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NIRVC to close DC location

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Neemer

Crayon Eater
RVF Supporter
Joined
Dec 27, 2019
Messages
1,910
Location
Virginia
RV Year
2021
RV Make
Newmar
RV Model
DSDP 4326
RV Length
43
Chassis
Freightliner
Engine
ISL 450
TOW/TOAD
2023 Winnebago ERA 70A or 2012 Ford Taurus
Brett Davis posted this elsewhere, and I wanted to bring it here. It’s quite insightful, and frankly, a little scary and disappointing for someone who lives within the artillery fan of our Nation’s Capital.

Good evening,

Please know, it’s with a very heavy heart I am making this post. Unfortunately, NIRVC will be closing its Washington DC location in Manassas, Virginia at the end of May.

From an investment perspective, this decision was not made lightly. Throughout my career, because NIRVC is not my first business to have locations in the DC area, I have always wondered how the DC MSA is home to 5 of the 6 wealthiest counties in our nation? Only Silicon Valley is wealthier. Personally, I’ve never been able to reconcile how the center of the universe for civil servants is also home to the wealthiest people in America? The median household income in America for 2024 was $80,610 versus $147,278 for the DC MSA. When the population of a given location makes 83% more than the rest of the country, odds are it would be a great location for a high end motorhome dealer. Well, that is proving not to be the case.

I have been through many down cycles, and across dozens of geographical locations. But, this downturn in DC just felt different. I do have to give credit to where credit is due. I reached out to both Comerica Bank’s and Huntington Bank’s head economists, and both were very generous with their time, as well as their staff’s time during the month of April. I posed the following to them for their help, research, and advice:

1. Is DC in a recession, and if so, how severe and for how long?

2. With the current situation that is disproportionately affecting the DC, is there a permanent structural change taking place in the DC economy?

3. I’m willing to ride through a bad market, especially if it means building at the bottom of the market. Is this one of those scenarios?

The research and answers I received back were:

1. DC is in a recession, and they are expecting it to get worse.

2. They felt it was too soon to say whether or not there is a permanent structural change in the DC economy taking place. However, they can see this recession in DC lasting 7 to 10 years.

3. Even if we chose to ride through a very protracted recession in DC, they didn’t see the incomes for people who can afford the products and services we sell ever returning to DC. Yes, it will return for towables, but we’re not a towable dealer. And, what is bad for the DC area is probably going to bode very well for the rest of the country.

The advice and research we received back from both Comerica Bank and Huntington Bank helped formulate half of our decision. The other half was a capital decision. We have worked countless hours over the past 3 years trying to gain governmental approvals to build our permanent building in Prince William County, but to no avail. Capital will always go where it is best treated. Our most recent construction project was our facility in Lebanon, TN. After adjusting for the cost of inflation to build our Lebanon facility, we can build 2.5 facilities the size of our Lebanon facility for the same price it will cost to build a facility in DC.

As a result of all of the above, we have made the painful and disappointing decision to take the capital we have earmarked for construction of a facility in DC and use it to build 2, if not 3 more facilities elsewhere.

I know many of our DC customers, whose support we are sincerely grateful for, will be disappointed by this announcement. But, none could be more disappointed than we at NIRVC are right now. We’ll pull our chin out of our Cheerios, and look forward to announcing where we will open those new locations in the future.

Onward,
Brett
 
Unfortunate but wise decision to cut losses as early as possible. I spoke with @Brett Davis long ago suggesting a location near the Camping World (previously McGeorge) in the Ashland, VA area on the I-95 corridor as it seems to be RV central and one of the largest locations on the east coast supposedly. I see from his post why he chose to pursue the DC market. Don't know it would be any different other than being out of that crazy area I try to avoid. Not sure if pursuing a location in Ashland, VA would still be viable?

Brett will continue to succeed based on his great decision making and glad more locations are being opened. Wishing the best to NIRVC.
 
He didn’t mention it above, but one of the compelling reasons he went into Prince William County is the personal property tax situation we “enjoy” in VA.

It should have worked.
 
Yes, I'm aware of that situation and noticed that comment as well but wondered how that would affect the sales/service side, but understand it would be a huge storage opportunity with the tax advantages of that county.
 
Something doesn't seem right, nirvc closing a location, and a company named blue compass is expanding. I get there advertisement on my phone every day.
 
Something doesn't seem right, nirvc closing a location, and a company named blue compass is expanding. I get there advertisement on my phone every day.
Blue compass is a towable and motorhome dealer. They are akin to a camping world. Very poor customer service and support.

NIRVC is a motorhome only dealer focused on customers for life, meaning they are working on the next sale at every stage of the engagement.

The DC metro is no longer a place where that customer exists.
 

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