QUOTE: “The difference between a good dealership and an OK one is the amount of time it takes to complete the Three “R” Cycle – Receive, Recondition and Resale. The faster a dealer gets a trade-in resold, generally higher the margin.”
Reconditioning previously owned RVs for resale is an issue on many dealership owners’ minds these days. The gross profit generated from previously owned RV sales is vital to the bottom line, as many dealers report that used sales are responsible for between 20 and 40 percent of total dealership gross margin. To stay in the black and achieve the maximum earning potential, RV reconditioning needs to be taken seriously. After all, proper reconditioning of used inventory can create an overall increase in margins as much as 3 percent.
The difference between a good dealership and an OK one is the amount of time it takes to complete the Three “R” Cycle – Receive, Recondition and Resale. The faster a dealer gets a trade-in resold, generally higher the margin.
Unfortunately, the progression from receive to recondition to resale gets progressively more difficult going from one step to another. The first two steps take only a couple of days, but the resale time for a used RV can take months, if not more. The dealership that can shrink the Three “R” Cycle stands the best chance to reap the most profit.