RV dealers should have smiles on their faces because their net earnings were up 13% to 27% when the first nine months of this year are compared with the same portion of 2002, according to consulting firm Spader Business Management.
The largest dealers, those with more than $10 million in annual sales, experienced the largest increases, an average of 27%.
Meanwhile, midsize dealers, those with $5 million to $10 million in annual sales, saw their net income increase 13.3%, and small dealers, those with less than $5 million in annual sales, experienced net earnings increases of 13.9%.
The average large dealer earned $1,068,450 in the first nine months of this year, compared with $841,211 earned in the same portion of last year.
The average midsize dealer earned $418,280 in the first three quarters of this year, versus $369,229 earned a year earlier, and the average small dealer earned $198,688 in the first nine months, compared with $174,499 earned a year earlier.
The sharp earnings increases occurred despite modest increases in revenue from the sale of new RV units, Spader reports.
Large dealers generated the biggest increases in new RV unit sales revenue: 6% to an average of $10,225,379, versus $9,645,528 ingthe first nine months of 2002.
Meanwhile, small dealers posted new RV unit sales revenue increases averaging 5.1% in the first nine months to $2,034,094, compared with $1,934,874 a year earlier.
Revenue from the sale of new RVs increased an average of 3.5% at midsize dealerships to $4,351,743 in the first three quarters of this year, versus $4,203,904 in the same portion of last year.
Typically, RV dealers conduct 80% of their annual business in the first nine months of the year, according to Spader.