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Topic: Consignment sales commission  (Read 757 times) previous topic - next topic

Consignment sales commission

Failing to understand why a consigned RV..FOT or MOT require a 10% sales commission where in most cases the sale of a house earns 6-7%.  One would expect the reverse to make more sense considering the task involved to adv to the market, prep the product and close the buyer.  Look forward to some commentary on this as it may be nearing time to sell and buy new or newer.
Fiddler
1959 Parris Island grad
40' 2001 U320 Build 5875
1999 Suburban K1500 toad
1986 Corvette Pacecar
ssoftail@comcast.net

Re: Consignment sales commission

Reply #1 –
The dealer sets the commission and it's up to the seller to decide if they want to consign it for that rate.  One would deduce that at 10% they are contracting sufficient inventory to maintain desired levels on the lots and sales income. 

If "the market" disagreed with the asking commission, you would see little inventory on the dealer's lot/few sales and that would generally cause the dealer to lower commission rates.  A couple of years ago when the economy was challenging it was closer to 5-6%.
Learn every day, but especially from the experiences of others. It's cheaper!  - John C. Bogle

2000 U320 36' non-slide / WildEBeest Rescue
2003 U320

Re: Consignment sales commission

Reply #2 –
Well, I'm no expert, but our place is about to close (we hope). The Real Estate agent has shown the house a few times and talked to other agents who have shown it. She has had no responsibility as far as maintenance of the house this past year. The cost of heat and electricity were ours, just as if we were still living there. In other words, her job basically is to handle the paperwork and take care of the signs and other advertising. When we hired her, we visited with three other companies before making our decision, and we're in a rural area.

By contrast, there are only a few RV consignment places. When the coach is on the lot, it is covered by the dealership's insurance and the electricity it uses is billed to the dealership. I believe that most consignment places will do at least some cleaning of the coach as part of the deal, with more detailing available at extra cost. Any mess that a looker might cause must be taken care of by the dealership.

We sold our mpg trailer on consignment at the same dealership where we bought it new. They suggested a price considerably higher than what I would have asked - and they got it! They handled all the inquiries and the paperwork. They charged a flat fee, not a percentage. Even with their cut we netted more than we would have if we had tried to sell it ourselves and we didn't have to deal with any of the nuisance.

Re: Consignment sales commission

Reply #3 –
It is on their lot, taking up their real estate.  If they have it plugged in, they are paying for the electricity.

The problem I have with both is you pay the 6% or 10% if the home or coach is worth $20,000 or $1,000,000  Somewhat same amount of work.

The other option is do it your self.  How much time  and money are you going to put in to sell it?
2014 ih45  (4th Foretravel owned)
 1997 36' U295 Sold in 2020, owned for 19 years
  U240 36' Sold to insurance company after melting in garage fire
    33' Foretravel on Dodge Chassis  Sold very long time ago

Re: Consignment sales commission

Reply #4 –
Quote from: kb0zke –
When the coach is on the lot, it is covered by the dealership's insurance.

I think someone needs to verify this.  I am not so sure this is true, at least in every case.
2014 ih45  (4th Foretravel owned)
 1997 36' U295 Sold in 2020, owned for 19 years
  U240 36' Sold to insurance company after melting in garage fire
    33' Foretravel on Dodge Chassis  Sold very long time ago

Re: Consignment sales commission

Reply #5 –
When we consigned the mpg I asked about the insurance. I was told that I had to have insurance on it in case it caused damage to something while there, but that they had insurance in case something there damaged the trailer. If they moved the trailer and damaged it their insurance would pay. If the trailer somehow rolled across the flat lot by itself and hit something my insurance would pay.

Re: Consignment sales commission

Reply #6 –
MOT sold our first coach on consignment. We were pleased with the results we got for a 10% consignment commission.
J D Stevens
1997 U295 CAI 36' Build #5085
2002 Subaru Outback
Motorcade 16869
Bellville, TX

Re: Consignment sales commission

Reply #7 –
FYI normal commission on boat/yacht brokerage is also 10%.
Brett Wolfe
EX: 1993 U240
Moderator, ForeForum 2001-
Moderator Diesel RV Club 2002-
Moderator, FMCA Forum 2009-2020
Chairman FMCA Technical Advisory Committee 2011-2020

Re: Consignment sales commission

Reply #8 –
I found out a couple years ago that MOT MINIMUM was 3500 bucks, regardless of sales price.
Gary B

Re: Consignment sales commission

Reply #9 –
Regarding insurance on your motor home while it is in the possession of a consignment dealer, I believe that you will find out that it is not covered unless you buy a new policy with the dealer designated as the consignee.  There are lots of questions asked regarding, security provided by the dealer, etc.  Commissions are always negotiable depending on the services requested.  Some will come and pick up your unit and take it their facility, providing a driver at no extra cost.  Always have a full understanding of what the dealer and your responsibilities are.

Ron Hammer
 

Re: Consignment sales commission

Reply #10 –
Ron is right.  AND... Al;ways read every word on the consignment document and be sure you understand it.
Gary B