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Old 09-18-2017, 07:35 PM   #1
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% off MSRP question

So I see stated that around 35% off msrp is a good target for negotiations.

My question is, what method of math do you use to get there?

Case in point.

Trailer has an MSRP of $45000

There are two ways to do this.

35% of 45000 is $15750

45000 - 15750 = $29250


Or there is option 2
Number x is original price then is marked up by 35%

45000 = 135% of original price.

45000 divided by 1.35= $33,333 (original price)


So which of these is correct?
When you say to start at 35% off msrp are we talking option #1 or are we saying the dealer marked it up 35% so let's remove that markup and then start.


I'll let you guess which one the dealer wants to use!

If I can get someone to 29-30 on this trailer I'll buy it. But right now I've got like 3-4 different people and they are all at 33-34.

Caleb
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Old 09-18-2017, 07:49 PM   #2
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....If I can get someone to 29-30 on this trailer I'll buy it. But right now I've got like 3-4 different people and they are all at 33-34....
Looks like that might be the going rate for the trailer then. The % is just a suggestion and no hard set price. I've also heard anywhere from 20-30% less than MSRP is a good price. Are you right or am I?

Being that it's getting into fall, if you're looking at 2017 units, they will likely come down in price to clear out for the 2018's. If it's a 2018 you're looking at, wait until Mid-November when the dealer is selling less and more likely to negotiate a deal to move a unit.

If the 3-4 dealers are that closely matched in price and within the same proximity to you, the extra few hundred bucks will be well spent on the dealer with the best service department and reputation!

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Old 09-18-2017, 08:08 PM   #3
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It's not a precise science nor an exact number. $33000 is about 27% of $45000. Local conditions and supply/demand is going to dictate things too. Just because someone in one state or part of the country gets 35% doesn't mean everyone across the US should expect that.

I think you had an earlier post that you had a local dealer that matched RVWholesalers. If this is the same trailer and RVWholesalers is at 33K along with locals, I think you've reached about the best deal you're gonna get. Maybe squeeze a couple of goodies out of them.

Mike
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Old 09-18-2017, 08:30 PM   #4
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It's not a precise science nor an exact number. $33000 is about 27% of $45000. Local conditions and supply/demand is going to dictate things too. Just because someone in one state or part of the country gets 35% doesn't mean everyone across the US should expect that.

I think you had an earlier post that you had a local dealer that matched RVWholesalers. If this is the same trailer and RVWholesalers is at 33K along with locals, I think you've reached about the best deal you're gonna get. Maybe squeeze a couple of goodies out of them.

Mike
Thanks Mike.

This is actually on a different unit. I found it last night but it looks like the $$ number just aren't gonna work for us.

I did have a local guy match RVW (well within a couple hundred dollars). So that's probably where I'm gonna end up at. That trailer is $25k instead of 34k! I just can't swing the difference.

I was hoping to get this one down to 29k and then I could justify it.


I just thought the dealers way of doing math was funny. I told him 35% off msrp and he hits me back with this crazy math saying he's almost there already.
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Old 09-18-2017, 08:48 PM   #5
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"Almost there" I guess is in the eye of the beholder. My way would have been same as yours. Take x% off, not option 2.

Maybe you can get a couple more grand off by (a) waiting a tad bit longer and/or (2) telling them you've decided on the other trailer because your bottom line is 29K. Who knows, they may call you back in a couple weeks.

Mike
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Old 09-19-2017, 06:53 AM   #6
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Option one is the correct one. As said % off MSRP will vary, some dealers will barely budge off MSRP while others will come down 20, 30, 35% etc. Both new trailers I have purchased I got 30% off actual MSRP. I say actual MSRP because some dealers will inflate the MSRP with fees and add ons. It can be a shell game.
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Old 09-19-2017, 01:26 PM   #7
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Here is a website you might be interested in looking at. This site will tell you what dealer cost is on just about everything including RV's.

Recreational Vehicles | See Dealer Cost
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Old 09-19-2017, 01:42 PM   #8
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Originally Posted by calebj06 View Post
Thanks Mike.

This is actually on a different unit. I found it last night but it looks like the $$ number just aren't gonna work for us.

I did have a local guy match RVW (well within a couple hundred dollars). So that's probably where I'm gonna end up at. That trailer is $25k instead of 34k! I just can't swing the difference.

I was hoping to get this one down to 29k and then I could justify it.


I just thought the dealers way of doing math was funny. I told him 35% off msrp and he hits me back with this crazy math saying he's almost there already.
Have you called RVW back to give them another stab at it or did you only offer that courtesy to your local dealer? I've been an RVW customer for going on 6 years now and highly recommend them. I think that if you're going to use their quote to haggle your local dealer you should at least be consistent and go back to them. My experience has been that they won't be under bid. And to your original question- 35% OFF means 35% OFF. Period. As in, OFF the MSRP price.
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Old 09-19-2017, 01:49 PM   #9
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Originally Posted by calebj06 View Post
So I see stated that around 35% off msrp is a good target for negotiations.

My question is, what method of math do you use to get there?

Case in point.

Trailer has an MSRP of $45000

There are two ways to do this.

35% of 45000 is $15750

45000 - 15750 = $29250


Or there is option 2
Number x is original price then is marked up by 35%

45000 = 135% of original price.

45000 divided by 1.35= $33,333 (original price)


So which of these is correct?
When you say to start at 35% off msrp are we talking option #1 or are we saying the dealer marked it up 35% so let's remove that markup and then start.


I'll let you guess which one the dealer wants to use!

If I can get someone to 29-30 on this trailer I'll buy it. But right now I've got like 3-4 different people and they are all at 33-34.

Caleb
The two times I have bought a trailer they had the sheet from FR (I assume it was FR's sheet, on company letterhead and contact info was alll FR corporate) in there that had the suggested MSRP of the trailer and the suggested MSRP price of all add ons and then there was a final number that just added both numbers together.

The dealers I bought from, both times, had this sheet supplied with the unit and their advertised sale price was exactly 28 below this price supplied by FR.

The first trailer I got him to 38 percent off the sheet price but I bought a EQ hitch from him (bought a leftover unit from the year before).

The second trailer I got 31 percent off but they threw in a 5er hitch for free and installed it for free (bought in July 2017, but it is a 2018 model).

I use 20-35 range, on a brand new model year they may only budge to 20% on a leftover unit I have seen people get over 40% off, it also matters with what freebies they throw in too. On my 5er they were willing to do the hitch (of my choosing up to 800) and the labor for the install free. This was after all the numbers were settled (so I feel it wasnt hidden in there somewhere).

Ultimately it doesnt matter how much off MSRP you get, it matters if you like the camper and if you are ok with the price. Really nothing else matters! I found out I could have saved 2k on my unit had I waited another month, but I dont care, I like my unit, I love my dealer and Im happy!
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Old 09-19-2017, 01:50 PM   #10
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From my experience, MSRP can be dealer manipulated. I've seen Dealer Invoices online where the same dealer posts invoices for the exact same unit and the MSRP for basic options is different. Also, time on the lot has a huge impact on where the dealer will negotiate. Lastly, is factory incentives offered to dealers throughout the year. Its the factory incentives that can impact significant Net pricing. For instance, the factory will offer discounts on a particular model if the dealer agrees to make that a show model at an RV show. This is why you can sometimes find a unit you've been shopping for a few thousand dollars more off at the show. Lastly, its trade-in amounts vary and introduce another item of difference. I traded a 2013 trailer that I shopped across the country (including RVWholesalers). Usual offer was 11,500 with a couple of dealers going to 12,500. One national dealer said he'd up his 12,500 bid to 15,500 if I would deliver it to his lot in California (I'm in Texas). In the end, my local dealer that was $5,000 less than anyone on the model I wanted, also offered a 16,500 trade. Basically, the extra $5000 was a show discount and the extra trade happened because he was able to see the condition my trade was in and he is also a dealer for that brand.

So my advice, shop the internet and get you best deal quote. Then go to an RV show with your trade inhand. Oh and 40% seems like a good start to me.
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Old 09-19-2017, 01:54 PM   #11
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I would think at least 30% off would be a mark. I also understand different RVs and different parts of the country dictate the selling price. No discount? = No sale to me.
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Old 09-19-2017, 07:14 PM   #12
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If I use my math on the other unit that I'm ready to buy I'm at 33% off msrp. I'm very happy there too!
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