Pricing expectations - Page 2

artgpo · 02-16-2013, 02:58 PM

I am close to to what Tom N said. I came up about $1,000. My number is based on a 27% markup. You shoule be able to make the deal for about $88k.

BTW: No dealer ever "throws something in" the deal. Everything you get you are paying for. Without a resource like Edmunds or Kelly Blue Book for RVs we are mostly in the dark as to dealer cost. But, just as with a new car dealer the rule for an RV is ALWAYS negotiate up from dealer invoice and not down from MSRP.

toneumanns · 02-17-2013, 09:46 AM

We got ours for 30% off MSRP. That number was the same number the dealer paid to get the unit off of Winnebago's lot.

nomansland · 02-17-2013, 06:12 PM

My thinking is; The so called RV show incentives, special show pricing etc is something that can be had at any time. They really do push this "only available now" pricing and I think it is a sales gimmick to pressure you into buying. Please correct me if I am wrong. I like to buy when I'm ready and I prefer to order rather then buy off the lot.

ralphie · 02-17-2013, 06:42 PM

I'd start my opening salvo at 40% off MSRP. Sure, they can laugh at you, but it's a negotiation; they can counter. The problem is determining what the MSRP really is. If you can get them to provide their build list to you that would be great.

I was recently negotiating with Lazy Days in Seffner for a used 2013 (yes, a 2013 unit) and after we balked at the price the sales manager showed me the build list of options and what it listed for when they sold it new. He offered that if the original purchaser bought it for 30% off MSRP, then he should have paid X, and the price I could get it for was X, which was a fairly good deal. The point being the sales manager was acknowledging the unit originally sold for at least 30% off MSRP, and I do believe he was being forthright with us.

A good negotiator can get a good deal if the timing is right, like at the end of the month, and still leave the dealer with a fair profit. They called me three times before the end of the month and even sweetened the deal by throwing in a truck for their trade in cost, which was no less than $10K below NADA retail book. While the package price was good, IMHO, we had already determined there were a couple of floor plan issues with the unit that didn't quite fit our requirements, so we passed. Bottom line: don't be intimidated by the seller.

dsbike · 02-17-2013, 06:54 PM

Quote:

Originally Posted by nomansland

My thinking is; The so called RV show incentives, special show pricing etc is something that can be had at any time. They really do push this "only available now" pricing and I think it is a sales gimmick to pressure you into buying. Please correct me if I am wrong. I like to buy when I'm ready and I prefer to order rather then buy off the lot.

We would have ordered and was prepared to do so. We even had a build list decided on. Then we found the one on the lot that had everything we were going to order plus an outside entertainment center for the price we had already decided was our limit. And we didn't have to wait 4 months.

njs42 · 02-17-2013, 07:39 PM

The dealer will not sell it at a loss without good reason, and if they do so what. So make as low an offer as you wish, embarassingly low. It does no harm and the after conversation begins to tell you what you need to know. If they know you are serious and capable of buying then you are in control.

avid_dk · 02-17-2013, 08:17 PM

Quote:

Originally Posted by ralphie

I was recently negotiating with Lazy Days in Seffner for a used 2013 (yes, a 2013 unit) and after we balked at the price the sales manager showed me the build list of options and what it listed for when they sold it new. He offered that if the original purchaser bought it for 30% off MSRP, then he should have paid X, and the price I could get it for was X, which was a fairly good deal. The point being the sales manager was acknowledging the unit originally sold for at least 30% off MSRP, and I do believe he was being forthright with us.

Ralph,

I having difficulty following the math here. Would you add some hypothetical numbers to the equation to make it easier to follow? Purchasing a used current year model is an interesting proposition to me. It seems like Lazy Days has units like this. Are these demos or what in your opinion?

t55watson · 02-17-2013, 08:28 PM

It's a Lazy Daze Sales gimick to make the buyer think it is the best deal ever.
Ask to see the ORIGINAL title from the 1st owner. They won't produce one, because there never was one.

motohomer · 02-20-2013, 11:40 AM

We bought our used 2012 in Feb 2012. It had 3K miles and 8 months of house warranty left.
- The Carfax will show the registration history. Never buy a used vehicle without it.
- Also get the repair/warrenty record from the house & chassis vendors (Winnebago & Freightliner in our case)

Regarding price on a used anything, the previous prices paid have zero meaning on the current transaction. What the market & each party is willing to sell/buy for right now is all that matters.

GingerNinja · 02-20-2013, 10:58 PM

2 good books on this subject: RV Buyers Survival Guide by Bob Randall and Buying A Used Motorhome by Bill Myers. Both are quick reads and full of great insight.

ralphie · 02-21-2013, 06:56 AM

Quote:

Originally Posted by avid_dk

Ralph,

I having difficulty following the math here. Would you add some hypothetical numbers to the equation to make it easier to follow? Purchasing a used current year model is an interesting proposition to me. It seems like Lazy Days has units like this. Are these demos or what in your opinion?

I may have tossed out the build sheet since we didn't purchase the FW, but I'll report back if I find it. And, as Watson stated, it may have just been a LD gimmick. In addition to the floor plan issues for us, I though the FW was still priced about $2k above what is was worth, and we never got making our final BAFO.

avid_dk · 02-21-2013, 10:37 AM

Ralph,

I wasn't asking for exactly specific details more like generalities. I have been wondering given the first buyer pays 70% of MSRP then what is the discount the second buyer receives. Since a dealer was suggesting these figures it seemed like something I should know.

I am trying to figure the used MH buyers rule of thumb to go along with the new buyers one that is repeated here at least once a day. "When buying a new motorhome start negotiations at 25-30% off MSRP." Does one discount the original MSRP 30% and then the used buyer takes X% off that price. I am wondering what X is. Realizing there are other factors such as condition, mileage, availability and such involved.

dsbike · 02-22-2013, 08:43 AM

When I bought my used motor home in 2008 I bought it for 25% off NADA used price.

When I traded it in last month, I bargained the new unit at 27% off msrp and the trade in at 25% off of NADA used price. This was at the same dealer both times, different salesman. Actually I did not bargain on the trade in. They offered what I wanted, I was happy, I also traded in my 1976 MGB with 400 miles since I did a rebuild/restoration. On the MG I gave them a price I wanted and told them it wouldn't leave my garage for anything less. They first offered me less then I just gave the salesman a look, he immediately said OK to my price. All in all this was a very easy transaction. I am sure the dealership and the salesman both made money, my DW and I were happy. We got what we hope will last us 15 - 20 years, sold the sports car and are one step closer to being full timers.

motohomer · 02-22-2013, 09:43 AM

NADA low retail (without options) should be your target price for used trade-ins or purchases. Anything under on a purchase, or over on a trade, is probably a decent deal.
Remember, a new 2012 will sell at a different price in July 2011 v. July of 2013. What matters is what are they are selling for today. (They were giving them away in the winter of 2008-2009. THAT was the time to buy).

Another reason to check the chassis and house build dates. Your NEW motorhome may be 2 years old already. And is overdue for for maintanance.

forest · 02-26-2013, 01:02 PM

Ok, someone needs to do some calculating here.

If it is believed that MSRP is invoice plus 40%, then a coach that invoices at $100,000 would MSRP at $140,000. If you subtract 30% from $140,000, that gives you $98,000.
Pretty bad business plan for a dealer.

Hikerdogs · 02-26-2013, 03:21 PM

Quote:

Originally Posted by forest

Ok, someone needs to do some calculating here.

If it is believed that MSRP is invoice plus 40%, then a coach that invoices at $100,000 would MSRP at $140,000. If you subtract 30% from $140,000, that gives you $98,000.
Pretty bad business plan for a dealer.

Most retailers don't use that method of retermining the markup percentage. Here's a snipet from a retailers guide to "Finding the Right Price for Your Retail Products"

The Ethics of Markup
Even though there is no hard and fast rule for pricing merchandise, most retailers use a 50 percent markup, known in the trade as keystone. What this means, in plain language, is doubling your cost to establish the retail price. Because markup is figured as a percentage of the sales price, doubling the cost means a 50 percent markup. For example, if your cost on an item is $1, your selling price will be $2. Fifty percent of $2 is $1, which is your markup.

The entire article can be found at:
Finding the Right Price for Your Retail Products | Entrepreneur.com

beenthere · 02-26-2013, 03:39 PM

i own a hobby store and what you explain we call the golden rule....so many people think the oppisote...the figure if your cost is $10 and you sell for $20 then you made a 100% profit....well that doesnt work as you only made 50% as, if you made 100% then you had to get it for free....i'm glad someone knows this...

Quote:

Originally Posted by Hikerdogs

Most retailers don't use that method of retermining the markup percentage. Here's a snipet from a retailers guide to "Finding the Right Price for Your Retail Products"

The Ethics of Markup
Even though there is no hard and fast rule for pricing merchandise, most retailers use a 50 percent markup, known in the trade as keystone. What this means, in plain language, is doubling your cost to establish the retail price. Because markup is figured as a percentage of the sales price, doubling the cost means a 50 percent markup. For example, if your cost on an item is $1, your selling price will be $2. Fifty percent of $2 is $1, which is your markup.

The entire article can be found at:
Finding the Right Price for Your Retail Products | Entrepreneur.com

FDC · 02-26-2013, 06:34 PM

If you are doing your financing through the dealer they may take a loss or break even on the front end. They make HUGE markups on the financing resulting in big margins on the back end. Negotiate your best deal and provide your own financing if possible. Maybe at first let them think you will use there financing while getting there best price, then after you agree on price the next day tell them you are gonna bring them a check and hold there feet to the fire on the price.