Thread: Pocket door
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Old 06-22-2013, 11:48 AM   #23
Motor31
Senior Member
 
Join Date: May 2005
Posts: 2,130
Why wouldn't they use every hole? Simple. Each screw costs money. Each minute the employee spends on the job on each unit costs money. More units past the employee per day means less cost per unit for manufacturer and a greater markup rate for the factory. It may cost $X to manufacture each unit and they charge the dealer $Y for each unit to maintain a priofit margin for the factory. The dealer then charges $Z to make his profit so at each level the unit has made the chain money. Every dollar that is saved in manufacturing is another dollar profit. Labor is probably the single most expensive part of the manufacturing equation per unit. Less time per unit to get it out the factory door = less cost per unit to make it.

Given that it's common knowledge that the starting point for negotiation in purchase of the RV is about 30% below MSRP you can figure that the real break even point for the factory is probably about 30% of the MSRP for actual cost to them for manufacturing the unit. That will also include the wholesale cost of the apliances they install. Figure that those were purchased at at LEAST 50% of the MSRP for those units and more likely less than 45% so they make more money on them as well. Every unit that sells for MSRP make a very lucrative profit all down the line.

It used to be that the then Mobile Suites company had a 2 year warranty. Then they said they "improved" so they reduced the warranty to 1 year. Hardly a recognition of "improved" product, just a reduction in liability costs for each unit. Every one that makes it past a year in private ownership is one less drain on the profit margin. Most part time RVers can get past a year without much trouble, especially those that do not know how to do a good inspection upon delivery.
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Mike Nancy and the fuzzies
Fulltiming since June 2004
Volvo 660 MH tow vehicle
2005 MS 38RL
2007 Saturn Ion "toad"
2010 Gold Wing "piggyback"
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