RV Market Learning – RV Dealer Commission Structure

The RV dealer commission structure is often considered flawed due to its inherent focus on high-pressure sales tactics, which can lead to a misalignment between the dealer’s interests and the customer’s needs. Typically, RV sales people earn a significant portion of their income through commissions based on the sale price of the RVs they sell. This structure incentivizes them to push whatever model they believe they could sell you with the least amount of effort, knowledge or unnecessary add-ons, sometimes at the expense of genuinely understanding and fulfilling the customer’s requirements. The pressure to close sales quickly can result in a less consultative approach, where the customer’s long-term satisfaction is secondary to the immediate financial gain of the salesperson.

Additionally, this commission-based model can create a lack of transparency in the pricing and negotiation process. Customers may find it difficult to determine the true value of the RV they are purchasing, as dealers might inflate prices or obscure discounts to increase their commission. This can lead to a distrustful relationship between customers and dealers, with customers feeling that they need to be on guard against being taken advantage of, rather than feeling confident in making an informed purchase.

Moreover, this structure can also lead to high turnover rates among sales staff, as the pressure to constantly meet sales targets can result in burnout and job dissatisfaction. This, in turn, affects the consistency and quality of customer service, as buyers may have to deal with inexperienced or overly aggressive salespeople who are more focused on making a sale than building a lasting relationship with the customer.

At Bowlus, our salespeople are not commission based. Having salespeople who are not commission-based offers significant advantages, primarily because it fosters a customer-centric approach rather than a sales-driven one. Without the pressure to meet sales targets for personal financial gain, non-commissioned salespeople can focus entirely on understanding the customer’s needs, preferences, and budget. This leads to a more consultative and transparent sales process, where the priority is matching the customer with the right product rather than pushing higher-priced options or unnecessary add-ons. As a result, customers are more likely to feel respected and supported, leading to greater trust and satisfaction with their purchase. This approach also encourages long-term relationships, as customers are more likely to return and recommend Bowlus to others, knowing they will receive honest, unbiased advice and service.

We look forward to supporting your research and purchasing decision so you can enjoy a lifetime of adventures with your Bowlus. Please contact us today.