Large RV dealers enjoyed really big profit growth in 2003 compared with 2002, according to consultant firm Spader Business Management.
Small dealers, which Spader defines as having less than $5 million in annual sales, experienced a modest 3.6% increase in net earnings to $137,510 in 2003, compared with $132,763 in 2002.
It was the large dealers, those with more than $10 million in annual sales, who watched their profits expand like a balloon. Their net earnings increased by 38.6% last year to an average of $972,324, compared with $701,342 in 2002.
Midsize dealers, those with $5 million to $10 million in annual sales, did quite well also. Their net profits grew by 26.7% to an average of $343,261 last year, compared with $270,981 in 2002.
Earnings growth at the large and midsize dealers was much more rapid than the growth in new RV units sales revenue at their stores, Spader reports.
New RV units sales revenue grew at about the same rate as net earnings at small dealerships last year. On average, new RV unit sales revenue grew by 3.4% at small dealerships to $2,325,172, compared with $2,249,641 in 2002.
New RV unit sales revenue expanded by 5% at the larger dealerships to $12,417,330 last year, compared with $11,824,883 in 2002.
At midsize dealerships, new RV unit sales revenue grew by 2.6% to $5,160,774, compared with $5,030,640 in 2002.