Camping World Holdings, Inc. (CWH): Business Model Canvas [10-2024 Updated]

In the dynamic world of recreational vehicles, Camping World Holdings, Inc. (CWH) stands out with a robust business model that caters to both seasoned RV enthusiasts and newcomers alike. This comprehensive model encompasses key partnerships, activities, and resources that drive their success, while delivering unmatched value propositions to their diverse customer segments. Discover how CWH effectively navigates the RV market through strategic channels and innovative customer relationships in the sections below.

Camping World Holdings, Inc. (CWH) - Business Model: Key Partnerships

Collaborations with RV manufacturers

Camping World Holdings collaborates with various RV manufacturers to enhance its product offerings. As of September 30, 2024, the average selling price for new vehicles decreased by 10.8% to $39,520, influenced by partnerships that enable better pricing strategies and inventory management.

Key manufacturers include:

• Forest River
• Thor Industries
• Winnebago Industries

These collaborations allow Camping World to offer a diverse range of RVs, catering to different consumer preferences and market segments.

Partnerships with financial institutions for financing options

Camping World maintains relationships with major U.S. and multinational financial institutions, facilitating financing options for customers. As of September 30, 2024, finance and insurance net revenue increased by $20.4 million, accounting for 13.4% of new and used vehicle revenue.

Financial Institution	Services Provided
Bank of America	Consumer financing for RV purchases
Wells Fargo	Floor plan financing
KeyBank	Retail installment contracts

Alliances with outdoor and recreational service providers

Camping World has established partnerships with outdoor and recreational service providers to enhance customer experience. These alliances include:

• Good Sam Club, providing roadside assistance and discounts
• Outdoor retailers for equipment and accessories

As of September 30, 2024, Good Sam Services and Plans revenue was $149.1 million, showing a slight increase from previous periods.

Relationships with suppliers for parts and accessories

Camping World maintains strong relationships with suppliers for parts and accessories, ensuring a steady supply chain. As of September 30, 2024, parts and accessories inventory totaled $170.8 million.

Supplier	Products Provided
Curved Technologies	RV parts and accessories
Camco Manufacturing	Outdoor gear and RV accessories
Dometic Group	Refrigeration and air conditioning units

Engagements with insurance companies for Good Sam services

Camping World engages with various insurance companies to provide comprehensive insurance solutions through its Good Sam brand. The Good Sam Insurance Agency reported an increase in contracts in force, contributing to overall segment income.

Insurance Partner	Services Offered
Progressive	RV insurance policies
Allstate	Extended warranty and service contracts
Farmers Insurance	Comprehensive RV coverage

Camping World Holdings, Inc. (CWH) - Business Model: Key Activities

Retailing new and used RVs

In Q3 2024, Camping World reported revenue from new vehicles at $737.1 million, reflecting an increase of 19.2% compared to the same period in the previous year. Used vehicles revenue, however, decreased to $399.5 million, a decline of 27.6% year-over-year. This drop was attributed to a 17.9% reduction in used vehicles sold and a 7.7% decrease in the average selling price per used vehicle.

The average gross profit per new vehicle sold was $5,586, while the gross profit for used vehicles was $5,771.

Providing RV maintenance and repair services

Camping World also generates significant revenue through its RV maintenance and repair services. For the nine months ended September 30, 2024, products, service, and other revenue totaled $182.2 million, reflecting a slight decrease of 2.3% compared to the prior year. The gross margin for products and services stood at 43.9%, benefiting from higher labor billing rates and an increased proportion of billable labor.

Offering Good Sam membership benefits

The Good Sam Club, a key component of Camping World's value proposition, reported a slight decrease in revenue to $33.2 million in Q3 2024. This was a result of a 12.1% decline in active members, which was partially offset by an increased average membership fee. The gross profit margin for Good Sam services was approximately 61.3%.

Managing online and physical sales channels

As of September 30, 2024, Camping World operated 204 RV dealerships and 3 RV service and retail centers. The integration of online and physical sales channels has been critical, with online sales contributing significantly to overall vehicle sales. The company reported total revenue of $4.9 billion for the nine months ended September 30, 2024, with online sales driving a portion of this growth.

Conducting marketing and promotional activities

Camping World increased its marketing expenditures by $23.1 million in Q3 2024, focusing on brand awareness and customer engagement. The company's total selling, general, and administrative expenses (SG&A) were $414.2 million for Q3 2024, reflecting a strategic investment in marketing to drive sales.

Key Activity	Q3 2024 Revenue ($ millions)	Gross Profit Margin (%)	Year-over-Year Change (%)
New RV Sales	737.1	13.5	+19.2
Used RV Sales	399.5	18.2	-27.6
Products, Service, and Other	182.2	43.9	-2.3
Good Sam Club	33.2	61.3	-12.1
Total Revenue	4,895.5	28.9	-4.3

Camping World Holdings, Inc. (CWH) - Business Model: Key Resources

Extensive network of RV dealerships

As of September 30, 2024, Camping World Holdings operated approximately 150 RV dealership locations across the United States. This extensive network allows for a broad distribution and accessibility of RV products to consumers, enhancing market penetration and customer reach.

Inventory of new and used vehicles

Camping World Holdings reported an inventory value of $1.78 billion as of September 30, 2024, which includes:

Type of Inventory	Value (in thousands)
New RVs	$1,189,880
Used RVs	$420,727
Products, parts, accessories, and other	$170,793
Total Inventory	$1,781,656

This inventory supports the company's ability to meet consumer demand and capitalize on sales opportunities in a fluctuating market.

Brand recognition and customer loyalty through Good Sam

The Good Sam brand, which includes services like roadside assistance and club memberships, plays a crucial role in customer retention and loyalty. As of September 30, 2024, Good Sam reported revenues of $149.1 million, contributing approximately 3.0% to the total revenue of Camping World Holdings.

Skilled workforce for service and sales

Camping World employs a skilled workforce dedicated to both sales and service, crucial for maintaining customer satisfaction and operational efficiency. The company has invested in training programs to enhance employee skills, which is reflected in the increased labor billing rates and the higher proportion of billable labor resulting from demand.

Proprietary technology for e-commerce operations

Camping World has developed proprietary technology to support its e-commerce operations, facilitating online sales and enhancing customer experience. This technology allows for better inventory management and customer interaction, essential in today’s digital retail environment. The company reported a capital expenditure of $68.2 million for technology and dealership enhancements.

Camping World Holdings, Inc. (CWH) - Business Model: Value Propositions

Comprehensive range of RV products and services

Camping World Holdings, Inc. offers a broad spectrum of RV products and services, including:

• New RVs: Revenue from new vehicles reached $2.33 billion in 2024, marking a 9.5% increase from 2023.
• Used RVs: Used vehicle revenue was $1.27 billion, down 23.7% from the previous year.
• Accessories and Parts: Revenue from products, service, and other categories totaled $638.68 million.

With a total revenue of $4.90 billion for the nine months ended September 30, 2024, Camping World continues to establish itself as a leader in the RV market.

Strong customer loyalty programs via Good Sam Club

The Good Sam Club is a critical component of Camping World's value proposition, catering to RV enthusiasts. As of September 2024:

• Membership revenue for the Good Sam Club reached $33.23 million.
• The club experienced a 12.1% decline in active members, primarily due to increased membership fees and the introduction of a free basic plan.

The club offers various benefits, including discounts on camping and RV services, contributing to customer retention and loyalty.

Expert RV maintenance and repair services

Camping World provides expert maintenance and repair services, which have become increasingly vital as RV ownership grows. Key metrics include:

• Service revenue increased, reflecting a higher demand for RV maintenance.
• Products, service, and other revenue saw a gross profit increase due to higher labor billing rates and a higher proportion of billable labor.

The company’s service offerings enhance customer satisfaction and provide additional revenue streams.

Competitive financing options for RV purchases

Camping World offers a variety of financing options to assist customers in purchasing RVs. Highlights include:

• Finance and insurance net revenue increased to $480.73 million, a 4.4% rise from the previous year.
• Finance and insurance revenue represented 9.8% of total revenue.

These financing solutions are essential in making RV purchases accessible to a broader audience, thereby stimulating sales.

Commitment to enhancing outdoor recreational experiences

Camping World is dedicated to improving the outdoor recreational experiences of its customers through various initiatives, which include:

• Investment in community and outdoor events to promote RV usage and outdoor activities.
• Partnerships with campgrounds and outdoor service providers to enhance customer experiences.

This commitment not only strengthens the brand's reputation but also fosters a community among RV enthusiasts.

Value Proposition	Key Metrics
Comprehensive range of RV products and services	Total Revenue: $4.90 billion (2024)
Strong customer loyalty programs via Good Sam Club	Good Sam Club Revenue: $33.23 million
Expert RV maintenance and repair services	Increased service revenue; higher labor billing rates
Competitive financing options for RV purchases	Finance and Insurance Revenue: $480.73 million
Commitment to enhancing outdoor recreational experiences	Investments in community events and partnerships

Camping World Holdings, Inc. (CWH) - Business Model: Customer Relationships

Personalized customer service through trained staff

Camping World Holdings, Inc. emphasizes personalized customer service as a core component of its customer relationships strategy. The company employs trained staff across its 207 retail locations, ensuring customers receive expert advice and assistance tailored to their specific needs. In the third quarter of 2024, Camping World reported segment income of $44.3 million from its RV and Outdoor Retail segment, highlighting the importance of knowledgeable staff in driving sales and enhancing customer experiences.

Engagement via Good Sam Club membership benefits

The Good Sam Club serves as a significant driver for customer engagement, offering exclusive benefits to its members. As of September 30, 2024, the membership base has been a stable contributor to revenue, generating approximately $33.2 million in revenue, accounting for 0.7% of total revenue. Members enjoy discounts on products and services, roadside assistance, and access to a network of campgrounds, enhancing loyalty and retention.

Online support and resources for RV enthusiasts

Camping World provides extensive online support and resources, including a dedicated website for RV enthusiasts. The site features articles, videos, and forums designed to educate customers on RV maintenance, travel tips, and product reviews. This online presence not only serves as a resource hub but also drives traffic to physical locations, contributing to overall sales. The company's finance and insurance services netted $166.3 million in revenue in Q3 2024, illustrating the effectiveness of online engagement in facilitating customer transactions.

Regular communication through newsletters and promotions

Camping World maintains regular communication with its customer base through newsletters and promotional campaigns. This strategy is critical for keeping customers informed about upcoming sales, new product launches, and exclusive offers. In Q3 2024, the company generated total revenue of $1.7 billion, showcasing the impact of effective communication strategies on sales performance. The integration of targeted marketing efforts has proven successful in driving customer engagement and repeat purchases.

Loyalty rewards and incentives for repeat customers

The company has established a robust loyalty rewards program aimed at incentivizing repeat customers. This program is designed to reward customers for their purchases and engagement with Camping World. The Good Sam Club, in particular, offers points that can be redeemed for discounts and services, fostering customer loyalty. In the first nine months of 2024, Camping World's revenue from services and plans reached $149 million, indicating the effectiveness of loyalty initiatives in enhancing customer retention.

Customer Relationship Strategy	Key Metrics
Personalized Customer Service	Segment Income: $44.3 million (Q3 2024)
Good Sam Club Revenue	$33.2 million (0.7% of Total Revenue)
Online Support	Finance and Insurance Revenue: $166.3 million (Q3 2024)
Regular Communication	Total Revenue: $1.7 billion (Q3 2024)
Loyalty Rewards Program	Revenue from Services and Plans: $149 million (First 9 Months 2024)

Camping World Holdings, Inc. (CWH) - Business Model: Channels

Physical dealership locations across the U.S.

As of September 30, 2024, Camping World Holdings operates a total of 204 RV dealerships and 3 RV service and retail centers across the United States, totaling 207 locations. This network provides customers with direct access to RV sales and services, enhancing the company's physical presence and customer engagement.

E-commerce platform for online sales

Camping World has developed a robust e-commerce platform, contributing significantly to its sales. For the three months ended September 30, 2024, the company generated $1.7 billion from RV and Outdoor Retail, with a notable portion attributed to online sales. The e-commerce segment allows customers to browse inventory, purchase RVs, and accessories online, facilitating a seamless shopping experience.

Good Sam Club for membership-driven engagement

The Good Sam Club serves as a key channel for customer engagement, offering membership benefits that enhance customer loyalty. As of September 30, 2024, the club had approximately 10,895 active members, contributing to revenue of $33.2 million. Membership provides exclusive discounts, roadside assistance, and other services, driving repeat business and customer retention.

Social media and digital marketing channels

Camping World leverages various social media platforms and digital marketing strategies to reach potential customers. In the third quarter of 2024, the company increased its advertising expenses by $23.1 million, focusing on digital channels to enhance brand visibility and attract new customers. This strategy is essential in engaging with the RV community and promoting new products and services.

RV shows and community events for outreach

Participation in RV shows and community events forms an integral part of Camping World's outreach strategy. These events allow the company to showcase its products directly to consumers, fostering personal connections and brand loyalty. The company has reported significant customer engagement through these events, although specific revenue figures from this channel are not disclosed.

Channel	Details	Current Metrics
Physical Dealerships	Number of locations	204 RV Dealerships, 3 Service Centers
E-commerce Platform	Revenue from online sales	$1.7 billion in Q3 2024
Good Sam Club	Active Memberships	10,895 members; $33.2 million revenue
Digital Marketing	Advertising Spend	$23.1 million increase in Q3 2024
Community Outreach	Participation in Events	Engagement metrics not disclosed

Camping World Holdings, Inc. (CWH) - Business Model: Customer Segments

RV enthusiasts and outdoor recreationalists

Camping World caters significantly to RV enthusiasts and outdoor recreationalists, a demographic that values adventure and travel. In 2024, the overall RV ownership in the U.S. reached approximately 11.2 million households, with around 60% of RV owners participating in outdoor recreational activities. This segment contributes to a substantial portion of Camping World’s revenue, particularly through new and used vehicle sales, which totaled $2.3 billion for new vehicles and $1.3 billion for used vehicles in the nine months ended September 30, 2024.

First-time RV buyers seeking entry-level options

First-time buyers represent a critical customer segment, often looking for entry-level RVs. In 2024, about 24% of RV sales were attributed to first-time buyers. Camping World offers various financing options and incentives, facilitating accessibility to new RVs at an average price of $39,520. The company reported a 22.7% increase in new vehicle sales, indicating a robust interest from this segment.

Experienced RV owners looking for upgrades

Experienced RV owners frequently seek upgrades and additional features for their vehicles. This segment is vital for Camping World, particularly in the sales of accessories and parts. The average expenditure on upgrades can range from $5,000 to $20,000, depending on the vehicle's specifications. In 2024, Camping World reported a 13% increase in parts and accessories sales, underscoring the demand from this customer segment.

Families and individuals interested in travel and adventure

Families and individuals aiming for travel and adventure form a significant part of Camping World's customer base. The appeal of RV travel has grown, with 70% of RV owners citing it as a means to spend quality family time. In 2024, Camping World recorded an increase in family-oriented RV models, contributing to a 4.4% increase in same-store sales. The company’s marketing strategies specifically target this demographic, highlighting family-friendly features and travel experiences.

Good Sam Club members seeking value-added services

The Good Sam Club, a membership program, offers value-added services to its members, who number approximately 1.8 million. In 2024, revenue from Good Sam Services and Plans was $150 million, with a segment income of $73 million. Members enjoy discounts on roadside assistance, insurance, and RV products, further enhancing their loyalty to Camping World. The club’s services are integral to retaining customers and generating recurring revenue.

Customer Segment	Key Statistics	Revenue Contribution
RV Enthusiasts	11.2 million households	$2.3 billion (new vehicles), $1.3 billion (used vehicles)
First-time RV Buyers	24% of RV sales	Average price: $39,520
Experienced RV Owners	$5,000 - $20,000 (upgrades)	13% increase in parts and accessories sales
Families and Individuals	70% cite quality family time	4.4% increase in same-store sales
Good Sam Club Members	1.8 million members	$150 million (Good Sam Services and Plans)

Camping World Holdings, Inc. (CWH) - Business Model: Cost Structure

Inventory acquisition costs for new and used vehicles

The inventory acquisition costs for Camping World Holdings include substantial investments in both new and used vehicles. As of September 30, 2024, the inventory values were as follows:

Category	Value (in thousands)
New Vehicles	$1,189,880
Used Vehicles	$420,727
Products, Parts, Accessories and Misc.	$170,793
Total Inventory	$1,781,400

Operating expenses for dealership maintenance

Operating expenses related to dealership maintenance encompass various costs, including rent, utilities, and maintenance of physical locations. For the nine months ended September 30, 2024, total operating expenses amounted to:

Expense Type	Amount (in thousands)
Selling, General, and Administrative Expenses	$1,205,358
Depreciation and Amortization	$59,905
Long-lived Asset Impairment	$12,355
Total Operating Expenses	$1,284,558

Marketing and advertising expenditures

Marketing and advertising expenditures have increased significantly, with additional advertising expenses reported at:

Expense Type	Amount (in thousands)
Increased Advertising Expenses	$23,100
Outside Professional Services	$5,200

Employee salaries and benefits

Employee salaries and benefits are a crucial part of the cost structure. For the nine months ended September 30, 2024, employee compensation costs decreased by $18.9 million, indicating a strategic adjustment in workforce management:

Cost Type	Amount (in thousands)
Employee Compensation Costs	Decreased by $18,900

Costs associated with service and repair operations

The costs associated with service and repair operations include labor, parts, and overhead. The increase in service revenue indicates a growth in this segment:

Revenue Type	Amount (in thousands)
Service Revenue Increase	$3,000
Labor Billing Rates Increase	Higher due to increased demand

Camping World Holdings, Inc. (CWH) - Business Model: Revenue Streams

Sales of new and used RVs

In the nine months ended September 30, 2024, Camping World reported revenue from new RV sales of $2,328,107,000, which accounted for approximately 47.6% of total revenue. Used RV sales generated $1,265,701,000, representing 25.9% of total revenue. The average selling price for new RVs was $39,520, while used RVs sold for an average of $31,284.

Service and repair fees from RV maintenance

Revenue from service and repair fees, categorized under products, service, and other, totaled $638,680,000 for the nine months ended September 30, 2024, making up 13.0% of total revenue. This segment includes labor billing for maintenance and repair services, which saw an increase in demand, contributing to the overall growth.

Membership fees from Good Sam Club

Good Sam Club generated $33,227,000 in revenue, amounting to 0.7% of total revenue for the nine months ended September 30, 2024. The membership base saw a decrease of 12.1% excluding free basic plan members, which impacted overall revenue despite an increase in membership rates.

Finance and insurance commissions

Finance and insurance commissions contributed $480,725,000 to revenue, representing 9.8% of the total. This segment includes net revenue from financing and insurance products sold in conjunction with RV purchases, with an increase of 4.4% compared to the previous year.

Sales of RV-related products and accessories

Sales from RV-related products and accessories reached $638,680,000, accounting for 13.0% of total revenue. This category experienced a decrease of 7.6% year-over-year, reflecting reduced sales activity due to restructuring within the company.

Revenue Stream	Amount ($000s)	Percentage of Total Revenue
Sales of New RVs	2,328,107	47.6%
Sales of Used RVs	1,265,701	25.9%
Products, Service, and Other	638,680	13.0%
Finance and Insurance, Net	480,725	9.8%
Good Sam Club	33,227	0.7%

Article updated on 8 Nov 2024

Resources:

1. Camping World Holdings, Inc. (CWH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Camping World Holdings, Inc. (CWH)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Camping World Holdings, Inc. (CWH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.