EDMONTON, Alberta -- ArrKann Trailer and Sport Centre in Edmonton, Alberta, was not only one of three Canadian dealers ranked among the top 50 RV dealers in North America, the company was the only Canadian dealership to receive a Top 10 blue ribbon.
Founded in 1976, ArrKann has grown into one of the largest dealerships in the province. In the late 1980s, the company actually manufactured tent trailers, but a massive tornado in the summer of 1987 completely destroyed ArrKann's sales and manufacturing facilities.
From 2000 to 2007, ArrKann experienced annual growth rates of 30 percent each year. Now with two locations, the dealership sells a wide array of travel trailers and fifth wheels including Coleman, Viking, Springdale, Sprinter, Passport, Surveyor, R-Pod, Wildcat, Trailsport, Crossover and Earthbound.
Approximately 5 percent of their income comes from the sale of used units. However, due to the rising Canadian dollar, many new RVs are actually selling for the same price as an RV that is a few years older. As a result ArrKann has had greater success by focusing its efforts on selling more new RVs.
Both dealership locations have been decorated with giant murals by Paul Lalande. "Not only do the murals help get noticed from the road but they also created an ambiance inside the dealership that instantly makes people think about camping," said Neil Friedenberg, sales manager.
The main location in Edmonton boasts a service capacity of 15 bays that accommodate 26 full-time and three part-time technicians. Another 32 people are employed in sales positions and various administrative functions throughout the dealership.
"We began 2009 by assuring our staff there would be no layoffs in 2009 as long as we continued to work hard," said Ken Friedenberg, owner and general manager. "We wanted our staff to focus on doing their jobs to the best of their abilities and not be worried that they might lose their jobs.
"We knew that with the economy changing there might be some softness in the sales side of the business so knowing that the past few years had been very good for most dealers in our area we ramped up our service department," he added. "We hired four new technicians and decided to increase the amount of retail business our shop was producing to make up for the potential drop in sales."
The dealership also invested in a new computer system from Integrated Dealer Systems to increase shop efficiency, help sales by creating better follow-up, increase F&I profit by switching our presentation to a menu-based model, and streamline the parts department by managing inventory better.
"We have cut costs where possible and optimized the efficiency of our personnel," said Friedenberg. "Our sales have dropped marginally, as expected, but we have focused more on specific price point units and have been able to have some very good months. By focusing on our profitability in our other departments it appears that our total profit will meet or exceed last year’s numbers."
"This year we began to offer discounts on our F&I products to help drive sales," said Rob Minarchi, business manager. "We have also begun to put monthly and weekly payment prices into our ads."
One of the unique service promotions the dealership does each year is offer a rapid winterization service. Customers can bring their units into the service center where the winterization is completed without the customers even having to unhook their trailers. "We set it up like a quick lube drive through oil change, but offer winterization service instead," said Friedenberg.
ArrKann's customers consistently score the dealership in the upper 90 percentile on Coleman Folding Trailers customer service surveys. They also survey each buyer following the orientation, and those scores are also in the upper 90s.
"We constantly work to optimize our systems and our way of doing business to ensure that we build and maintain the position in our markets of being known for exceeding our customers’ expectations and competitors’ offerings," said Friedenberg. "We believe that our business grows because of our customers support, and we strive to attract and keep outstanding people by creating a culture where they can grow to their full potential and make a positive and important contribution to our company and our customers."
The dealership isn't all about sales, though. Employees have received plenty of recognition for their work with local charities, including the Rainbow Society, which works to fulfill the wishes of sick children.
"At ArrKann, we always put an emphasis on having fun. Our customers can sense it and our staff believes it," said Friedenberg. "We understand that no one needs an RV and we keep that thought in the back of our mind every time we are dealing with a customer. We stay excited because we know that our customers are excited about their new trailers."
SOURCE: ArrKann press release