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Elite Veteran
Posts: 838
  
Location: Georgia | My father is a man of many hats and an entrepreneur. He is self employed/owns his own business, and his most recent endeavor was asking my opinion on becoming a Featherlite Horse Trailer dealer. We are located 30 miles south of Chattanooga, TN and 90 miles north of Atlanta, GA. We are fairly centrally located around a lot of farms/arenas and events/barrel racers/cowboys and cowgirls, so my question is, do we have any BBs that are involved with this type of business? My daddy has always done very well for himself and seems to have somewhat of a Golden Horseshoe shoved in his tail when it comes to business and finances, but anything horse related is not his forte. It's mine. So he has come to me with this idea and I would love to know if this will be a feast or famine type of deal. I would love to hear what you all think.
Sorry for the book! | |
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 The One
Posts: 7998
 
Location: South Georgia | In my opinion, there is plenty of room in the horse trailer market for more dealers. Although, I'd suggest he be a dealer of a variety of manufactures rather than just one. | |
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Elite Veteran
Posts: 838
Location: Georgia | horsegirl - 2014-05-08 2:13 PM
In my opinion, there is plenty of room in the horse trailer market for more dealers. Although, I'd suggest he be a dealer of a variety of manufactures rather than just one.
That was one of my concerns. The next question is how do become a multibrand dealer? I personally am a fan of Featherlite(that's all I've pulled) and maybe that's where he wants to start, but I know a lot of folks like Bloomer, Sundowner, Bison, etc... | |
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  Semper Fi
Location: North Texas | PM Cindy Hamilton on here. She is in the business. | |
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Elite Veteran
Posts: 838
Location: Georgia | foundation horse - 2014-05-08 3:13 PM
PM Cindy Hamilton on here. She is in the business.
I was thinking she was the BB that was in horse trailer sales, but I wasn't sure. Thank you! | |
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 Ima Fickle Fan
Posts: 3547
Location: Texas | My hubby is in trailer sales, so this is what I've picked up from him.
First - most dealerships "floor" their trailers. This means that they have borrowed the money to have trailers on the lot because you have to have inventory. However, the longer the trailer sits on your lot, the less money you will make due to the interest you pay eating into your profit.
Second - You need to have more than one line of trailer. You can have the top of the line, LQ, expensive trailers. But you have to remember that not everyone can afford those. So, carrying other lines allows you to have "price point" trailers that fit into more budgets.
Third - You need to have used trailers. Not everyone will buy new. But you also need to know the market well enough to know what those trailers should be traded at so you can still make a profit on them. If you bury yourself in a used trailer, you can easily lose money on it depending on how long it takes to get sold.
Fourth - You need a website that it current, with good info, and pictures. The dealership hubby works for used to go to a lot of shows. They have cut way back because most shoppers look online before ever stepping onto your lot.
Fifth - You need knowledgeable sales staff. Most manufacturers will have salesmen come to the plant to learn about their trailers. This is also important for the owner to do.
Those are things I can think of off the top of my head. Trailer sales can be feast or famine. If you're not selling, you're losing money. In a good economy, you will have dealerships, manufacturers, and LQ companies pop up because they can see the profit potential. However, if they aren't smart, when the economy tanks, the companies that are young struggle the most.
So my advice is to do a lot of research and planning first. Starting a business can't be a whim. He needs to know his customer base to really make a profit. Also, most of the dealerships around here also do service work, truck accessories, or western clothing/decor for a steady income. | |
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Elite Veteran
Posts: 838
Location: Georgia | aggiejudger - 2014-05-09 11:08 AM
My hubby is in trailer sales, so this is what I've picked up from him.
First - most dealerships "floor" their trailers. This means that they have borrowed the money to have trailers on the lot because you have to have inventory. However, the longer the trailer sits on your lot, the less money you will make due to the interest you pay eating into your profit.
Second - You need to have more than one line of trailer. You can have the top of the line, LQ, expensive trailers. But you have to remember that not everyone can afford those. So, carrying other lines allows you to have "price point" trailers that fit into more budgets.
Third - You need to have used trailers. Not everyone will buy new. But you also need to know the market well enough to know what those trailers should be traded at so you can still make a profit on them. If you bury yourself in a used trailer, you can easily lose money on it depending on how long it takes to get sold.
Fourth - You need a website that it current, with good info, and pictures. The dealership hubby works for used to go to a lot of shows. They have cut way back because most shoppers look online before ever stepping onto your lot.
Fifth - You need knowledgeable sales staff. Most manufacturers will have salesmen come to the plant to learn about their trailers. This is also important for the owner to do.
Those are things I can think of off the top of my head. Trailer sales can be feast or famine. If you're not selling, you're losing money. In a good economy, you will have dealerships, manufacturers, and LQ companies pop up because they can see the profit potential. However, if they aren't smart, when the economy tanks, the companies that are young struggle the most.
So my advice is to do a lot of research and planning first. Starting a business can't be a whim. He needs to know his customer base to really make a profit. Also, most of the dealerships around here also do service work, truck accessories, or western clothing/decor for a steady income.
Thank you so much for the advice. I was really hoping to hear from folks that have experience in this line of business. My father is always looking to broaden the horizons and start new things, but ultimately I think this will be something that I take over. Thanks again for sharing you and your husbands knowledge! I will really start researching over the weekend. | |
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Expert
Posts: 1956
Location: Ky | I haven't bought a new LQ trailer since 2002 so my info is dated. I got my first LQ trailer in the 90's and it was a steel trailer with a home conversion. When it came time to buy an aluminum trailer I studied them all and asked a million questions. Finally settled on an Elite. A good friend had a Featherlite dealership and I wanted to buy from him but those trailers just paled in comparison to the Elites and to just about every other manufacturer.
When I decided I wanted a larger trailer in 2002 I traded that Elite in on another larger Elite.
I don't know if the Elites have fallen back into the pack or if Featherlites have improved but when I sold my Elite I got $2000 less than I paid for it after 5 years of use and almost 2000 hours on the generator.
I've got a friend that's slashed the price on a Featherlite several times and can't get it sold. | |
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 Friendly horse swapper
Posts: 4122
Location: Buffalo, TX | aggiejudger - 2014-05-09 10:08 AM My hubby is in trailer sales, so this is what I've picked up from him.
First - most dealerships "floor" their trailers. This means that they have borrowed the money to have trailers on the lot because you have to have inventory. However, the longer the trailer sits on your lot, the less money you will make due to the interest you pay eating into your profit.
Second - You need to have more than one line of trailer. You can have the top of the line, LQ, expensive trailers. But you have to remember that not everyone can afford those. So, carrying other lines allows you to have "price point" trailers that fit into more budgets.
Third - You need to have used trailers. Not everyone will buy new. But you also need to know the market well enough to know what those trailers should be traded at so you can still make a profit on them. If you bury yourself in a used trailer, you can easily lose money on it depending on how long it takes to get sold.
Fourth - You need a website that it current, with good info, and pictures. The dealership hubby works for used to go to a lot of shows. They have cut way back because most shoppers look online before ever stepping onto your lot.
Fifth - You need knowledgeable sales staff. Most manufacturers will have salesmen come to the plant to learn about their trailers. This is also important for the owner to do.
Those are things I can think of off the top of my head. Trailer sales can be feast or famine. If you're not selling, you're losing money. In a good economy, you will have dealerships, manufacturers, and LQ companies pop up because they can see the profit potential. However, if they aren't smart, when the economy tanks, the companies that are young struggle the most.
So my advice is to do a lot of research and planning first. Starting a business can't be a whim. He needs to know his customer base to really make a profit. Also, most of the dealerships around here also do service work, truck accessories, or western clothing/decor for a steady income. Sorry, I've had a killer week with no time to spare. 1. Correct - we floor our trailers at the bank . Your dad will have to apply for a line of credit at least $250,000....we turn over our floor plan several times a year, which is great.....we've never had to pay a curtailment in over 10 years. 2. Correct on having more than one line of trailers to sell...we have upper end Platinum and Calico and Ranch King for steel trailers and we just took on Hoosier for an entry level LQ trailer because of their strong warranty....you have to have something for everyone. 3. Correct on used trailers. You have to really understand trailers and values because people lie about trailers as often as they lie to sell a horse!....with the internet, people can get a good idea of the retail value of their trailer, but a lot of them don't understand that trade is about 20% less and even less than that based on age or condition.....I'm totally honest with people and tell them what they can get retail if they want to sell it themselves and to only trade out of convenience...just like trading trucks... 4. Correct on website...we have Dave here do ours....and shows are not how they used to be...they aren't worth it anymore to us either... 5. Correct more than you know on sales staff...we are owner operated with no salesmen for a reason...we can make better deals that way and be honest...2 things that usually don't happen with sales people....plus, we have been ripped off by employee theft and if your dad does his homework, he will find out that good employees and sales staff are nearly impossible to find...trust in God, but all others you better keep cameras on at all times! 6. Have a good service shop and also offer all RV servicing and parts...I can't even begin to tell you the money that's in that...it's a HUGE part of our business.... 7. Don't try to be too big....we are only one acre and a 2 bay shop and we literally have all we can handle..... I would encourage you to be careful with Featherlie as a brand....stick with one of the big proven brands like Platinum, Elite, 4 Star, Bloomer, and add an economy line like Bison (Horrible, I know, but they sell good), Lakota, Hoosier....call Calico and see if they can set you up.....I could make a good living selling nothing but Calico trailers...might be a good place to start.... I hope this helps...the killer will be trades...he has GOT to understand the importance of profit margins, floorplan interest, and he HAS to be able to value a trailer within $500 of what it will bring in the real world after repairs... Hope this helps and good luck to you guys...it's hard work.
Edited by Cindy Hamilton 2014-05-10 12:02 PM
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Elite Veteran
Posts: 838
Location: Georgia | Cindy Hamilton - 2014-05-10 12:58 PM
aggiejudger - 2014-05-09 10:08 AM My hubby is in trailer sales, so this is what I've picked up from him.
First - most dealerships "floor" their trailers. This means that they have borrowed the money to have trailers on the lot because you have to have inventory. However, the longer the trailer sits on your lot, the less money you will make due to the interest you pay eating into your profit.
Second - You need to have more than one line of trailer. You can have the top of the line, LQ, expensive trailers. But you have to remember that not everyone can afford those. So, carrying other lines allows you to have "price point" trailers that fit into more budgets.
Third - You need to have used trailers. Not everyone will buy new. But you also need to know the market well enough to know what those trailers should be traded at so you can still make a profit on them. If you bury yourself in a used trailer, you can easily lose money on it depending on how long it takes to get sold.
Fourth - You need a website that it current, with good info, and pictures. The dealership hubby works for used to go to a lot of shows. They have cut way back because most shoppers look online before ever stepping onto your lot.
Fifth - You need knowledgeable sales staff. Most manufacturers will have salesmen come to the plant to learn about their trailers. This is also important for the owner to do.
Those are things I can think of off the top of my head. Trailer sales can be feast or famine. If you're not selling, you're losing money. In a good economy, you will have dealerships, manufacturers, and LQ companies pop up because they can see the profit potential. However, if they aren't smart, when the economy tanks, the companies that are young struggle the most.
So my advice is to do a lot of research and planning first. Starting a business can't be a whim. He needs to know his customer base to really make a profit. Also, most of the dealerships around here also do service work, truck accessories, or western clothing/decor for a steady income. Sorry, I've had a killer week with no time to spare. 1. Correct - we floor our trailers at the bank . Your dad will have to apply for a line of credit at least $250,000....we turn over our floor plan several times a year, which is great.....we've never had to pay a curtailment in over 10 years. 2. Correct on having more than one line of trailers to sell...we have upper end Platinum and Calico and Ranch King for steel trailers and we just took on Hoosier for an entry level LQ trailer because of their strong warranty....you have to have something for everyone. 3. Correct on used trailers. You have to really understand trailers and values because people lie about trailers as often as they lie to sell a horse!....with the internet, people can get a good idea of the retail value of their trailer, but a lot of them don't understand that trade is about 20% less and even less than that based on age or condition.....I'm totally honest with people and tell them what they can get retail if they want to sell it themselves and to only trade out of convenience...just like trading trucks... 4. Correct on website...we have Dave here do ours....and shows are not how they used to be...they aren't worth it anymore to us either... 5. Correct more than you know on sales staff...we are owner operated with no salesmen for a reason...we can make better deals that way and be honest...2 things that usually don't happen with sales people....plus, we have been ripped off by employee theft and if your dad does his homework, he will find out that good employees and sales staff are nearly impossible to find...trust in God, but all others you better keep cameras on at all times! 6. Have a good service shop and also offer all RV servicing and parts...I can't even begin to tell you the money that's in that...it's a HUGE part of our business.... 7. Don't try to be too big....we are only one acre and a 2 bay shop and we literally have all we can handle..... I would encourage you to be careful with Featherlie as a brand....stick with one of the big proven brands like Platinum, Elite, 4 Star, Bloomer, and add an economy line like Bison (Horrible, I know, but they sell good ), Lakota, Hoosier....call Calico and see if they can set you up.....I could make a good living selling nothing but Calico trailers...might be a good place to start.... I hope this helps...the killer will be trades...he has GOT to understand the importance of profit margins, floorplan interest, and he HAS to be able to value a trailer within $500 of what it will bring in the real world after repairs... Hope this helps and good luck to you guys...it's hard work.
Thank you Cindy for lending out your advice... My dad has been self employed for 25 years, starting with a small carpet mill and turning it into a very large and successful mill, to owning a large gas station(our store was the first in our county as well as surrounding counties to have diesel, which we supplied to our of the local trucking companies, carpet mills, and self employed companies), to building and selling spec houses, and now he has a sporting goods store that he loves(hunting and fishing are his passions). We, more so him, have learned that good help is hard to find just like you mentioned. And outside family, ie brothers, sisters, cousins, etc are the ones that will cut your throat and steal from you first, my father learned that quickly. Ultimately everything he has done, he's done himself or with the help of my mother and I. Which will probably be exactly how we keep things... Of course hiring in qualified mechanics of course will be our only outside help. I will definitely research other brands that way we can sell something for everyone. I don't want to be limited on what we can do because that will shut us down quickly. We have several acres that we can construct a company, but we won't be that large of course. We're all for starting small and expanding if income allows and we don't want to tank before we even start.
Research, research, research is what I plan to start doing for the next few weeks. Thank you again Cindy, as well as others here that have offered advice. This definitely gives me something to ponder and some starting information for my father!
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OT... Horse Trailer sales