RV dealers’ wallets were quite a bit fatter after the first eight months of this year compared to the same portion of 2002, according to consulting firm Spader Business Management.
Through the end of August, dealership profits were up from 11.8% for the dealers with less than $5 million in annual sales, to an increase of 26.8% for the dealerships with more than $10 million in annual revenue, Spader reports.
The dealerships with $5 million to $10 million in annual sales did not do too badly either. Their net earnings were up 13.7% compared with the first eight months of 2002.
The average dealer with more than $10 million in annual sales earned $959,062 in the first eight months of this year, compared with $756,295 earned in the same portion of 2002.
Meanwhile, the average midsize dealer, those with $5 million to $10 million in annual sales, earned $386,383 in the first eight months of this year, compared with $339,736 earned in the same portion of last year.
The average smaller dealer, those with less than $5 million in annual sales, earned $192,725 in the first eight months of this year, compared with $172,432 earned a year earlier.
The sharp increases in net earnings occurred despite rather modest increases in new RV unit sales revenue.
At the average large dealership, those with more than $10 million in annual sales, new RV unit sales revenue was up 4.4% during the first eight months of this year to $9,137,267, compared with $8,749,047 a year earlier.
At the average midsize dealership, new RV unit sales revenue increased 2.9% through Aug. 31 to $3,885,716, compared with $3,776,196 a year earlier.
At the average small dealership, new RV unit sales revenue increased 3.3% in the first eight months of this year to $1,830,027, compared with $1,772,210 a year earlier.