Despite lower sales volumes, smaller RV dealers reported smaller losses during October 2000 than they incurred in October 1999, according to data gathered by the Spader Companies consultant firm.
Meanwhile, larger dealerships, those with more than $5 million in annual sales revenue, experienced a 61% decline in net profits during October, the Spader firm reports.
The average larger dealer earned $6,846 in October, compared with $17,374 earned a year earlier.
The average smaller dealer, those with between $1 million and $5 million in annual sales, lost $3,462 last October, compared with a loss of $4,110 in October 1999.
The smaller losses incurred during October 2000 shows the operators of smaller RV dealerships skillfully managed the lower sales volumes that have plagued the industry since the second quarter, according to the Spader firm.
The smaller dealer’s October sales revenue was down an average of 28% to $223,750 and, during the first 10 months of this year, the average smaller dealer’s sales were down 12% to $3,298,471.
The average smaller dealer’s net profit also declined 49% during the first 10 months of this year to $90,144.
Among the larger dealers, sales were down 11% in October to $864,520 and revenues were down 2% during the first 10 months of this year to $10,816,096, the Spader firm reports.
The average larger dealer’s profits declined 13% during the first 10 months of this year to $449,103.