Dealers,how much do they want to make! (1 Viewer)

Dec 18, 2011
745
507
Hull
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19,200
MH
Autotrail 634
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Since 2006
as always at this time of year with shows coming up,I dipped my toe in the water and made a few enquiries about trading in for a new van.I can only describe as flabbergasted what I was told.The first offer on my van was £16000 less than I paid for it 2 years ago and the dealer openly admitted they would put about an £8000 mark up on it.It still has a years manufactures warranty left.It also has stacks of extras but,surprisingly,add little or no value to the van.When a previous van was delivered to me,it mistakenly included the original paperwork from the manufacture.This showed a mark up of over £8000 to the dealers asking price.Am I missing something or are they all out to rip me off?
 

Emmit

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Aug 14, 2009
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Yes.

I've hit the edit button to add more???

Any dealer will attempt to get as low a price as he can. I suppose it depends on a whole host of stuff.
I appreciate that your van is your pride and joy but there are many things that make up the price you have been offered. What if, for instance, that dealer has had your model in the past and it took some shifting. Kerching! he knocks something off your's.
What if he's got a few more stock than he is comfortable with, Kerching! He knocks something off yours.

What happens if he is just plain greedy.
You guessed the rest.
 
Feb 16, 2013
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uttoxeter
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ambulance conversion
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Yes and no , the prices they charge against buying private are tremendous but on the other hand , the problems we see on here from people saying the dealer is putting it right must sometimes cost them a fortune, s o they have to cover for this.

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OP
OP
Camper634
Dec 18, 2011
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Hull
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Autotrail 634
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Since 2006
Surely they get paid by the manufacture for warranty work?Plus if the dealer did a thorough PDI most of the problems would be sorted before the van was picked up by the buyer.
 
R

Robert Clark

Deleted User
As I'm led to believe, unless dealers make a 'proper' margin, then we as customers can't expect to get 'Red Carpet' treatment from them.
 

Judge Mental

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Am I missing something or are they all out to rip me off?[/QUOTE]


yes you are ..sell it privately:)

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Sep 2, 2014
1,023
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A dealer we know reckons to make £5000 on a m/h and £2000 on a caravan, wether new or secondhand! But they expect to make this on both the original sale and on the trade in:cry:
 
R

Robert Clark

Deleted User
A dealer we know reckons to make £5000 on a m/h and £2000 on a caravan, wether new or secondhand! But they expect to make this on both the original sale and on the trade in:cry:
I think that may be an under estimate on the new MH.
One dealer told me that he made 15% on the new MH he was trying to sell me
Another dealer gave me 20% off an identical MH
If I haven't asked for a discount the dealer would have made about £20k on one sale
I'm bet the dealers rub their hands together with excitement when a customer doesn't ask for a discount.
 

TheBig1

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Nov 27, 2011
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when you go to a big dealership, look at all the land, workshops, shops, showrooms and other facilities along with all the staff, front of house and behind the scenes, YOU the customer are paying for it all, plus a profit on top of that
 
R

Robert Clark

Deleted User
when you go to a big dealership, look at all the land, workshops, shops, showrooms and other facilities along with all the staff, front of house and behind the scenes, YOU the customer are paying for it all, plus a profit on top of that
That's true, but the workshops and accessory shops are surely generating profit in their own right ?
Or at least they should be, based on what I was charged for my habitation check
 
9

9526

Deleted User
The fact is that they are in business and are in business to make a profit.

Providing YOU are happy with the deal you get, then their profit is not your concern really. If you are not happy with the suggested/negotiated deal, walk away.

Whatever you do, NEGOTIATE - but be sensible :)
 

TheBig1

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Nov 27, 2011
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Every visit to a dealers, try looking at the few people milling round that huge showroom and accessory shop. Not all are buying, but all expect to have individual attention. Accessory shops at dealerships often barely pay their way in terms of running costs. They are there to attract in potential buyers and as a courtesy to their customers.

With second hand vans, the dealers need to do any repairs and thoroughly clean them prior to being put on sale. they then need cleaning at least every few days to look their best and replace bits stolen by thieves posing as potential buyers. it all costs a lot more than most people think, even the paperwork that needs doing costs money to do

yes granted some busy dealerships are making a huge profit but not all are. If it was a licence to print money as some people think, then there would be ten times the number of dealerships

At one point I looked into starting up a small dealership, so looked into the real costs
 

makems

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A few years a couple of large dealerships went bust and one of the largest, Brownhills closed three of their four branches. It's not a license to print money but a tough, competitive business

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D

Deleted member 29692

Deleted User
A motorhome or other vehicle dealer is no different to anyone else selling anything.

Any salesperson's job is to get the biggest margin/mark up they possibly can. If they don't they aren't doing their job properly. There's nothing wrong with someone making a profit - if they didn't they wouldn't be in business very long and I for one object to the term "rip off" when used in this context. As @Chris said a big gross profit doesn't net out to very much for a business with large overheads which any kind of dealership will certainly have.

If the £8k mentioned in the OP resulted in an £800 actual profit on the bottom line then they are doing pretty well. If it's any more than that I would be amazed.

The only suggestion I can make to those of you who think profit is a dirty word is to never buy anything from anyone. But don't complain when you can't obtain whatever it is you want because you've driven all the dealers out of business.
 
Apr 13, 2012
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We run a business, showroom, overheads............ customers come in for free advice, we quote for work

Customer A
compares prices with other showrooms and negotiates a better price..... fair enough

Customer B
compares prices with the internet (much cheaper - few overheads - probably no after-sales service) .....asks us if we can price match - no........... then asks if we will fit items bought on the internet.... NO!

It's not all about price it's about service as well


'Profit' or rather margins are needed otherwise there will be no dealers, free advice or after-sales service

(y)...........got that off my chest...........
 
D

Deleted member 29692

Deleted User
@Barclaybasher have you had the one where you quote, the customer comes back and says so and so can do it for this much. You say OK you'd best get them to do it then. They then say oh no, they can't do it for 6 months so we want you do do it for the same price.

Same answer: NO!

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Apr 13, 2012
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@Barclaybasher have you had the one where you quote, the customer comes back and says so and so can do it for this much. You say OK you'd best get them to do it then. They then say oh no, they can't do it for 6 months so we want you do do it for the same price. Same answer: NO!

Yes...... and the ones that ring up and ask "have you got such and such on display"

We know they want to see the article, 'pick your brains', then buy on the internet


..... happens every week........... then we sell off the 'internet' stuff........or try to

.......just part of being in business....... and you do it with a smile

(y)
 

TheBig1

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@Barclaybasher have you had the one where you quote, the customer comes back and says so and so can do it for this much. You say OK you'd best get them to do it then. They then say oh no, they can't do it for 6 months so we want you do do it for the same price.

Same answer: NO!
in a previous life I was a specialist contractor. It was a very specialist field so all the contractors knew each other or at least about each other

Many many times I had a customer ask me to drop my price to match a competitor but start working immediately as they couldnt do the job for a week or two. My reputation never failed to make sure I was always busy. but in emergencies I would fit a job in quickly, but at a price to cover extra costs etc.

some people, even others in business just cannot understand the concept that the price of everything you buy depends on costs and a profit to keep the business afloat. much like the disgusting attitude of supermarkets towards dairy farmers and the end price of milk. no profit =no business long term
 
D

Deleted member 29692

Deleted User
Many many times I had a customer ask me to drop my price to match a competitor but start working immediately as they couldnt do the job for a week or two. My reputation never failed to make sure I was always busy. but in emergencies I would fit a job in quickly, but at a price to cover extra costs etc.

Exactly the same. On occasion we would do it for a regular customer but when it's some numpty chancing their arm? No chance.

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Brian and Jo

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Sep 24, 2007
3,002
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368
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A-Class N+B Arto 88F
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Been motorhoming for 15yrs.had an American RV for 7yrs,Now got a Niesmann Bischoff Arto 88F
We own a busy tyre retail business in our local town and know only too well how important it is to make a profit to be able to exist but also to be fair and not rip people off.we employ 14 staff and unfortunately they will not accept payment in shirt buttons:LOL:.when we bought our N+ B from TravelWorld we believed that they did us a good fair deal,realising that they have to make a profit(y) it was what we wanted and we were happy with that .we felt like we had been treated well and that is important .anyone going to a dealer to buy a Motorhome and not expecting the dealer to make a profit needs to wake up.
Brian & Jo
 
Apr 13, 2012
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Many many times I had a customer ask me to drop my price to match a competitor but start working immediately as they couldnt do the job for a week or two. My reputation never failed to make sure I was always busy. but in emergencies I would fit a job in quickly, but at a price to cover extra costs etc.

some people, even others in business just cannot understand the concept that the price of everything you buy depends on costs and a profit to keep the business afloat. much like the disgusting attitude of supermarkets towards dairy farmers and the end price of milk. no profit =no business long term



I've always had the view that everyone needs to be looked after

Screw your supplier and eventually he goes out of business

Cut your own margin too much and you go out of business

If we both go out of business, where does the customer go?


:)
 

GWAYGWAY

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Sep 6, 2014
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Who then is making the profit on the differences between here and Germany on the price of vans I can buy at the euro price from a dealer there and HE MAKES a profit why then is the same vehicle here half as much again, Is it the makers charging uk Dealers the high price or the importing dealer buying in Euros from maker and just adding on the difference. They cannot all be selling stock bouught when the price was closer, I know there is a price difference between left and right hand drive from the base suppliers but not a lot.

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