Accessories on Showroom Cars....

Accessories on Showroom Cars....

Postby pkwalsh » Fri Jun 27, 2003 7:32 am

I am curious how others are handling the billing of accessories on showroom cars. Our area reps want to see more acc. sales, and wants cars in the showroom dressed up. Parts has complied, and ordered racks, mats, visors, etc...Service installs parts and gets paid labor to do so....Now the kicker, they sold the car and the customer does not want the parts......Ro is written, service gets paid to take the parts off the car, and parts is left with used accessories and no boxes. Now I know we should think about keeping the boxes, we won't get into that, but shouldn't parts get some kind of compensation, service has gotten paid twice.

I have read through other posts about different ways to sell the accessories, like giving them a monthly price added to the lease payment. But I cannot be the only dealer who has to deal with the taking on and off of accessories!!!

Any suggestions????
pkwalsh
 

Accessories on Showroom Cars....

Postby BILL NYHAN » Fri Jun 27, 2003 9:44 am

I would think most dealers are charging the parts to the ro and the vehicle and thats where it stays!
If a customer decides they do not want the accys ,sales should move the items to another new car thru a ro in service.
In my opinion the decision to put these used installed accy back into parts creates a major problem.
That problem is obvious to parts managers that know they now can no longer return these accys and would probably now find it difficult or impossible to sell due to the fact that there may not be a box instructions , pieces, its used etc!
This leads to obsolete parts and nonsaleable parts which ultimately would need to be written off.
This really needs to be addressed by the dealer principal and not a sales or general manager as sales and gm's as I have experienced are more interested in front end profits and less concerned about the parts dept.
I would address this to the dealer principal or gm if you must and let them know the consequences of putting these accy back into stock.
If you can total the cost of the parts that are now unsaleable and that may give you ammunition on how the way your dealer is handling this is not profitable.

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BILL NYHAN
 

Accessories on Showroom Cars....

Postby ROERT1 » Fri Jun 27, 2003 2:43 pm

In our dealership, once we sell the parts and they are installed on the vehicle, it is the sales departments "part". They can do with it as they please, but it is not charged back to parts, and if it get's installed on another vehicle, they have to pay the service dept, for another install charge.
If the part is a "throw-in" part (floor mats, etc.) and does not require any installation,and we normally stock that particular part, we credit back the part to sales and resell the part later.

ROBERT1
ROERT1
 

Accessories on Showroom Cars....

Postby BRIANB » Thu Jul 10, 2003 1:26 pm

The situation addressed by pkwalsh illustrates a dilemma. Our dealership, I believe, is missing the boat by not actively marketing OE accessory sales. We would have to be blind to miss all the activity and profit in the growing accessory aftermarket, particularly on trucks.
Yet, as a parts manager, I'm very reluctant to put into MY inventory a significant investment of time, money, and space for goods which now experience limited demand at best. The key, for me, of maintaining minimal obsolesence has been to rely on "pull-through" demand, while minimizing forays into un-tested, un-proven areas. Accessories are, to a great extent, a "fashion" item, and as such require more of a "push-through" marketing approach where demand must be stimulated by media, displays, and promotions.
Now, the rub is that the sales management doesn't want to accessorize THEIR inventory. They don't want to risk the investment in dollars, time and effort that could result from dealer vehicle trades, customers expecting "freebies", swapping parts from one vehicle to another, etc.
Bill is right; it takes a commitment from the dealer principal to make it happen.
By the way, the factory will do just about anything to convince you to stock-up on their accessories. But keep in mind, once you buy into their idea and place that big order, they've made their money.
In closing, I would like to encourage others to share their success stories on accessory marketing and sales, both internally and to the end customer.

BRIANB
 


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