Follow the Leader in Accessories Sales Best Practices

 

Insignia customer Carl Moyer, owner of Karl Chevrolet is making headlines in Automotive News.

The dealership constantly ranks in the top five   U. S. Chevy stores in new-vehicle sales, certified used-vehicle sales and accessories.                                                

Karl Chevrolet’s business practices have allowed them to sell $100,000 dollars in accessories and increase their tire sales from $1million in 2009 to $3 million this year.  Carl’s competitive nature caused him to develop business practices like preloading 50 display vehicles from the Insignia Accessories Catalog and hosting "one-price sales" on the last Saturday of each quarter, “We’ll sell 130 cars on that day” versus 50 on a typical Saturday, Moyer says. “It’s an organized zoo.” To learn more about Carl and how he uses accessory sales and other practices to leave his competitors in the dust, follow the link to autonews.com   for the article and watch the video.

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

Appealing to Female Buyers Part II: Women are stressed out…why?

 

According to Autotrader.com 1 in 4 women find buying a new car stressful. When asked why many women will site at least one of the following reasons:

1. The salesman ignored me and would only talk to my husband or the other male present.

2. The salesmen were condescending and assumed I knew nothing about cars.

3. The salesmen would not listen and answer my questions and gave me inaccurate information.

Face to face interactions between the dealership and your customers start with the sales staff.  Why not invest in making sure those interactions are positive and encourage a pleasurable car buying experience. Resources like                Ask Patty.com, is a company that offers automotive advice to women.  They travel to dealerships to conduct sensitivity training that provides the sales staff a better understanding of what women want, how to listen to and respect  them, and how to answer their questions. 

The manufacturer gets it…the dealer should as well

No one in the automotive industry understands the importance of offering what female buyers are looking for better than automotive manufacturers.  Have you ever wondered why the Volvo YCC has gullwing doors or why the Toyota Sienna has front and side/curtain airbags. It’s because women are more interested in features like safety and easy ingress/egress. Unfortunately this is lost when sales people would rather talk about “how the color matches her eyes.”

Consider this statement from a female car buyer. "I'm 5-foot-2, and I can't reach the back of the trunk, so it's nice to have hooks to keep the gallon of milk from sliding to the back." When’s the last time you as a salesmen sold a car based on its unique storage options or adjustable petals? Research conducted by Toyota shows that men focus on the outside features and women are more interested in the inside.

The internet has enabled women shoppers to alleviate some of the stress when buying a car.

Questions are easily answered and preliminary decisions are made before they even go to the showroom. Before women go shopping, they go CROPing. According to she-conomy.com women are more likely to shop around and compare pricing by soliciting creditable opinions (CROPS) from credible online sources, friends, and family.  Since 22% of woman shop online daily, resources like Kelley Blue Book and Women-drivers.com have become trusted sites for information. It’s important for sales people to be well aware of this same information.

At the end of the day the key will always be to listen. So set gender aside and toss the slick sales speak out the window. Most likely the prospect has done their research…they just want to buy from someone that listens, understands, addresses their questions and has a good price. And most importantly, buy from someone that asked for the business.

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

Point, Click, Leave: 4 ways to keep your customers engaged on your Dealership website

With all the content that’s out there it’s hard to keep customers engaged. This is not to mention the hundreds of dealership websites you are competing with. As a dealership you have to stand out online as well. Here are four tips to keep your customers engaged and prevent them leaving your website without becoming a customer.

1.       Videos:

Videos on your dealership website have huge potential to add revenue to your dealership. According to CNET News consumers watch 2 billion videos a day on YouTube.   In this case the saying “it’s better to show than to tell”, rings true. 75% of people would rather watch a video about a product than to research it.  A study done by Burst Media suggests the 55% of people who watched a video about a car model was more likely to buy the vehicle they saw in the video. Video is a powerful marketing tool. Websites that feature videos are more successful because it keeps the web surfer engaged longer. Quick: 30 second to 1 minute videos on new vehicles, promotions or accessories are a great way to keep your virtual customers engaged. Use it to introduce your managers and what your dealership has to offer.

2.    Facebook Fan Page:

Another feature your website should have is a link or preferably a “like” to your Facebook Fan Page.  A Facebook Brand Engagement report done by Chadwick, Martin, and Baily Research showed that 58% of Facebook Fans are repeat customers. Sticking a “like” button on your fixed operations pages, such as parts and service, is a good way to keep your customers coming back.  60% of dealership internet sales come from parts and service. And, these customers are at least 51% more likely to recommend a friend and come back for service. In addition to that fans are automatically notified of your postings on Facebook. If your dealership does not have a Facebook fan page be sure to set one up that is easy to find. For example www.facebook/yourdealershipname.com, this is easily searchable on Google or any other search engine. An important statistic to note is that 79% of car buyers start their research through search engines.

3.       Accessories Catalog:

Accessories are a 28 billion dollar business in the automotive industry and according to Foresight Research and 59% of accessory consumers find out about accessories available for their vehicle online. Why not drive those potential customers to your website by hosting an accessories catalog on your website? 23% of car buyers say that the availability of accessories was influential in selecting a dealer and 12% said that it was highly influential in selling the vehicle. An interactive catalog will engage your customers and show the possibilities of a purchase they are considering by allowing them to pull of the exact car they want and add the exact accessories…again showing rather than telling. This makes an easier sale.

4.       Enhance your Service Page:

Google’s Automotive Aftermarket study 2010 shows that Schedule Service Lead forms were the 2^nd highest forms submitted online.  47% of consumers would like to view their vehicle service history online. Why not provide that and increase their repeat business? Create a way were they can check their parts order status and  confirm appointments without waiting for a call back, all online. This will only enhance the customer experience.

For a great example check out : http://smarttoyota.com/

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

SEMA 2011 Market Update: Accessories Sales Trends at Dealerships

SEMA Market Research has partnered with Insignia Group to provide members with a snapshot into accessories sales trends within new vehicle dealerships. New technology and renewed dealer emphasis on accessory sales may make new vehicle dealerships an increasingly viable sales channel for the specialty equipment market.

View the slides for a complete view of...

• Aftermarket Trends
• What's hot by OE
• and more valuable market information

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

5 Ways to Increase revenues without selling more cars

Are you reading the same reports? Car sales are expected to drop based upon the industry experts!  Many marketplace factors are influencing the fluctuations throughout 2011, two major factors are:

1. The crisis in Japan which created a shortage in inventory, driving prices up for the spring and summer.
2. The stock market… investor uncertainty which typically translates to increased dealerships inventories, lower prices and fewer sales.  

Survival remains one of the biggest topics at automotive trade shows and seminars. Last year more than 258 dealers closed due to the economy.  But, selling more cars and trimming the fat are not the only ways to stay up in a down economy.

Here are five ways to increase your revenues without selling more cars.

1.          Give them incentive to “Tell a Friend”

30% of customers have a family member who will purchase a vehicle in the next 90 days. Why not get their business too? Offering a “friends & family” service discount coupon to generate service bay traffic is a great way to establish new business.

2.          Schedule text based service reminders for the customer lifecycle

Does the oil change window sticker bring them back? Offer every oil change customer a free text reminder…and include a coupon. The conversion rate averages higher than 15%. Companies such as AutoServiceAlert.com create and manage text based service alert schedules for dealerships…check them out.

3.         Present accessories

Another way to increase revenue is presenting accessory options. Personalizing a vehicle creates a sense of ownership. And, it minimizes any apprehensions about the purchase. The 2011 Automotive Accessory Market Report by Foresight Research stated that the average accessory dollars spent and intended to be spent per new vehicle sold equaled $815.

4.        Offer More Leasing Options

Leasing a car can be attractive to a perspective buyer because they can get a more luxurious car for a smaller monthly payment. It’s better for the dealership because a lease customer is three times more likely to come back than a buyer.

5.       Offer Prepaid Maintenance

Regular maintenance is required for every vehicle new and used. Offering a prepaid maintenance guarantees they will come back and use your service department. This service may also be combined with pre-scheduled text reminders with the Auto Service Alert team.

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

Appealing to female car buyers, Part I by Insignia Group

''The reason women become so successful is we're interested in treating women right when they come in. I don't mean to sound stereotypical, but women have so much more empathy for customers.''

Kitty Van Bortel, owner of Van Bortel Subaru and Van Bortel Ford (source: New York Times). Van Bortel Subaru averages around $ 43 million in sales and has been ranked top selling franchise of Subaru America three years straight.

A lesson from pop culture

 “If Men are from Mars and Woman are from Venus, and you can speak Venutian, the world can be yours.” Woman account for 65% of all new car purchases but 74% of woman feel misunderstood by automotive marketers. If dealerships focused more on connecting with female consumers their opportunities for increased revenues in the sales, service, parts, and accessories department are endless.

Just like Mel Gibson’s character in “What Women Want” discovered, women have enormous buying power, but think very differently when making purchase decisions.  This is particularly true when it comes to buying a car. Rather than alienating women who shop at your dealership here are four ways to better communicate with the other half that influence 80% of all new car purchases and 42% of car accessories sales.

Hire More Women?  Look at the statistics…

50% of car buyers would prefer to deal with a female, according to dealix.com. Breaking it down by gender we see that 39% of woman and 11% of men would prefer to deal with a woman in a dealership.

Based purely on that statistic alone dealerships with a balanced workforce automatically have an advantage when selling new cars, agree?  But surprisingly dealix.com reported that the dealership workforce is comprised of only 7% of woman.  The majority of that 7% do not hold positions of influence during the buying process.

Would women in managerial roles (i.e. Sales, F&I, Service) increase your prospect to customer conversion?

Women typically have a natural inclination to be attentive to the needs of others and more personable. They are more likely to listen to your customers and provide a more comfortable experience. When building customer relationships many dealerships struggle with establishing trust and loyalty. Women do this intuitively. A saleswoman will listen to your customer then sale them car their perfect car with accessories to match, based off their wants and needs.

Part II: Investing in Sensitivity and Female friendly sales Training for your Sales People

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.

Accessories revenue share: 3 possible solutions for typical conflicts

One of the biggest challenges dealers face when launching an OE accessory sales program is appropriate pricing so that every department gets a share. Typically a dealership’s parts department charges 25-40% mark up on replacement parts and the service department charge their regular labor rate for install. But, accessories are typically not replacement parts.

Just like fashion accessories they are often an impulse buy, sold in high volume for lower margins.  In order to remain competitive with the store down the road selling aftermarket accessories, OE accessories should be priced with a 10-15% markup based on brand and value.  Now that the accessories are priced appropriately, revenues may be split between parts, service, and sales.

Easier said than done, right?

Sometimes it’s an all-out brawl to get a parts manager to let go of their coveted 40%. Then you need to convince your sales manager that it is worth his time to offer every single customer floor mats and splash guards. The biggest reason for dealerships selling accessories is threefold:

1. Meet an existing need of their customer
2. Introduce a new profit center and
3. Increase the dealership’s bottom line as a whole

The shift is not easy to make and is met with some adversity. However, here are three possible solutions to issues dealerships may face when splitting accessories revenue:

Issue 1: Parts Manager Opposition

“This is a bigger hassle than what it’s worth”…sound familiar? Traditionally the Parts Manager stocks replacement parts, assuming that eventually someone will need them. So, they apply the same logic to accessories. But, selling accessories is a volume game.  

 

Solution: Implement an e-catalog that tracks popular “high volume” accessories to stock accordingly, let your vendors carry the cost of low volume inventory and then price to sell. Every department wins, including parts.

 

Issue 2: Ineffective Communication between Departments

Traditionally parts and sales departments are like the brother and sister that can’t get along. They each track pricing and distribute revenue differently. Neither clearly understands the other…and typically there is quite a bit of friction between the two. Lack of communication and animosity between departments alone can be detrimental to your accessories sales.

 

Solution: Implement a shared system with standardized pricing, labor rates, mark ups, installation, revenue, etc. When all departments are on the same page communication is easier trust improves and you’ll operate more efficiently.

 

Issue 3: Sales Manager Opposition

Sales managers are all about making a profit. Seeing less than a 25% markup generally will cause them to have a “Why push something that I’m not making any money from?” attitude. Unfortunately the sales team will adopt the same philosophy.

 

Solution: Create an Accessory Manager position. According to the 2011 Automotive Accessory Report the average accessory dollars spent and intended to be spent per new vehicle sold equaled $815. Car sales consultants remain focused on selling cars and the dealership is able to tap into a billion dollar industry with a single accessory sales champion.

Insignia Group, the leading provider of accessories sales systems and training has helped dealers maximize profits for over 10 years. Supporting 20+ brands and dealerships nationwide, we help our customers establish and grow their Accessories Profit Center. Call 888-579-4458 to learn more or schedule a demo.