The net earnings of RV dealers with more than $10 million in annual sales grew by a whopping 31.1% when the first 11 months of 2003 are compared with the same portion of 2002, according to consulting firm Spader Business Management.
The net profits of midsize and small dealerships also expanded during the first 11 months of last year, but by much more modest percentages, Spader reported.
The average dealer with more than $10 million in annual sales earned $1.14 million during the first 11 months of 2003, compared with $872,288 for the same portion of 2002.
Net earnings for dealers with $5 million to $10 million in annual sales grew by 6.7% during the first 11 months of last year to an average of $386,935, compared with $362,726 earned during the same portion of 2002.
Dealers with less than $5 million in annual sales saw their net profits increase 8% during the first 11 months of 2003 to an average of $188,407, compared with $174,446 in the same portion of 2002.
The large and small dealers increased their earnings despite relatively modest increases in revenue from the sale of new RV units, and midsize dealers’ profits grew despite a marginal decline in new RV unit sales revenue, Spader reported.
Dealers with more than $10 million in total annual sales saw their new RV unit sales revenue increase 6.4% during the first 11 months of 2003 to an average of just over $12 million, compared with $11.3 million a year earlier.
The average dealer with $5 million to $10 million in total annual sales actually experienced a 1% decline in new RV unit sales revenue to almost $4.9 million in the first 11 months of last year, compared with an average of $4.94 million a year earlier.
Dealers with less than $5 million in total annual sales experienced, on average, a 2.7% increase in new RV unit sales revenue in the first 11 months of 2003 to around $2.22 million, compared with about $2..16 million a year earlier, Spader reported.