Posted on Tuesday August 11, 2020

Entrepreneur profile: René Trailer Sales' initiatives for weathering the crisis

The crisis of the past few months has hit hard. Whether small, medium or large, many New Brunswick businesses have found themselves facing daunting challenges. For Marc Perron’s recreational vehicle (RV) sales business—René Trailer Sales—the closure of provincial borders marks a major turning point. This is a profile of the Campbellton-based company that made lemonade with the lemons that life handed it.

A crisis with immediate consequences

“The crisis had an immediate impact and dealt a hard blow to our company, among other reasons because we had no idea how long it would last, but especially because of the announcement of the border closure,” owner Mr. Perron says to start. This reality very quickly posed a major problem for him at a time of the year when the first orders for recreational vehicles are normally placed for the summer season.

“When the borders closed in March, we had some important decisions to make since we bring in all our trailers from the United States. As a precautionary measure, we put all our orders on hold,” says Mr. Perron, who believed that the supply delay could be made up for later in the summer.

Surviving when the link to your main clientele is cut

A single bridge separates the Acadian city of Campbellton, New Brunswick, from Pointe-à-la-Croix on the Gaspé Peninsula. The bridge may connect two separate provinces, but the two communities are considered as one. For Mr. Perron, the closure of the J.C. Van Horne Bridge, a strategic link across the Restigouche River, meant a clear break with his main clientele. “Customers from the Gaspé account for nearly 70% of my sales, so this market is essential to the survival of my business.”

Dividing two interdependent communities

According to Mr. Perron, the communities of Campbellton and Pointe-à-la-Croix are close-knit. In his view, dividing them makes no sense. “It’s like suddenly taking Riverview out of Greater Moncton. It’s unthinkable! We’re very close, and my reaction was immediate: I have to go to them and find a way to stay in touch with my Gaspé clients who can no longer travel here.”

In May, faced with a significant drop in sales, René Trailer Sales took a decisive turn and opened a location in Pointe-à-la-Croix.

Establishing a new system

Now, Mr. Perron had to figure out how to make major changes in the middle of a crisis. “Honestly, it was a lot of work and a lot of organization and perseverance,” he says. “I found a place to set up a showroom and an office in the Pointe-à-la-Croix training centre complex, which had been closed. An agreement with the owner allowed me to set up there to welcome my clients.”

The new daily reality at René Trailer Sales

Even for merchants, borders are difficult to cross, a reality that the Campbellton-based company has been struggling with since the beginning of the crisis. Now that it is easier to cross, the bridge that connects the two provinces has become central for René Trailer Sales.

The “On the Road” version of sales

“I had to divide my inventory in two and find employees who could work at our new Gaspé location,” Mr. Perron explains. Having part of your inventory on one side of the border and the rest on the other inevitably means a lot of back and forth, a fact that now affects the owner’s work on a daily basis.

“If a client in Pointe-à-la-Croix sees a vehicle that interests them on our website—one that is located in Campbellton—we have to transport it to them so that they can check it out, and vice versa. On average, we cross the border about 10 times a day, whether it’s for a sale or a repair. Everyone’s on the road—my son, my employees and me.”

Financial support to cope with change

Like many small and medium-sized New Brunswick businesses, René Trailer Sales has found itself in a challenging financial position as a result of the events of the past few months. The economic slowdown triggered by the crisis, combined with the company’s major restructuring, has left Mr. Perron and his team exposed to significant financial challenges.

UNI and government: Partners who answered the call

The first step was for Mr. Perron to apply for the Canada Emergency Wage Subsidy (CEWS) in order to retain his employees despite his declining income. This government measure allowed him to cover 75% of his team’s salary.

According to Mr. Perron, however, it was the Canada Emergency Business Account (CEBA) offered in partnership with UNI that made all the difference. “The $40,000 loan, which includes a $10,000 forgivable portion, gave me the liquidity I needed to implement critical changes. Not having to pay it back in full, when you have no idea what’s coming next, is a huge advantage.”

Online sales: A major asset during a pandemic

The René Trailer Sales website says Purchase your RV online. We deliver. Everything is done by email and phone. Launched before the current public health crisis, this initiative is now more successful than ever.

For Mr. Perron, the global situation was an opportunity to optimize his digital offering and service. “The online sales system was already in place, but we've improved it a lot,” he says. “In the world of RVs, the Internet is an essential sales tool. It’s the first place where potential customers go to shop for a vehicle. It’s the platform that allows us to be present in the market and attract consumers with interesting products.”

Over the past few months, there have been many changes in the way things work. Once crowded with customers looking for the perfect trailer, René Trailer Sales’ yard is now almost empty. Yet, on the Internet, interest has never been so high. That’s where the market has mainly moved, and that’s where the future lies, according to the Campbellton entrepreneur.

Positive changes: When adversity moves us forward

When Mr. Perron looks at the current situation, he realizes that there will be no turning back: “The opening of the Pointe-à-la-Croix showroom was a turning point, and I see myself keeping this location for the long term. That way, I can really ensure the future of my business no matter what happens tomorrow. Now, it’s mainly a question of letting as many customers as possible know that our services are available there.”

RV sales: A promising market

Although the borders are still closed and the significant drop in RV tourists travelling in the province has resulted in a decrease in repair work, the RV industry is doing well. “Trailer sales have increased significantly nationally as people are now travelling locally and want to avoid staying in hotels,” Mr. Perron says.

A brighter future is on the horizon in a world where tourism must reinvent itself to overcome the public health challenges brought about by the pandemic.

In a climate of instability and doubt, René Trailer Sales is one company in the province that has been able to hold its own. While patiently waiting for the borders to reopen, Mr. Perron and his team cross the J.C. Van Horne Bridge to meet their most loyal customers, hoping that our politicians can find more viable solutions for maintaining local commercial activity.