Originally Posted by sparks1032
I rarely mind paying more to the RV dealer as ours (Barrington RV in Bartlett,Il) has taken care of us more times than not! What I don't like is going to the parts counter and getting a inflated price because we are not local!
We these hard economic times for RV dealers I am all for supporting the overall good guys! Nobody is perfect!
I agree with you on supporting the RV Industry and even more so, local businesses, but I also feel that pricing should be fair. In my two most recent projects, pricing from an "RV shop" just wasn't fair. I don't mind that a business makes a profit - heck they have to to stay in business, but is the markup of parts at a percentage of more than 60% fair to the consumer?
Using my 2 most recent projects as an example ...
#AM Equipment Motor
Price from AM: $39.75 + $11.20 shipping $50.95 total ($70.75 for overnight shipping)
Local RV Dealer: $89.95
Let's assume the motor costs the local dealer $35. At a retail price of $89.95 that's a markup of 61% or looking at it from the sale end, we're paying cost + 257%
#Outdoor 50AMP Outlet
Home Depot: $27
Camping World Sale: $54
Camping World Regular: $72
If we assume a cost of $20 for this part:
Home Depot: 25% markup, or cost + 135%
Camping World Sale: 63% markup or cost + 270%
Camping World Regular: 72% markup or cost + 360%
I don't know ... to me that seems like an awful high markup, and if you apply similar markups throughout the entire parts and retail store areas, that's quite a profit center. Yes I will agree that the markups might not be the same throughout an entire store AND yes the RV stores are stocking these items for our convenience, may have them on the shelves for years and may also be paying inventory and other taxes on the items on their shelves, plus overhead, but that still seems like high markups - especially for such a captive audience.
I spent many years in retail selling both to wholesale and retail audiences, and more than 12 years with one particular operation and if we priced out items out like that, that business never would have survived its 20+ years. Some things that drove competitive pricing in that industry were a larger customer base as well as more competition - at the end of the day, probably keeping more of us "honest" and sharp in our pricing. Maybe that is part of the problem here, not enough local competition to keep everyone "honest"
Ok I think that's enough of an unintentional thread hijack for me ... I'm open to keeping this discussion alive in its own thread.