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 7/27/2002 7:43 AM
 
does anyone have any knowledge of the markup by dealers on a Winnebago Journey, Monaco Diplomat or Gulfstream Sun Voyager? We are going crazy looking at dealers where the numbers are all over the place. We're thinking the typical markup is 23 to 25% by dealers but am not sure if this applies across the board to all manufacturers. Any help would be appreciated.....
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 7/27/2002 7:46 AM
 
Jo, that is probably a pretty good number for a Winnebago product. Many of the others have even higher markups.
John Veach www.TheRollingHome.com

Libby and John and RV the CAT www.TheRollingHome.com 1999 Fleetwood Discovery 37V Unit 38 Fort Clark Springs Brackettville, TX towing a 2005 Chevy Colorado Z71 4x4 Click here to see our current location
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 7/28/2002 7:56 AM
 
I was speaking with my brother (sells cars) the other day about markup and he told me about a friend of his who recently changed from car to RV sales. I told him about folks here on the boards who have stated that anyone should be able to get 25-30% off of MSRP. He indicated that tracked with what his friend was saying, except it should be more like 35% off. When and if I make a new purchase, I'm going to offer what I think is a ridiculously low price for starters, and keep walking until it gets to the 30% range. Ya neva know! Phil, Joyce, and Charlie the Sheltie Eog; 96 Bounder 36S, full Banks, towing an 89 Honda Accord
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 7/28/2002 9:13 AM
 
Phil,
Don't get confused by the difference in "discount" and "mark-up." Lets look at a motorhome with a MSPR of $100,000. I like round figures.
(Discount) You can get a discount of 25% so you pay $75,000. ($100,000 x .25 = $75,000)
(Mark-up) The dealer paid $72,000 for the motorhome and marked it up 39% to $100,080 (Ok, close to $100K). ($72,000 x 1.39% = $100,080)
So you can see the dealer marked up the price 39% and you can buy it at a 25% discount from MSRP. If you offered 39% off MSRP or $61,000, the dealer would take a loss of $11,000 to sell it to you. ($72,000 - $61,000 = $11,000)
If you offer 25% off MSRP the dealer will make $3,000. ($75,000 - $72,000 = $3,000)


Norm www.SeeYa-DownTheRoad.com This message was edited by Norm on 7-28-02 @ 9:51 AM

Norm www.SeeYa-DownTheRoad.com
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 7/29/2002 3:21 PM
 
So does anyone know for sure what a dealer pays and what you should pay? I have heard that 25% off MSRP is a good price to shoot for. But if there is a sale on does that still hold? Also near the end of the model year could you shoot a little lower. Has anyone gone to a dealership and just for fun see how low you could get a motor home for? Just curious.
Jim P still in MN
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 7/29/2002 4:43 PM
 
There is an excellent book available titled "How To Buy An RV". Someone borrowed ours so I can't give you the author. I recall several points that can help insure you get the best price possible. Buy in a competitive market area, buy in the winter on a weekend during a snowstorm, shop other dealers' prices, shoot for 30% off MSRP. If you are successful in getting the price you seek, be ready to sign on the dotted line. If you are not ready to buy, don't waste the dealer's time because you are going to NEED him after the sale!
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 7/29/2002 8:00 PM
 
When you are discussing markup you need to determine what is the basis you will use for your calculations. Markup can be calculated based on retail (what people are refering to as MSRP) or you can use cost as the basis. The same numbers can give different markups depending on the basis.
For example: a dealer has a motorhome that has a retail price of $100,000. The dealer pays $60,000 for the unit. If sold for $100,000 the markup would be $40,000. Using retail as the basis the markup is 40%. $40,000 (markup in dollars) divided by $100,000 (retail). Using cost as the basis the markup is 66 2/3%. $40,000 divided by $60,000 (cost).
Same dollars but two different markup percents. There are times when a product does not have a MSRP. The dealer looks at their cost and determines the markup (based on cost) that they want.
I realize that this reply is getting long but there are some other things to say in this discussion. Many MSRP's on a lot of different products have become very overstated. Consumers are shown an inflated MSRP (supplied by the manufacturer) then they buy at a "big discount" and probably pay the same price if they just paid a real MSRP. Using the previous example. The dealer pays $60,000 and decides they need a $10,000 markup. The customer pays $70,000 for the motorhome. What difference does it make if the $70,000 was a "real" MSRP or an inflated $100,000 MSRP and the customer gets a 30% discount (pays $70,000).
So MSRP becomes a game of how big a discount did you get. I wish companies would go back to real MSRP's. The important thing is you can get this motorhome for $70,000.
There are other things in this discussion but my post is already very long.
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 7/30/2002 6:22 AM
 
Following Norms example, I like round figures also...you can find some dealers with certain motorhomes to give a 25% discount and make $3000 on the sale but that is not happening every day. You will read over and over again on the various boards how you SHOULD get a least 25 or 30% discount and how many people did.......You don't hear from the majority that paid significantly more then that. Add to that all the confusion when trades are added.
A dealer can't stay in business making $3000 per RV. First remember this is a low volume business, a car dealership sells more cars on a big weekend then many RV dealers sell in year. They pay over $400 a month just on interest for the loan on that RV, all the costs associated with the large land and building, and the normal people costs and commission for the sales rep. I would suspect they need to make $7000 on average to make a realistic profit.
If you can purchase an RV at 25% or 30% off great, but don’t feel bad when they won’t go that low on the model you want. Mike 2001 Four Winds Dutchmen 31Z www.mn-rv.com

Mike 2001 Four Winds Dutchmen 31Z
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 7/30/2002 10:30 AM
 
On a recent Itasca Suncruiser transaction, dealer quit talking at 22% off of sticker price. Walked out on that and got no calls from the dealer, figure he was at where he wanted to be and no lower.
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 10/12/2002 10:34 AM
 
I am interest in a 2003 trail trailer Prowler-LS.Which is in the $23,500 price range. What is the best per-centage discount I can expect to get from a dealer such as Lazy Days. Eben

Eben
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