There’s $300-$800 in accessories being spent on new vehicles sold today. It's grown to a $43 billion-dollar business, only 5% of which goes to the franchise dealer. The rest they concede to the aftermarket providers.
We as auto dealers invest hundreds of millions of dollars a year on new software technologies, marketing programs, consultants, and new products to try and supplement a continuously shrinking new vehicle front-end margin. All the while, the accessory market is tried, true, and tested and continues to grow right outside our grasp.
Almost half of new-vehicle buyers say they plan to customize their purchases in the first two years of ownership and they spend on average $300-$800 per unit, with truck buyer’s representing almost 70% of total annual sales, tipping the scales at $1,500 per unit.
What are the top reasons dealers don’t sell accessories today?
The critical steps you can take today in your dealership to recapture these lost accessory sales:
Common Pitfalls to Avoid
In this model, every department gets a cut of the profits, and all are motivated towards success. As Parts still retains 15% there is still enough profit for them, and above the typical wholesale rate of cost + 10%.
It’s time to stop conceding this business to our competitors and keep our customers in our own showrooms and service drives. 80% of the battle with accessories is just showing up to the fight. Follow the blueprint provided and you’ll be selling accessories, making more profit, paying your people more and increasing customer retention.