Is your RV dealer just average? Find out
RV dealers are not all created equal, according to a report being marketed to industry by a company called ResearchandMarkets.com. Here is a brief overview the company provides about the state of RV dealerships in the USA.
More than 3,000 RV dealers operate in the U.S. with combined annual revenue of more than $15 billion. Most RV dealers are privately held; larger dealers include Freedom Roads, Lazydays RV Supercenter, and LaMesa RV Center. The industry is fragmented: the top 50 dealers account for about a third of industry revenue. Most dealerships have about 10 employees, but large dealerships can have more than 150.
Competitive landscape
Demand is driven by consumer income and U.S. population demographics. The profitability of individual companies depends on effective marketing and inventory management. Large dealerships have advantages in breadth of product line, repair center capability, and marketing efficiencies. Small dealers compete by providing superior customer service. Average annual revenue per employee is under $300,000 for small dealerships and more than $600,000 for large ones.
Products, operations and technology
Major products include new motor homes (about 35 percent of sales); used RVs (25 percent); and new travel trailers (20 percent). Other dealership services include repair and maintenance, sales of RV parts, and extended warranty service contracts. Some dealers, especially in northern climates, also sell snowmobiles or other products during the winter.
Most dealers have non-exclusive sales contracts with multiple RV manufacturers, although some carry just one brand. Individual dealerships can carry more than 20 different RV brands.
More than 3,000 RV dealers operate in the U.S. with combined annual revenue of more than $15 billion. Most RV dealers are privately held; larger dealers include Freedom Roads, Lazydays RV Supercenter, and LaMesa RV Center. The industry is fragmented: the top 50 dealers account for about a third of industry revenue. Most dealerships have about 10 employees, but large dealerships can have more than 150.
Competitive landscape
Demand is driven by consumer income and U.S. population demographics. The profitability of individual companies depends on effective marketing and inventory management. Large dealerships have advantages in breadth of product line, repair center capability, and marketing efficiencies. Small dealers compete by providing superior customer service. Average annual revenue per employee is under $300,000 for small dealerships and more than $600,000 for large ones.
Products, operations and technology
Major products include new motor homes (about 35 percent of sales); used RVs (25 percent); and new travel trailers (20 percent). Other dealership services include repair and maintenance, sales of RV parts, and extended warranty service contracts. Some dealers, especially in northern climates, also sell snowmobiles or other products during the winter.
Most dealers have non-exclusive sales contracts with multiple RV manufacturers, although some carry just one brand. Individual dealerships can carry more than 20 different RV brands.
posted by Chuck Woodbury at
9/04/2007 06:35:00 PM
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