3 tips for a successful aftermarket accessories program

The vast world of aftermarket can seem like an intimidating experiment for dealers. But, when you are establishing your accessories program that features aftermarket products you don’t have to reinvent the wheel. Insignia Group and many of our dealers and partners have years of experience and advice that can get you started on the right path. Insignia Group’s guest blogger Ray McGowan shares a few tips on establishing a successful aftermarket accessories program.

Tip #1: Have a vision and a plan:

Well then, how does a dealership complete this feat at the dealer level? Well, let us look at a successful operation where the implementation of such a department increased the PVR (per vehicle retail) approximately $1300 per vehicle delivered. When the Principal of a Toyota franchise made the decision to try out aftermarket accessories, he enlisted his management staff to analyze what was being sold for the entire New York Region in the Aftermarket sector. He knew that making a purchase of large quantities of accessories and parts might create a wide variety of obsolete inventory and create the “giveaway” or “concession” mentality of the entire sales department. In other words, he wanted his homework completed to ensure success. Any dealership making the commitment to sell aftermarket products, must weigh out all the options before proceeding further. It’s like anything else, fail to plan and plan to fail.

Tip #2: Take aftermarket to another level:

An example of a dealer taking aftermarket to another level is making available the retail space within the dealership to market the products properly. This provides the option for the consumer to acquire the products they would normally seek at a specialty store or outside vendor. If retail square footage is a factor due to space concerns for the products offered, monitors should be placed with repetitious slides showing the available accessories for the particular models the customers have purchased. It is a subliminal message to the customer that something might be missing they would like to own on their newly purchased vehicle. If set up properly these automobile “boutiques” can generate profits for the dealership and in some cases the products can be shipped by the vendor directly to the online customer.

Tip #3: Stay Committed:

Today, a well-planned aftermarket program can mean additional profits not only in the front end sales department, but also a huge influx of profitability to parts distribution and service revenue. It all begins with the process of the ownership or the management staff to “buy-in” to selling the aftermarket accessories. If the upper level management does not have a vested interest in making the program process work, it will more than likely fail. The program is only as good as the people who present it and believe in it. Anything short of full cooperation to make the aftermarket department successful will surely end in failure. Everyone must understand “why” the program is important and an incentive should be in place to make it successful.

Courtesy of Insignia’s Guest Blogger: Ray McGowan

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