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Are you prepared to buy your dream RV? Did you know that Travel Trailers can have a mark up of as much as 40%? Forget the travel trailer sticker price. RV dealers normally don’t deal in volume like the car industry does. This means RV dealers want to make a little more on every transaction but most RV dealers will consent to an 8% to 15% profit margin. 

 A travel trailer’s MSRP’s will carry roughly a 30% mark up for the RV dealer. Most dealers will also add dealer prep and other fees to the MSRP to increase the profit margin to around 33% to 40%. If you feel comfortable with a 22% discount on an RV with an MSRP price of $72,000, for example, and if you have done your research and found information supporting a 20% discount as reasonable, this is where you want to begin the negotiating procedure. Assuming you’re working from the MSRP, multiply it by 22%, which based on this example is $15,840, subtract this number from the MSRP and you end up with $56,160. This is your negotiating goal. To define the dealers invoice, take the MSRP of $72,000 and multiply it by 30%, which is $21,600 and subtract this number from MSRP; the dealer’s invoice is $50,400. Assuming the dealer goes for your offer of $56,160 the dealer’s profit margin is around $5,760. This is a fair profit margin for the dealer and a terrific deal for you.