Average Commission On RV SalesAnthony Day
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- The average commission on RV sales is 20 percent of the net profit of the RV sale. This means the commission is calculated based on what the dealership earns on the sale, not the actual sale price.
- The average RV cost ranges between $30,000-$135,000 depending on the type of RV, RV size, and the sale location.
- Dealer’s typically mark up the selling price of an RV by 30% and 40%, so always try to negotiate a better price when shopping for one.
An underrated yet lucrative job is an RV sales associate because they make above-average market commission rates on high ticket sales.
The average commission on RV sales is 20% of the total net profit of this sale. Typically, RV dealerships will make under 10% in total profit on an RV sale after paying out the sales associate commission too. The total profit generally is between 3-10% of the RV sale price.
Many factors can affect the commission rate, including the location of the dealership, whether or not it is an online or in-person sale and the total net profit of the RV sale. We have gathered information about RV sales commissions from reputable online sources and local dealerships to provide an accurate analysis below.
Average Commission On RV Sales
RV sales is an underrated career for many salespeople, and it flies under the radar. However, the commissions are pretty rewarding, especially considering how expensive the average RV costs.
The average commission on RV sales is 20 percent of the net profit of a sale. This means the payment for the salesperson is calculated from whatever the retailer earns from the sale is the RV.
The average RV cost ranges between $30,000-$135,000, or it could go even higher depending on the RV type. The average gross on an RV sale is under 10% of the total sale price, so after deducting the costs, the commission is calculated.
The commission on RV sales can vary depending on the company too. Some companies offer higher commissions to their employees, while others offer lower commissions or less lucrative RVs to sell.
How Much Does An RV Salesperson Earn?
The average commission on RV sales varies depending on the type of RV and the dealership. But in general, the pay is similar across the United States.
Salespeople are paid in commission, which is a percentage of the sale price. The more they sell, the more money they make. A salesperson's salary depends on the type of RV they sell, their experience level, and how much time they spend on the job.
The average annual salary for an RV salesperson is $57,617, based on data by Ziprecruiter. However, this quickly increases according to other reports and based on total years of experience.
This is a very competitive industry with a lot of competition and low barriers to entry. Salespersons in this industry can make as much as they want if they work hard enough.
Salespeople are the backbone of the RV industry. They are the ones who make sure that people know about all of the different types of RVs, their prices, and what they can offer.
In general, dealerships with a higher volume of sales and those in more competitive markets will have lower commission rates because they have to offer competitive rates to attract qualified salespeople.
What Is The Profit Margin On RV Sales?
The RV industry is a big business in the United States and continues to grow. There are many different types of RVs on the market, making it difficult for potential buyers to find one that suits their needs and budget.
The dealer's average markup on an RV is between 30% and 40%. A higher profit margin means that dealers make more money on each sale and can afford to offer better deals to customers.
This is why as a buyer, prices should always be negotiated. As an RV salesperson, it provides more room to negotiate and give the illusion of the best price to the buyer. Both are tactical ways to get the best price, depending on the side.
Right now, the average profit estimate for RV dealers is between 10-11%. The profit margin for RV sales is typically in the range of 5-20% after commissions are paid out to salespeople.
This is because the cost of the RV needs to be recuperated in a short period of time. The average time for an RV to be sold is about four months.
How To Negotiate For The Best RV Price
Many factors can affect the price of an RV, such as its age, make, model, condition, and features. When negotiating for an RV, it is important to consider all of these factors.
The RV seller and the RV buyer will have many different approaches to RV prices. Finding the best precise will require some interaction and hard work.
Another tip is to get quotes from other dealerships before making a purchase. This will give an idea of how much they cost on average and which one offers the best deal in terms of price and features.
It’s also important to understand the market and the product well. Every traveler wants to find the best deal on an RV. There are a few things to try and do to get the best price possible.
Research the prices of RVs on several websites before going to any dealerships. This will help see the price range and give a good idea of what type of RV is in the budget.
This allows the sales associate and customer to build trust when looking at potential RVs for purchase. Building trust also gives both sides a bit of leverage, especially the sales associate.
Assess The Financial Situation
RVs are expensive to buy and maintain, so buying one is a huge financial decision. But before doing that, it's important to assess the financial situation to ensure there is a budget to follow.
Some buyers might not be able to afford the RV that they are interested in, which can lead to spending more than they should. However, this is never recommended because of the high payments it will create.
As an RV sales associate, this is also important to know so they can show the buyer products within their price range. This leads to a quicker sale too.
See Multiple RVs
Always see more than one RV to gauge the market and see what’s available. Every dealership has a few products they show first because of various factors, but they might not necessarily be the best deal.
Seeing more than one RV allows the buyer to assess the market better. This will ensure a proper buying decision is made too.
Always take the time to negotiate with an RV dealer. Don't rush into anything, and don't let them apply pressure that causes an impulsive decision to be made.
As mentioned, many RVs are already marked up by 30-40% based on our research, so there is always room to come down on the price.
For sales associates, it's important to know as much about the RV as possible too when negotiating. This includes knowing what types of extras and add-ons are available for the desired RV so that it can be adequately negotiated.