Larger RV dealers reported higher net earnings during the first half of this year despite lower sales revenue because they slashed their personnel and advertising expenses, an analysis of data gathered by Spader Business Management reveals.
Larger dealers, which the Spader firm defines as having more than $10 million in annual sales, lowered their personnel expenses by 8% and the advertising expenses by 16% when the first half of this year is compared with the same portion of 2002.
Meanwhile, larger dealers, on average, reported their net earnings increased 9% during the first half of this year even though their total sales revenue declined 8% and their new RV unit sales, in dollar terms, dropped 7% during the period.
However, mid-size dealers, which the Spader firm defines as having between $5 million and $10 million in annual sales, reported slightly higher sales and sharply higher earnings during the first half of this year.
But with mid-size dealers, the spending report was mixed. They increased their spending on personnel by 2% but cut their advertising spending by 2%. Mid-size dealers’ net earnings soared 25% higher during the first half of the year even though their total sales increased only 2% and their new RV unit sales rose a relatively modest 6% during the period.
Smaller dealers, which the Spader firm defines as those with less that $5 million in annual sales, increased their ad spending by 11% and pumped-up their personnel spending by 4% during the first half of this year.
However, smaller dealers reported their net earnings declined by 9% during the first half of this year. Smaller dealers’ total sales revenue declined by 1% when the first half of this year is compared with the same portion of 2002, although their new RV unit sales increased by 1% during the period.