Average pickup owner spends $1461 on parts in the first year

[mbrandon]

I just read the highlights of a report on truck owner accessory purchase habits. You can read it here.
http://www.automotivedigest.com/view_ar ... esID=19324

With the average pickup owner spending $1461 dollars on parts and accessories in the first year of ownership, it still amazes me how few dealerhips have a formal plan and process for capturing their share of this lucrative market.

If there were an opportunity to increase the front end of the deal or increase F&I revenues by $1461 most dealers would be rabid about implementing sales processes and training.

Who out there has a well formulated process for selling accessories?

If you don't have a formal process, why not? (Just curious)

------------------
Mark Brandon
DealerLOGIX
The cheese has moved. Time to go find new cheese.

[jazdale]

I have to admit, that is a tasty statistic.

I've been to some dealers that have dressed up vehicles in the showroom, a display near the showroom, nice website offerings, and of course...the Scion way.

I'm with you Mark, on the passed-up opportunities.

As a double guess of why more don't jump on this, I would venture to say "it's because it involves every department".

Someone orders it
Someone markets/advertises it
Someone controls inventory
Someone sells it
Someone installs it.
Someone has to stand behind it (warranty)
Someone administrates it
Someone manages it

Nobody does it for nothing.

[partsdude]

From a verteran parts manager....
Having found a good home Ive worked for four different Dealers in one state, each Dealer did something a little different concerning accessories. All four were the same make btw.
1. If we do accessories, it has to be all or nothing, jump in with both feet. After looking at the cost of inventory alone, FO Mgr says not at all.
2. DP has the idea that aftermarket is better for price...enough said there.
3. Sales Mgr provided a list of incoming new vehicles to Parts Mgr. along with what accessories were to be ordered for each...parts arrived before vehicle...accessories installed at the same time the PDI was done. Vehicle sold for upgraded price. Everyone made money in every aspect.
4. DP,GM,Sales Mgr,Finance Mgr. all agree only go to your own parts dept if aftermarket doesnt offer it...why pay the mark up to ourselves when we can pay someone else.

Since Im still employeed with the #4 Dealer, all I have to say is you reap what you sow, and have washed my hands of trying to fight and scratch to get a sale to the sales dept.

Having said that, Ill say that Im at a GM store and GM uses an accessories distribution center. They offer us better pricing than GM does as well as incentives throughout the year.
Ive even tried implimenting a spiff program. If sales or service sell an accessory at retail price, they get a percentage spiff at the end of the month... The only problem with this was that sales promises the cust. the accessory to get the deal. Thats when the salesman want the cheapest.
Heres more to consider. How about residual value? Fianancing the accessory with the vehicle? Improving not only sales bottom line, but parts and service as well? Warranty? GM offers 3yr-36K for accessories installed before or at delivery.

jazdale; As for "nobody does it for nothing" Youre right...would you sell a car for no profit?
I fail to understand how each dept. making a profit is a bad thing.
Just my humble $.02

[This message has been edited by partsdude (edited 08-24-2006).]

[This message has been edited by partsdude (edited 08-24-2006).]

[APM]

I'm impressed there is intellegence in the auto world. Yep...almost $1500 per vehicle. And yes you have the ADI, also did you know the ADI will install & deliver same day/next day...and in most cases will take it back if it doesn't sell! New stats: an accessoried vehicle lot time is reduced by up to 8%, and your profits increase by up to 30%by accessorizing...just food for thought.

[96lt1ss]

The one thing that amazes me is they decide to go with aftermarket parts to increase the deal gross. We all know factory parts cost more to begin with and even a 10% mark up in parts can sometimes be too much.

What I fail to understand is how the front end can make a big gross with no thought to long term customer retention. When the customer comes in whith pealing, pitted, or rusted accessories it's up to the back end to be the bad guys.

We tell the customer the parts are aftermarket and don't carry the factory 3/36 warranty. We get yelled at because they paid so much for the vehicle, and so much for the accessories, and what are you going to do about this is all we hear.

How many customers do we lose both service retention and the next purchase to someone else because of cheap accessories? As a Parts Manager of many years I would rather do minimal profit, build obsolescence, and eliminate future problems by selling OEM accesories.

Now let's not miss the boat and make sure our aftersales reps are knowlegable of what the factory offers.

[APM]

I came across a new offer ask your DSM or DPM what a VPO is. Very nice money maker for the new LTZ