Profitability at larger RV dealerships declined an average of 5.1% during the first half of this year, when compared with the same portion of last year, according to consultant firm The Spader Companies.
The average larger dealer posted a net profit of $254,357 during the first half of this year, compared with $267,902 earned a year earlier, the Spader Firm reports.
The Spader firm defines larger dealerships as having more than $5 million in annual sales.
The lower profits occurred almost in proportion to lower sales revenue and smaller inventories.
New RV sales revenue at the average larger dealership declined 6.3% during the first half of this year to $4,028,703 and used RV sales revenue slipped 4.1% to $1,452,774.
Meanwhile, two other revenue sources, F&I (finance and insurance) and services, scored sharp increases, the Spader firm reports.
F&I income at the average larger dealership ballooned 13.7% to $142,768 and service revenue climbed 5.7% to $354,526 during the first half of this year.
The value of the average larger dealer’s new RV unit inventory was 6.7% lower as of June 30 at $2,702,846 and the used RV unit inventory was 6.3% smaller at $635,509, the Spader firm reports.