Airstream dealer margin of profit

[Kistler]

Hi,

We recently purchased a 2002 Classic 25'. Was amazed to find out for the price ($52,000-that included tax & license) that I received no spare tire--just the rim AND it is not an Alcoa.

The salesman said something to the effect of "you'd be surprised how little we make--we make a lot more on lower priced brands".

Anyone have any idea as to how much "profit" the dealer made?

Kistler

[jcanavera]

I guess you have to look at the numbers of trailer that A/S produces in a year. Last summer they were making 15 a week. Now factor in vacation time, model change over, holidays. Divide up your calculated production by the number of dealerships. Now some sell more or less. Figure overhead for that dealership, finance costs etc. My gut feeling is that the markup is pretty good otherwise these guys wouldn't survive. Now the profit margin differs per line. I was told the Safari has the lowest spread between wholesale and retail.

Jack

[JaceBeck]

Kistler,
I think your dealer gave you the standard line about making nothing. My kids won't eat, you raped me, i'm entitled to make a living, don't you have a conscience, is your name Lucifer, etc. They make a ton on the motorhomes, a little less margin on the trailers, but still a huge profit compared to an auto. This can be comfirmed by the residual market value in the NADA blue bok after one year.

Last word I had was that the margin was about 25-33% on the Airstream Safari, but I tend to believe the lower figure. I can't say if the dealer also gets a "holdback" percentage of the stickerprice.

I bought my 1999 Safari new in 2000 at Minnesota's largest RV dealer (an Airstream dealer) after they sat on it for almost a year. I got it for $9,900.00 of the sticker and they were still smiling. I called several other dealers and asked if they could match it and they said yeas, but they would not make anything on it, so I figure I was close to cost on the deal.

That said, supply and demand are powerful and as Jack said, they don't make very many. I was in the right place at the right time. I'm not so sure I'll be as lucky the next time.
JC