NuWa (HitchHiker) Industries New Business Plan

[HBarlow]

I think Mike has a great idea. Anyone who owns a HitchHiker fifth wheel already knows what a pleasure it is to deal direct with the factory, the management/office staff, and the parts and service departments. I bought my trailer from a Kansas dealer as close as possible to the factory and received great, honest, direct service and pricing, typical of Kansas and mid-western values, but I think it will be even better for those buying in the future to buy direct from the factory if they wish. To anyone contemplating the purchase of a new fifth wheel travel trailer I encourage you to consider HitchHiker. "NuWa Production to Resume!

So many have asked NuWa shareholders to reconsider the decision to end production of HitchHiker trailers, that we have done so. NuWa will begin to produce a reduced number of 2010 models beginning in June 2009. One at a time, each available model will go through the steps of being re-entered into the production process. NuWa will be a smaller company, so we will not be as much at the mercy of a volatile economy. NuWa will focus even more on product reliability and exceptional customer service. NuWa will have fewer dealers by choice, and these will be selected for their commitment to HitchHiker trailers and the exceptional customers, who seek our products. Because many market areas will not have dealer representation, and because some full timers simply prefer a relationship with the factory, NuWa will begin to offer retail sales at the factory. This concept will also help us maintain more control of competitive product pricing. Understand that the factory is not attempting to solicit the business of our dealer’s customers, nor are our prices planned to be less than our dealer’s prices. Rather we want to provide a more transparent purchase experience and another choice for those, who for whatever reasons desire their primary relationship to be with the factory. Our dealer partners are very important to NuWa, and we will support them completely in the effort to offer exceptional products and service to our mutual customers. The factory service and parts departments will be relocated to the main NuWa plant, and expanded. If our service department can handle the added volume, dealers may be able to coordinate factory delivery to customers, who desire to save freight and experience a trip to the factory. MSRP of all units will be reduced significantly, yet allow realistic retail trade allowances as a means of eliminating the elusive and artificially high MSRPs common to the industry. Further, discounted cash/wholesale trade selling prices typically will be 25% lower than comparable 2009 model prices, but will be non negotiable. All NuWa factory outlets will sell at the same cash price, although there will be slight differences due to freight and individual dealer prices for customer orientation and unit prep. The low cash priced concept will require that trades be taken at wholesale, as the new unit pricing will be much nearer wholesale. The slightly higher MSRP will allow retail trade allowances and in some cases benefit the dealer’s efforts to secure financing for customers. Through years of credible actions, the NuWa factory culture has earned the respect of HitchHiker owners, and knows that many are disappointed in the typical delivery of information, product, and pricing of the RV industry. NuWa has listened to experienced customers, and believes it’s time for a more “transparent” style of delivery of all aspects of the purchase and ownership process. What do we mean by transparency? Transparency to NuWa means that information presented to customers will be accurate, complete and in the best interests of the customer. That product design will be considered for reliability and functionality before consideration is given to lowering cost. That prices for all customers will be influenced by the factory and will be as low as we can make them, and still provide the exceptional service expected. Rather than spend so much time negotiating price, we will eliminate the artificially high MSRP so often used by industry to manipulate the unsuspecting customer, and to often give a false premium for the trade. This present process is confusing and often detested by many buyers, who feel the need to protect themselves and view the sales person as an adversary rather than a knowledgeable counselor. We prefer to voluntarily offer our best price up front, and spend energy helping the customer make the best decisions for his trailer investment. Transparency means that NuWa staff will continue to be accessible by the consumer for information, parts, warranty and service assistance. Transparency means that the NuWa factory, and hopefully its dealer factory outlets, will not be a party to any concealment of information that is not in the best interests of the customer. Transparency to us means a respect for the customer and his needs throughout the purchase and ownership process. We recognize that some customers and dealers won’t be trusting enough to adjust to this unique style of business. We seek 500 customers per year who will choose to experience the NuWa culture, which apparently from all of the recent comments is far more appreciated than we realized. Approximately 175 unsold 2008 and 2009 HitchHikers remain in dealer and factory inventory. Prospective owners might be advised to consider these well priced units, which dealers will want to sell to make room for 2010 models, or because they simply need to reduce their inventories. 2010 models will not significantly change in appearance from 2009 models. The factory will begin to offer retail sales of remaining inventory in mid April, and prices will in most cases not be lower than the competitive prices that NuWa dealers are offering today. Do not assume that all 2009 floorplans will be available as 2010 models, and realize that some models will not be available until Fall. NuWa’s website will begin to be redesigned for 2010, although this process will not be completed for several months. Realize your NuWa dealer does not yet have clarification of all aspects of the new process, and it may be several months before he receives 2010 models and actually begins to follow this “set price” concept. The factory sales department is available by email sales@nuwa.com or by phone to answer your questions as best we can. Our employees and staff are excited about the prospect of again producing exceptional trailers for America’s experienced RV’ers and those first time buyers, who have learned that spending a little more might be a wiser investment. For years NuWa has described “intangible value” as that added value of a company’s commitment not easily seen during the purchase process. It’s this intangible value that causes HitchHiker owners to express their positive ownership experiences and to request that NuWa continue to build RV’s. OK, we’ve heard the message loud and clear, so let’s begin a new era in NuWa’s nearly 40 years of building exceptional 5th wheel trailers. Be patient, as the process of “re-launch” begins to unfold one step at a time. Thank you for your support. Sincerely, Mike Mitchell CEO"