Digital Advertising Resource for
RV Dealers and RV Industry

The “Cold-Hard-Cash” Value of Your Very Next Lead …

Posted by Shawn Friesen on Aug 31, 2012

Qualified Lead

So, a husband & wife walk onto an RV lot … they’re a “lead.”  Or, an “up” (but that’s a bit crass,) they’re an “opportunity,” if you will …

The husband spotted your classified ad on  He likes that particular unit because it’s “not too expensive.”  He’s a like-able enough guy, but frugal.  You know the type.

She, on the other hand, wouldn’t mind something a little more stylish, newer, bigger.

And, in this case, unfortunately, the Sales Rep doesn’t quite give her the level of care and attention she’s accustomed to enjoying.  The Sales Rep – mistakenly – (Been there, done that?) thinks the husband is firmly in the driver’s seat on this deal.  And so, the Rep chooses to build a stronger relationship with the husband, in this case.


Later – in the end – the wife wins.  Bigger & better it is.  And, just to add insult to injury, they even have the gall to … take their business elsewhere.  Burned!  Again!  Shoot … but … oh well …

Scenarios like this happen all the time in the RV biz.  Hey, you’re NEVER going to get them all.  And really, it’s just another lead, right?  It’s no big deal.

Or, is it?

Let’s get out a pencil and some paper and …

Do The Math … Yikes!  

What is the cold-hard-cash value of that lead, that “up,” that opportunity to an RV Dealer?  To a commissioned RV Sales Rep?  How much cash is 1 more lead really worth?

Answer the following questions …

How many leads are you currently enjoying?  One-sie / two-sies a day?  5 or 10, maybe a couple dozen or more a week?

No. of leads:  _________ per timeline:  _________ (day, wk., mo., yr.)

And, what’s your average closing ratio?  Your closing ratio will make a huge difference in the math.

(SIDEBAR:  For lots more tactical info about how to “amp up” your closing ratios, stay tuned over the next several months to this blog,  Subscribe here.) customer Dealers tell us they close roughly 1:7 to 1:10 of the leads we send them.  Is that about right for your operation?  If so, that means a tight little bundle of 10 (ten) highly qualified leads should be worth at least one (1) sale.  Yes?  No?  Something like that?

Your closing ratio:  _____  :  _____ roughly.

OK, now what’s your Average Transaction Value?  (This will vary widely by Dealer size and by type of Dealer.  Guys selling more smaller towables show vastly different Av. Trx’n Values than guys selling nothing but big diesel pushers, for sure.)

Does $25,000 to $30,000 sound reasonable, roughly speaking, for an Average Transaction Value?

Your Average Transaction Value:  $________________

Now we add the time factor, the long term perspective:  1 additional “hot one” per mo. (X 12 mo.), should be worth $25,000 to $30,000 in sales.

Not 1/2 bad.

And for you?  # leads _____ per yr. X closing ratio _____ / _____ X $Av. Trx’n Value ___________ = should roughly equal your Gross Sales.

Now Here Are’s “Average” Dealer’s Numbers:

Of course, we provide leads to all sizes of RV Dealerships.  Smaller Dealers with 10 or 20 units to Dealers with up to 700 rigs on their lots!  But, the average is around 80 to 100 units per Dealer.  And, the average Dealer gets between 10 and 30 solid RV consumer inquiries / mo. and ends up closing a little better than 10%.

So, 10 leads / mo. X 12 mo. X 1/10 closing ratio X $27,500 Av. Trx’n = driving $330,000 in sales/yr.

20 leads / mo. X 12 mo. X 1/10 c-r X $27,500 = driving $660,000 in sales/yr.

And, for those average Dealers who are receiving roughly 30 leads / mo., is driving a little less than $1,000,000 in sales/yr.

Carefully dissecting your volume of inquiry, your closing ratios and your average transaction values helps clarify that every extra lead has incredible value to both your Dealership and your Sales Reps.

Crunching the numbers also gives you a strong sense of what areas you need to work on to see the greatest improvements in your sales.

Author: Shawn Friesen


  1. How Many PHOTOS Should I Have on my RV Classified Ads? ... | Digital and Social Advertising for RV Dealers and Industry -

    […] extra leads going to mean one (1) additional sale?  Two (2) sales?  More?  (Use this formula to calculate the cold-hard-cash value of “extra” […]

Leave a Reply

Notice: Undefined variable: user_ID in /var/www/vhosts/ on line 74
required (will not be published)