June '18

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rv-pro.com June 2018 • RV PRO • 89 1. Giving the deal away Ma n y d e a l e r s f e e l t h e interest rate has a big impact on the ability to sell an RV. This can be true. However, it can often have very little to do with placing a customer in a competitive loan. Most buyers are payment buyers with an eye on the rate. They also will typically shop for an RV before they have a loan lined up. Of course, loan terms can go out to 20 years on many types of collateral with zero down in some cases. Those variables make a huge differ- ence in your customers ability to commit. Putting deals out at buy rate or with a few points added on will defeat the purpose of your efforts and is an overly apologetic approach. The goal is to understand your customer and put out a loan offer that is competitive with other options available to your customer. In other words, optimize the deal, find the win for them, and compete for their business while you hold a healthy profit margin. If deals have to put out lean to compete, that is a good thing, but your body of work over time should support a healthy markup. This is a sales position, so you must have the competence to make something out of it. Similar to selling an RV, it takes very little skill to sell a unit at cost. Also remember, one of your requirements is to have multiple wholesale lenders available so that there is room for markup. If those lenders are not part of your mix, you have work to do. If you have solid lenders, take a look at your averages and see if you can do better. One of the biggest mistakes any business owner can make is to ignore a profit center. This doesn't imply you're not giving it attention or not managing it. The question is: How are you evaluating the net and what should your efforts be worth? " "

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