Forum Discussion
travelnutz
Jun 05, 2014Explorer II
The reason for the changes is the model lines overlapped/crossedover too much and there was not enough distinction between them. Jayco didn't want to be known as a maker of a very cheap line and that killed the Swift line and forced the integration. Basically, Jayco was offering too many line variations which created a tremendous inventory of different components to be on hand and it's very costly and drives manufacturing costs up drastically. Jayco is a very large physical sized company and inventories can get out of hand so fast and that kills profits. Go check them out as they are the 3rd largest RV manufacturer in the world. A huge operation!
Inventory has to be purchased and paid for long before the inventory even goes out the door to the dealer. More lines requires more inventory and floor space and the expense soars. Then it's X time before the dealer gets the money for the unit back to Jayco as some various products and units just sit and sit before selling. If you understood or was exposed to the hells of "floor planning" actual costs it would be self-explanatory.
Inventory has to be purchased and paid for long before the inventory even goes out the door to the dealer. More lines requires more inventory and floor space and the expense soars. Then it's X time before the dealer gets the money for the unit back to Jayco as some various products and units just sit and sit before selling. If you understood or was exposed to the hells of "floor planning" actual costs it would be self-explanatory.
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