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Old 08-16-2005, 12:47 PM   #1
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Could someone explain to me what the difference is between invoice & MSRP pricing?

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Old 08-16-2005, 12:47 PM   #2
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Could someone explain to me what the difference is between invoice & MSRP pricing?

Me & Hubby

2 Boys
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Old 08-16-2005, 01:21 PM   #3
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MSRP is the Manufacturer's Suggested Retail Price. This is based on what the builder thinks the unit is worth. Plus anything the seller wishes to add like "dealer prep", setup fees, "special coating on siding", etc, etc.
A creative seller and add thousands to a MSRP sticker.
Invoice price is the base unit with all the "extras" added up and totaled. Supposedly this indicates what the unit has and how much each component coss. But with a good printer I can run an invoice cost for anything that I want.
Shop and compare is how you learn about pricing. There is very little 'regulation" over RV prices. That is why you can find your "Dream Floorplan/RV" with prices varying as much as $5000.00 between dealers.
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Old 08-16-2005, 02:48 PM   #4
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MSRP is the price the manufacturer 'suggests' it be sold for. You should be able to get a new RV for 25% off of MSRP. Invoice is allegedly the amount the dealer 'paid for it'. But don't be fooled - often the manufacturer pays the dealer some more money for units which are sold (sort of a rebate to the dealer).

Options added to the unit by the dealer can increase the 'MSRP'. However, the extras pushed in the 'finance office' - finish protections, extended warrenties and the like - are independant of the MSRP, and you should be able to get at least 50% off the asking prices for these (some of which are marked up 1000%).
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Old 08-16-2005, 08:07 PM   #5
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I know you asked only about MSRP and Invoice. There is also dealer asking price. As someone before me said MSRP is the suggested retail price of the unit - often added to that are destination charges and any additional dealer profit or dealer installed extras.

Invoice price is the price the dealer actually paid for the unit from the mfg. The difference between these two is what the mfg expects the dealer to live on. Depending on the item the difference between these two numbers can be as little as 15% or as high as 40%.

RVs seem to be like the auto industry 30 yrs ago when all of these numbers are hidden.

Dealers will try to make additional profit by adding extra equipment, "Give" you a starter kit of goodies like batteries, sewer hoses, etc.
They also want to sell you finishes or ext warranties which they make 100% profit on.

Dealers can also make money by arranging for your financing - a bank may look more favorably on a dealer that sends lots of business their way. The same idea applys to the volume of business a dealer does with a mfg too. The more units moved, the more they can get - some dealers "own" thier inventory others finance it through a bank. The longer a unit is on the lot the more interest they have to pay.

I was able to deal on the unit I wanted because it had been on the lot quite awhile and they wanted to move it. It was also my wifes favorite of the 5 they had that day.

Bottom line - there are now internet RV brokers that like the auto brokers - claim to be able to sell you a rig just above invoice. These guys sell you the unit - no prep, no frills, etc. But getting a quote from them arms you when you start dealing on the lot.
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Old 07-05-2007, 11:34 AM   #6
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Well I have learned to spend the extra 500$ (or so) to buy from the local dealer. Why you ask well what I found out is that the dealer that I didn't buy from knows where my unit was purchased as well as when. So when I brought it to there service department they were telling me 5 weeks before they could service me. I told them that I had a trip that we (my family and I) had planed for months ahead and we needed to get the work done before we went. They again replied 5 weeks. I asked why it would take so long they said that "people who buy a rig from us have the (priority)" witch made me pretty mad. I then realized that its true if I would have purchased the rig from them I would have been the priority. So I now will buy from my local dealer.
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Old 07-05-2007, 02:48 PM   #7
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MSRP is a big lie. Invoice is a smaller lie.

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Old 07-07-2007, 04:52 PM   #8
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MSRP is a totally meaningless number invented by factories (and sometimes dealers) to make it seem like their discounts or trade allowances are better than they really are. The number has absolutely no other significance. The same holds true in cars, boats, busses, washing machines and so forth.

The only important number is how much money you have to spend to acquire whatever it is you want.
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Old 07-07-2007, 06:20 PM   #9
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35% seems to be the goal percentage under MSRP for buying a RV. We bought our current 5er for 37% less than MSRP.
The secret(if it is one) is to do all your homework first, then go shopping.These links explain it all.
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Old 07-08-2007, 08:17 PM   #10
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Sometimes dealers refer to these two prices as "retail" MSRP and "wholesale" INVOICE. I have found that most of them want to give you "wholesale" for your tradein and charge you "retail" for thier product. This holds true with most high ticket items.
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Old 07-09-2007, 11:18 AM   #11
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Invoice price is the price on paper that a dealer supposedly pays for a vehicle. It doesn't include holdbacks or dealer incentives or other rebates to the dealer by the builder. Thats how some dealers offer to sell at invoice. Just about anyone should be able to buy at invoice with some negotiations.
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Old 07-25-2007, 04:53 PM   #12
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">MSRP is a totally meaningless number invented by factories (and sometimes dealers) to make it seem like their discounts or trade allowances are better than they really are. The number has absolutely no other significance. The same holds true in cars, boats, busses, washing machines and so forth. </div></BLOCKQUOTE>

That is true for now, but a Supreme Court ruling earlier this month may change that and put some teeth in the manufacurers pricing.

"TWICE, 7/2/2007
WASHINGTON " The Supreme Court ruled Thursday in a 5-4 decision to make it easier for manufacturers to require retailers stick to minimum advertised prices (MAP), a move that could raise prices at retail, the dissenting justices said.

The high court's decision overrules a previous anti-trust statute that said MAP agreements were illegal. In the future courts will decide on a case-by-case basis whether the MAP agreement violates anti-trust laws.

"It is a flawed anti-trust doctrine that serves the interests of lawyers," Justice Anthony Kennedy wrote, adding the old legal standard required "manufacturers to choose second-best options to achieve sound business objectives."

Dissenting justices said the ruling would likely drive up retail prices."..........

"Richard Glikes, executive director of the Home Theater Specialists of America buying group, commented, "I've been around long enough to remember [the] Fair Trade [law]... which was actually a wonderful situation for retailers since it guaranteed full margin on the product. It created a very orderly market and the benefit was that everyone played on equal playing field."

Glikes backed the Supreme Court decision as "a good thing for retailers." "

And a bad thing for consumers! See full article here SC Ruling

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