www.nexusrv.com

1. Factory Direct Model Works
www.nexusrv.com

2. Recently, Mike Molino, RVDA President, wrote
an editorial in the September/October issue of
RV Business. This magazine is primarily an inside
industry trade magazine that informs those that
supply, manufacture and sell RVs of current
affairs. I read with astonishment the candor in
which Mr. Molino delivered the current
philosophy of the Recreational Vehicle Dealer
Association.

3. It appears the association is concerned with sales that occur
outside a dealership’s given territory and with service
centers that work on RVs that don’t sell that product.
Interestingly, if the association had their way, customers
would pay more for their RVs because you would only be
able to buy your RV from a local dealer. Consequently, they
would pay more to have their unit serviced because the
customer could only get their unit serviced by a stocking
dealer that would charge more per hour for repairs in order
to cover the large overhead associated with stocking large
inventory. By restricting the options a customer has can only
increase the cost of both the unit and servicing the unit
after the sale.

4. At Nexus, we sell Class C and Class B+ motor homes directly to the retail
customers, and we have set up a network of servicing dealerships
throughout the country that is more extensive than any other dealership
in the industry. The fact is RVers travel throughout North America and
relying on the local selling dealership to handle the service needs is
nearly impossible. Many times the RVer is thousands of miles away from
the selling dealer and must rely on mobile service centers and “non
rolling stock service providers” to get them on the road. The current
Manufacturer-Dealership business model has failed horribly with
supplying customers with the service support they need. Removing all
the politics and restrictions to making customers happy is the
foundation that Nexus RV is working toward.

5. As for the selling of RVs directly to the retail customer, without the dealer network, will save
customers money. The buying experience when buying from a factory direct cannot be
matched by a dealership. The overwhelming advantages are easy to see. First, retail
customers are looking for as much information on how their unit is built as possible. In fact,
many retail customers want to understand each and every process and component that
goes into the building of the unit. As a factory direct company, we know everything there is
to know about our product and the reason behind each design. When visiting a dealership,
the customer can only look at finished product and the dealership personnel have little
information on each model because they represent many different companies and they
have too much to remember. This lack of knowledge can cause many other problems down
the road. Secondly, when buying factory direct, the retail customer has the ability to “menu
customize” their unit. Picking fabrics, outlet locations, paint colors and important options
makes the retail customer feel like they had some input on their unit. Contrarily, buying
from a dealership, the retail customer is pushed hard into buying the “green one” on their
lot because the dealership is trying to move the inventory as it has been on the lot for up to
a year or more. Enticing customers to buy aged units with “rot lot” by lowering the price is a
recipe for a dissatisfied customer. Buying factory direct, the retail customers gets to buy a
unit with little miles on the odometer and that has been freshly built. The unit is truly new.

6. Finally, one of the most compelling reasons to buy factory direct is
the value customers get when eliminating the “middle man.” At
Nexus, we have measured the savings we have given our customers.
After a year in business, we have saved our customers an average of
$7,100 dollars. Imagine, a better buying experience because of more
information, better service because of a national service network, a
better unit because it is newer and it is built to the customers specs
and at a lower price. Do not let anyone tell you different, if you can
get all those benefits to buying from a factory direct, you should do
it!