Sierra RV Tops in Parts & Accessories

Despite a down economy in 2009, the dealership still sold about $1 million in parts and accessories, thanks in part to its large inventory, a rewards program and parts-focused educational seminars.
Article Author: 
Stephanie Patrick
Publication Name: 
RV PRO
Publication Date: 
Mon, 02/01/2010
Sierra RV didn’t become Utah’s largest family owned dealership and one of the state’s largest retailers of aftermarket parts and accessories by chance: It was several specific actions taken by the dealership that have earned it those notable distinctions.
 
The dealership strongly believes in cultivating customer loyalty, and does so in part by offering a 10 percent discount on parts and service to customers who purchase their RVs from Sierra, whether it’s a $500 tent trailer or a $500,000 motorhome. The discount is for a lifetime of parts and services purchases at Sierra.
 
Owner Carl Jensen estimates more than 10,000 customers have been awarded discounts since the dealership opened in 1996.
 
“It’s certainly a draw,” says son Jared Jensen, Sierra’s manager and part-owner. “Customers leave here happy and come back to purchase parts and accessories from us. They also tell their friends about their good experiences, which brings us more customers. Oftentimes, we are the preferred parts and accessory shopping center for other dealers’ customers.
 
“We may not sell them their trailers or motorhomes the first times, but the second time they usually buy from us as a result of the experiences they have with Sierra.”
 
Seminars Attract Large Following
One of the biggest events at Sierra is the dealership’s twice-a-year seminars, which are offered at the beginning of the season in April and at the end of the season in October. During the events, the public is invited to ask vendors and Sierra representatives questions about everything from satellite antenna installation to winterizing their units.
 
“We have 85 to 100 people attend these seminars every time and it’s pushing 95 to 110 more and more,” says Mike Van Tassell, Sierra’s parts manager for the past 10 years. “The vendors are just amazed how many people we get to come to these seminars.”
 
Often, those attending Sierra’s seminars are previous customers, but thanks to newspaper advertising and fliers, many attendees are on the lot for the first time. “Typically, once they come to Sierra RV and see what we offer and the way we try to take care of people, we’ve got a customer for life,” Van Tassell says.
 
While the seminars are educational in nature and not intended to push specific products, they often do have an impact upon the dealership’s bottom line. In fact, the last seminar in October resulted in $6,000-$10,000 in sales for a single day, according to Van Tassell, who notes that satellites and solar panel systems tend to be big sellers on seminar days, but adds that sales of those items are strong throughout the year.
 
“A lot of people do their research over the Internet, which is a great tool because they can make part purchases directly from our site and ship them anywhere in the USA,” he says.
 
Keeping Parts Shelves Stocked
Perhaps not surprisingly given the dealership’s strong focus on parts and accessories, Sierra makes it a point a stock a lot of them: everything from common items such as holding tank chemicals to big ticket items like stackable washers and dryers.
 
“Sierra stocks nearly $500,000 in parts and accessories year-round. If, in fact, we take care of customers, we are required to have the parts that they need, either in stock or available fairly quickly,” Carl Jensen says. 
 
Satellite systems, solar panels and generators are among Sierra’s biggest sellers, and Van Tassell sees that continuing.
 
“Satellites have really surprised me for the price point,” he says, adding that Winegard’s are the most popular. “They go all the way up from $100 to $2,000. And, in all honesty, I sell more of the $1,500-$2,000 satellites systems than anything else because people want convenience and high definition.”
 
Sierra also is a Yamaha generator dealer, and Van Tassell predicts the new Yamaha 2000 Generator will be a big seller this year, noting the units are light and very quiet. Other items that do well for Sierra include outdoor mats, bike racks, cargo racks, mud flaps, gas grills, and of course hitches and tow bars.
 
Sierra, which is located in the small community of Sunset (population 5,200) about 25 miles north of Salt Lake, relies on Salt Lake City-based Carter Distribution to supply most of its parts and accessories. When needed, the dealership also uses national distributors Stag-Parkway and Coast Distribution.
 
Van Tassel’s goal is to reach $100,000 in gross sales every month. Most of the time, he reaches it.
 
“My motto and everyone else’s motto is: When they walk through the door, we are trying to give them the very best shopping experience they will ever have,” he says.
 
The numbers prove it. At a time when the economy continued to struggle and the RV industry limped, Sierra ended 2009 with about $1 million in parts and accessories sales and $25 million in gross sales.
 
Carl Jensen says 2009 wasn’t even one of Sierra’s best years. But, customers carried Sierra through the downturn. Even during the worst of the downturn, customers still made big-ticket purchases on travel trailers, motorhomes and fifth wheels as well as investing in repairs on their RVs.
 
“In 2010, we expect business to go up, based on the shortage of good used units in the marketplace and a large backlog from the new manufacturers,” he says. “Everyone seems a lot more positive and our goal will be to sell an additional $10 million to $15 million in 2010.”
 
Partnering with Solid RV Manufacturers
Of the 250-300 units on Sierra’s 14-acre lot, Thor is a mainstay, with a full line of Dutchmen trailers, including Grand Junction, Colorado, Denali, T@B, T@DA and Kodiak models. Sierra also carries Road Warrior and the new MPG from Heartland. For motorized, Sierra carries the full line from Monaco RV and, new this year, the Fleetwood Jamboree.
 
The Jensens say it’s crucial to align with solid manufacturers that take care of Sierra’s customers. Thor is among those manufacturers.
 
“If, in fact, we can’t take care of our customers because the manufacturers won’t let us, then that puts us in a bad situation for our customers,” says Carl Jensen, who began selling RVs and cars in nearby Ogden, in the 1970s and bought out his partner to open Sierra in 1996. “But, if we’ve got a good manufacturer that supplies the products, supplies the parts and supplies all the backing that we need, it makes it a lot easier for us to be a successful company because our customers are not only satisfied with Sierra, they are extremely loyal on future purchases.”
 
Sierra added Fleetwood Jamborees to its lot for 2010 to replace the Four Winds Class C’s it previously sold. The Jensens are giving the Jamborees a try after being impressed with what they saw at the National RV Trade Show in Louisville, Ky. They believe that the motorhome offers an abundance of features and benefits at a good price point, and is likely to do well with customers in the 30- to 65-year-old range.
 
Beyond its wide selection of units, which reaches about 400 in stock during the summer months, Sierra is able to attract a wide spectrum of RVers because of Sunset’s easy access to Utah’s many national parks and its close proximity to Hill Air Force Base in Utah.
 
“For us, being so close to so many state and national parks, means a steady crowd of new customers who want to explore the state,” says Jared Jensen, who also uses television advertising, Internet, direct mail and training seminars to attract customers from Idaho, Colorado, Arizona, Montana and Wyoming.
 
Customers also traveled from as far away as New York, Maine and California in the last year, thanks to both the Internet and Interstate travel. Still, the best advertising Sierra has is word of mouth from satisfied customers, the Jensens say.
 
Always an Owner on the Premises
“Being a large family owned-and-operated dealer, if a customer walks into the showroom and wants to say ‘Thanks for good work,’ or he needs help with something, there’s always an owner present,” Jared Jensen says. 
 
His mother, Geri, works in various departments and his brother, Jay, handles the dealership’s computer IT needs.
 
“(Customers) can always talk to an owner without having to call Chicago or hope and pray that the owner comes in one day,” he says. “We are always here, which makes a big influence on the customers’ buying decisions. Our customers like to see the owners being hands-on in all facets of the business.”
 
Looking forward, Carl Jensen hopes to add to Sierra’s roster of 48 employees by hiring another service tech or two and another salesperson in the next few months. He also remains focused on the customer experience.
 
“I enjoy meeting the people, I enjoy talking to the people and I enjoy seeing their happy faces when they drive away with their RVs and when they come back to tell us about the wonderful times they’ve had together,” he says. “I feel like we are doing a great service to the retail public.”