Frank Rolfe, already well-known for his predatory approach to mobile home park investing, has been preaching the same gospel to RV park investors in his RV Park “University” offerings and in regular podcasts and email broadsides. I’ve written about him before, mostly as a warning to others, but lately he’s upped his game to such an objectionable level that he’s worth a return mention.
His most recent screed is titled “The three best methods to improve RV park net income,” and it kicks off by turning to “Chainsaw” Al Dunlap for inspiration. Dunlap was “a well-known corporate raider and business efficiency stalwart,” Rolfe would have you believe, and Dunlap’s guiding motto of “sell, sell, sell and cut, cut, cut” is “not a bad mantra for RV park owners, as well.”
Rolfe goes on to write that there are three “key areas” that have maximum impact on the bottom line, the first being an unremarkable emphasis on improved marketing. It’s in the second and third key areas–“increase rents and occupancy” and “cut operating costs”–where Rolfe shows his true colors, and RVers should not be surprised to learn that in this zero-sum game, whatever benefits Rolfe and his acolytes will not benefit them at all.
Step one, “increase rents. Yes, it’s that simple.” Step two, “bring in extended stay customers,” taking advantage of “a large and growing category of customers who want to live in their RVs full time.” Moreover, Rolfe adds, there is a growing fleet of tiny homes “that can only be placed in an RV park by law,” providing campground owners “an extremely dependable (read: captive) source of income.” Step three, put more emphasis on park models and glamping, creating “more of a ‘hotel’ format, where the customer brings no RV of their own.”
Having thus jacked up rates while decreasing the number of transient RVing sites, Rolfe moves on to the expense side of the ledger, starting with “horribly bloated and completely unproductive” payrolls that must be slashed. That non-specific analysis is followed by the equally vague observation that a “simple line-by-line review of each cost item may yield huge dividends,” especially if approached with an “analytical and creative” mindset.
And there you have it: sell, sell, sell and cut, cut, cut.
Oh–but one more thing. Al Dunlap, who earned his “Chainsaw” moniker after cavalierly firing 11,000 employees at Scott Paper, for which he received $100 million in compensation, went on to try the same “analytical and creative” tactics at Sunbeam. He eventually got fired by Sunbeam’s board of directors– creating the memorable headline, “Board Cuts Chainsaw”–and subsequently settled a civil suit, filed by the Securities and Exchange Commission, accusing him of several counts of accounting fraud that misrepresented Sunbeam’s financial results. He paid a $500,000 fine and agreed to be barred from ever again serving as an officer or director of a company.
Three years after it fired Dunlap, Sunbeam filed for bankruptcy. Two decades after that, Frank Rolfe has found his mentor.