RV PRO

January '20

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60 • RV PRO • January 2020 rv-pro.com RV I N S I G H T S a portion of these renters will ultimately become buyers. How much additional revenue can you expect to make from offering rentals? Depending on the unit, dealers stand to make anywhere from $75 per night for travel trailers to $300 per night for Class A motorhomes. With that in mind, if a dealer rents out a single unit for 100 nights (which is just one-third of the year), that unit could bring in an extra $7,500 to $30,000 in revenue to the dealership, based upon data from the financial website Mak- ingSenseofCents.com. And that's just one unit. Imagine if you have five units that you are renting – or maybe even 10. Plus, by increasing the number of nights each unit is rented, dealers can automatically increase the amount of revenue that an RV is generating. If you're thinking about setting up rentals, make sure to consider the following: How you will acquire inventory? You can either purchase the vehicles yourself, work with current owners to help rent their units, or do a mix of both. There are pluses and minuses to each strategy, but it really comes down to whether you would rather share the rental profits with a unit's owner, but forego the initial purchase cost and the maintenance expenses, or if you would rather take on those ownership costs in exchange for all of the profits. How you will manage your rentals business? There is a lot that goes into a rental reservation between taking the reservation, double checking travel dates, reminding renters of their trip, collecting payment, etc. So, you have to decide if you want to do this on your own, or work with a third-party provider to have them handle this for you. Again, there are pros and cons of each. Going it alone means you won't have to pay to advertise your listings, but you're on your own when it comes to all the details of each reservation. Alternatively, if you choose to work with a third-party platform, they will take care of that for you, but they likely will charge you a per- centage of the rental for their trouble. Rentals have the potential to be an excellent source of additional revenue if the sales market continues to soften heading into 2020 – and industry trends indicate that it is a distinct possibility. Consumers are still interested in the RV lifestyle, but broadening your product offerings may allow you to capture more of the market as consumers find new ways to get involved with our industry. The bottom line is: Heading into a down market isn't the time to pull back – it's time to get creative and more aggres- sive to make sure that any consumers who are in the market and are interested in get- ting involved in the lifestyle know about your dealership. Plumbing & Fresh Water | Electrical | Hardware & Accesories | Hatches & Vents NEW Retail packaging and store displays consistent with established Thetford branding. Available to order at all upcoming distributor shows! THETFORD is now the Exclusive Supplier of Genuine RV OEM Replacement Parts from B&B MOLDERS! MADE IN USA ORIGINAL FACTORY PARTS

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