Current discount to list price when placing order for Newmar diesel pushers?

[Neal]

In this market you have great opportunity if you have patience and know how to work with sales people. It is a buyers market! Be patient, be smart, play this poker game wisely and don't be narrow sighted on any one dealer.

 

[Underboss]

In this market you have great opportunity if you have patience and know how to work with sales people. It is a buyers market! Be patient, be smart, play this poker game wisely and don't be narrow sighted on any one dealer.

There is a dealer in AZ who has a 2023 Superstar on his lot a year now, a year (Jan 2023 it arrived) and he would not discount more than 20% Then you look at his site, he has at least 6 2023 leftovers that have been on his lot between the one from last January and now. None of the 2023 Superstars I have looked at the last six weeks have sold. Are they worth more when the tires grow roots?
Me, I would never buy anything that sat on a dealers lot that long unless he has really heavily discounted it and agrees to change all the batteries.

 

[JRS]

Personal opinion.....buy a custom ordered coach. Here is a short version of why.

It doesn't cost the dealer anything and is free money for them. They never had to pay anything to get that coach to their lot. You did all of the paying. When you do that, they are a bit more motivated to make a deal as it is free money for them.

The longer version.......Most coaches (cars, rvs and anything else on a lot) are there in 1 of 3 ways. The dealer bought them and owns them completely. The dealer paid some money and partially financed the rest. And the most common way, the dealer has a loan out and is paying interest only to have it there. They are always motivated to sell......however, when you custom order a coach, they never have to put down a dime because you are putting down the money. So they get what I call pass thru money. They will accept the coach on delivery, clean it up and do the paperwork and they get paid for this. At no time do they have to invest money for that coach. It is essentially free money for the dealership. As they have nothing invested, they seem more willing to make a deal that is great for the buyer. They usually don't even have to store it on the lot for more than a few days as you are most likely picking it up fairly quick. In addition to all of that, you will end up with exactly what you want because it is a custom order.

We did this for our coach and got about 33.5% off of the MSRP. As well as I could figure out at the time, the average 'good deal' was between 27% and 29% at that time. So We got about an extra 5% off. Also, do not be afraid of shopping around. You are spending a lot of money for this and are not tied to any particular dealer. It does not hurt if they know you are shopping around either.

Woah! Never heard of a new ordered Newmar going 33.5% off MSRP. What brand because nothing mentioned in your profile? Entegra's at the time we were shopping you could get that off.

 

[Underboss]

Woah! Never heard of a new ordered Newmar going 33.5% off MSRP. What brand because nothing mentioned in your profile? Entegra's at the time we were shopping you could get that off.

I believe you are correct. I believe that the markup on Newmars is in the 40 - 45% range. So lets do a 42% example of a $400,000k dealer cost, with dealer markup that comes out to $568,000. $568,000 less 30% = $397,600. So that's a loss for the dealer, the math does not add up. Stock purchase or factory order, the dealer has to make something to cover their overhead. Now if you are buying a leftover, there are incentives that Newmar available to the dealers and some dealers are not wanting a 2023's tires to grow roots.
Other brands have higher markups

 

[newmarokie]

I have seen mark up and margin interchanged at times. I am not saying that this is the case in the 40-45% conversation. However, if it is then that same coach would be priced at $689,655. At a 30% discount would be $482, 758. That would leave $83,000 profit for the dealer. Profit margin is a common number used in most retail sales, not mark up. Again, I am not saying because I don't know if this is the case. The $568,000 is a 42% markup, but at the same time a 29.5% margin. As you lay out the numbers, The 40-45% markup looks relatively accurate. A 30% margin is a common goal in retail sales with the exception of clothes and shoes.

 

[Underboss]

I have seen mark up and margin interchanged at times. I am not saying that this is the case in the 40-45% conversation. However, if it is then that same coach would be priced at $689,655. At a 30% discount would be $482, 758. That would leave $83,000 profit for the dealer. Profit margin is a common number used in most retail sales, not mark up. Again, I am not saying because I don't know if this is the case. The $568,000 is a 42% markup, but at the same time a 29.5% margin. As you lay out the numbers, The 40-45% markup looks relatively accurate. A 30% margin is a common goal in retail sales with the exception of clothes and shoes

I am a bit confused as to where you are getting the $689,655 when the example is a 400k dealer cost. 1.42 x 400k = $568k, not $689,555. Where are you getting that 42% mark up is $289,655? Thats a markup of 72%

 

[newmarokie]

$400,000/.6= $689,555. 40% of the sale price is profit(margin). Like my post says, the 568 price is a 42% mark up and a 29.5% margin. I agree that the numbers don't work for a 30% discount off of that number. But if it is a 40-45% MARGIN then a 30% discount would leave profit for the dealer.

 

[Underboss]

You are losing me. The dealer pays 400k for the coach and marks it up 40%. I have no idea where you are getting the 689 number from. You posted 400k divided by .6 = $666,666
Maybe those numbers are made on other brands, I am talking Newmar's

 

[newmarokie]

Yes, I wrote .6. Should have wrote .58. You used 42%, so I calculated /.58. And I guess I would ask how do you know how much Newmar or Newmar dealers marks their coaches up, exactly. As I said in my first post, many people use margin and mark up interchangeably. They are not the same. That is what I was getting at.

 

[Jabber Jaw]

Figures Lie, & Liars Figure! An old, old cliche' !
Reality is, most of these Dealers are living off of a 3%-5% gross profit margin!! Actual "NET" profit of the Dealer is more like 1 1/2%-2%.
Example: $400,000 cost factor, 5% profit margin would be $20,000

RV Dealer's would be "ecstatic" to live off the profits y'all are indicating!