Travel Trailer Markup
Jmess
Does anyone have info on how much the markup is
on new trailers. I expect the dealers to make money
but I would like to have an idea of how much.
jmess
Ron Crowley
Only some manufacturers have an MSRP (suggested retail) which means
that the markup can be whatever the dealer wants.
For those that publish an MSRP, they generally use a 40% profit
margin.
That will mean absolutely nothing to the buyer. Don't make the mistake
in thinking that you know what is a suitable profit for the dealer.
* Do your homework and decide which unit you're going to buy.
*Call the manufacturer for at least 5 dealers names.
*Call each one and ask if they would like to submit a bid.
*Buy the unit from the lowest bidder (it has wheels)
Ron Crowley
Will R
>I have been looking at a number of 19-22ft trailers.
>Does anyone have info on how much the markup is
>on new trailers. I expect the dealers to make money
>but I would like to have an idea of how much.
>
>jmess
>
I have heard 20-30%, If your talking cash, the price will differ
then if you have a trade.
LOCOMOTIVE2506
has to cover all of their investment and costs in getting the RV to you.
The big kicker is what is called a flooring charge. That's the amount that the
dealer has to pay for the money that he has invested in the inventory that is
on the lot.
If you are looking for the absolute best deal, try to arrange to buy a rig
that has to be ordered. You pay a down payment to the dealer as honest money
and then give him a no-strings attached check for the remainder as soon as the
rig hits his lot and his technicians have had a chance to give it the "once
over" for delivery purposes.
Don't ask for a trade-in deal or do anything out of the ordinary. Most dealers
like to sell the inventory off the lot but will order you one rather than loose
the business.
My normal approach for finding out their costs is to go to a good bood store
and get a magazine that outlines their costs. I then take that in to them and
offer something like 5% over their cost. Try to do it in the middle of winter
if possible. At that time the factories can usually deliver the rig quicker.
But, all of that may be to no avail if what you are wanting to buy has a
limited availability and the rigs are selling at retail and there are no
exceptions.
Will R
wrote:
SNIP
>
> If you are looking for the absolute best deal, try to arrange to buy a rig
>that has to be ordered. You pay a down payment to the dealer as honest money
>and then give him a no-strings attached check for the remainder as soon as the
>rig hits his lot and his technicians have had a chance to give it the "once
>over" for delivery purposes.
I agree with everything Loco said, except I would not give them a
final check until " I GET TO INSPECT IT!" They will fix problems
much faster if they are still waiting for THERE money. And you will
probably find something wrong on your walk through.
And somebody else told me, start to make offers at there cost and go
up, don't start at MSRP and go down! Plus you can beat them up for
accessories pretty good. especially ones that have a labor cost in
them like slide awnings, etc.
Of course I had a trade on my 2000, so I don't know what I really
paid. But it was not MSRP, and I got what I felt was a good price for
my trade, so I am happy and that's what counts!
Will R
W3WJR
Lon VanOstran
between markup, and percentage at MSRP. A markup of 50% equals profit of 33%
at retail. A markup of 33% equals profit of 25% at retail. With most RVs,
you can find a dealer who will discount MSRP 25% or more.
--
Lon VanOstran
Williamston, MI
FMCA, Good Sam Life, SKP, NRA Patron
Will R <w3...@consultant.nospam.com> wrote in message
news:8d6mms8qaslvm64h5...@4ax.com...
DF
AND if you are located in the Midwest, consider using a service like
Campers Factory Outlet on the Wisconsin/Illinois border for your
purchase.
df
fishguy
In April I bought a new 19' Aljo (170LT) TT for $10,176. It had
to be ordered from the factory. The quoted price included
battery, electrical hook-up, dealer prep, wash job.
When it arrived it had an awning which I did not order. The MSRP
without the awning but with the options I did order, was $11,875.
When the dealer indicated that I should pay something for the
awning, I said take it off and repair the holes perfectly. So I
drove it away with an "free" awning.
The MSRP with an awning would have been about $12,475. So I paid
85.7% or 81.6% of MSRP depending on how you view it. I pushed
some on the deal but I also know that "no dealer ever sold a unit
for less than he was willing to accept". I could afford the
price
so I took it.
This dealer had no serious shop so a nearby RV shop did warrenty
work and additions of options. So I went there after dealer
delivery and they fixed a few problem that I had been able to
identify. In general, these guys did a good job both on warrenty
stuff and extras I bought (Power Jack, etc.)
When I got home I found one item that I had missed, though I
suspect the dealer had spotted it. The drain connection from the
greywater tank leaked badly. I would only have found it had I
insisted that the drain tanks be filled to check. (I did that
with the water supply tank but only to test the water pump.)
I live on an island so I didn't go back to the shop. I fixed the
leak in about an hour.
Now after about 30 days of use the Aljo TT is doing just fine.
Ron Mayo - fishguy
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Ron Crowley
<crow...@ix.netcom.com> wrote:
>On Mon, 10 Jul 2000 22:15:20 -0700, Jmess <jm...@ftconnect.com> wrote:
>
>>I have been looking at a number of 19-22ft trailers.
>>Does anyone have info on how much the markup is
>>on new trailers. I expect the dealers to make money
>>but I would like to have an idea of how much.
>>
>>jmess
>>
>
>Only some manufacturers have an MSRP (suggested retail) which means
>that the markup can be whatever the dealer wants.
>
>For those that publish an MSRP, they generally use a 40% profit
>margin.
I will explain a 40% profit margin (actually, gross profit margin):
If I, as a dealer, purchase a trailer wholesale for $10,000 from the
factory, in order to gross a profit of 40%, I must add 66 2/3% . . .
or $6,666.67 . . . for a total retail price of $16,666.67. I can
simply multiply the wholesale cost by 1.67 (close enough).
If the manufacturer posts an MSRP (such as Fleetwood does) on that
unit it will be $16,666.67 plus delivery charge. Fleetwood dealers may
add other charges such as preparation.
To sell the unit with no trade, I *may* discount the unit 10% (first
offer). You will purchase it for $15,000.00. The salesman *may* get
25% of the gross profit or $1,250.00 leaving me with $3750.00. From
that profit I will need to subtract an override commission for the
sales manager (who are well paid) , wholesale finance charges, fixed
and variable overhead, etc., to arrive at a net profit.
If you trade, the 10% discount will be added to the wholesale value of
the trade.
Ron Crowley
Jmess
struggling with the quality and price of what I have been looking at. I
have
learned a lot over the last few weeks by surfing the net and reading
these news
groups. I went back through the brands I had been looking at and
eliminated all
but two based upon the quality that I could see in the trailers. Two
midrange
trailers appear to have reasonable quality in a midrange trailer. I
would say
what brands they are but I am sure someone would disagree with me.
I am now trying to figure out what is a fair offer for a year 2000
trailer vs
the new 2001s that are starting to show up. The trailers I am interested
all
have MSRP, including options and shipping, posted inside. It appears,
from what has been said, that 20-30% off of the sticker price is in
the ballpark
for an offer. I again expect the dealer to make money but I also don't
want to
spend more than I have to.
Junior Bodine
could get a big discount on a vehicle by paying cash. But nowadays, I hear
that the dealers make most of their profit on financing, so they want a
higher price on a cash purchase than if you finance it.
"Will R" <w3...@consultant.nospam.com> wrote in message
news:8d6mms8qaslvm64h5...@4ax.com...
> On Mon, 10 Jul 2000 22:15:20 -0700, Jmess <jm...@ftconnect.com> wrote:
>
> >I have been looking at a number of 19-22ft trailers.
> >Does anyone have info on how much the markup is
> >on new trailers. I expect the dealers to make money
> >but I would like to have an idea of how much.
> >
> >jmess
> >
insurman
the dealer gave me 22% off the MSRP. After thinking about it, I
think that I left a few points on the table.
WayneC
a great price by letting the dealer rake them over the coals on an usurious
interest rate and then paid the loan off the following week.
"Junior Bodine" <jbo...@usa.net> wrote in message
news:IxSa5.1866$s3.1...@typhoon.columbus.rr.com...
western...@gmail.com
> I have been looking at a number of 19-22ft trailers.
> Does anyone have info on how much the markup is
> on new trailers. I expect the dealers to make money
> but I would like to have an idea of how much.
>
> jmess
