Automobile accessories are not being offered nearly enough to customers at the dealership level. Late last year we did a blog about this very subject, and this week, Automotive News offered some eye-opening statistics supporting this claim that is worth a quick read.
Foresight Research is the company whose research was used by Automotive News in their article. Their data shows that, while the push for automobile accessories sales varies greatly depending upon brand, pretty much everyone across the board could be doing more. (Note: BMW was mentioned as being particularly good at selling accessories, while Hyundai was cited as being among the worst brands.)
Let the following two Foresight stats sink in. First, about seven million vehicles sold each year are accessorized by their new owners within the first two years of ownership – at a clip of $1,950 each on average. Second, the vehicle accessory market represents overall revenue of about $40 billion annually.
That’s the good news. The bad news is that only about five percent of automobile accessories sales is from franchised dealerships; the rest comes from third-party companies. Worse yet, only 43 percent of new-car buyers were even able to recall ever having a conversation about adding accessories on the day they purchased their vehicles!
Successful dealers mentioned in the article say they have found success by pre-installing accessories on select vehicles for sale on their lots. And the lion’s share of dealerships faring well at automobile accessories sales have dedicated accessories departments staffed by employees who know all about them and are aware of everything available. While seemingly fundamental, this is lacking at many stores; we remind you that a recent study showed that less than half of all dealerships had accessories on display.
Imagine what it would be like for your bottom line if you had a much larger piece of that $40 billion dollar pie than you currently possess. With a little extra effort and capable staff members, you can increase your profits greatly … and your sales staff can make a little extra commission money in the process.
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