After a year in which their profits rebounded sharply, all categories of RV dealers reported small net losses in January, according to Spader Business Management.
Small and midsize dealers reported the biggest losses in January, which, typically, is one of the slowest months of the year for RV dealers and which is a month when dealers typically report net losses.
Small dealers, those with less than $5 million in annual sales. reported an average net loss of $25,262 in January, according to Spader, a consulting firm. That compares with a net loss of $17,192 in January 2002.
Meanwhile, the average midsize dealer, those with $5 million to $10 million in annual sales, reported net losses of $27,344 in January, compared with net losses averaging $22,548 in January 2002.
The largest dealers, those with more than $10 million in annual sales, reported, on average, the smallest net losses in January, $4,591. That compares with a net profit averaging $676 in January 2002.
Spader attributes this January’s net losses to lower amounts of sales revenue taken in by the dealers. At the large dealers, total sales revenue declined 11.8% in January, and at midsize dealerships, it declined an average of 4.2%. At the average small dealership, total sales declined 11.3% in January.
For all of 2002, net profits at the average large dealership increased 37.4% to $701,342, and at the average midsize dealership 27.5% to $270,981. At the average small dealership, net profits increased 38.6% for the year to $132,763.
However, because the dealer body’s net earnings in 2002 amounted to less than 4% of total sales revenue, Spader believes they operated at only a “survival” level.