Forum Discussion
Chum_lee
Feb 01, 2020Explorer
What a dealer pays for a product is often based on sliding scales. Those scales consider: the dealers credit worthiness, the number of units sold by that dealer over a given period of time, manufacturers rebates, warranty claims, local competition, current market conditions/demand, current new factory inventory, used inventory, energy costs, weather, time of year, interest rates, federal/state tax incentives, the local/national economy, fuel costs/availability, etc., etc., etc.
What a dealer sells a product for, . . . . as much as they possibly can given the above. Every deal is different. (sometimes they take a loss just to move product)
IMO, if a dealer can clear 10% NET big ticket profit per sale after all is said and done, they may be around for a while. Think about it, any particular RV may sit around for 9 months and have have 50 people look at it before someone bites the bullet. Who pays for that? It's a tough business.
Chum lee
EDIT: To answer your question, a typical (NOT SPECIFIC) new RV deal (greatly simplified) might look something like this:
Dealer cost: $120,000
Overhead: 45,000
Profit: 15,000
Retail price: $180,000
What a dealer sells a product for, . . . . as much as they possibly can given the above. Every deal is different. (sometimes they take a loss just to move product)
IMO, if a dealer can clear 10% NET big ticket profit per sale after all is said and done, they may be around for a while. Think about it, any particular RV may sit around for 9 months and have have 50 people look at it before someone bites the bullet. Who pays for that? It's a tough business.
Chum lee
EDIT: To answer your question, a typical (NOT SPECIFIC) new RV deal (greatly simplified) might look something like this:
Dealer cost: $120,000
Overhead: 45,000
Profit: 15,000
Retail price: $180,000
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