New feature from Scamp: inventory

[John McMillin]

A most surprising message came to me from Scamp today, using a word I've never heard from them before- "Inventory." As in, "available for purchase right now." When has that happened before? They list 16 13-footers, 3 5th wheels and a whopping 22 16'ers. I guess the yearlong production backlog has disappeared, and then some. This was predictable, following the record pace of pandemic purchases, but it's still something of a shock. And there seems to be a lot of new companies making small trailers. Your thoughts?

[AC0GV]

Originally Posted by John McMillin

A most surprising message came to me from Scamp today, using a word I've never heard from them before- "Inventory." As in, "available for purchase right now." When has that happened before? They list 16 13-footers, 3 5th wheels and a whopping 22 16'ers. I guess the yearlong production backlog has disappeared, and then some. This was predictable, following the record pace of pandemic purchases, but it's still something of a shock. And there seems to be a lot of new companies making small trailers. Your thoughts?

The factory building has been added to and many new production processes have been added as well. Prices are up but there have been many additions and improvements to the final product. Did you see the April 1st new product post? Note the one on the lake.

[Iowa Dave]

RE: Smaller Trailers.
Trailers coming out of Elkfart are about 90 percent small trailers 22 feet or less. They are on trailers decked in at two or three on a trailer. You can run interstate 80 from Eastern Iowa clear through Chicago and only see a handful of big travel trailers and a few fifth-wheel Goliath’s. The market has certainly changed.
Iowa Dave

[Jon in AZ]

In the past Scamp was able to soldier through market downturns with scarcely a wobble due to liimited but stable output of around 450 units a year. I wonder if they were lured by unprecedented post-pandemic demand to increase output to an unsustainable level. Anybody know what their current capacity is since the factory expansion?

The currect situation certainly looks like over-capacity. Not only do they have 40 spec units in inventory, but wait times for custom builds is down to weeks. We are well into the spring rush, but the slowing economy and high interest rates seem to be putting a damper on big-ticket, discretionary purchases.

The new ice house model appears to be an attempt to break into new markets. It remains to be seen whether it will draw enough new customers to absorb the excess capacity. They may have some hard decisions ahead in the short term. Long-term, I agree that smaller trailers are the future. Giant Class A's and fifth wheel trailers are an artifact of the 20th century.

Bobber Edition...
Almost had me until I noticed the red A/C cover!

[ShelbyM]

For the customer, it's good to see some inventory and greatly reduced wait times. I don't think I'd have bought my Casita if I'd had to wait a year.

[computerspook]

Originally Posted by Jon in AZ

In the past Scamp was able to soldier through market downturns with scarcely a wobble due to liimited but stable output of around 450 units a year. I wonder if they were lured by unprecedented post-pandemic demand to increase output to an unsustainable level. Anybody know what their current capacity is since the factory expansion?

The currect situation certainly looks like over-capacity. Not only do they have 40 spec units in inventory, but wait times for custom builds is down to weeks. We are well into the spring rush, but the slowing economy and high interest rates seem to be putting a damper on big-ticket, discretionary purchases.

The new ice house model appears to be an attempt to break into new markets. It remains to be seen whether it will draw enough new customers to absorb the excess capacity. They may have some hard decisions ahead in the short term. Long-term, I agree that smaller trailers are the future. Giant Class A's and fifth wheel trailers are an artifact of the 20th century.

Bobber Edition...
Almost had me until I noticed the red A/C cover!

Well maybe that can branch out if they need to into like maybe a 20 footer that is not a 5th wheel but with a bigger bed. And maybe they can move into some nonRV markets if they need to. I would think that one way or other they could like double their production capacity and have that not be a problem even in a downturn.


But that is just my opinionated opinion. ;-)

[Darrell in Al]

Originally Posted by AC0GV

The factory building has been added to and many new production processes have been added as well. Prices are up but there have been many additions and improvements to the final product. Did you see the April 1st new product post? Note the one on the lake.

😅 that's funny

[Darrell in Al]

Scamp could probably sell out many shells trailers for some industrial/ business type use if they have overage production. That's a SWAG of mine, I know many of us have already seen telecom work trailers out and about. That probably go's for any of the fiberglass makers.
I still see many "Mega T.T." on the road though, not that I would want one. Many are still being pulled by undersized vehicle's too.
🙄😳

[AlekP]

Perhaps they may have tried to forecast a bit and produced a few of their most ordered versions in preparation for the summer camping season this year rather than waiting purely for orders. I'm sure there's a number of lost sales due to not being able to fulfill impulse sales on the spot.

[computerspook]

Originally Posted by AlekP

Perhaps they may have tried to forecast a bit and produced a few of their most ordered versions in preparation for the summer camping season this year rather than waiting purely for orders. I'm sure there's a number of lost sales due to not being able to fulfill impulse sales on the spot.

I would suspect that they could double their sales with the ability to do impulse sales.



Then if they did have a 19-20 foot model, not 5th wheel. And had that available for impulse sales they could probably add another 200-400 unit past what these models would replace the sales of smaller units.

[Jon in AZ]

Impulse purchases have largely driven the mass-market RV industry for decades, leading to acres of unused units in storage, early resales, a glut of used product, high depreciation, and declining quality.

I always admired Scamp and other low-volume, build-to-order manufacturers for not following the crowd. It's a slippery slope.

[computerspook]

Originally Posted by Darrell in Al

Scamp could probably sell out many shells trailers for some industrial/ business type use if they have overage production. That's a SWAG of mine, I know many of us have already seen telecom work trailers out and about. That probably go's for any of the fiberglass makers.

Those are fiber optic repair units. There are two ways to connect fibers. One is called "mechanical" and basically is an optical butt splice. But you lose a relatively lot of signal with that method. Then there is "fusion welding" This involves lining the fibers up and then melting them together with a laser. I am actually trained on both. Never have done the second outside of training.

Both require things to be clean, but for welding they have to be like ultra clean. And that is why they have the trailers. They actually have enough cable to bring both ends into a trailer. They first clean the cable. Then once both ends are in the trailer they clean it again. Then they clean the trailer and the operator. Then they get the equipment out of very clean cabinets and mounting and repair the cable.


The point here is that these are absolutely necessary for putting in and maintaining fiber. And the telecom companies AND OTHERS are putting in large amounts of fiber. So they are going to need massive numbers of new repair trailers. And so that would be a big available market.


From some of the other threads here I think they could add a third building and just make shells of some kind and besides selling these for the fiber repair industry they could probably sell a hundred or more a year for the DIY group that wants to build their own campers. And probably that many more with other uses.


I bet a good design of a communications trailer could get them a couple hundred sales a year.



I am hoping someone with the company is figuring that out.

[computerspook]

Originally Posted by Jon in AZ

Impulse purchases have largely driven the mass-market RV industry for decades, leading to acres of unused units in storage, early resales, a glut of used product, high depreciation, and declining quality.

I always admired Scamp and other low-volume, build-to-order manufacturers for not following the crowd. It's a slippery slope.

I think your issue has more to do with the dealer based sales system. To do local dealer sales you need a large number of various units on your lot. And there needs to be a lot of lots. So there is your glut. And really this model requires a lot of models. A LOT OF MODELS. That like defines a glut.


Scamp appears not to be going the dealer sales thing. And they appear to be staying with a few models. But pretty sure that if they got enough phone called for ordering a bobber unit they would be selling them very quickly ;-)


They are going to still have at least as big of market for the "But what I REALLY WANT IS .... so I can wait" But that can be driven a bit by the impulse in stock market. After all with building in part for the impulse market means that the lead time for the "Just what I want" would go down because they could take a unit already in progress and add the customizations.


So I doubt you will see the problem you are talking about.


Also a lot of the depreciation on the mass market units is that they don't age well. And many of they are danged heavy. So they take an larger TV and are more expensive to tow. Scamp would be losing none of the "it lasts forever" and is "as light as is reasonably possible" factors in their units with having inventory.


Now having available new units might have and likely will have an effect on the price of the first couple of years old models. But past that I suspect that it would not have the effect you talk about.