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10-31-2014, 06:58 AM
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#1
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Senior Member
Newmar Owners Club
Join Date: Aug 2013
Location: Dunedin FL
Posts: 178
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Dealer Cost
In one of these posts there was shared a % factor that you can use to calculate what the new RV dealers cost is on a unit by multiplying it X the MSRP and for the life of me I cannot find it again. Anyone?
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10-31-2014, 07:09 AM
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#2
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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The dealer cost will be different for different brands. For example, Entegra has a higher dealer margin than Newmar and, I believe Tiffin.
__________________
2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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10-31-2014, 07:29 AM
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#3
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Senior Member
Newmar Owners Club
Join Date: May 2007
Location: Somewhere....
Posts: 4,054
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And it's not necessarily the same markup on different models from the same manufacturer. And higher volume dealers might get better pricing then low volume dealers.
__________________
2008 King Aire 4562, Spartan K3(GT) w/ Cummins ISX 600
2014 Jeep Grand Cherokee Overland 5.7L V8 Hemi w/ Blue Ox Aventa LX Tow Bar and baseplate, SMI Air Force One brake
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10-31-2014, 07:35 AM
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#4
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Registered User
Join Date: Sep 2014
Location: West Seneca NY
Posts: 25
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Quote:
Originally Posted by FlyingDiver
And it's not necessarily the same markup on different models from the same manufacturer. And higher volume dealers might get better pricing then low volume dealers.
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You are correct
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10-31-2014, 09:22 AM
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#5
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Senior Member
Ford Super Duty Owner
Join Date: Oct 2014
Posts: 184
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When I was a coach tech at Beaudry RV here in Tucson, I saw an invoice for an American Eagle (around 99-2000 model, I think). The window sticker was $275,000, and the invoice was $182,000, or at least that's close. That is on hellofa mark up. I'm sure that's not the same % mark up on all coaches, but WOW!! That was enough to make me know then, that I'll never buy a new coach.
On a side note, I saw a bunch of luxury coaches go off the lot, only to return in about 2-3 months because they couldn't afford it. Then the price of the few month old coach is $200,000 instead of the 275 sticker.
Those guys were serious sharks, obvious by these kinds of actions......and you wonder why they're out of business now?
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10-31-2014, 11:11 AM
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#6
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Senior Member
Join Date: Oct 2002
Location: Madison, MS
Posts: 10,527
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Quote:
Originally Posted by BigBlockTank
When I was a coach tech at Beaudry RV here in Tucson, I saw an invoice for an American Eagle (around 99-2000 model, I think). The window sticker was $275,000, and the invoice was $182,000, or at least that's close. That is on hellofa mark up. I'm sure that's not the same % mark up on all coaches, but WOW!! That was enough to make me know then, that I'll never buy a new coach.
On a side note, I saw a bunch of luxury coaches go off the lot, only to return in about 2-3 months because they couldn't afford it. Then the price of the few month old coach is $200,000 instead of the 275 sticker.
Those guys were serious sharks, obvious by these kinds of actions......and you wonder why they're out of business now?
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Actually it sounds pretty typical to me. It is "common knowledge" that the MSRP provides a dealer with around 35-40% "markup" over their actual cost, depending on model and options.
How else do you think dealers can sell at 25-30% off MSRP, and stay in business? Granted, that 10-15% of MSRP they keep for salesman commission, operating costs, and profit can easily be more than $10,000.00 per coach, but that is why high-volume dealership are so successful.
I never did understand how Beaudry wasn't profitable, but I thought their "landlord" was a big reason for the Bankruptcy.
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10-31-2014, 12:21 PM
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#7
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Senior Member
Entegra Owners Club
Join Date: Jan 2001
Location: Cape Cod, MA
Posts: 1,801
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A few years ago I was able to compare invoice & list on Winnebago Adventurers and Journeys. You got the invoice by multiplying the list by 71.34%.
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Jeanie, Ed & Slade the GSD(RIP)
Cape Cod, MA
2017 Entegra Aspire RBQ & Silverado Crew or GC
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10-31-2014, 12:34 PM
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#8
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Senior Member
Join Date: May 2014
Posts: 3,059
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I think what you are refering to is to divide the msrp by 1.4 and you are in the ballark for what it cost the dealer. That is not including any rebates or manufacturer incentives the dealer may get that you don't know about. The same pretty much works for the markup on used MH's too( my brother in law has a new trailer and used MH store).
For example if the msrp was 170,000 then you divide by 1.4, that equals $121,428 that is what the dealer's cost is. Again this is pretty much ballpark, but is somewhat accurate depending on the manufacturer markup. Ours was pretty close as our dealer had no problem showing us his invoice ect, now he may have had some incentives from Newmar, but we still got ours for several thousand below the closest competitor so we were happy.
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Mike & Charlotte
2014 Newmar Canyon Star 3610
Orange County, California
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10-31-2014, 01:09 PM
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#9
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Senior Member
Join Date: Mar 2011
Location: Kerrville, Texas
Posts: 402
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I've been trolling around on a new (2015) Winnie Journey and seeing a discount of about 25% before any horse-trading starts. That kind of surprised me, as I thought the market had rebounded some.
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Niel & Carol Powers
Entegra Qwest 24R
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10-31-2014, 01:23 PM
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#10
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Senior Member
Join Date: May 2014
Posts: 3,059
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We got about 27% discount on ours which left the Dealer with about a $4000 profit(according to his invoice) plus any incentives he got from Newmar. Using my calculations in my previous post it was only about $400 off, so that is a pretty close estimate. The percent off msrp will vary due to manufacturer markup, but then some manufacturers don't give rebates or incentives to the dealer so it all pretty much washes out the same in the end. You have to really shop the price, we saved about $6000 from the nearest competitors "bottom line" price, and felt we were getting a fair deal based on the dealer showing us his invoice and what other dealers were trying to get us to pay for the unit equiped pretty much with the same(or less) equipment.
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Mike & Charlotte
2014 Newmar Canyon Star 3610
Orange County, California
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10-31-2014, 05:11 PM
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#11
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Senior Member
Monaco Owners Club
Join Date: Jun 2014
Posts: 14,591
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This is a little dated but in 1997 I attended an auction of a local RV dealer who was liquidating stock. He had popups, travel trailers, 5th Wheel, Class C's & Class A RV's at the auction. Just by chance me and my wife had been looking at buying a Class C. A 31' Georgie Boy Maverick came up for auction and after the auctioneer begged/pleaded to get a higher bid I bid $36K and got the Class C. After I got done signing the paperwork and was inspecting my new purchase the owner of the RV dealership came up to me and said that I got a good deal, basically dealer invoice, he showed me the paperwork. The MSRP for the Class C was +$56K. The markup was ~35%.
BTW, my wife was out of town & when I called her to tell her of my acquisition she was screaming with happiness on the other end of the phone, she was at a dog show with all of her friends.
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Jim J
2002 Monaco Windsor 38 PKD Cummins ISC 350 8.3L
2005 Jeep Grand Cherokee w/5.7 Hemi
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