Forum Discussion
PawPaw_n_Gram
Aug 14, 2014Explorer
matt_r wrote:
The RV dealer game is one of relationship and service. This is driven by the reality that purchase frequency of RVs are much lower than cars.
For most dealers it is not. The business model is selling the unit and getting it off the lot - hopefully to never see it again until the customer wants a trade-in.
As mentioned above - automobiles are a completely different business model where the dealer makes good money off warranty repairs.
For many RV dealers - warranty repairs are a heavy up front cost, very slow reimbursement, multiple vendor relationships, an almost non-existent replacement parts inventory.
If the radio goes out in your Ford - the Ford dealer replaces it, and Ford provides the parts and pays promptly for the repairs.
If the radio goes out in your RV - the manufacturer tells the dealer to talk to the company which made the radio. Since one week's run of RVs may have brand X radio, and the next week's run of RVs may have brand Y radio - it's a lot of work for the dealer to track down the right vendor.
The fridge, the cooktop, the TV, the microwave, the AC, the furnace, the hot water heater, the frame, the axles, the jacks, the tongue jack, the TV antenna, the awning, the wheels - all are from different vendors. None of the warranty work for those items is reimbursed by the RV manufacturer to the dealer.
Another difference. If the Ford dealer finds something wrong - they replace it and bill Ford. If the RV dealer finds something wrong, they have to get approval for warranty work before getting approval for any spare parts. If the vendor says 'not our problem' then the dealer has to eat the diagnostic labor.
matt_r wrote:
This means the primary game is selling accessories and servicing / repairs--fighting to maintain some kind of monopoly on the sale when you can not be price competitive is a sinking and loosing battle.
Some dealers choose to maintain an active service department focused on selling and installing accessories, some do not. That's their choice.
I purchased my first TT from a dealer who makes a lot of money on accessory sales and installation. They keep a full shop busy mostly with this addon type work. Enough activity so that they can afford to float all the costs of doing a lot of warranty work. They can even afford a small inventory of key spare parts (all of which have to be purchased from the various vendors up front).
The dealer I purchased my current TT from does minimal accessory work. They don't even sell accessories or addon's. Hitches and the unit the way it arrived on their lot is all they sell. They showed me the cheap sewer hose in the FR supplied accessory kit and actually said "This is a piece of junk, we recommend you stop at ____ down the road and buy a good sewer hose from their accessory store."
____ is a smaller dealer which sells a different manufacturer TT/5er but does have a very complete small accessory store.
If I wanted a slide topper awning - the dealer I purchased my current TT from would install it - for a fee. But I'd have to buy the awning somewhere else and bring it to them to install.
Surprisingly, the company I purchased this TT from has 8 locations across Texas, and sells 4,500-5,000 new TT & 5ers a year - all with the same no accessory sales, we don't service anything we didn't sell policy. They sell very few used units - sending most trade-ins out to auction after a week on the lot.
The company where I purchased my first TT recently purchased their second location. They sell about 500-700 new units per year and more than that used.
I've met both owners. Both are happy, and both make good money, take care of their employees. Both companies have good reputations. But you have to know and understand how they operate on completely different business models.
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