Originally Posted by Grumpy
As long as the dealer paid for it. JAYCO does not ship until it has payment from the dealer.
Really, I assumed like most B2B transactions there are net terms. I also would have assumed before Jayco anointed someone as an authorized dealer that dealer would have had to demonstrate some level of finacial security. I had no idea dealerships had to use their floor financing or available cash on day one just to receive delivery from Jayco.
I wish Jayco was a public company so I could review their quarterlies. If what you are saying is true then I imagine Jayco has an awesome cash conversion rate. Heck, maybe even negative days since they would buy components on net terms, build at lightening speed, then collect from the dealership before even shipping the unit.
Sounds like a business model model that would be ripe for disruption, especially when a mfg like Forest River can access all the free cash Berkshire Hathway is sitting on.
Not saying you are wrong, but I'd be interested in how you know that?