Larger RV dealerships averaged net profit increases of 5.3% during the first 10 months of this year, when compared with the same portion of 2000, according to The Spader Companies consultant firm.
The average larger dealer, which the Spader firm defines as those with more than $5 million in annual sales, had net earnings of $472,825 during the first 10 months of 2001. That compares with an average of $449,103 earned during the same period a year earlier.
Sales revenue and new RV inventories also were up at the larger dealerships, but by smaller percentages than net profits, the Spader firm reports.
New RV unit sales revenue at the average larger dealer increased 3% during the first 10 months of this year to $6,791,544. Meanwhile, total dealership sales increased 4.2% during the period to an average of $11,271,110.
New RV unit inventory values were up 2.3% as of last Oct. 31 to $2,66,380, the Spader firm reports.
Larger dealers clearly benefited from lower interest rates. Interest expenses during the first 10 months of 2001 averaged $179,726, an amount that is 13% lower than was the case during the first 10 months of 2000.
Heading in the opposite direction was spending on advertising. The average larger dealership raised its advertising spending 4% to $145,240 during the first 10 months of this year. Personnel expenses also climbed 7.7% during the period to an average of $1,065,408.