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It’s important that an RV be priced correctly if a quick sale is desired.   But does this mean setting the same price as an identical RV at a local dealership?

Perhaps not.  It’s important to recognize that local dealerships have a number of competitive advantages that individuals sellers don’t have.  Some the these advantages include the following:

1. Number of RV’s from which to choose.  A dealership may have a 100 or more RV’s from which to choose, while an individual will only have one RV.
2. Service after the sale.  If a problem develops with an RV purchased from a dealership, the purchaser may have better luck getting the problem resolved for a better price than if the purchaser bought an RV from an individual.  This is especially true if the dealership is providing a warranty.
3. Dealer financing.  An RV dealer may be able to provide below market rate financing, which normally would not be available when an RV is purchased from an individual seller.
4. Perceived Expertise.  As the local dealer is in the business of selling RV’s, there may be a desire by individuals (especially those new to RV’s) to purchased from an “expert”.

RV dealers know that these are important attributes to an RV sale, and that they can command a premium in the price for these advantages. 

In setting the RV sales price, individual RV sellers should recognize that these RV dealer advantages exist, and that they may need to price their RV lower than a comparably priced RV at a local dealership. 

A good question for an individual seller to ask themself is how much they would be willing to pay for identical RV’s - one of which would be bought from a reputable dealership, and the other from an unknown stranger whom they are likely to never see again.  In all likekihood, most people would choose to pay more for the RV from the dealership for the reasons noted above. 

Additionally, because many buyers look at the sales price in terms of the monthly payment (rather than the over-all price), a $500-1,000 difference in sales price might only equate to $15 or so in the monthly payment.

To combat some of these dealer advantages, an individual might consider purchasing an extended warranty to give the potential buyer added comfort.

This entry was posted on Wednesday, January 17th, 2007 at 9:17 am and is filed under How to Price Your RV Correctly. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.