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08-16-2017, 05:23 PM
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#1
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Crazy dealer pricing
Looking for a trailer. Why on earth do some dealers think their trailer is worth so much more than others. The trailer is listed for nearly identical prices all up and down the east cost and half of the south. Here they want thousands more and other places the prices seem to very with no real significance to delivery location for shipping. There are even a few lower advertised prices further west.
I won't go into some of the bull reasons that I was given by some dealers, but sheer idiocy of the pricing given the INTERNET tells me what it sells for virtually everywhere really irks me.
Supply and demand isn't really the answer, either given what we have seen and the time of year.
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08-16-2017, 05:32 PM
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#2
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Senior Member
Join Date: Jul 2014
Location: Solomons
Posts: 3,874
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I wish I knew the answer. When the price is close except the shipping then I can understand. I think some want to sell volumes making less profit on each and others sell fewer making more profit per unit. Some have expensive shops and staff others not so much. Bottom line is they can decide and they do so to maximize their profit margins.
2016 Passport GT 2810BHS, 2016 F350 CC DRW
__________________
Tom
2019 Alpine 3651RL
2016 F350 CC DRW
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08-16-2017, 05:33 PM
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#3
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Senior Member
Join Date: Jan 2014
Location: Winnipeg, Canada
Posts: 1,196
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Volume discounts and bargaining strategies probably influence the dealer's starting price.
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08-16-2017, 05:34 PM
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#4
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Site Team
Join Date: Feb 2014
Location: W. Texas
Posts: 17,692
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There are lots of variables in RV pricing....just as cars and homes. Identical houses priced in a "hot" spot vs "nowhere" can/will vary by hundreds of thousands of dollars. Same with RVs. You also have to factor in the delivery price when you start looking at prices far away from the manufacturers location. Then, some dealers are just "out there". YOU have to do the shopping and comparisons. Word of caution: One of the biggest considerations in buying a new trailer is service. RVs are not like car dealerships. They may or may not take you in if you didn't buy it there. Picking up an RV 1000 miles away to save 2k could cost you dramatically if you have a catastrophic warranty problem.
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08-16-2017, 06:00 PM
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#5
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Quote:
Originally Posted by sourdough
There are lots of variables in RV pricing....just as cars and homes. Identical houses priced in a "hot" spot vs "nowhere" can/will vary by hundreds of thousands of dollars. Same with RVs. You also have to factor in the delivery price when you start looking at prices far away from the manufacturers location. Then, some dealers are just "out there". YOU have to do the shopping and comparisons. Word of caution: One of the biggest considerations in buying a new trailer is service. RVs are not like car dealerships. They may or may not take you in if you didn't buy it there. Picking up an RV 1000 miles away to save 2k could cost you dramatically if you have a catastrophic warranty problem.
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The delivery portion would make sense if, GA, FL, UT, ID had the same or similar pricing. They have the trailer listed for less. NM is asking thousands more than local.
I am not worried about the service part. I have one the most talented local shops you can imagine that no longer sells, they just service and rent. I did have another brand dealer tell me he only works for "his" customers. Stupid business model and arrogant attitude won't get a dollar from me.
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08-16-2017, 06:08 PM
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#6
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Quote:
Originally Posted by Tbos
I wish I knew the answer. When the price is close except the shipping then I can understand. I think some want to sell volumes making less profit on each and others sell fewer making more profit per unit. Some have expensive shops and staff others not so much. Bottom line is they can decide and they do so to maximize their profit margins.
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Quote:
Originally Posted by slow
Volume discounts and bargaining strategies probably influence the dealer's starting price.
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I do get it is their business and decision, but I think they lose a lot of business by their business practices. I don't deal with car dealerships that act this way either.
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08-16-2017, 06:25 PM
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#7
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Site Team
Join Date: Feb 2014
Location: W. Texas
Posts: 17,692
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Quote:
Originally Posted by madmaxmutt
I do get it is their business and decision, but I think they lose a lot of business by their business practices. I don't deal with car dealerships that act this way either.
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They're not losing business - they are growing at unprecedented rates. You can run down the road to another car dealership selling "your brand" of vehicle and find them every 30-40 miles. And, unless you are buying at least 1, preferably 2-3 vehicles a year from ONE dealership, you get no breaks. RVs? Not so. I drive 60 miles to my dealer. If I want another Keystone/FR/Palomino etc. etc. it's another 2 1/2 hr. drive. They are making what people want....and they can do what they want.....if you want one. It's just that simple. Their business model is growing off the charts; WE are the ones that have to understand that and adjust.
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08-16-2017, 06:30 PM
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#8
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Senior Member
Join Date: Mar 2014
Location: Las Cruces
Posts: 4,665
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Manufacturers have a list price that dealers are not allowed to go under. You can tell that price pretty easy when you start seeing multiple locations across several states that show the same price. Some dealers choose not to start at that price because it gives them more room to move under negotiation. There are some manufacturers that offer dealers end of month deals as well, but that does not affect the authorized list price.
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Brent
2013 Alpine 3500RE
2019 Silverado 2500HD Duramax
U.S. Air Force Retired (25 yrs)
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08-16-2017, 06:34 PM
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#9
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Quote:
Originally Posted by sourdough
They're not losing business
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I can assure you, the two local dealers lost mine.
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08-16-2017, 06:56 PM
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#10
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Site Team
Join Date: Feb 2014
Location: W. Texas
Posts: 17,692
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Quote:
Originally Posted by madmaxmutt
I can assure you, the two local dealers lost mine.
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They will never know and won't care.
What you might do is actually go visit with them and talk turkey on buying one vs just reviewing on the internet. I buy lots of cars/trucks; you get all kinds of "stuff" thrown out when dealing on the phone or just "looking" on the internet. When you show up, face to face, the line sometimes changes.
They all have latitude to adjust the pricing, maybe they will and maybe they won't. Colorado Springs may just be a hot spot and they get asking price; I do know I get far better results sitting in front of them pushing my position than just looking on the internet and assuming that's the bottom line.
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08-16-2017, 07:01 PM
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#11
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Quote:
Originally Posted by sourdough
They will never know and won't care.
What you might do is actually go visit with them and talk turkey on buying one vs just reviewing on the internet. I buy lots of cars/trucks; you get all kinds of "stuff" thrown out when dealing on the phone or just "looking" on the internet. When you show up, face to face, the line sometimes changes.
They all have latitude to adjust the pricing, maybe they will and maybe they won't. Colorado Springs may just be a hot spot and they get asking price; I do know I get far better results sitting in front of them pushing my position than just looking on the internet and assuming that's the bottom line.
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Yes, I have been in several large and small dealerships. The only one that wanted to deal brought me a trailer, but it turned out the roof had some structural issues.
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08-16-2017, 07:07 PM
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#12
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Site Team
Join Date: Mar 2011
Location: Gaylord
Posts: 26,996
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Quote:
Originally Posted by madmaxmutt
I can assure you, the two local dealers lost mine.
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And there were 10+ purchasers behind you, waiting with cash in hand to buy what you rejected, so the dealerships could care less if you buy from them or not.
It really boils down to the old retail mantra, "Sell for what the market will bear". If you start an RV business in a community where the average income is 50K a year and also start the same business in a community where the average income is 250K a year, the pricing of your RV's can easily reflect the price the customer base will pay. In other words, you can charge more in the affluent community and still expect to sell more RV's.
There's another old retail mantra, "You can make more money selling 1,000 of your product for $10 than you can selling 10 of them for $1,000.
Some dealerships choose to follow the first mantra, some choose to follow the second. In today's market, both are going to make money, some will make enemies, some will make friends, but to most, their priority is making money and they place that above "how you might feel about their business practices"....
It goes back to the first comment I made, if you don't buy it, somebody else is waiting with cash in hand. You won't hurt the dealership by walking away. You'd be a "resentful customer" so they'd likely prefer to sell to a "happy customer" and in either case, somebody is going to buy it.
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John
2015 F250 6.7l 4x4
2014 Cougar X Lite 27RKS
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08-16-2017, 07:22 PM
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#13
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Senior Member
Join Date: Feb 2016
Location: SE Michigan
Posts: 1,659
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Quote:
Originally Posted by slow
Volume discounts and bargaining strategies probably influence the dealer's starting price.
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You're right on the volume discounts. Purchased my Bullet from a high volume internet dealer in western Michigan and saved an average of $2,000 on the price vs buying near my home in southeast Michigan. Was completely worth the savings as the additional 2 hour drive wasnt that much of an inconvenience. Never used my 1 year factory warranty anyways.
Now, if the prospective dealer were halfway across the country, I might have been inclined to buy locally.
Another consideration in pricing differences throughout the country is location of the selling dealer vs the manufacturing plant. A Florida dealers price point will reflect a larger 'destination' fee built into his pricing model vs a dealer located in Indiana.
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08-16-2017, 07:31 PM
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#14
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Senior Member
Join Date: Jul 2017
Location: Colorado Springs
Posts: 409
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Quote:
Originally Posted by JRTJH
And there were 10+ purchasers behind you, waiting with cash in hand to buy what you rejected, so the dealerships could care less if you buy from them or not.
It really boils down to the old retail mantra, "Sell for what the market will bear". If you start an RV business in a community where the average income is 50K a year and also start the same business in a community where the average income is 250K a year, the pricing of your RV's can easily reflect the price the customer base will pay. In other words, you can charge more in the affluent community and still expect to sell more RV's.
There's another old retail mantra, "You can make more money selling 1,000 of your product for $10 than you can selling 10 of them for $1,000.
Some dealerships choose to follow the first mantra, some choose to follow the second. In today's market, both are going to make money, some will make enemies, some will make friends, but to most, their priority is making money and they place that above "how you might feel about their business practices"....
It goes back to the first comment I made, if you don't buy it, somebody else is waiting with cash in hand. You won't hurt the dealership by walking away. You'd be a "resentful customer" so they'd likely prefer to sell to a "happy customer" and in either case, somebody is going to buy it.
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The market isn't as brisk as they would like. And the selling season is just about over at this altitude. Not too many happy campers Nov-Apr in CO
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08-18-2017, 04:48 PM
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#15
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Junior Member
Join Date: Jun 2017
Location: Southern MD
Posts: 19
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My Wife and I obsessed when looking for our 23rb. The deal is manufacturers have two different zones East and West. So a TT for your area would be built out west and the east coast are primarily built in the Mid west. So a TT built in Washington St. or Oregon would understandably be a bit more expensive. That being said, my wife and I noticed the West zone ones tended to be a bit better appointed.
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08-18-2017, 08:43 PM
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#16
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Member
Join Date: Aug 2016
Location: East Bay, CA
Posts: 30
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An out of state or long distance company would love your business and they have more incentive to lower their prices for you. Because new RVs will need maintenance it's very unlikely you're bringing your rig to them for repairs. They get the sale and none of the repairs headache.
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08-18-2017, 10:26 PM
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#17
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Senior Member
Join Date: Mar 2013
Location: Illinois
Posts: 581
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Warranty or any problem
Quote:
Originally Posted by sourdough
There are lots of variables in RV pricing....just as cars and homes. Identical houses priced in a "hot" spot vs "nowhere" can/will vary by hundreds of thousands of dollars. Same with RVs. You also have to factor in the delivery price when you start looking at prices far away from the manufacturers location. Then, some dealers are just "out there". YOU have to do the shopping and comparisons. Word of caution: One of the biggest considerations in buying a new trailer is service. RVs are not like car dealerships. They may or may not take you in if you didn't buy it there. Picking up an RV 1000 miles away to save 2k could cost you dramatically if you have a catastrophic warranty problem.
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Definitely consider Sourdough's words. We had several minor warranty issues, and a servicing dealer was about 220 miles away. Doesn't sound far, but consider the mileage you get taking your RV there and back, and then if you have to leave it for a week, you also have the return trip mileage. Even if it's only a one night repair, you may not be able to stay in the RV. When you consider the possible cost of a repair, and just getting the RV there could cost you easily $300-$400. If you are the kind that requires or demands the dealer fix every little thing, like a stripped out cabinet screw, you may be looking at 3 or 4 warranty trips. Yes, you deserve those repairs, but consider the cost. How much did you save from a closer dealer? Can you fix some of those minor issues? I usually fix the minor issues, but know I need the dealer for many repairs. Let me say, it ended up being cheaper taking our RV to a local guy (who will work on other RV's), and paying him for the repair, rather than hauling it 440 miles from home. My next RV was from a closer dealer - not local, but close enough to take for repairs without a huge expense of time and money.
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Ed & Mary
2017 Cougar 333MKS
2015 RAM 3500 HD with 6.4L
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08-19-2017, 04:40 AM
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#18
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Senior Member
Join Date: May 2015
Location: Near Saratoga Springs,
Posts: 1,131
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We started out looking at a Cougar 327RES. We found that one dealer in VT was thousands less then the local guy -- but for us, dang near impossible to easily get to for any possible warranty work. We decided it was not a really good deal. We then started looking at other brands including what we ended up buying. That dealer wasn't quite so far (125 miles) nor so difficult to get to for warranty work. We also looked at the same unit locally. For $7K less money, we chose to drive those 125 miles instead of 15. The 5er went back once for warranty work, all of which was really DIY things but decided it was worth the time and the few bucks. So, put your cost-to-you package together and decide what's really best for your needs and time frame. Do your homework well as you will find that many RV sales people, like many in the automotive sales force, are there only 'temporarily' while on the way to their next 'temporary' job, same as many of the RV service techs
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01-09-2018, 03:23 PM
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#19
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Member
Join Date: Dec 2014
Posts: 65
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Some great points here. Another thing to consider is you really need to get each dealers "out the door price". Some dealers bait you in with a low price on the internet but have high surprise fees and charges once you get there in the office to pay for it. Be sure to always ask a dealer for an out the door quote in writing.
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01-09-2018, 09:19 PM
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#20
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Senior Member
Join Date: Apr 2015
Location: nm
Posts: 1,833
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We shopped with rv trader and seen our impact at a local dealer . The price on the trader was very good. We drove 75 miles to look it and like the floor plane , then comes the negotiations the sale guy starting talking disclaimer which they for got to add in the advertising for the impact , look for disclaimers shipping and dealers prep.
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