PRVCA Explore Magazine PRVCA Explore PA 2016 | Page 10

In the RV aftermarket, the industry has
traditionally used a two-step method of getting
products from the originator to the buying
public. The supplier manufacturer typically
sells to a distributor, the distributor sells to
a retailer (dealer or
accessory store), and
finally, you get to
hand over your
money to obtain
that product.
Hmmm,
maybe
that’s three
steps! At
each step,
commerce
takes place
and each
segment realizes a profit in the
process. Obviously, the supplier
manufacturer needs to
make money in order to maintain production
and to keep manufacturing new and current
products. And the distributor needs to make a
profit, so he marks the product up a bit to sell
to the retailer. The retailer also needs to make
a profit, so he marks the product up further
and sells it to you.
This isn’t really such a bad deal. For one
thing, we, the buying public, have become
conditioned to this process. And each segment does perform certain functions at each
level to make the product more saleable so
most do earn their k Y\