The magnitude of the RV industry’s recovery during 2002 is indicated by the fact net profits at the average RV dealership increased from 28% to 38% when 2002 is compared with 2001, according to consultant firm Spader Business Management.
Smaller dealerships, those with less than $5 million in annual sales, reported the biggest increases in profitability, 39%, from an average of $95,823 in 2001 to $132,763 in 2002, the Spader firm reports.
Meanwhile, mid-size dealerships, those with $5 million to $10 million in annual sales, reported net profit increases of 28%, from $212,585 in 2001 to $270,981 in 2002.
And the largest dealerships, those with more than $10 million in annual revenue, also had reason to be happy. Earnings at the average large dealership increased 37% from $510,344 in 2001 to $701,342 in 2002.
The increases in profits occurred despite relatively modest increases in sales revenue.
For example, new RV unit sales revenue at the large dealerships increased 7% in 2002 to an average of $11,824,883. Total sales at the largest dealerships increased 6% in 2002 to $19,409,341.
In the case of mid-size dealerships, new RV unit sales revenue increased 15% in 2002 to an average of $5,030,640 and total sales climbed 13% higher to an average of $8,435,164.
At smaller dealerships, new RV unit sales revenue increased 12% in 2002 to $2,249,641 and total sales increased 8% to an average of $3,807,505, the Spader firm reported.