest market. In addition to that, we have a new warehouse coming online in the beginning of the second quarter in Spokane, Wash. That will be 250,000 square feet, and that will replace the distribution center we have in Wilsonville, Ore., which is about 100,000 square feet. So, it's bigger and it's farther north, so strategically we can Rogers speaks to dealers during a morning breakfast about the integration process of formerly separate distribution businesses NTP, Stag-Parkway and Coast Distribution. The Powerpoint slide in the background shows the breakdown of the distributor's employees: 30 percent NTP, 31 percent Stag-Parkway, 36 percent Coast and 3 percent Keystone Automotive.

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