An RV salesman typically earns an average commission rate of 20 percent. This means for every RV sold, a salesman could receive 20% of the profit margin or the sale price, depending on the dealership's specific pay structure.
While 20 percent is a common average, the actual commission amount and rate can vary significantly based on several factors:
Factors Influencing RV Sales Commissions
The earning potential for an RV salesman is not static and is influenced by the following key elements:
- Type of RV Sold:
- High-End RVs: Selling a brand-new, high-end RV can be very lucrative due to its larger price tag. A 20% commission on a higher-priced unit translates into a substantial payout.
- Used Models with High Mileage: Commissions on used RVs, particularly those with high mileage, tend to be lower. This is often because the profit margin on such vehicles is smaller compared to new or luxury models.
- Company Size and Policy:
- Larger Dealerships: Generally, larger RV companies tend to offer more competitive and higher commission rates to attract and retain top sales talent.
- Smaller Dealerships: Smaller, independent dealerships might have different commission structures, which could vary.
- Sales Volume and Performance: High-performing salesmen who consistently sell more units, especially high-value ones, naturally earn more commission over time.
Understanding Commission Calculation
To illustrate how the commission rate translates into earnings, consider the following examples based on an average 20% commission rate on the profit of an RV sale:
| RV Type | Estimated RV Price (New) | Estimated Profit Margin (e.g., 15% of price) | Salesman Commission (20% of profit) |
|---|---|---|---|
| Entry-Level Travel Trailer | $25,000 | $3,750 | $750 |
| Mid-Range Fifth Wheel | $60,000 | $9,000 | $1,800 |
| Luxury Class A Motorhome | $200,000 | $30,000 | $6,000 |
Please note: These figures are illustrative and assume commission is based on a profit margin. Some dealerships may calculate commission differently, such as a percentage of the gross sale price or a tiered structure.
In essence, an RV salesman's income is directly tied to their sales performance and the value of the units they sell, with a common average commission rate being 20 percent.
