Profit margins....

[cdlaine]

Seems many conversations on these forums relate to
cost cutting corners taken by RV manufacturers'...
undersized tires / wheels / axles , electric vs.
disc brakes , insulation materials, frame types...etc. .

Just wonder what most would think the typical 5ver/TT
corporate "profit" margin is ??? I would expect ranges
vary ..less on the low end (volume sales) , more on the
high end (larger buy-in) , but I have no idea what per cent
range we would be talking about .. 5%, 10 %, 20 %, 30%, ?

Any here with business acumen that may know what the
acceptable per unit profit margin must be to stay in
business ? And, how does the "dealer" margin figure in ?

Thanks,

Charles

[cdlaine]

Yep...pretty complex , multi-factorial, ... I have little
to no understanding of the various business models (and
societal pressures) that impact the RV industry... It seems
plausible that investors would be happily pleased with
7-8 % per annum.(after fees !).

Charles

[robatthelake]

Judging by the number of Business Failures over the past 10 Years ,I would have to say that theres not nearly enough profit !

As retired Retailer in the XXXXX industry I can tell You that there is more profit to be made selling Groceries than Pots and Pans these Days!

[WyoTraveler]

I suspect profit is based on how many RVs dealer buys from manufacturer. If they can sell the RVs for 30% dicount they have to be making more than 30%. My guess would be 35 to 40% off of list.

[rdhetrick]

My guess is that if a company can clear 5-7% of actual profit over the long haul, the owner/stockholders would be happy.

[Altern]

You've asked a wide range of questions that would defy easy answers.
Lately, company's also have to foretell employee costs, healthcare, etc. which is a nightmare with the current administration.
No simple answers.....

[JEBar]

I don't believe there is a set number .... much depends on the manufacture's or retailer's cost of doing business as well as number of units built or sold .... as but one example of a cost, what do you thing it cost Camping World to sponsor the NASCAR Truck Series and a host of other NASCAR related events .... while they write off the cost, the money for it has to come from its customers .... it would be interesting to know how much that sponsorship adds to everything they sell

Jim