what is the general mark-up on small TT

[rebelliousraven]

Hi my son is looking to get a small travel trailer for work .. something under 24 feet. I know what the mark-up is on the big 5th wheels but what should his bargaining point be with these small units? Some of them cost as much as a similar 34 foot quad bunk TT we bought a few years ago. We got about 35% off our 5th wheel. Is it about the same for these units.. not seeing them discounted as much.. thanks

[rana]

Around our parts you can still do okay if you hit them up near the end of the month.. and seeing how the "main season" is about over, I've seen some around 25% off. 20% is probably more typical though. If he could find a 2014 he likes he might get more haggle room.

[Kaadk]

We bought ours in the spring. Around here the dealers run a special every spring to clear out what's left of the previous year's stock. Got a 2012 in 2013 for around 9K less than they were asking for an equivalent 2013. They weren't offering the same deal in the fall.

[vinmaker]

Do a quick check with RV Wholesalers to get a quick run at typical cost for a similar unit. It will help.

[DDC]

In Canada it's as much as they can get out of you and there is no limit that they will not try to get.

[caper]

Plus the MSRP is a fictitious number that the dealer puts on the unit. We have two dealer that are within 80 miles of each other. Went to the first dealer and was in formed the MSRP was $38,000 and if I was to purchase the unit they would let it go for $32,000. Went to second dealer and could get the same unit for $28,000. The second dealer said the MSRP was $31,000. You have to do your homework and price around to find the best deal.

[Kaadk]

Originally Posted by caper

Plus the MSRP is a fictitious number that the dealer puts on the unit. We have two dealer that are within 80 miles of each other. Went to the first dealer and was in formed the MSRP was $38,000 and if I was to purchase the unit they would let it go for $32,000. Went to second dealer and could get the same unit for $28,000. The second dealer said the MSRP was $31,000. You have to do your homework and price around to find the best deal.

That's what I thought too, until I went to the FROG Rally. While there, we went to the Coachmen factory to take a look at a particular floorplan I was interested. Imagine my shock when the factory provided an MSRP! They of course stipulated that an MSRP is after all a suggestion, and that I'd have to deal with a local dealer to get their price, but it does confirm that in fact there IS an MSRP.

[blwnsmoke]

I found this website handy as far as getting invoice and MSRP. Not every make/model is on here but my 5th wheel that I have on order was. When talking with the dealer, the options I wanted to add matched up dollar for dollar with what this website shows.

Recreational Vehicles | See Dealer Cost

[vinmaker]

Originally Posted by blwnsmoke

I found this website handy as far as getting invoice and MSRP. Not every make/model is on here but my 5th wheel that I have on order was. When talking with the dealer, the options I wanted to add matched up dollar for dollar with what this website shows.

Recreational Vehicles | See Dealer Cost

Cool website. Thanks for sharing. It looks like there is about a 45% mark up on RV's. So if one can get a 30% reduction in price, then you would be doing pretty good and getting close to dealer cost.

[Rockwoodjoe]

Its hard to determine what the fair price is, especially if your trading in an older unit. Just like buying a car. Start to walk when they give you that rock bottom price and I bet they will Throw out another number. Never let them see to much emotion in your purchase.

[blwnsmoke]

Originally Posted by vinmaker

Cool website. Thanks for sharing. It looks like there is about a 45% mark up on RV's. So if one can get a 30% reduction in price, then you would be doing pretty good and getting close to dealer cost.

All depends on the make/model and what type of RV you are looking at but that seems about right.. My Coachmen that I ordered built the way I wanted it is as follows:

MSRP $57,587.00 Invoice $39,715.00 which is 31% discount to get it to cost and a 45% markup (exactly what you said).

When I did it stripped down, Base MSRP and base Invoice, it was still at 31% so this particular model has 31% across all options.

Not only that but I'm paying $39,200 for it Out the Door (no sales tax in my state) with all the extras thrown in (starter kit, TP, all water/sewer hoses, water pressure regulator and voltage regulator).

So clearly even at below invoice, they are still making money otherwise they wouldn't sell a unit below cost that is brand new straight from the factory. I'm sure they are getting rebates and kick backs that are not advertised like the auto industry.

[zippyzrx]

Make sure to run the make/model through the

RVT.com®: New & Used RVs For Sale: Travel Trailers, Motorhomes, Campers: Free Online RV Trader Classifieds.

It will give you good idea on price. You may even find a better deal...i did and saved over $10k!

[Jim Allen]

I used the See Dealer Cost site, dealer pulled out his price book and the invoice and MSRP matched what I had, we talked what was a fair price and got it done. That site was good for shopping, I was comparing 6 different brands and 11 models! Made it easier when I went to the dealer.

[BooBoo23]

The dealer will NEVER sell you anything that is less than what he has paid, will pay for it. I was a regional sales manager for a couple different manufacturers of commercial truck bodies for many years. It is generally known that a dealer has to make approximately 23% over his cost to stay in business. That is on an average and rarely is the selling price less than 20% over cost, usually made up in a lower trade-in value. What a lot of RV dealers don't understand is that the service, parts and used equipment is where the profit is. No one except the dealer knows the investment in used equipment and parts have a higher margin that whole goods and there is no negotiating over selling price. Just like many of you, you can get pretty close to what the dealer pays for a new product but that is about the only item you are able to figure out the price. A RV is hard to determine the actual MSRP because of all the add-ons and deducts. Most are different in some way.

In an automobile dealership the service department pays for most of the overhead, the lights, secretaries, water, telephones, etc. When a dealer charges $140 per hour for labor and pays the mechanic $18 (36 with benifits) there is still a little left over to pay the bills. The gross profit from the sale of a new car may pay the salesmans salary or commission but that is about all that comes out of that figure. The reason many of the dealers don't like warranty is because they are paid somewhere around 50% of their normal shop rate, not a big money maker. In the case of the companies I worked for the dealer was paid 60% of the normal shop rate for warranty which varied with the area, like the NE was more expensive than the midwest.

About the best you can do is comparison shop online and figure out what the best price may be for what you want and how it is equipped.

[Ham_Bone]

Originally Posted by BooBoo23

A RV is hard to determine the actual MSRP because of all the add-ons and deducts. Most are different in some way.

I'm not sure what you mean by add-ons and deducts. I'm assuming you are not talking factory available options, since that can be easily found and factored in.