Tuesday, March 04, 2008
DAN GAMEL OWNING AND RUNNING HIS COMPANY AGAIN
RV Business
Monday, March 3, 2008
Dan Gamel is back in charge of the California-based recreational vehicle empire that bears his name, trying to keep it afloat despite a declining economy, sliding home values and rising number of foreclosures sending ripples through the industry.
The Fresno Bee reported that Gamel confirmed he recently reacquired the company from the employees he sold it to in 2005 – and subsequently closed two California stores last week. He shuttered a dealership in Santa Rosa on Tuesday and his Chico facility Thursday, laying off a total of 70 people. Gamel dealerships in Fresno, Bakersfield, Modesto, Redding and Rocklin are staying open.
"The gravy train is over," said competing RV dealer Paul Evert of Fresno. "Only the strong and smart will survive, and that is the truth."
Evert said the employees who sold the business back to Gamel ran into tough times: "It's not their fault. Gamel had to take it back, whether he wanted to or not."
The Santa Rosa store opened in July but never gained traction. The store in Chico, opened in 1990, was hurt when Gamel debuted a bigger outlet along Interstate 5 in Redding in 2003. "When we opened Redding, we just killed Chico," he said.
That wasn't a problem when things were going well, but the Chico outlet became a liability. "I can afford a crippled store in a strong market, but not when it is taxing resources,” Gamel said. “I don't have a lot of time and energy to continue to nurse that market along."
Gamel also cited soaring health care and insurance costs and the price tag of doing business in California as factors that contributed to financial woes at his company.
Evert said he was fortunate that his business broke even in 2007: "Instead of selling 100 units a month we're selling 75 a month. That's 25% of the profit."
He said the next three or four years could be rough for the industry. A small dealer down the street from his lot on Highway 99 went out of business last week and a few more could fall by the wayside, he said. "When your business is off 25% or 30%, you have to change things and have to work damn hard," he said.
Dan Gamel RV Centers lost money last year but is expected to be profitable in 2008, he said. Gamel said he is optimistic about the long-term fortunes of the industry, especially if interest rates remain low. The high exchange rate driving up the cost of travel to Europe also could benefit RV dealers in this country, he said.
Monday, March 3, 2008
Dan Gamel is back in charge of the California-based recreational vehicle empire that bears his name, trying to keep it afloat despite a declining economy, sliding home values and rising number of foreclosures sending ripples through the industry.
The Fresno Bee reported that Gamel confirmed he recently reacquired the company from the employees he sold it to in 2005 – and subsequently closed two California stores last week. He shuttered a dealership in Santa Rosa on Tuesday and his Chico facility Thursday, laying off a total of 70 people. Gamel dealerships in Fresno, Bakersfield, Modesto, Redding and Rocklin are staying open.
"The gravy train is over," said competing RV dealer Paul Evert of Fresno. "Only the strong and smart will survive, and that is the truth."
Evert said the employees who sold the business back to Gamel ran into tough times: "It's not their fault. Gamel had to take it back, whether he wanted to or not."
The Santa Rosa store opened in July but never gained traction. The store in Chico, opened in 1990, was hurt when Gamel debuted a bigger outlet along Interstate 5 in Redding in 2003. "When we opened Redding, we just killed Chico," he said.
That wasn't a problem when things were going well, but the Chico outlet became a liability. "I can afford a crippled store in a strong market, but not when it is taxing resources,” Gamel said. “I don't have a lot of time and energy to continue to nurse that market along."
Gamel also cited soaring health care and insurance costs and the price tag of doing business in California as factors that contributed to financial woes at his company.
Evert said he was fortunate that his business broke even in 2007: "Instead of selling 100 units a month we're selling 75 a month. That's 25% of the profit."
He said the next three or four years could be rough for the industry. A small dealer down the street from his lot on Highway 99 went out of business last week and a few more could fall by the wayside, he said. "When your business is off 25% or 30%, you have to change things and have to work damn hard," he said.
Dan Gamel RV Centers lost money last year but is expected to be profitable in 2008, he said. Gamel said he is optimistic about the long-term fortunes of the industry, especially if interest rates remain low. The high exchange rate driving up the cost of travel to Europe also could benefit RV dealers in this country, he said.
