Of course, it’s not an unfamiliar mantra amount RV manufactures but few have built a dynamic company that sells nearly $2 billion in product a year.

“We still have the same philosophy as when we started out,” said Liegl, 64.  “If you stacked up everybody’s products and looked at them in depth and looked at what you’re getting for a certain price, somebody’s going to be best and someone’s going to be worst.  We expect to be the best.   We pay more attention to detail, we work harder and we’ve got better, experienced people.”

Liegl founded Forest River in 1996; two years after he was dismissed as president of publicly owned Cobra industries Inc., which soon went through bankruptcy.  Two years later, Liegle, who got his start at Coachmen Industries Inc., purchased the remnants of Cobra to form Forest River. 

Before a decade was out, Liegle had turned Forest River into the No. 2 RV manufacturer in the U.S.  In July 2005 he sold privately owned Forest River to legendary investor Warren Buffett’s Berkshire Hathaway Inc., Omaha, Neb., which in 2007 had $118 billion in revenue from such diversified subsidiaries as GEICO, Dairy Queen, Helzberg Diamonds and World Book encyclopedia.

Buffet made an offer to buy Forest River during a telephone conversation with Liegl just one day after he learned about the company.  In Berkshire Hathaway Inc.’s 2005 annual report, Buffett said, “Pete is a remarkable entrepreneur.  You can be sure that I won’t be telling Pete how to manage his operation.”

During the intervening period, Buffett has kept that promise, communicating with Liegle no more than once a year “If that,” Liegle said. “I see him at the stockholder’s meeting.  We just had one (in April).”  The annual meeting this year attracted some 26,000 investors, some of whom paid more than $150,000 per share of Berkshire Hathaway stock.

By Liegle’s account, Forest River’s annual sales have risen by about $400 million to just under $2 billion since the sale three years ago.

“The advantages of being a public or private company balance out,” Liegle said.  “When we were in the rapid growing stage, we were private.  But to raise capital, it’s a little more difficult for a private company.”

And even in a soft RV market, Forest River is holding its own, Liegl reported.  “We are bumping $ billion (annually) right now, “Liegle said.  “We’re a little ahead this year over last.”

Forest River is highly decentralized, with only about 60 employees in the Elkhard headquarters, most working in accounting and finance.  Forest River’s many dividing in accounting and finance.  Forest River’s many divisions are run by general managers in the field who report directly to Liegl and share in the financial success of the company.  “We have GMs who take a certain pride of authorship at each division,” he said.

With some oversight from headquarters, Forest River divisions make their own buying decisions.  “I don’t personally believe in centralized purchasing,” Liegl said. “If we have 15 or 20 people buying supplies, it seems like we are going to buy better than if we only had one person here buying. One person could become skewed.”

“There is some synergism in purchasing,” he continued. “If you look at all the tires we buy for something like 135,000 units a year, that’s a lot of tires. That passes on to all of our divisions. That’s our mentality. Same thing with wood, aluminum and anything else.”

Although Forest River is the No. 1 manufacturer of cargo trailers and No. 2 in shuttle buses, RVs make up three-quarters of the company’s revenues — 75% to 80% of which are built in northern Indiana. The company has, however, established towable RV factories in California and Oregon to overcome high shipping costs. “With a $200,000 motor home, it’s different,” Liegl said. “Trailers need to be closer to their market.”

Forest River’s towables range from entry-level folding camping trailers to high-end fifth-wheels. “Our strength is towables,” Liegl said. “We had a game plan to have product in each category.”

This year through March the Elkhart-based Corporation posted a 16.3% market share in towables for a No. 2 ranking and a 5.7% motorized share for a 7th place ranking, according to Grand Rapids, Michigan-based Statistical Surveys Inc.

Consequently, growth in motor homes remains a prime objective. “We’ve got a long ways to go (in motorized),” Liegl said. “It takes a little longer (to build motorized market share). We are not in all the product lines that we could be.

“We are going OK in Class A gas, and in diesels, we’ve made it around the corner. We are gaining momentum every day.” 

Despite Forest River’s explosive growth during the last 12 years, Liegl describes the company as “conservative” in many ways. “We don’t believe that we should go around base two until we go through base one,” he said. “Until we have our act together in a particular situation, there’s no sense expanding it. That’s our approach.”

Liegl, with typical candor, terms the RV industry’s current downturn as “a godsend” for Forest River. “Let’s say the industry shrunk in half,” he said. “That means there’s still going to be half left, and somebody’s going to get that half, which is still far more than I can produce. But I’m going to get my fair share. We might have to work a little longer and harder, but we are going to get it.”

Liegl said it’s already too late to be making adjustments to cope with the soft RV markets. “It’s not what’s happening today,” he said. “It’s what you did last week and the week before that and last month that is going to determine your results today.”

All in all, Liegl expects that the RV market, despite current setbacks, will recover in short order. “It’s a very cautious individual who buys RVs,” Liegl said. “That doesn’t mean they aren’t going to buy. They might buy something a little less than what they would if the economy was blowing and growing, but this is short term. I’m very confident of that.

“I don’t know why (people are worried). When I say short-term, this year is going to be tough as far as the economy goes. But that’s short term.”

Humanize your letter.  Write it so that it sounds like you are having a one-on-one conversation with the prospect.

Use a personalized salutation.  With all the sophisticated software on the market, there is no reason why you can’t address a letter to an actual person, not a position. It may cost you a few pennies more per letter, but it is worth it.

Keep in mind the “Attention, Interest, Desire and Action” formula in writing your letter:

Attention:  Use a strong opening statement or headline to capture readers’ attention.  Develop a hook that grabs readers and prompts them to continue to read.

Interest:  Expand on the benefits promised in the headline.  Let prospective customers know why buying from you is in their best interest.  Include testimonials from satisfied customers.

Desire:  Appeal to readers’ emotions and their favorite radio station, “WIIFM” – What’s in it for me?  Keep in mind that desire is an emotion.

Action:  Create a sense or urgency in your letter and ask for action.  Tell readers what is expected of them.  For example, you can ask prospects to fax the letter back to you with a time and a date that is convenient for you to call.  If you’re presenting a special a special offer, set a time limit for 3response.  The idea is to say, “Do it NOW.”

Include a P.S.  People often read the end of a letter first (to see who sent it), so a P.S. can help catch their attention.

PKF Consulting, an international consulting firm with expertise in travel and tourism, found that “typical RV family vacations are on average 27 to 61 percent less expensive than other types of vacations studied.”

Even factoring in RV ownership and fuel costs, the study reveals that RV family vacations tend to be significantly less expensive than other types of vacations.

“This study re-affirms what RVers have long known, that RV vacations deliver greater economic value compared to other types of vacations,” says Richard Coon, president of the Recreation Vehicle Industry Association (RVIA). “RV vacations continue to be the most affordable way for a family to travel because of the tremendous savings on air, hotel and restaurant costs. And these savings offset the cost of fuel.”

PKF analyzed major costs that would be incurred by a family of four taking eight different types of vacations for three, seven, 10 or 14 days to such popular travel destinations as the Grand Canyon, Cape Cod, and Napa, Calif.

“On average, RV vacations were more economical than the other types analyzed in all but one case,” says Kannan Sankaran, PKF’s lead researcher for the study. “Even as fuel prices increase, our findings show that almost all RV vacations are still significantly less expensive than non-RV ones.”

Fuel prices would have to more than double for typical motorhome vacations to become more expensive than other forms of travel, according to PKF Consulting. The study also shows that fuel costs would have to more than triple for trips in lightweight travel trailers or folding camping trailers to be more expensive than the least expensive non-RV vacation. Almost 80 percent of the RV market consists of towable RVs, including lightweight units which can be towed by car, van or pickup.

RV owner John Bargo, a computer operator from Milwaukee, Wisc., agrees with PKF’s findings. “When you figure the cost of driving in a car, staying in hotels and eating in restaurants, it’s a lot more expensive than bringing your lodging and food with you.”

Dennis Silipena, a 55-year-old service and parts manager from Hammonton, N.J., also appreciates the affordability of RV travel. “I’ve owned an RV for 25 years and I’ve enjoyed significant savings over other types of vacations. I pay $30 to $40 to stay in a campground rather than $150 to stay in a hotel. And it’s a much nicer experience staying in my RV.”

The study showed that a family of four traveling from Phoenix, Ariz. to Napa, Calif., with their folding camping trailer for 10 days, staying in campgrounds at the local average of $33 per night, would save 52 percent, or $2,379, over the same trip taken by car, staying in hotels averaging $122 per night and eating in restaurants. Taking the same vacation by a Type C motorhome would save $1704, or 37 percent, over going by car.

A week-long family vacation towing a conventional travel trailer from Salt Lake City to the Grand Canyon compared to the cost of taking the same trip by airline, renting a car and staying in a hotel would be $2,647, or 65 percent less expensive.

Shorter getaways by RVs were also found to be more economical. For example, a family taking a three-day vacation from Pittsburgh, Pa. to Lancaster, Pa., would save $323 or 31 percent by towing a conventional travel trailer, rather than going by car, staying in hotels and eating in restaurants. The savings would be even greater — $889 or 52 percent — for families taking the same trip by a Type C motorhome rather than flying.

Among the RV vacations analyzed by PKF, even those taken in an ultra-luxury Type A diesel motorhome were less expensive than flying and staying in a hotel. Only a family taking a vacation by personal car with hotel or renting a condo and cooking for themselves would cost less than a family taking a trip in a Type A motorhome. “Owners say the added space, comfort and convenience while traveling justify the investment in a Type A,” noted Coon.

In addition to major expenditures required from the start to finish of each vacation, PKF factored in an estimated cost of ownership of the RVs analyzed: a folding camping trailer, conventional travel trailer, and Type C and Type A motorhomes. Research included documenting average ownership periods, residual values, annual days of use, insurance and applicable interest deductions.

“RV vacations are a great way for families to spend time together and bond,” said Coon. “Whether it’s in a luxury motorhome or a basic folding camping trailer, RV vacations offer value that lasts a lifetime.”

The PKF study considered only quantifiable economic factors, not the comparative quality of each vacation. As a result, the convenience, flexibility and quality family time cited as major benefits of traveling in an RV could not be addressed.

Effective business development can be a daunting task.  It’s time consuming.  It takes away from regular activities and often requires too mush time.  Businesses owners are often not experts at business development.  So they risk valuable time and money.  But, as the adage goes, if you don’t grow your business, chances are your business won’t grow.

Businesses let the fundamentals of development slip to the back burner in favor of other activities.  While the following is but a short list of effective tools, try incorporating some of these basic rainmaking strategies into your business day and watch your profits soar.

Referrals

Referral programs are developed to grow organically by using an existing customer base.  Rewarding your customers with an incentive for sending new business your way can be an incredible source of new revenue, but most businesses have a passive, unmanaged referral program.  Build a consistent and well defined program and execute it with the understanding that it often costs less money to “sell” to a customer that doesn’t need selling to, than it does to a customer that has never heard of you.

Networking

For many business owners, networking can be the “Holy Grail” of rainmaking strategies.  It involves defining possible contacts, determining your purpose, developing a plan of action, and committing the time and energy necessary to produce results.  By constantly reaching out and nurturing existing relationships and establishing new ones, you can position your self in a stream of opportunities, resources, information and contacts that will pay dividends for years to come

Loyalty

Loyalty programs are used when a businesses already has a solid customer base, but wants to ensure they remain happy and loyal customers.  However, nut it needs to be managed and accountable.  Build a loyalty program tailored to your ideal customer.  Make it meaningful.  It can include anything from rewards, thank-you notes or complimentary add-ons that your customers think have value.

Events

Hosting or attending an event can be costly and time-consuming, yet an excellent way to raise profile awareness about your business within a target group, but head into this one with very clear and realistic objectives and goals and devise ways of measuring results.  Consider hosting a workshop and invite prospective customers for a one-hour class that explains or teaches something of relevance. 

Connections

Often, business owners just need a few of the right connections to make significant progress in their business.  Develop a “wish list” of influential contacts – the 100 top professionals – that could truly affect your business, whether they’re potential customers, colleagues or even competitors.  Rank those contacts and find time every day to make a connection.  As with networking, a consistent connections program will lift any business to new heights over time. 

Business rainmaking can include a myriad of other action strategies, including clear branding, effective advertising techniques, streamlined sales systems and experiential marketing and, while intimidating, is not rocket science.  Consider outsourcing to professionals for best results.  Short of that, formulate a plan with realistic goals and stick with it.  The effort will be well worth the time and energy and will pay great dividends in return.

In today’s dynamic global marketplace, RV rentals are a vital part of the Travel/Tourism industry.  Emerging from one of the strongest decades in recent history, the tremendous growth of the RV rental industry can be attributed to the “Baby Boomers’ ages (55-64).  Baby Boomers have an expected growth factor of 48% through 2010.  That’s more than 5 times the expected total population growth of 95.  The potential for RV rentals, as well as purchases, has never been higher.

“The desire to visit famous travel destinations brings millions of multinational tourists to America every year.  The rental of RV’s offers more freedom, control, and flexibility than any other travel option.” says Sandra Bate, President/CEO of Bates International Motor Home Rental Systems, Inc.  “International Tour Operators with their massive client databases are a vital force in the RV rental market.  The North American demographic profile of rental customers encompasses an expanding range of lifestyles.” says Bates.  Bates is an International Motor home rental franchise system; with locations throughout North America.  The company has its headquarters in Las Vegas, Nevada.

Travel and tourism benefit society in countless ways.  It is one of the United States’ largest industries, directly employing 7.5 million people and generating tax revenues of about $110 billion.  It ranks fifth among 20 major private industry sectors, according to the Travel Industry Association.  Travel expenditures within the U.S. total $740 billion.  The UNWTO estimates that international tourism arrivals reached close to 900 million in 2007, up 10 percent from 2006, according to the Office of Travel and Tourism Industries at the U.S. Department of Commerce.

Activities surrounding World Tourism Day in the United States are coordinated by the Travel Industry Association, a Washington-based trade association that represents the common interests and concerns of travel in America.

Know Your Personal Commercial

Stephan Schiffman, in his book Make It Happen Before Lunch (Mcgraw-Hill, 2000), offers three helpful points to consider when developing your personal commercial.

     1.  Is your personal commercial short enough to deliver comfortably in a social setting in 30 secondsor less?  (Be prepared to rewrite and revise your commercial until it sounds natural.)

     2.  Is your commercial casual enough to be delivered conversationally – not as a “hard sell” sales pitch?  (Remember, you’re talking only about that which you do, not about what you feel you could do for the person you’re talking to.)

     3.  Does your commercial focus specifically on how you add value to other people’s days?  (Think about the problems that would arise during the day if you didn’t do what you do, and ask yourself how people benefit from actions you undertake.)

Practice your personal commercial until you can recite it instantly upon being awakened from a deep sleep.  It has to come across naturally, seem spontaneous, and above all, be true, explaining exactly what you do during the day without apology or hesitation.

Your biography must be brief, casual and conversational and focus on what you personally do to add value…and it must be delivered with a smile.

Stephan Schiffman is president of D.E.I. Management Group.  For information, call 1-800-224-2140 or go to www.dei-sales.com.

Challenge Paperwork

The most precious asset we possess, not only in sales but also in life, is time.  Few would argue with that.  Or that one of the great squanderers of time is excessive or unnecessary paperwork.  Top-earning pros agree that periodically challenging paperwork cannot help but boost sales volume.  Here are key thoughts to take with you.

     1.  Letter, memo, report, whatever – if it’s delegable, palm it off.

     2.  If you’re not sure it’s worthwhile, eliminate it.  At least try it and see if it makes a difference.

     3.  Block out specific times of the day or week to do paperwork.  It gets done faster and more efficiently that way.

     4.  Be sure every chore you handle has a bottom-line goal.

     5.  Before composing a letter or memo, ask yourself, “Can it be done faster and cheaper by email?”

     6.  Assign a clerical person to screen incoming mail.

     7.  Separate routine from unusual correspondence.  Try to avoid reading mail more than once.

Think Big

Successful people believe in themselves.  They visualize themselves as being successful, and they never let failure or adversity stop them.  If you can see yourself accomplishing something, you can accomplish it!  Your actions, thoughts and even the way others perceive you is determined in large part by how you perceive yourself in your subconscious mind.  So before every sale, visualize yourself…

     1.  Hitting it off with the person that you are meeting.

     2.  Coming across as being knowledgeable and informative, and

     3.  Getting the sale!

Remember, you will rarely ever exceed your own expectations of yourself, so it is important that you visualize yourself achieving success.

The company is replacing petroleum-based detergents with corn-based cleansers in more than 10 popular products. The new cleaning products are equal in performance to petroleum-based cleaning agents, but are milder to the skin and derived from renewable resources.

“RV owners are becoming more and more environmentally conscious and we’ve seen a tremendous increase in demand for ‘green’ products as a result,” said Mary Burrows, Thetford’s manager of chemical development. “At Thetford, we are committed to providing our customers with high-quality cleaning agents that contain a favorable environmental profile.”

Thetford’s new Premium RV Care products contain wetting agents made entirely from corn. Developed at the company’s research laboratories in Ann Arbor, the new cleansers are 100 percent biodegradable and are derived from 100 percent renewable resources. In addition, Thetford care-product containers are made with 25 percent post-consumer recycled high-density polyethylene (HDPE) and are recyclable.

Led by Burrows, the development of Thetford’s corn-based products took approximately one year to complete. Formulas were compared and ranked for performance, safety and biodegradability. Only the top-scoring versions were selected for production.

“As petroleum costs continue to rise, we are seeing even more interest in developing products from alternative resources,” noted Burrows. “With our bio-based products, Thetford plans to be on the forefront of this new market.”
“Green” products currently in Thetford’s Premium RV Care line include: Premium Awning Cleaner, Premium UltraFoam™ Awning Cleaner, Premium Rubber Roof Cleaner and Premium Wash & Wax. Burrows notes that the company hopes to incorporate an environmentally-friendly base into its other Premium RV Care products over the next six to 12 months.

Financially speaking, research has shown that small-business owners enjoy an average net worth that is three times that of their salaried counterparts.  Business owners also tend to out-perform salaried employees in terms of higher annual incomes, savings, and stock portfolios.

Parents, college career counselors, and students should also take note that women are more likely to achieve $100,000-plus annual incomes faster through business ownership than average professional careers in law or medicine.

Even though business ownership offers considerable potential for financial reward, entrepreneurs still talk to me about their overriding desire to control their work destiny.  They don’t want to work 18-hour days or feel chained to inflexible schedules that conflict with family and leisure interests.  Their attraction to business ownership is more about creative pursuits and career flexibility than monetary gain.