Comments on: Brokering a deal

By: mark vanostrand

mark vanostrand — Tue, 07 Aug 2007 17:42:53 +0000

Greg, I suspect that the manufacturer who is consigning had a large yard inventory just stting there. One could argue that it is better to have product on the dealers lot where the public can see it… but only as a temporary measure to help reduce inventory.
A better plan is a strong IR program similar to what Roaodtrek offers: 90 days free flooring works for us!

By: Bob Zagami

Bob Zagami — Mon, 06 Aug 2007 11:43:37 +0000

Logic works against this method of selling large ticket items that require some measure of communication with a prospect before the sale. Think about it, if a dealer has Brand A on consignment, Brand B on a floorplan, or Brand C that he/she paid cash for - which one do you think they are going to sell first? it sure won’t be the one on consignment, that’s a freebie and they will have no incentive whatsoever to move it over one that is costing, or has cost them, real money.

Unless this was the norm (and it isn’t) for the entire industry, then a legitimate dealer would not want to participate in this kind of arrangement. If this same manufacturer also sold to Internet bandits (no brick and mortar to support their selling efforts) then it would be the first one I drop when business slows up a bit.

By: Jim Miller

Jim Miller — Sat, 04 Aug 2007 14:35:52 +0000

Sun-Line tried this not too long ago, where are they now????

By: Ron

Ron — Fri, 03 Aug 2007 21:49:28 +0000

A properly trained and motivated sales department will make the first sale, but it’s the service department that’s going to make that second & third sale possible. Most manufacturer’s know this, and value legitimate dealers that educate customers on it’s products, while making sure that a through make ready is done. Skipping these steps only comes back haunt manufacturer’s in excessive warranty claims, and compliants. Fact is: we need “brick n’ mortar” dealerships to help us grow and service our future cutomers.

I have never heard of consignments by manufacturer’s except when financial trouble existed or to prevent buy back stituation from a dealer. Both cases (late 70’s early 80’s) were temporary, and seemed to make sense for them at the time. In general; Consignments from manufacturer’s is more rumor than fact.

There are plenty of legit manufacturer’s that won’t sell to internet only dealers. Why would any dealer do business with those that do?

By: johnny

johnny — Fri, 03 Aug 2007 16:27:03 +0000

I can see where this would give the dealer some advantage
but I would wonder what would happen to the smaller OEMs
because they couldnt afford to finance the dealer inventory. I think this has been going on with some of the Mega dealers for some time. Stories have been told of Mfgs sending inventory out on consignment for the last
20 years. However no one wants to talk about it.
I know that the mega dealers will kill all of the smaller
dealers on pricing new units, but they can not service those, because they are going back to some other dealers
area. Now, when they come whining up to the service dept.(that we provide) and want us to feel sorry for them
because they have a problem, and promise to buy their next unit from us, If only we will take them on out of the goodness of our heart. (we only lose the profit on
the sale) and the difference between retail labor and warranty labor. I am sure when pigs fly they will buy from us. Most all of these mega dealers have loaded them
up with Full extended warranty, tire warranty ect on a 20
year payback with nothing down and 120 % finance off invoice. So after 16 or 17 years, maybe they can trade.
So keep the faith, fellow dealers and maybe this will happen.

By: chuck schwartz

chuck schwartz — Fri, 03 Aug 2007 16:00:00 +0000

Yes the internet is getting stronger each day but are we as dealers asking for a major problem for the future, just as long term financing created years ago, and is making trades payoff’s a problem of today.
NO the manufactures are not doing anything to help us the smaller dealer build our business because most of them will not take a strong business posture on warranty issues. Most of them want to say no to 85% of the claims and then the dealer has to spend money to prove to them that they built the unit with the problem and they don’t want to stand the expense of fixing that problem and yet when they say they do the next unit that comes in has the same problem and more. This statement is easy but what is the answer to the problem. We need the RVIA and the RVDA to address the problem and make the RVIA set major standards for each of the members, and if they don’t then they need to pay large fines or not have RVIA approval them to build anything.

By: Mark

Mark — Fri, 03 Aug 2007 05:02:30 +0000

Greg;

I think this is the future of the internet dealers.

This allows them to become brokers for the manufacturers and continue to eat away at the legitimate dealers.

With no inventory cost (it’s the O.E.M.’s), no insurance needs, minimal advertising, literally no staff needed and little if any infrastructure, they have no overhead.

We’ve had manufacturers over the years that had their own outlet stores, but that didn’t work.

If anyone goes to Elkhart, there is an internet seller that has a small shop just around the corner from one of the big, up and coming manufacturers, just off the Indiana Toll Road and Hwy 19.

This “dealer” is nothing more than a broker for the manufacturers and would (or does) benefit greatly with this consignment agreement.

This arrangement, if allowed to persist in our industry, will make this “dealer” more money than any of us could possibly imagine.

Yes, I know, we can all sell ourselves and our dealerships; but don’t kid yourself. With no brick and mortar, no overhead, he will change the way people perceive an RV should be purchased.

Gosh, he won’t even have to go to all the recruiting trouble and expense of buying the pizza and beer for my shop guys when they’re at school in Elkhart.