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 > How much do dealers pay for the RV's they sell

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DarkSkySeeker

Freestone, California

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Posted: 02/02/20 09:22am Link  |  Quote  |  Print  |  Notify Moderator

A salesman at an RV show told me they make very little on trailers and fifth wheels. Class A rigs were the best commissions.

Repeat, "a salesman told me..."


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FlatBroke

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Posted: 02/02/20 10:08am Link  |  Quote  |  Print  |  Notify Moderator

Guess I just assumed they paid by the pound. You know the same way as you sell your junk.



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PawPaw_n_Gram

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Posted: 02/02/20 11:11am Link  |  Quote  |  Print  |  Notify Moderator

Say a 3% commission on a $30,000 sale price trailer = $900
Same commission on a $100,000 Class C or gas Class A = $3,000
Same commission on a $250,000 Clas A DP = $7,500

Now I have no idea how salesmen are really compensated or what commission rates might be. But just looking at the math - but earning more commission money on high dollar sales makes sense.


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Lightning55

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Posted: 02/02/20 11:28am Link  |  Quote  |  Print  |  Notify Moderator

Dealer cost might be different from one dealer to the next. Some dealers might get volume incentives where the others don't. Ordering more new models may give the dealer cost adjustments on existing inventory as an incentive to order more. From what I've heard, if you can get a 30% discount off of the real MSRP, you are getting a fair deal.

Lightning55

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Posted: 02/02/20 12:32pm Link  |  Quote  |  Print  |  Notify Moderator

PawPaw_n_Gram wrote:

Say a 3% commission on a $30,000 sale price trailer = $900
Same commission on a $100,000 Class C or gas Class A = $3,000
Same commission on a $250,000 Clas A DP = $7,500

Now I have no idea how salesmen are really compensated or what commission rates might be. But just looking at the math - but earning more commission money on high dollar sales makes sense.


I think RV sales are very similar to the car business, which I have been in all of my adult life. Salesman are paid a percentage of the PROFIT made on a sale, not the selling price. Commissionable profit is based on the difference between the cost of the vehicle and the selling price, less cost of sale items like non-factory reimbursed get ready expense, detailing,and any dealer 'packs'. In the car business, typical sales commissions are like 20-25% of the gross profit per unit, except when there are bonus deals, or volume increases in commission percentages.

Dtank

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Posted: 02/02/20 07:13pm Link  |  Quote  |  Print  |  Notify Moderator

Some EASY facts:

1. You will *never* know what an RV dealer paid for the unit/s on his lot.
1a. You *can* come close to what the dealer paid on autos and pickups. Keep in mind: For autos and pickups, MSRP (toss that one), Dealer INVOICE, and Dealer COST are the numbers you want to come "close" to. More on the last two later.

2. The guy the OP talked to - might know his "stuff" - maybe not.
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

4. High volume dealers (think So. CA - with pretty good weather all year round) are less likely to participate in long-term negotiations for units on their lots.....the "gotta have it NOW" buyer will probably walk into the dealership the next day!
*If* you are attempting to purchase from the dealer's inventory, you *will* be involved in negotiations - and in "competition" with other buyers.

Will finish this missive after THE game, LOL.

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DallasSteve

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Posted: 02/02/20 09:29pm Link  |  Quote  |  Print  |  Notify Moderator

Dtank wrote:

Some EASY facts:
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

Dtank

Do you mean ordering through a local dealer or directly from the factory? I'm guessing the local dealer is the only option. If I order about how long does it take to arrive and can I count on the arrival date they give me?





Dtank

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Posted: 02/02/20 11:27pm Link  |  Quote  |  Print  |  Notify Moderator

Dtank wrote:

Some EASY facts:

1. You will *never* know what an RV dealer paid for the unit/s on his lot.
1a. You *can* come close to what the dealer paid on autos and pickups. Keep in mind: For autos and pickups, MSRP (toss that one), Dealer INVOICE, and Dealer COST are the numbers you want to come "close" to. More on the last two later.

2. The guy the OP talked to - might know his "stuff" - maybe not.
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

4. High volume dealers (think So. CA - with pretty good weather all year round) are less likely to participate in long-term negotiations for units on their lots.....the "gotta have it NOW" buyer will probably walk into the dealership the next day!
*If* you are attempting to purchase from the dealer's inventory, you *will* be involved in negotiations - and in "competition" with other buyers.

.


Great SB game.

Dallas Steve:
My method for ordering - RVs, cars & pickups. Others may disagree, or have a system they prefer.
The only "negotiations" involved are for *your* preferences as to how far you will travel for your best price/deal.

Shop across the country - both local and long distance - for the brand, floor plan, and options you are looking for. Never vary from that list! Use the internet and phone when necessary to find the best price. Get it in writing.

Then you can re-contact local dealers to see if they will match, or come close to - your "benchmark" deal/price.
You then must decide if you will travel -and how far- for the deal/price you choose.

When you make that decision - you should expect a contract with a "reasonable" (not outrageous) deposit requirement. Expect to pay a reasonable delivery fee (based on how far -miles- the dealer is from the factory). Dealers in some states may be required to charge sales tax. If so, don't forget that in your price comparisons.

Anticipate the possibility of dealers offering you something they have in their inventory. However, expect to negotiate.

Remember - when ordering, unless you fail to go through with the purchase you agreed upon - it hasn't cost the dealer anything other than some paperwork. He/she isn't paying interest on something on his sales lot.

Cars and pickups. Pretty much the same, you can (usually) find out dealer invoice. (Internet is your friend). Ignore MSRP. Actual dealer *cost* is dealer *invoice*, minus dealer holdback and any factory incentives to the dealer for volume, etc.
Note: As with RV's, you will never know the actual dealer *cost*.
Simply stated a dealer can sell you a vehicle at -or below- his *invoice* price, and still be making a profit.

For me, in Calif.....
I was ready to go to Dave Smith Motors (Dodge & GM) in Kellog Idaho for my truck - until a local dealer came within $500. of my "travel" price, (which was still under dealer invoice), so it was purchased within 100 miles of my home.

RV purchased in Montana. Enjoyable return trip with new 5th wheel.
Would I do it again - you bet, no regrets.

BTW - one last on the guy that saved 50K on his new Jayco. Haven't checked recently, but at one time Jayco was one (of a few) brands that would list prices and options prices on their web site. You knew exactly how much you saved over the list price.

However, "sometimes" -or- "on occasion" at RV shows, supposed RV prices with special "show deals" - would indicate an MSRP - which was inflated! Asked one sales person about that once, his response was, "It's probably increased since you saw it previously".
Buyer beware!

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Deb and Ed M

SW MI & Space Coast, FL USA

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Posted: 02/03/20 07:55am Link  |  Quote  |  Print  |  Notify Moderator

Always, ALWAYS, get the "out the door" price. Ed and I have a used-car lot in Michigan, where all dealers are limited to a $195 "Doc Fee" by the State (of course, many can find other things to charge fees for). Not every state does this - we were shocked to recently learn of a car dealer who is charging a $395.00 Doc Fee plus a $995 "Dealer Fee" in Florida. Granted, these steep fees can let the dealer show competitive prices in their advertising, but when they are done adding fees, it can drastically affect the actual selling price.

DarkSkySeeker

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Posted: 02/03/20 10:06am Link  |  Quote  |  Print  |  Notify Moderator

Dtank wrote:

...in "competition" with other buyers

I have definitely run into that with car sales.

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