Holiday World of Houston News Press
November 11, 2009
Jan/Feb 2007
December 2005
March 2002
FLEETWOOD RV ADDS HOLIDAY WORLD OF TEXAS AND SUNLAND RV OF NEW MEXICO TO ITS DEALER NETWORK
(Official Press Release)
February 8, 2010
Decatur, Ind. – Fleetwood RV, Inc., a leading producer of Class A and Class C recreational vehicles, today announced that it added Holiday World of Houston, located in Katy and League City, Tex.; and Sunland RV, located in Las Cruces, N.M., to its dealer network. Holiday World of Houston and Sunland RV will be full-line Fleetwood RV dealers – carrying all brands from Tioga up to Revolution LE –as well as an authorized Fleetwood RV service center.
“Holiday World of Houston has been a well-respected dealer in the RV industry since 1996, and we are very pleased to add them to the Fleetwood RV dealer network,” said John Draheim, president and COO of Fleetwood RV, Inc. “The professionalism of their service organization and their world-class facilities will certainly serve our customers well for many years to come.”
“We are very excited about our new partnership with Fleetwood RV,” said Michael Peay owner of Holiday World of Houston and Sunland RV. “Fleetwood’s line of motor homes offers something for every RVer; backed by a strong warranty. Combine this with the experience of their sales and service teams we are confident that Fleetwood RV is the right manufacturer to help us grow our business.”
All Fleetwood RV products are backed by a limited one-year/15,000-mile coach warranty and three-year/45,000-mile structural warranty, whichever occurs first, and it is fully transferable for the first 12 months.
Holiday World of Houston Takes On Newmar Motorized Brands-
November 11, 2009
Nappanee, Ind. - Newmar Corporation is proud to announce that Holiday World of Houston has joined its family of high-quality dealers.
"Holiday World of Houston has an impeccable reputation in the RV industry and Newmar is extremely pleased to have them become the newest dealer to take on our core motorhome product lines," said Newmar's Director of Sales, Pat Terveer. "Holiday World of Houston shares Newmar's company principles and vision of offering quality RVs and the best customer service the industry has to offer. They run first-class dealerships and we are proud to be associated with them."
Holiday World of Houston will sell Newmar products at its Katy, Texas location. The Bay Star Gas, Canyon Star Gas, Ventana Diesel Pusher, and Dutch Star Diesel Pusher Motorhomes will be offered.
"Holiday World of Houston is proud to become a partner with Newmar," said Michael Peay, Holiday World of Houston president. "Our company looks forward to offering our customers quality, innovative products that provide high value. Our customers are very important to us at Holiday World of Houston and we want to offer them the very best RV products on the market. The long term success of Newmar and their ability to manage their success through the ups and downs in our industry matches up well with our company management style. We truly believe Newmar understands the philosophy of partnering with dealerships."
Holiday World of Houston is the number one volume RV Dealer in the greater Houston area.
The Katy, Texas location is a state-of-the-art dealership that sits on 30 acres and is one of the largest in the nation. Forty service bays are available to give customers more efficient service, and a full-size paint booth makes exterior paint jobs quick and easy. The parking lot has been specially designed to accommodate RVs of all sizes and offer overnight accommodations.
Established in 1968, Newmar is an innovator and leader in the RV manufacturing industry and recognized nationally for its excellence in quality. Newmar is privately owned and has a dealer network that spans across the United States and Canada. Newmar is located at 355 N. Delaware Street, Nappanee, Indiana. Newmar: When You Know The Difference.__________________________________________
A World of Difference -- RV Trade Digest
January/February 2007
Strong vision, discipline and accountability separate Holiday World of Houston from other RV dealerships.
In a state that takes pride in being the biggest and best at everything, Holiday World of Houston, while large, is relatively modest in size. But nobody can dispute its tremendous level of growth.
In 13 years, the company has grown from $10 million in 1993 with two locations to $42 million in 2000 and then to $83 million last year in three locations.
Owner Michael Peay has been in the RV industry since he was a teenager working for his father's dealership in Albuquerque. Wayne Peay owned Wayne's Recreation Vehicles and instilled values of business management by requiring his son to learn the industry from the ground up.
"I started washing trailers for my father in the fall of 1975. Then, in college, I worked different jobs at the dealership from the parts counter to selling folding campers with my sister, Cherilyn," Peay explained.
A native of the Sunshine State, he attended the University of New Mexico where he earned a business degree with a concentration on finance — something that helped him greatly in mastering the business' financial side.
The magic of a mentor
After graduation, Peay worked two years as the service manager, an experience that taught him about the expectations of customers and his associates in the sales department. "Besides my father, Bill Gorman was one of my greatest mentors. After I graduated, he came to the dealership to meet with my dad. They called me into the office and told me I would be running the service department. I really wanted to run sales, but Gorman insisted that I stay in service," Peay explained. "It was a very wise move that gave me the background I needed to run my own business later."
After a stint managing the finance and insurance operation and then serving as general manager, Peay left the dealership in 1989 to work for Gorman's operation. He spent three years traveling around the country, helping to train staff at some of the best-run dealerships in the nation. "Bill was an amazing forward-thinker. He was very direct and conveyed a high level of urgency that I found inspiring," Peay explained.
"I learned more than I taught. I was teaching a specific curriculum on parts and service, and they taught me their uniqueness and what excited them."
Peay first encountered Holiday World of Houston during the 1.5 years he worked in sales for RV Soft, the company that eventually became IDS. At the time, Holiday World was owned by Harley-Davidson and Holiday Rambler. He was asked to be the general manager of the two corporate stores in Houston in February 1993.
The door opens
Then, in January 1996, the managers of all the Holiday dealerships met at the RV Dealers Association convention/expo. Harley CEO Richard Teerlink announced the corporation would be selling off the Holiday Rambler division. Peay was given an opportunity to buy both the 2-acre Houston locations.
But Newt Kindlund was also interested in expanding his market of Holiday RV Superstores. While Peay was working with investors to put together a deal of his own, he was tasked with selling the idea of buying the stores to Kindlund. It was an awkward position for sure.
"Newt and I spent the day looking at the business and talking about the potential I saw in the dealership," Peay explained. "In the end, he announced he would give me the first shot at putting together a deal. Newt and his wife, Joanne, operate with great integrity."
Peay brought in two partners: Lenny Martynowicz, his former direct supervisor at Holiday Rambler; and Tom Daulton, a self-employed venture capitalist. Together, they developed a vision for dominating the Houston market. Peay was tasked with overseeing the daily operation, but the three retained a team approach for making major decisions.
For example, Peay had to convince his partners to take a huge risk by purchasing 57 acres of land in Katy — 30 miles west of Houston. At the time, the dealership was operating on 2 acres of property near downtown Houston.
"We strategically looked at where the people with the best buying demographics were moving and, based on our vision, we selected Katy," Peay explained. "The soundness of our joint decision was confirmed when another national dealer chain built a new facility two blocks away.”
The key to a successful partnership is honesty, said Peay. "Nobody can keep secrets from the other partners. We don't have a corporate jet, antique cars in the garage or country club memberships on the books," Peay said. "We pride ourselves in showing a healthy bottom line. We see a nice net profit as a reward for our efforts."
The best way to do that, Peay said, is to focus on developing a good budget and then maintain discipline to stick to it. Otherwise, it's easy to let emotion take over the decision-making process — and that can spell financial disaster for any business.
One way to maintain the required discipline is to become a transparent member of an industry 20 Group. While Peay cut his managerial teeth with Dwayne Spader's groups, he is currently involved in an ADP Performance group. "It's good to be challenged and to be held accountable," Peay explained. "Twenty groups create an environment where the beautiful get humbled and even the most successful business owners can learn something."
Running an RV dealership is a difficult business. If it weren't, everyone would be in the industry. It's even more difficult to be very good in all aspects all the time. Strong dealers constantly work on continuous improvement, he said.
"As we reach a certain level of achievement or whenever the staff improves, we tend to crank things up a notch or two," Peay said. "Good dealers learn to enjoy the journey because they never arrive at their destination. They are always moving on to the next goal."
A matter of trust
Peay imported five values from Holiday Rambler and Harley-Davidson: tell the truth, keep promises, be fair, respect the individual and encourage intellectual curiosity.
"We tell new employees if they do their jobs and follow these values, everything will be great," he said. "But if anyone violates these values, we treat it as a violation of trust. These values relate to all our stakeholders from customers and suppliers to OEMs, bankers and even delivery drivers."
That trust also extends into maintaining long-term relationships with key suppliers. While there may be times when tough communication is needed to sort out issues, Peay said Holiday World is often more forgiving than other dealers may be in sticking with partners during tough periods.
"Any business can have a bad year. It might be management or even a personal problem affecting the ability of one of the principals to concentrate on the job," said Peay.
"We strategically select the manufacturers we work with in order to ensure a diverse product offering. We look at the company history and its current leaders because that determines the firm's direction," he added.
Holiday World will stick with troubled companies for two to three years in hopes of helping them turn things around. Regardless of the situation, Peay said his staff must treat vendors with the utmost of respect.
"It's a small industry. My dad taught me early that the person I am dealing with today from one company may be working for another company later when I'm trying to get their product," he added. "You can't afford to burn bridges."
Recognize trends
The ability to recognize trends and jump on them early is what separates good businesses from the super successful. By the time everyone recognizes a trend is underway, it's too late to fully capitalize on that momentum.
"We watch several trends, including expenses, margins and sales," said Peay. "But watching trends is one thing. Having the fortitude and guts to take action is entirely different."
Timely, good financial reporting is essential in identifying trends. Peay routinely examines three reports:
- A daily report that provides a snapshot of the prior day's sales and deliveries. It's more an accountability tool for the staff and managers to make sure sales fundamentals are being followed.
- The weekly operating control sheet that shows progress toward monthly sales and expense goals.
- Monthly operating sheets show progress toward annual sales and expense goals. This report determines trends.
"A one-month variation is a blip and two months is a concern, but three months is a trend," said Peay.
The staff doesn't rely on chance. The dealership plans its advertising a year in advance so managers know what inventory must be stocked before they launch a major push to bring customers on the lot.
Tremendous discipline was required in coordinating the dealership's reaction to the 2005 hurricanes. "We worked hard to sell down summer towable inventory, so when FEMA called, we didn't have inventory to give them," said Peay. "Yes, we had towables on the lot, but we needed them for our own customers. Our dealership supports 140 families. If I sold all my inventory to FEMA, what would my sales and service staff live on? Rather than selling units to FEMA, we sold them to area contractors and business owners who needed temporary offices to serve customers in the affected areas.
"We still make mistakes, but we have a plan and budget in place and the discipline to follow through with it," he added. "We push to reach our sales goals and try not to do anything on a whim or based on emotion. It has worked well for us."
Peay said he surrounds himself with really good people from the general manager to the office staff to the sales staff and service department.
Although the people have different personalities, some of them were chosen specifically because they brought different ideas and personalities to the business.
"Sometimes I have to tug at the leash," said Peay. "But, if I tried to do everything in the dealership by myself, I'd be smaller and tighter. I want to keep turning it up a notch to keep stretching everyone, even myself, to become better."
Charlie Power, Holiday World's general manager, is a good example of the type of people Peay likes to surround himself with. He's an idea generator who is quick to propose new ways of reaching or serving customers. Peay may not embrace all the ideas, but the environment in which the dealership operates gives people like Power freedom and permission to challenge the status quo. The staff can then polish the real gems of an idea before rolling them out.
"It's good for me to be challenged by people, I'm not really looking for hybrids, just polish to make what's already good even better," said Peay. "I want managers to understand and follow our core values, my philosophy and our policies and procedures. But, within that framework, we want people to step out and attempt new ways of getting things done."
Some examples of innovation at Holiday World of Houston include:
- Placing a basket of snacks in the waiting room for visitors to enjoy.
- Letting employees use used units to familiarize themselves with the RV lifestyle. "A technician who hasn't been stranded doesn't really have respect for customers who are," said Peay. "Sales people can also learn our brands' unique points."
- Working with another large dealer for a joint promotion. The plan for a "battle of dealerships" combined ad budgets and more than doubled the results.
- No individual offices around the showroom. Sales staff makes calls from workstations near the sales desk, but meet with customers at tables in the showroom.
- Creation of an Internet sales office, which implemented technology from Redzia to manage leads.
- A plate of freshly baked cookies at the reception desk as an alternative to messy popcorn.
- A big parking area with a separate truck lot for big rigs.
- A customer service ombudsman who acts as a primary contact and intermediary between customers and the sales/service staff to quickly resolve issues.
- A production desk in the service area that allows the service manager to monitor activity in the trenches. A big screen TV also broadcasts daily Paul TV segments.
- An on-site fueling station saves staff considerable time driving miles to truck stops to fuel motorhomes before delivery.
- A year-end bonus program pays all staff a percentage of profitability based on wages earned and weighted against commission as way to reward salaried and hourly employees.
- A barbeque trailer that can be towed to the sales lot or to off-site shows to feed customers and slow down the buying process.
- Brochures are locked away in a storeroom so the salespeople can hand them out as necessary. This gives salespeople a chance to breakaway to get something for the customer to slow down the process.
- Units locked on the lot, just like they are at a Mercedes Benz dealership, to protect future owners.
- Training room with four large whiteboards for idea generation and discussion.
- Full-time service trainer who also focuses on recruiting technicians.
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Different by Innovations Vol.6, No.2
December 2005
“If you want to get away from it all, Holiday World of Houston may have just what you’re looking for. It’s Houston’s No. 1 Volume recreational vehicle (RV) dealership, with motorhomes, travel trailers and fifth-wheels.”
“Holiday World of Houston stands out from its competition through people and service.”
Company headquarters, just west and outside Houston in Katy, Texas, cover 30 acres, plus there’s another smaller location in south Houston and a sister facility in New Mexico. In Katy, the large lot and big showroom are filled with more than 400 new RV’s and motorhomes, and there are 40 service bays taking care of about 100 vehicles’ maintenance and repair needs.
It’s a big place, even for Texas standards, so large that employees need two-way radios to communicate with each other. The facility is far from impersonal, however. A plate of cookies welcomes visitors as they talk to the smiling receptionists. A bright and clean parts and accessories department offers everything a customer might want and need to make his RV experience more fun.
There’s a comfortable, spacious waiting room where Nancy King and her little dog make themselves at home on the day Innovations visited Holiday World. Everyone greets Mrs. King and pet her dog.
“My husband and I have purchased 10 RVs and motorhomes here and are full-time RV’ers now,” she says. “We always come back here for the people and the service.”
This personal touch is one of the things that make Holiday World different.
“Our attention to customer satisfaction is the reason we’re the largest combined volume Holiday Rambler, Winnebago, Safari, Keystone, Lance, Beaver and Thor dealer in Houston,” Charlie Power, general manager, comments. “We also sell more No.1 selling brands than any other dealer in Texas.”
A Formula for Success
Power attributes the majority of the company’s success to its people. “It takes the four P’s,” he says:
- “We have a great piece of property here which allowed us to expand from 15 acres and 22 service bays in just five years.”
- “We represent high-quality manufacturers with great products.”
- “We have a good business plan that should enable us to do $80 million in sales for the three facilities this year.”
- “But we can’t make the most of any of these assets or implement the business plan without people. Our people are really what makes us successful.”
Holiday World focuses on hiring and retaining the very best people it can. “We give them training and a career track that develops a sense of loyalty on their part,” Power explains. “We always fulfill our promises to our people, and they, in turn, do the same for our customers.”
Buzz Brown, service manager, adds, “We want people who try. In this industry, some don’t try very hard, but we hire people who will take the extra steps to ensure things are done properly.”
Similar Philosophies
The Houston facilities have a shared fleet of five forklifts. The two most recently acquired are 6,000-lb.-capacity pneumatic tire FG30N LP-gas Mitsubishi forklift trucks.
“Our selection criteria included forklifts large enough for the loads we move, plus reliability,” Power says. “And we wanted a supplier who goes the extra mile like we do for our customer,” Brown adds.
Power took a high-tech approach in his search for new forklifts. “While forklifts are my responsibility, I really don’t know much about them, so I did an Internet search,” he recalls. “I wanted to compare functionalities to see what brands could fit our application of transporting travel trailers and fifth-0wheels outside and moving them in and out of the showroom, plus lifting high enough to access our second floor parts and storage area.”
He obtained pages of specifications and the information he needed to talk more knowledgeably with forklift dealers. “I was amazed at the amount of data available,” Power relates. “I put bids out for quotes on the five forklifts that seemed to fit the bill. The next business day I had responses, and some of the dealers contacted me by phone.”
When he realized that the Mitsubishi Forklift Trucks manufacturing facility was located right in Houston, he began to lean in that direction. “We knew that Mitsubishi forklifts have a good reputation,” Power says, “but we performed a thorough bid analysis first. What we determined was that although the Mitsubishi forklift dealer’s price wasn’t the lowest, it represented the best value or our needs.”
He appreciated the ease of the buying transaction. “I didn’t have to go anywhere to compare forklifts or spend time looking at several dealerships. The Mitsubishi forklift truck dealer was very easy to work with.
He has delivered on everything he said he would,” Powers notes. “I felt very comfortable buying tow Mitsubishi forklifts, so comfortable I didn’t even ask for a test drive.”
Satisfied Customers
Brown and Power have been happy with their choice. “We’ve had no trouble with them although we thought we did once,” Brown recalls. “A warning light came on and we were about to look in the operation and maintenance manual to see what it meant when the truck ran out of LP gas. That quickly showed us what was wrong.”
The two were so impressed with the Mitsubishi forklift dealer that they had him recondition another truck in the fleet. “One day a belt broke on that vehicle, so I called the dealer right before lunch to request service,” Brown says. “I came back from lunch expecting a return call, but a service technician was here. I expected a message and I got a truck! Now that’s responsive service.”
While the in-house mechanics perform routine planned maintenance on the forklifts, Holiday World will rely on the Mitsubishi forklift dealer for repairs on the new trucks (purchased in December 2005) and the three others of different brands. “We want to move to one brand as we replace the older units,” Power notes. “That just makes things easier for performing planned maintenance and obtaining parts.”
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Today and Tomorrow
A report to our dealers, Winnebago Industries.
Volume 18, Issue 2
March 2002
Our sources:
We visited with Michael Peay and Charlie Powers. Michael is the Dealer Principal of Holiday World of Houston, with stores in Houston and Katy. Charlie is the General Manager of both locations. The Holiday World of Houston location in Katy is a full-line Winnebago dealer and an Ultimate dealer.
Dealership history:
Michael Peay began as General Manager of Holiday World of Houston in 1993 and purchased the business in 1996. “One of my goals since the beginning has been to sell new Winnebago Industries products,” Michael said. “We have been a Winnebago dealer at our Houston location since 1997 and at our Katy location since it was established in 2000. We are very pleased to be able to offer these products.”
Dealership features:
“The Katy facility occupies 15 acres, with 42 additional acres for future expansion,” Charlie said. “It is located on a major freeway. There is a large indoor showroom-8,000 square feet. There are also 20 service bays and a 50’x16’ paint booth. We have full hookups available for overnight stays. This is a new and very nice facility. Parts of our building are approximately 40 feet tall. You can literally see it miles away, rising out of the rice fields of west Texas.”
What makes your dealership special?
“We have revised our hiring process,” Michael said. “Charlie has put a testing procedure in place which evaluates trainability and personality traits. We are looking at employees and potential employees differently. A good location is important. Good product is important. But good people are critical. You cannot be successful without them.”
Advertising strategies:
“We are very heavy into television,” Charlie said. “We feel that drives traffic well for us. We have one or two promotions each month, either an on-lot promotion or an RV show or similar event. These are all supported with television advertising. We also use some newspaper advertising and some RV trader publication advertising, plus some direct mail and our Web site.”
What’s your most successful promotion?
“We work very hard to make all our promotions successful,” Michael said. “Our three-day Funship Rally is an even our customers look forward to each year. It’s a special event where only our customers are invited. We feed them all three days and provide entertainment each evening. There are also seminars on RV topics and other topics of interest, such as CPR certification. We have lots of RV’s on display and factory reps on hand.”
What about shows and the best way to work them?
“We participate in two major RV shows each year, plus several off-lot promotions and on-lot promotions,” Michael said. “We support this with television ads. You have to drive home the point that there’s tremendous selection, service and value and the time to buy is NOW.” Charlie added, “It’s critical to have the sales team really involved. We provide sales incentives with each promotion. Salespeople have to be focused on producing sales at the event. We build a winning attitude among our employees. The whole store knows about each show and promotion. Excitement and anticipation builds. Promoting a show or even properly with your sales team and all other employees will raise their level of excitement and performance and you’ll have good results.”
What do you see as the key to customer satisfaction?
Michael pointed out, “We operate on five values: 1) Tell the truth. 2) Be fair. 3) Keep your promises. 4) Respect the individual. 5) Encourage intellectual curiosity. Put another way, you have to provide the customer with a great buying experience, followed up by great service, fulfilling what you told the customer you would do.”
One “tip” or piece of advice you’d like to share with other dealers:
