Wha'ts a fair profit margin for an RV dealer in today's market? - Pirate4x4.Com : 4x4 and Off-Road Forum
 
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Old 09-22-2008, 09:39 AM   #1 (permalink)
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Wha'ts a fair profit margin for an RV dealer in today's market?

I'm looking at buying a toy hauler and after contacting the manufacturer I was put in touch with the local dealer who provided me a quote. I asked him to send me a written quote so that I could see which options I picked (I've talked to a lot of different companies and I want to keep things straight). He said he could send me the paperwork but he'd have to edit it to remove his cost numbers because he didn't want me to feel bad seeing how little money he was making on the deal. The idiot used a black sharpie to mark over the numbers then scanned it to email me. I open it using photoshop and see that his cost on the camper (minus options which I figure are worth about $2500) is $22,533.00 and he quoted me the great price of $47,900.00 claiming that he was giving me a smoking deal due to the horrible RV market.

Now don't get me wrong, people need to make a living but I see this as being similar to buying a vehicle, I'm just wondering if I'm wrong thinking that a fair profit isn't $20K or 100%.

Am I crazy here?
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Old 09-22-2008, 09:44 AM   #2 (permalink)
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And your other options are what exactly?... build you own?
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Old 09-22-2008, 09:47 AM   #3 (permalink)
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And your other options are what exactly?... build you own?
Buy used.

There are so many people out there that are severely over extended. There are a LOT of great deals to be had.
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Old 09-22-2008, 09:47 AM   #4 (permalink)
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Offer him 5K above cost, plus the cost of the options
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Old 09-22-2008, 09:47 AM   #5 (permalink)
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And your other options are what exactly?... build you own?
I considered building my own starting with a base enclosed trailer but I'm throwing around the idea of buying something already build instead if the price is right considering what I want.
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Old 09-22-2008, 09:48 AM   #6 (permalink)
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Buy used.

There are so many people out there that are severely over extended. There are a LOT of great deals to be had.
I know that I but I can't find anything like I want with a slide out which is my wife's main requirement. I don't want a camper style toy hauler, I'm looking for an enclosed 5th wheel trailer with living quarters up front.
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Old 09-22-2008, 09:49 AM   #7 (permalink)
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Offer him 5K above cost, plus the cost of the options
$5K profit on a ~$25K trailer?
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Old 09-22-2008, 09:51 AM   #8 (permalink)
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I know that I but I can't find anything like I want with a slide out which is my wife's main requirement. I don't want a camper style toy hauler, I'm looking for an enclosed 5th wheel trailer with living quarters up front.
Maybe expand your search out farther...look in other areas of the state?
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Old 09-22-2008, 09:53 AM   #9 (permalink)
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$5K profit on a ~$25K trailer?
Seems high to me too, then again I know jack about the RV dealers.

I would think it to be more along the same profit margins as a Car dealer, no?

I'm sure any deal would be better (cheaper) buying private party.
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Old 09-22-2008, 09:54 AM   #10 (permalink)
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Maybe expand your search out farther...look in other areas of the state?
I've searched the entire US, I've already talked to people in OR, FL and NY about units I've found on craigslist which are all great looking options but none of them have slide outs. From what I can tell the slide out options are somewhat new in this type of trailer and most of the used trailers I see for sale are in the 03 - 05 model year range.
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Old 09-22-2008, 09:56 AM   #11 (permalink)
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Seems high to me too, then again I know jack about the RV dealers.

I would think it to be more along the same profit margins as a Car dealer, no?

I'm sure any deal would be better (cheaper) buying private party.
We're thinking along the same lines, hell I paid $575 over invoice on my wife's $32K car... there's no way I'm paying $5K over cost on a $25K trailer. I know they don't sell nearly as many trailers as a car dealer but in today's market I'm not going to make the guy's entire monthly budget for him.
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Old 09-22-2008, 09:56 AM   #12 (permalink)
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Well, if used is out then what I would do would be do tell the guy you saw his numbers, don't appreciate him bullshitting you about how much he's NOT making on the deal and see if you can work out a price that you both think is fair. Maybe go to another dealer, tell them you know what the cost is and try to work a deal with them.
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Old 09-22-2008, 09:58 AM   #13 (permalink)
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Well, if used is out then what I would do would be do tell the guy you saw his numbers, don't appreciate him bullshitting you about how much he's NOT making on the deal and see if you can work out a price that you both think is fair. Maybe go to another dealer, tell them you know what the cost is and try to work a deal with them.
That was my next step but before I do that I've asked him to send me something that actually shows my cost on the options I've chosen so I know exactly what the numbers are. I'm giving him the benefit of the doubt but I can't imagine a 13.5K BTU roof AC costing $5K when I can buy one for $450 myself. Once he gives me the prices on the options I'll let him know what I'm willing to pay based on his cost on the base trailer and my estimates on the cost of the options.

And used isn't out of the question, if I find one that fits our requirements I'll be all over it.

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Old 09-22-2008, 10:01 AM   #14 (permalink)
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I will get ahold of my buddy He said the markup was astronomical. I am talking to him now. He says average markup is 30%. But if it is a weekend warrior type it is even more markup than that.
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Old 09-22-2008, 10:03 AM   #15 (permalink)
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I will get ahold of my buddy He said the markup was astronomical. I am talking to him now. He says average markup is 30%. But if it is a weekend warrior type it is even more markup than that.
This is on a Predator by Roadmaster enclosed trailer with living quarters
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Old 09-22-2008, 10:08 AM   #16 (permalink)
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My buddy who was a top rv/toyhauler rep has never heard of em. He says take MSRP - 30% add 2k to it. And don't go over 4k. Also the biggest RV/Toyhauler show is gonna be in cali in 3 weeks. He suggests going to it . Will help majorly in a deal.
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Old 09-22-2008, 10:14 AM   #17 (permalink)
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My buddy who was a top rv/toyhauler rep has never heard of em. He says take MSRP - 30% add 2k to it. And don't go over 4k. Also the biggest RV/Toyhauler show is gonna be in cali in 3 weeks. He suggests going to it . Will help majorly in a deal.
That actually puts it into the price range I was expecting based on what I've seen... I wish I could make it to the RV show but I'm working like crazy for a while.
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Old 09-22-2008, 10:23 AM   #18 (permalink)
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Usually you can get 20% off msrp pretty easily. In this market I'd push for 25% or maybe more.

When I bought my last camper in 2003 I told them right up front in 'negotiations' that I was looking for 20% and nothing less would be acceptable. They didnt even blink, no problem, deal done.
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Old 09-22-2008, 10:35 AM   #19 (permalink)
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Why would you care what's fair for him? He knows what's fair?

Hell, offer him 200 bucks over cost, he might take it.


After all, he could either make 200 bucks on you today, or none at all.
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Old 09-22-2008, 10:37 AM   #20 (permalink)
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He said he could send me the paperwork but he'd have to edit it to remove his cost numbers because he didn't want me to feel bad seeing how little money he was making on the deal.
I hate salespeople....
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Old 09-22-2008, 10:42 AM   #21 (permalink)
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Why would you care what's fair for him? He knows what's fair?

Hell, offer him 200 bucks over cost, he might take it.


After all, he could either make 200 bucks on you today, or none at all.
I don't care if he makes a penny but if he were honest with me and the dealership gives me good warranty service I don't mind them making a reasonable profit. I'm not looking to get something for free, they're providing a service and I expect to pay fairly for that service. I started this thread to figure out if I was missing something, I've never purchased any type of RV before and I was wondering if that type of markup was typical.
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Old 09-22-2008, 10:43 AM   #22 (permalink)
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I hate salespeople....
He also went into how horrible the RV market was and how their sales are down 70% over last year. That might very well be true but in my world that means you work harder for a deal, not double your price and hope someone pays it.
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Old 09-22-2008, 10:44 AM   #23 (permalink)
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I don't care if he makes a penny but if he were honest with me and the dealership gives me good warranty service I don't mind them making a reasonable profit. I'm not looking to get something for free, they're providing a service and I expect to pay fairly for that service. I started this thread to figure out if I was missing something, I've never purchased any type of RV before and I was wondering if that type of markup was typical.
If you want my buddy's number Let me know . He can give you tips for a fair negotiation. Since after all he hated customers that wanted a $20 profit.
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Old 09-22-2008, 10:45 AM   #24 (permalink)
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If you want my buddy's number Let me know . He can give you tips for a fair negotiation. Since after all he hated customers that wanted a $20 profit.
Sure, send it to me in a PM. Does he not sell RVs anymore?
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Old 09-22-2008, 10:48 AM   #25 (permalink)
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Sure, send it to me in a PM. Does he not sell RVs anymore?
Sorta does still . Interesting situation..
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