Do manufacturers give rebates to dealers?

bucky wrote:
It would matter because it affects the final price.

How does it affect the final price?

It would matter because it affects the final price.

When I purchased my fifth wheel in 2006, the dealer forgot to remove the invoice sheet from the factory in my information package. I saw to the penny how much the factory got from my dealer. Everything was broken down, delivery, options, everything. There was one line that read volume discount -$3200ish. I haven't seen that sheet in a while but that is roughly what I recall the volume discount being.

FULLTIMEWANABE wrote:
Can't speak RV specific but most businesses that use distributors to sell their product will give incentives based on volumes they move, and sometimes an additional credit to shift a specific model that's in over supply or sticking around at a certain time.

I see no reason why this common practice in most businesses doesn't likely occur with the RV industry, hence why I'm always skeptical when sales people say we're selling it at our cost or our invoice rate, here look see. Also most businesses get a discount based on volume off their OEM list price as contract agreed based on volume $$'s they sell either specific to individual line model or overall dollar value sold.

My understanding as well. High volume dealers do get price incentives from the factories, which is why they can sell for less. But incentives on one model line may not apply to another model line, so a high volume Keystone Montana dealer may not have incentives on a Keystone Cougar. Manufacturers will also offer special discounts, like free options, on units ordered during the slow winter months to keep the factories busy.

Why would it matter to you either way?

Can't speak RV specific but most businesses that use distributors to sell their product will give incentives based on volumes they move, and sometimes an additional credit to shift a specific model that's in over supply or sticking around at a certain time.

I see no reason why this common practice in most businesses doesn't likely occur with the RV industry, hence why I'm always skeptical when sales people say we're selling it at our cost or our invoice rate, here look see. Also most businesses get a discount based on volume off their OEM list price as contract agreed based on volume $$'s they sell either specific to individual line model or overall dollar value sold.

With auto dealers there are rebates, holdbacks, and incentives. Rebates go to the buyer, a discount off the sell price to help increase sales of those vehicles. Holdbacks is a percentage of the vehicle price the manufacturer gives back to the dealer for his base profit. Incentives are sometimes provided to the dealer to help move stock, to either keep for himself, or to give to the buyer to help sell the unit(s).

With RVs, you will never know.

When I look at the sales tag on an item, and I read, "Save $200. Today only $400!". I will think, okay the original price was $600. And wow, I will be saving 30%. But then I laugh and realize that the original $600 has nothing to do with anything. It was grabbed out of the air to make me think I'll be getting a killer deal.

Car dealers get hold backs don't know about RV dealers. I think they use rebates to push leftover models.

I think there is a very limited amount of people that truly know the answer. Car manufacture and dealer relations are more guarded than the Coca Cola recipe.