A Retrospective on Safari and Beaver
Safari Motor
Coaches opened its doors in Eugene, Oregon in 1987 and, in 1989, moved
to Harrisburg, Oregon, where the company became known as SMC Corporation.
Under the auspices of the Perlot family and their creative CEO Mat
Perlot, SMC enjoyed ten years of innovative development with steadily
rising stocks.
Prior to starting
SMC, Perlot had been director of marketing for Beaver Coach Corporation.
However, when Beaver's upper management balked at his suggestion to
create a line of class A's for the moderate-priced market, Perlot
was spurred to create his own motor home manufacturing company
which subsequently brought about the creation of popular brands with
names evocative of exotic African travel such as Sahara, Serengeti,
Cheetah, and Trek.
Success started
to show its face when SMC introduced the Trek brand in the 1991 model
year. This small to moderate-size gas-powered class A, featured the
company's patented "Electro-majik" drop-down bed. The scaled-down
Trek with its innovative features was something unique among class
A's a class A for those who didn't want to drive a big motor
home but didn't want to give up class A comfort. Its popularity gave
the company the opportunity to unveil the Continental a "luxury"
class A that sold for $169,000 still well below the retail
prices of their nearest competitors.
As success piled
upon success and consumers and the RV industry alike began to take
notice, Perlot decided in June of 1993 that SMC needed their own chassis-building
company (Magnum Manufacturing), their own fiberglass factory (Composite
Technologies), and their own electronic design, assembly, and manufacturing
company. These companies were designed to support Safari's individualistic
manufacturing style and to set them apart from the rest of the industry.
In 1993 when
Beaver Motor Coaches declared bankruptcy, SMC, in a battle with Country
Coach, acquired Beaver. By late May 1994, Perlot triumphed and brought
the Beaver line of high-line class A's under SMC's banner. It wasn't
long after this that I began to see indications that the Perlots were
becoming distracted from their initial success by biting off more
than they could chew with the Beaver purchase.
Another can of
worms was opened in 1996 with the purchase of Honorbuilt (El Dorado
class C, which failed) and again in 1997 when SMC diversified with
a class C line under Harney Coach Works. In hindsight I'm sure that
the Perlots would agree that this was the wrong product at the wrong
time. This move complicated their already apparently out-of-control
management problems. Beginning in 1996 their stocks began to plunge
from a high of about $12 a share to $3.68 a share when SMC was bought
out by Monaco Corp. in 2001.
With the history
behind us, let's now consider what happened from the consumer's perspective.
The sad story went something like this: The Beaver brands Contessa,
Marquis, Monterey, and Patriot at first looked good in the hands of
Safari; but management shakeups, poor quality control at the factory,
poor customer service, and a series of lawsuits followed by bad publicity
and tales of dissatisfied customers which allegedly included verbal abuse
and eviction from company premises by Mat Perlot personally
left SMC's RV industry status on shaky ground.
Satisfaction
polls received by RVCG, many of which contained extensive comments
concerning rude treatment by SMC's management, indicate that most
of the problems encountered by consumers in the late '90's involved
Beaver brands notably the Marquis and Patriot. In approximately
200 satisfaction polls gathered by RV Consumer Group, reliability
ratings for Beaver motor homes dropped from an average of 77 (quite
good) prior to 1995 to an average of 63 (well below average) after
the Safari takeover. Safari brands such as Trek and Cheetah, which
hovered around 75 (average to good) pre-Beaver, dropped to a mere
70 in the years following the acquisition. One consumer comment we
have on record puts it very well: "...a nice floor plan, pretty paint,
and pretty wood don't make for a reliable, safe, or good motor home."
What can RV consumers
learn from this saga of rise and fall of SMC? For one thing, its plunge
from the pinnacle of success shows that talent and creativity are
not enough to succeed in business. Diplomacy, fairness, generosity,
and above all, the responsibility to stand behind one's product are
essential. Although Mat Perlot started out strong with good ideas
and good products, he apparently lost control because of too-rapid
expansion and an unwillingness to bend with the wind.
Will Monaco turn
things around for the Beaver and Safari brands? Will Beaver and Safari
be safe buys in the near future? I don't have the answer right now,
but I'll keep watching satisfaction polls and listening for indicators
from buyers who are actively using Monaco's new versions of these
brands. In a couple of years I should have the answer.
Stay tuned.
JD Gallant, Spring 2003

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