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Old 12-04-2013, 08:55 AM   #29
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A chap at a dealer stated the gravy comes from the trailer/vehicle sales. The operational overhead costs of the entire operation are covered in the service and parts departments.

Kind of explains the $100+ per hour service charge for employees making just above minimum wage...
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Old 12-04-2013, 09:45 AM   #30
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I think it is structured like this. The numbers may vary, but the concept is:

Retail Sticker Price: $100,000
Average Selling Price: $80,000
Real Net Invoice Cost**: $70,000

Trailers are not purchased by the dealer. They are purchased by the dealer's bank. The bank charges a flooring charge for each month it is on the dealer's lot. The flooring charge is based on current interest rates, which are VERY LOW. For today, call it 2% a year. So, on a $70,000 invoice, they are paying about $120 a month to have it on the lot. When it finally sells for $80,000, the banker gives the dealer $10,000 minus all finance charges. Let's say 5 months at $120 a month = $600, so the dealer would get $9400 as his gross profit.

This is why they can have so many trailers on the lot. A good dealer with good credit can have as many trailers as they want. Banks are flush with money to loan.

I think a good dealer would need to be making about $10,000 or so on a big trailer. My dealer had more than 35 employees. That is a TON of overhead to be paid for, and we know there has to be a significant profit left over. Buildings, taxes, benefits, insurance, it really adds up. No dealer is selling any trailer at "cost" - that's an absurdity.

** Net invoice is not that phony paper they drag out to show the buyer. That invoice is a Gross Invoice. It doesn't represent rebates, promotions, dealer volume discounts, advertising allowances and many things that will reduce the dealer's payment.
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Old 12-04-2013, 12:05 PM   #31
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Usually when the customer foolishly allows the salesman to negotiate price including trade-in, rather than negotiating price first, then negotiating trade-in separately. The dealer gets the trade-in for almost nothing.
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** Net invoice is not that phony paper they drag out to show the buyer. That invoice is a Gross Invoice. It doesn't represent rebates, promotions, dealer volume discounts, advertising allowances and many things that will reduce the dealer's payment.
Hi, this pretty much covers how it works.
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Old 12-04-2013, 12:18 PM   #32
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We received an equitable deal locally from Airstream Adventures NW in the Portland area. We traded in a fifth wheel……even tho we "got a great deal", let's be honest: they had to make a sufficient profit to remain in business……BUT the main benefit for us is that we "bonded" with the sales and service departments ( even the owners--who are terrific folks) .

If I call and cite a problem, the service department will usually have me come in the SAME day! SERVICE and FOLLOWUP…..don't discount those advantages with your purchase. ZIGI
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Old 12-04-2013, 01:18 PM   #33
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My problem is that there are no Airstream dealers in Ga. for me to bond with. ...

Apparantly Georigians are too poor to support an Airstream dealership.
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Old 12-04-2013, 01:32 PM   #34
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Where in GA? Closer to which states? We drove 4 hours to by ours.
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Old 12-04-2013, 01:56 PM   #35
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My problem is that there are no Airstream dealers in Ga. for me to bond with. ...

Apparantly Georigians are too poor to support an Airstream dealership.

If someone lives in say ATL (just as an example) you are very far from any dealer...outdoorsmart, bates, foley.....they used to do a bit over there in anniston, AL, but dandy (as I understand) would not agree to keep enough on the lot for AS to continue to keep them on....

long drive- depending on where in GA, it could mean well over 5 hours or more to closest dealer?
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Old 12-04-2013, 02:03 PM   #36
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In the end if the deal suits you the papers will get signed or for some cash is exchanged. I for one focus on "my price" and what works for my budget. As long as I get to my goal the dealer can have whatever they make off the sale. I'm ITCHING to get to that point to close on a AS. I just need a little more time and it's off to the dealer lot to play the game.
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Old 12-04-2013, 03:06 PM   #37
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We've been to the AS in TNN. They had two Sports and four Flying Clouds. Flying Clouds are thier, 'Sweet Spot'.
Damn this addiction I've aquired. ....
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