Expected discount

[jimandsue60]

I know that this is a very subjective question but anyway. If purchasing a new conversion such as a renegade from a dealer. Is it similar to standard motorhome discount for the cookie cutter machines? 20 to 28% off the asking price? I know everyone has to make a buck, but I want to keep as many as I can. What are your thoughts?

Jim

[KAYE RIVERCITY]

....In my experience the markup between manufacture's cost and dealers "MSRP"** is a factor of 5 -anotherwords a hundred bucks becomes 500 bucks on the other end....a lot of trailers are 45% markup with a 5% holdback from dealer....I figured that out by building my own and what I was quoted by the manufactures of several unites....seems fair enough- but I can't help myself -not paying all that profit....It's against my religion and the way I was raised......retail is a bad word....geofkaye

[Warpath]

Jim -

I truly don't think your going to be able to use that thinking when it comes to conversions.

There are to many factors in a conversion that do not equate to traditional cookie cutter motorhomes. The biggest being custom floor plan and on down the line.

I definitely don't think any of the middle of the road guys like Renegade, Show Hauler, NRC, Trendsetter, ect... are marking up anywhere close to 500%.

I will say that I do not see any kind of parity when it comes to pricing. Some dealers think they have gold on their lot and another is selling at a extremely low price. Also the used market is very volatile. Some racing teams are moving up or out and seem to dump rigs at extremely low prices to move them quick.

Do alot of research and try to get a average price from multiple dealers. Maybe than you can figure on a % off you could bargain with.

[Marc]

I really did not want to add my $.02 on this subject but I truly cannot help myself.

#1) Comparing a Custom Conversion on a REAL Truck to a "Cookie Cutter" Motorhome is Like Apples & Oranges. You cannot even speak about the two (2) completely differant vehicles in the same sentence, In reality you cannot even put them on the same page of the same book.

#2) Why in the hell is anyone worried about what kind of profit margin anyone is making??? I do not belive ANYONE on this site has any idea at all on what it takes in costs to operate a First Class Custom Shop. In Owning and Running a sucessfull private enterprise if you do not know what the exact cost to even put the key in the door and turn the lights on you will be out of business in less then six(6)
months.

#3) 500% Mark-Up!!!! Come on and get real,Kaye I enjoy reading your posts and do belive you are a very intelligent man with a lot of experience and respect a lot of what you have to say. BUT DAMN MAN YOU DONT KNOW EVERYTHING ABOUT EVERYTHING. If you did why in GODS name are you wasting your time and life on 3-4
websites that deal with this industry.Why dont you spend 2-3 million for a facility and tool it up to build these conversions the right way and in a year show me the 500% mark-up

#4) When the dust settles it all boils down to the HAVES AND THE HAVE NOTS!!!!! THE BOTTOM LINE HERE IS IF YOU WANNA PLAY YOU GOTTA PAY. YOUR IN OR YOUR OUT. ITS THE SAME AS ONLY BEING A LITTLE PREGNENT.

Talk about getting off of topic. OK I Am Finished Now. This was no doubt more then $.02

[jimandsue60]

Thanks for your thoughts.

Jim

[KAYE RIVERCITY]

....well marc, I am a multi-millionaire from working all my life/listening/working for/with those that have made a lot of money.....So I'll stand on the sidelines for awhile and read up on what said without passing comment.......sorry to offend you in any way-I just want to share what I have learned with out charging for my services[believe me when I say- I normaly do].....until I get this house in Fairfax, Ohio done and moved- I will not be doing any trailer/truck or conversion work as I'm too damn busy and I'll send any work that comes my way to WM in Indy for them to do-we have a cost plus agreement between us for referrals......It is a common business practice among seemingly competitors....geofkaye

[Marc]

A follow up to the previous post submitted by me on 4/10/06 @ 7:10 P.M. EST.

The statements made by myself in no way were meant to hurt,degrade,insult or critique anyone personnaly. It in no way raised any question of ANYONES MONETARY WEALTH, That was not even a issue.WHO THE HELL CARES HOW MUCH MONEY YOU HAVE!!
I DON'T CARE WHAT ANYBODY HAS,USUALLY THE MORE YOU TELL THE LESS YOU GOT. Did you READ the posting??? Where did it mention
multi-millionares??? I was only stating that there are not 500% MARK-UP'S. In today's day and age anyone can get whatever they want by signing on the bottom line of a 20+year loan and the chase is on.Then just keep your payment up every month with Full Coverage Insurance. Along with the reguler preventive maintenence, Tire's(as in flat & road hazards), Fuel costs, $50.00-$75.00 a/nite campgrounds, And of coarse we cannot forget those great word's "OH-S**T"(When tearing up 3-5K of FRP,Steel,Chrome ETC.) Or what "THE OTHER GUY DID" (Or your own self inflicted) "STUPID HUMAN ERROR/JUDGEMENT TRICK"

THE REAL DEAL HERE IS LIKE ANY OTHER BIG TICKET HOBBY/RECREATION PRODUCT. AIRCRAFT,BOATS,RACE CARS,HOT AIR BALLOONS ETC.

IT'S EASY TO GET,BUT KEEPING IT UP & UP-KEEP IS A BI**H !!!!!

[Warpath]

Well said Marc! Well said!

[Gary Atsma]

Suddenly the air seems a bit clearer...........

[KAYE RIVERCITY]

....whatever.....geofkaye

[fastlap]

Most retailers of this type start off with 20% ( national average ) of course this is off of true list price , not a trumped up list !
we work off of a 5% to 8% gross profit
Hold backs and early payment discounts are washed by insurance @(3%) and floor plan @ (variable %)

The best you can hope for is to get as close to 20% off as possible ! If you are getting more than that , it would be a red flag that the numbers are trumped up in the first place !

The higher priced units sometimes carry a lower discount usualy 10% -15%

factory direct means nothing because most dealers (not all) will be compensated for sales in there terratory reguardless

Timming is everything !! > When and how you purchase will make the most difference in the bottom line $$
the term wholsale is often misused !

Cash is king to the right manufacture but developing the trust necessary to take advantage of this wont come easy (I mean real cash )

I hope this helps t

[jimandsue60]

Fastlap, when you say timing, do you mean when the new model year is coming out? That seems hard to figure out, I am starting to see 2007 models being ordered already. As
for cash which dealers or mfg's does that make a difference to.

Thanks Jim

[KAYE RIVERCITY]

....if a high end custom built house is about $125 a square a foot......

[rjdhomes]

The mark-up on the conversions is probably less than most of you think it is. I've seen dealers sell for barely 5% over cost, not enough to stay in business if done very often. Many of the conversion dealers started out as trailer dealers making a few hundred dollars per unit, that may be one of the reasons for low margins. The conversions have traditionally been marketed towards racers, that may be part of the reason for low margins. If I make 10% margin, I think I did very good and I will be able to pay my bills and borrow enough to buy another unit for inventory. The best way to find out if you are getting a good deal or not is to educate yourself and compare numbers and options with some simple math. We do not get dealer hold back. I do not even look at retail prices, I start at cost and add what I think I need to make a profit and be here and still in business for my customers next year. If you think the conversion dealers are making 20% to 30% margin, you are wrong- try shopping around more.

Bob