Forum Discussion
cdlaine wrote:
I'm sure I don't understand all the issues...but, doesn't it seem like 47 mill. is undervalued for the purchase price of one of the RV industry standards for "nice" motorhome manufact. ??? With out looking at looking the data spreadsheet...just going solely on my RV storage facility ,...sure seems like a lot of their high end units have been sold. I would assume that 47 mill. includes the name, plant, inventory, distribution, subsidiary contracts, rights, staff, proprietary items...etc. , would seem a bargain for Thor ???
For ever DRV sold, there are two or four dozen other units sold in price ranges from 50 to 25 % of the cost of a DRV.
Frankly, only a small percentage of the 5er market can afford a 5er that costs more than $100,000.
Looking at storage locations doesn't really show a broad picture of the 5er market. Folks with cheaper rigs find cheaper storage locations. Folks with exensive rigs pay for storage with covers, better security, etc.
One thing that I've watched over the past couple years in Texas is a significant increase in the number of DRV units on dealer lots. One of the complaints about a DRV three years ago was the length of time someone had to wait for their unit be built.
The number of unit sales has increased in recent year, but the size (and cost) of the inventory sitting on dealer lots - has more than eaten up any extra profit from those additional sales.
It doesn't take a huge amount of money to get into a business and build a high quality product. It takes incredible amounts of money to move that product from a basically custom manufacturing operation to a scaled up national level ready for immediately delivery operation.cdlaine wrote:
I'm sure I don't understand all the issues...but, doesn't it seem like 47 mill. is undervalued for the purchase price of one of the RV industry standards for "nice" motorhome manufact. ??? With out looking at looking the data spreadsheet...just going solely on my RV storage facility ,...sure seems like a lot of their high end units have been sold. I would assume that 47 mill. includes the name, plant, inventory, distribution, subsidiary contracts, rights, staff, proprietary items...etc. , would seem a bargain for Thor ???
Heck , many major league basketball/football/soccer/baseball individual stars sign contracts worth duple/treble that amount.
Just seems odd.
Charles
I was thinking along the same lines...=especially= for TWO companies. Article says they're buying Cruiser RV, too.
LyleSoftballdad wrote:
Would it have been better for DRV to go out of business? I don't know all the details, but Thor/Heartland buying them may have been the lifeline the brand needed to keep the doors open. The future cost savings everyone is mentioning could be the elimination of redundancies in their operational/manufacturing process. That shouldn't affect the quality of customer service nor production. Without details we just don't know, but hope for the best.
IMO, there would have been at least =some= ripples in the RV world, if DRV were having issues; same with Cruiser. Vendors complaining about late, or missed, payments; warranty issues going through the roof; dealers bailing out, etc. OR, it could be simply that, as a privately held company, the principals were to the point in life where they wanted out and, either younger family didn't want to (or have the skills) to take over, or the elders simply didn't trust them to run the company. Who really knows unless one of them grants a candid interview...and who really believes any of the attorney involved will let that happen?
LylePawPaw_n_Gram wrote:
cdlaine wrote:
I'm sure I don't understand all the issues...but, doesn't it seem like 47 mill. is undervalued for the purchase price of one of the RV industry standards for "nice" motorhome manufact. ??? With out looking at looking the data spreadsheet...just going solely on my RV storage facility ,...sure seems like a lot of their high end units have been sold. I would assume that 47 mill. includes the name, plant, inventory, distribution, subsidiary contracts, rights, staff, proprietary items...etc. , would seem a bargain for Thor ???
For ever DRV sold, there are two or four dozen other units sold in price ranges from 50 to 25 % of the cost of a DRV.
Frankly, only a small percentage of the 5er market can afford a 5er that costs more than $100,000.
Looking at storage locations doesn't really show a broad picture of the 5er market. Folks with cheaper rigs find cheaper storage locations. Folks with exensive rigs pay for storage with covers, better security, etc.
One thing that I've watched over the past couple years in Texas is a significant increase in the number of DRV units on dealer lots. One of the complaints about a DRV three years ago was the length of time someone had to wait for their unit be built.
The number of unit sales has increased in recent year, but the size (and cost) of the inventory sitting on dealer lots - has more than eaten up any extra profit from those additional sales.
It doesn't take a huge amount of money to get into a business and build a high quality product. It takes incredible amounts of money to move that product from a basically custom manufacturing operation to a scaled up national level ready for immediately delivery operation.
Recent article (like, today) that said that Airstream is about 3 months behind in production, which is why they're upping capacity by 50%. Could simply have been that DRV chose to build quality instead of quantity. I've worked in the high-end watch business for 15 years and there =are= people who will wait literally =years= for the chance to pay upwards of a million dollars for a new piece. An extreme example is Patek Philippe's newest Grand Complication. A total of 7 pieces are being made; one for the Patek Museum and 6 for sale...at about $2.6 million each. Delivery time for the production model is expected to be upwards of 8 years. All 6 are already under deposit or fully paid for. For people to be impatient for a measly $100k RV that takes a few months to build? :-)
Lyle- I had been looking somewhat at DRV. I will not do that now, just simply scared if the quality will go down, but still look really nice. Hopefully it will still be a quality product. However; I will keep my interest on Lifestyle. The mother company seems to be quality. They have let Lifestyle continue to be a quality product just as Carriage. Just my thoughts. I've just been burned to many times with poor quality products.
tsetsaf wrote:
Softballdad wrote:
Would it have been better for DRV to go out of business? I don't know all the details, but Thor/Heartland buying them may have been the lifeline the brand needed to keep the doors open. The future cost savings everyone is mentioning could be the elimination of redundancies in their operational/manufacturing process. That shouldn't affect the quality of customer service nor production. Without details we just don't know, but hope for the best.
Probably explains the low price. I bet there are some serious liabilities in the deal.
True.laknox wrote:
Softballdad wrote:
Would it have been better for DRV to go out of business? I don't know all the details, but Thor/Heartland buying them may have been the lifeline the brand needed to keep the doors open. The future cost savings everyone is mentioning could be the elimination of redundancies in their operational/manufacturing process. That shouldn't affect the quality of customer service nor production. Without details we just don't know, but hope for the best.
IMO, there would have been at least =some= ripples in the RV world, if DRV were having issues; same with Cruiser. Vendors complaining about late, or missed, payments; warranty issues going through the roof; dealers bailing out, etc. OR, it could be simply that, as a privately held company, the principals were to the point in life where they wanted out and, either younger family didn't want to (or have the skills) to take over, or the elders simply didn't trust them to run the company. Who really knows unless one of them grants a candid interview...and who really believes any of the attorney involved will let that happen?
Lyle
Heartland buys DRV
Here is what they are saying about the purchase.- DRV is a very solvent company. The only build a unit when it is ordered.
I am sitting at Rolling Retreats RV sales in Elk City, OK in the process of ordering a new MS or Elite Suites. The owner Alicia feels the sale will actually improve DRV.
Time will tell if I made a good move! - A quick web search shows five DRVs on dealer lots ready for immediate delivery in Oklahoma City, 26 in Texas, etc.
Yes, your dealer focuses on custom orders, not keeping a stock on the lot. Cummins12V98 wrote:
DRV is a very solvent company. The only build a unit when it is ordered.
I am sitting at Rolling Retreats RV sales in Elk City, OK in the process of ordering a new MS or Elite Suites. The owner Alicia feels the sale will actually improve DRV.
Time will tell if I made a good move!
Welcome to the Heartland family....:)
