Dealer Profits Up, Inventories Smaller
RV dealer net profits were up substantially when the first five months of this year are compared with the same portion of 2001, despite smaller new RV unit inventories as of the end of May at small and mid-size dealerships, according to consultant firm Spader Business Management.
The smallest dealers, those with less than $5 million in annual sales, experienced a 73% increase in net earnings during the first five months of this year to an average of $56,111, according to the Spader firm, which previously was known as The Spader Companies.
The largest dealers, those with over $10 million in annual revenue, also benefitted from a 49% increase in net earnings year-to-date through May to an average of $396,391.
The dealers with between $5 million and $10 million in annual sales also had reason to smile because their net profits climbed 38% higher during the first five months of this year to an average of $121,151.
However, only the largest dealers stocked bigger new unit inventories as of May 31, than was the case on May 31, 2001, the Spader firm reports.
New RV unit inventory, in dollar terms, was up 5% at the average larger dealership to $4,000,475 as of May 31, according to the Spader firm.
Meanwhile, new RV unit inventories were, on average, 7% smaller at mid-size dealers as of May 31 at $1,716,101. And new RV unit inventories at the average smaller dealership were down 6% as of May 31 to $1,006,161, the Spader firm reports.