Now, more than ever, there is an urgency for new car dealerships to do three things:
- Save more money
- Make more money
- Explore new revenue streams
How do these dealerships accomplish these goals? One of the ways is through the accessories market. The market is bigger than ever, but dealerships aren’t taking full advantage of it. Profit margins on accessories sales routinely approach 50%, and the market generates an average of 40 billion dollars a year.
Given these stats, it’s surprising that only about 5% of customers buy add-on accessories from the dealership where they purchased their vehicle.
Knowing how to increase sales of accessories in your dealership doesn’t have to be difficult. It can be broken down into three key points:
New car customers are payment driven, which means they may have to go with a base model vehicle instead of choosing the upgraded version with all the bells and whistles. Making customers aware of what they are able to add-on after the purchase of the vehicle is important for the future. Having a conversation will allow them to bookmark your dealership for when they’re ready to make upgrades and personalize their vehicle further
Knowing when to talk about accessories is important. This discussion often occurs as an afterthought since a dealership’s first priority is to sell a car. Once the customer commits to buying a vehicle, they are directed to a financial advisor, where additional upgrades can be sold. Of course, when a car is delivered or ready for pickup, you can present a coupon or voucher that will give them a discount and direct them to your 24/7 online parts and accessories store
Installing accessories more quickly and efficiently can help improve the process and help you retain customers in the process. Labor install times should be competitive and you should have some accessories prominently displayed on vehicles on the showroom floor. It also helps to have a dedicated parts website that feature the complete line of OEM approved accessories to choose from so consumers can find exactly what they’re looking for if you don’t have it in stock.