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Cash In on Opportunity: Service as the Center of Dealership Profitability

By Mike Coyle


As front-end margins tighten, RV dealers are relying more heavily on service, F&I and long-term customer retention to sustain growth.


For several years, dealerships operated in a market where strong demand and limited inventory supported healthy front-end profits. Dealers could move units quickly, and many stores naturally focused most of their energy on the sales side of the business. That environment has leveled out. Customers are shopping more carefully, financing costs continue to influence buying decisions and dealers are putting more attention on the parts of the business that generate revenue after the sale.

In July, Presidio-NCM data showed dealership pretax profits declined 11.8% year over year in Q2 2026, while fixed operations and F&I remained more stable contributors to profitability. That shift is becoming more visible across the industry. Service and parts departments now account for roughly half of a dealership’s total gross profit, which has pushed many dealers to look at customer retention and the ownership experience after the sale. RV dealerships are feeling many of the same pressures. Margins on the front end are tighter than they were a few years ago, so that shift feels natural because ownership has always been an ongoing relationship rather than a one-time transaction.

Why Fixed Ops Carry So Much Weight

RV customers stay connected to the dealership long after delivery day. They come back for maintenance, repairs, warranty work, accessories and advice before their next trip. Many first-time buyers are still learning the basics of ownership after they leave the lot, whether that means understanding winterization schedules, towing requirements or electrical systems. That learning curve matters more today because first-time owners now make up 36% of all RV owners, which means dealerships are spending far more time helping customers navigate RV ownership from the ground up.

That creates an opportunity for service departments to build trust over time. Customers remember whether communication stayed clear during a delayed repair or whether someone took the time to explain a problem without making them feel overwhelmed. When service departments stay responsive and organized, customers come back. When communication breaks down, customers start looking for support elsewhere, whether that’s an independent repair shop, an online owner group or another dealership.

Dealerships also manage far more than repair work today. Fixed operations now include inspections, accessory installation, collision repair, mobile service and campground support during travel season. Every one of those interactions shapes how customers view the dealership long term.

Departments Have To Work Together Better

Dealerships still struggle with gaps between departments. Sales handles the delivery process, F&I presents protection products and service takes over later.

Internally, that structure makes sense operationally, but customers experience the dealership as one business. They expect communication between departments to feel connected from the beginning of ownership through every future visit.

Problems appear when departments aren’t sharing information consistently. A salesperson may set expectations the service department was never aware of. A service adviser may not know what concerns came up during delivery. Customers notice when they have to repeat information multiple times to different people inside the same dealership.

The dealerships that operate smoothly improve those handoffs throughout the ownership process. Service introductions during delivery, shared customer notes between departments and realistic conversations about service timelines can make a difference in retention. Customers want to feel like the dealership knows who they are every time they walk through the door.

Retention Is Becoming Part of Everyone’s Job

Dealer groups are also rethinking how employees are trained and measured. Historically, dealerships rewarded immediate sales performance because front-end gross carried much of the business. Dealers are now paying closer attention to repeat business, service retention and long-term customer relationships because those areas contribute more consistently to profitability over time.

That shift changes how employees approach their roles. Salespeople don’t need to become technicians, but they should understand enough about RV ownership to prepare customers for what comes next. Service advisers aren’t only managing repair orders. They’re maintaining relationships that determine whether a customer stays connected to the dealership for years.

First-time buyers make this important. Customers arrive after spending weeks researching online, but they still want guidance from people who understand the product and can explain ownership in practical terms. Customers appreciate expertise when it feels straightforward and useful rather than overly technical.

Operational Consistency Still Matters

Dealerships already recognize the value of fixed operations revenue. The harder challenge is maintaining consistency during busy periods when service departments are under pressure. Technician shortages, warranty delays and parts availability issues continue creating scheduling challenges across the RV industry, especially during peak travel months when customers are preparing for family trips.

Communication matters just as much as the repair itself in those situations. Customers are patient when dealerships provide honest timelines and regular updates. Frustration builds when communication is inconsistent, or when expectations continue to change without explanation.

Technology can support those processes, but systems alone don’t solve operational issues. Online scheduling tools and customer relationship management platforms only work when departments communicate consistently and employees follow through. Many dealerships are also continuing to refine how they approach mobile service during travel season because customers expect flexibility around where repairs and inspections happen.

The Long-Term Opportunity for Dealers

Front-end sales will always matter, but dealerships benefit from having profitability spread across multiple areas of the business instead of relying too heavily on one source of revenue. RV ownership naturally creates years of customer interaction, which gives dealerships ongoing opportunities to strengthen relationships after the initial sale.

Customers remember who answered the phone during a stressful trip, who kept them informed during a repair and who made ownership easier to navigate. Those day-to-day interactions determine whether a customer returns for future service, upgrades or eventually another RV purchase. That’s why dealerships are putting more focus on service operations, internal communication and ownership support. In the RV business, customer relationships are built through consistent follow-through after the sale rather than through any single transaction.

Mike Coyle is the COO of Kunes Auto & RV Group’s RV Division. Coyle has been a leader in the RV space for 20 years. He brings his enthusiasm for sales and processes, as well as his talent to galvanize a team to the RV division. For more information, visit kunes.com.

TABLE OF CONTENTS

RV Manufacturers

The Case for Keeping It Simple

RV Aftermarket

All in One Place

Features

Plan, Protect, Scale: Don’t Let the Big Stores Take Your Shelf
What’s Really in the Cart? The True Cost of RV Inventory

Features

Bring the Showroom to the Shopping Cart
Cash In on Opportunity: Service as the Center of Dealership Profitability
From Checking You Out to Checkout: How To Close the Deal
Clocking In: Making Labor Hours Count
What’s ‘In the Back’: Keep Your Parts & Accessories Department in shape
Are Your Aisles Speaking To Your Customer?

Departments

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