- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
RV/Camper Dealerships
Posted on 5/23/18 at 9:28 am
Posted on 5/23/18 at 9:28 am
These dealerships have always been a mystery to me. Most of them seem to have a minimum of 500 units for sale.
How many can they sell in a year? Maybe someone here can explain the economics of how they pay for overhead, which includes inventory taxes and depreciation of those assets sitting idle?
How many can they sell in a year? Maybe someone here can explain the economics of how they pay for overhead, which includes inventory taxes and depreciation of those assets sitting idle?
This post was edited on 5/23/18 at 9:32 am
4
Posted on 5/23/18 at 9:33 am to Breauxfessor
Works the same as a car lot. You have a floor plan budget that you maintain. Money is in service. We sell about 55 campers and 25 Can am/Sea Doo powersports a month on average. We sold 75 last month so our inventory is down below 275 units right now on campers.
Posted on 5/23/18 at 9:33 am to Breauxfessor
Beats me. The guy that lives across the street from me is the lead sales guy at one of these in town. He seems to do pretty well, but he is always at work. I'm the same way as you. No way they are selling many units. Especially the amount of time this guy works. It doesn't add up.
Posted on 5/23/18 at 9:36 am to Breauxfessor
These things depreciate considerably fast.
And like most anything new automotive related, the worst accidents happen on the dealer's showroom floor.
And like most anything new automotive related, the worst accidents happen on the dealer's showroom floor.
Posted on 5/23/18 at 9:37 am to LaPlace Mafia
I can see having a bunch of campers and sea doos in inventory but not all those busses. Aren’t those things around $100k and up each? Talk about inventory cost.
On a side note, why in the frick do they insist on those awful graphics on the side of the big RV’s? Is there some reason you can’t just buy a gray or black one?
On a side note, why in the frick do they insist on those awful graphics on the side of the big RV’s? Is there some reason you can’t just buy a gray or black one?
Posted on 5/23/18 at 9:40 am to IAmNERD
quote:
Beats me. The guy that lives across the street from me is the lead sales guy at one of these in town. He seems to do pretty well, but he is always at work. I'm the same way as you. No way they are selling many units. Especially the amount of time this guy works. It doesn't add up.
A lot of those salesman just have to be around for long hours, they aren't doing a whole lot of actual "work". Talking to clients/ customers for a very small portion of the day.
But yeah, how do these large RV/ Boat/ etc. dealers finance the products before they sell? I mean they have to have millions on the lot at any time? Are they interest only loans?
This post was edited on 5/23/18 at 9:41 am
Posted on 5/23/18 at 10:01 am to Breauxfessor
A little less than 10 years ago I was an RV sales rep in Florida. I will share some anecdotal info I gathered during my time there.
The real money is made on used inventory and service. The service center....wow. Criminal what goes on over there. People had their guard up around me, but smile when they walk through those doors. Was always funny to me. A lot of it is dealing with insurance companies as well.
Anyway, used inventory. We would basically pay people less than half or whatever we could get away with for peoples trade in. So even selling a used travel trailer for 10,000 can be a big deal if you only have 1600.00 in it. Basic example, but imagine if this was a used motorhome, for around 50 to 60k. Maybe we only have 17k in it. That is a nice lick. Our business paid for trade ins with cash, so there was no interest on these. If it sat, it wasn't as stressful.
RV's have huge, inflated MSRP's. It helps people get financed, because we can sell you a new trailer for 22k that has a MSRP of 34k, shows you have a little equity. ALSO, if you have a trade in, it helps us hide the numbers a little bit on what we are giving you for your trade in. Of course not everyone is an idiot, and sometimes you have to show them "real" numbers, but it doesn't happen as often as you would think.
Also, I think our lot had some kind of special interest floor plan with BOA, so it only hurt if the unit sat on the lot for x number of days. The bigger diesel motor homes we didn't really specialize in. We had a some, we sold Tiffin and they are a popular product, but we specialized in gas motorhomes. I was only their for about 5 years, and in that time we sold A LOT of Tiffin motor homes.
What happens when new inventory becomes an age problem? They just dump it, give it away, etc. People will drive FOR MILES to save big $$$.
Lastly, most RV dealerships have a part store. RV's are houses that move, just imagine all the little pieces, parts, fittings, hoses, etc. Not to mention TP, toilet chemical, cool awning accessories, all kinds of random stuff but you get the point. AC parts, electrical parts, water heater pieces, all things people need and are marked up like crazy. Our part store was very profitable.
Lot's of text but this is the basic info of how these places can be profitable.
Edit: As far as # of units sold, I averaged about 7-8 a month. We had 7 sales people, so that is roughly 600-700 units per year.
The real money is made on used inventory and service. The service center....wow. Criminal what goes on over there. People had their guard up around me, but smile when they walk through those doors. Was always funny to me. A lot of it is dealing with insurance companies as well.
Anyway, used inventory. We would basically pay people less than half or whatever we could get away with for peoples trade in. So even selling a used travel trailer for 10,000 can be a big deal if you only have 1600.00 in it. Basic example, but imagine if this was a used motorhome, for around 50 to 60k. Maybe we only have 17k in it. That is a nice lick. Our business paid for trade ins with cash, so there was no interest on these. If it sat, it wasn't as stressful.
RV's have huge, inflated MSRP's. It helps people get financed, because we can sell you a new trailer for 22k that has a MSRP of 34k, shows you have a little equity. ALSO, if you have a trade in, it helps us hide the numbers a little bit on what we are giving you for your trade in. Of course not everyone is an idiot, and sometimes you have to show them "real" numbers, but it doesn't happen as often as you would think.
Also, I think our lot had some kind of special interest floor plan with BOA, so it only hurt if the unit sat on the lot for x number of days. The bigger diesel motor homes we didn't really specialize in. We had a some, we sold Tiffin and they are a popular product, but we specialized in gas motorhomes. I was only their for about 5 years, and in that time we sold A LOT of Tiffin motor homes.
What happens when new inventory becomes an age problem? They just dump it, give it away, etc. People will drive FOR MILES to save big $$$.
Lastly, most RV dealerships have a part store. RV's are houses that move, just imagine all the little pieces, parts, fittings, hoses, etc. Not to mention TP, toilet chemical, cool awning accessories, all kinds of random stuff but you get the point. AC parts, electrical parts, water heater pieces, all things people need and are marked up like crazy. Our part store was very profitable.
Lot's of text but this is the basic info of how these places can be profitable.
Edit: As far as # of units sold, I averaged about 7-8 a month. We had 7 sales people, so that is roughly 600-700 units per year.
This post was edited on 5/23/18 at 10:08 am
Posted on 5/23/18 at 10:07 am to AnActualFan
quote:
Lastly, most RV dealerships have a part store. RV's are houses that move, just imagine all the little pieces, parts, fittings, hoses, etc. Not to mention TP, toilet chemical, cool awning accessories, all kinds of random stuff but you get the point. AC parts, electrical parts, water heater pieces, all things people need and are marked up like crazy. Our part store was very profitable.
LOL, no joke. They probably hate online sales. RV parts are like boat parts, mark up is absurd.
My father in law just traded in a 3-4 year old mercedes (just maker of the body) diesel RV because it went out of warranty and there are not a lot of people that work on them. He's a smart guy but I LOL'd when my wife told me that, I know he got so fricked over on the price he could have spent $20k on repairs and still been way ahead. He only puts like 10k miles at most a year on it smh.
Posted on 5/23/18 at 10:08 am to AnActualFan
Yes all of this. Selling used inventory is where the money is for sales guys. Do not usually make great money on new stuff. And yes parts are marked up nearly 100% because they know if you are in looking for something you need it and will pay whatever you have to in order to get your RV back on the road.
Posted on 5/23/18 at 10:11 am to jbgleason
If there are graphics. People are less likely to run into it.
Your grey or light blue is going to fade into the gloaming come dusk.
Your grey or light blue is going to fade into the gloaming come dusk.
Posted on 5/23/18 at 10:16 am to AnActualFan
quote:
So even selling a used travel trailer for 10,000 can be a big deal if you only have 1600.00 in it. Basic example, but imagine if this was a used motorhome, for around 50 to 60k. Maybe we only have 17k in it.
I'm sure they make the most money on used, but this seems a bit ridiculous. If I rolled up looking to trade a motorhome that retailed for 50-60k and you offered me 17k I'd
and roll out. 
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News