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“Look back over the past with its changing empires that rose and fell, and you can see the future”- Marcus Aurelius

Every great warrior and leader knows that the key to success in the future lies in having an understanding of the past. So with that said what sense does it make to set up a dealership accessories sales program and never keep an accurate detailed record of activity?  In it lies your plan for victory. A lack of record keeping could be a plan for failure. Here are three keep points you should track and analyze throughout the history of your accessory selling program.

Record Keeping #1 - Customer Access

When a customer agrees to view accessories they should always create a unique log in ID and password. A good accessories selling system will be able to track where they logged in from, what they looked at, etc. Plus, the customer may be associated to the sales consultant for future sales credit.

Example: Analyzing your customer’s activity will help you understand what accessories are most viewed in your catalog. You should know the year, make, model and sub-model. It’s an easy way to advise your sales team on hot items to present to future customers.

In short…your sales consultants should take the time to register all customers.

Looking for a complete guide for selling accessories in your dealership? Get a free copy of the Accessories Profit Playbook

Record Keeping #2 - Sales Consultant Log-ins

All sales consultants should have their own login credentials. Not only does it give them commission credit for their sales it gives management an idea of who’s doing what? And let’s not forget about Customer Access discussed above!

Example: The dealership may use the individual performance reports to inspire “spiff” based activity contests. Spiffs based upon the most number of registered customers. Perhaps spiffs for the greatest penetration. Tracking at the sales consultant level allows you to manage, plan and reward for success.

In short…reviewing your sales consultants activity allows for success planning.

Record Keeping #3 – Pricing

This is essential to remaining competitive. You do not want to spend time and resources promoting a great program however pricing yourself out of the market? This is also very important if you’re stocking high volume items…price them to sell!

Example:  You’ve seen it on every news program, read about it on every website, and even seen your customers with it, the IPOD. So you decide that the Personal Audio Link will be a hit in the accessories catalog. You get about one purchase out of a hundred views…while this is a hot item based upon views, nobody buys.  Be sure to compare your pricing.

It’s most likely priced too high. There are several mark-up options available. Based on your observations pricing it correctly will make it sell.

Courtesy of Insignia’s guest blogger: Kurtis Smith of the K-method Group

It is no secret that we are all experiencing some difficult times in our respective economies and that these times are causing many in the automobile industry to question their career paths. However, even in these challenging times, there are those that continue to flourish because they seem to know something that many of their counterparts do not.

These individuals continue to give themselves pay raises every month and every year.  They figured out some time ago that they have to make up in volume what they lack in skill or make up in skill what they lack in volume.

For decades we have known that the majority of those selling on the frontlines of automobile dealerships lacked the necessary skills that they need to be effective, but due to the abundance of prospects that used to walk through the doors, this issue was continually ignored.  Today it is commonplace to see these salespeople jumping from dealership to dealership chasing the hot product or compensation plan to compensate for the roller coaster effect in their income. This unfortunate reality is one of the symptoms of an individual that lacks the knowledge of how to effectively build a book of business or create a customer following.  The irony is that many of these salespeople will boast about having a significant amount of years in the business simply because they lacked the formal education and skills.  It seems that it’s Reckoning time! 

The key to not just surviving in these challenging times, but flourishing is to become a tactical seller, to go on the offense by being proactive instead of standing around waiting for prospects, which is being reactive.  These individuals who have gone on the offense have learned not only to sell professionally but to sell differently and become proficient in packaging their offerings in different combinations so as to appeal to each buyer uniquely. They have modified their selling style and their processes because they have accepted the fact that consumers have access to more information than ever before including invoices, incentives, and so on.  They have come to terms with the fact that their customers prefer to negotiate from the bottom up, not the other way around, so they have redefined their strategy to increase their gross margins and therefore increase their personal income.  In addition, as tactical sellers, these professionals realize that it’s futile not to give the client exactly what they want, so consequently, they spend a good amount of time building value and cultivating relationships in order to position themselves as expert when making buying recommendations.   

It is important to note that the fundamental value of selling accessories is that they have no published invoice price, and like art or fine jewelry, the perceived value to the consumer rests in the seller’s ability to articulate and transfer the benefits of ownership through a proper presentation. The tactical seller knows this and through a proper needs analysis, they are able to identify potential opportunities before they begin to make a presentation. These add-ons are introduced by the tactical seller earlier in the selling process and they are able to demonstrate and present the accessories as a must-have instead of a should-have. The difference here is that most salespeople discuss accessories as an afterthought whereas their “oh by the way” approach diminishes the value and importance causing it to be perceived as unnecessary.

With that being said, here are a few things that you can do as a salesperson to up your game so that you can join these selling professionals who are currently flourishing in these difficult times.

#1 Upgrade Your Skills – You have to make up in skill what you lack in volume. If your dealership client count is low, then you have to increase your business development activities. Engaging in Business Development activities is your responsibility and as such, it should be a part of your daily work plan. The benefit of this process is that you will have clients walking through the door asking for you by name.

 #2 Keep More Clients Than You Lose – When you are building a book of business, your objective is to find and keep customers. This means that you have to become good at CRM as a process by becoming knowledgeable about CRM software. Customer Relationship Management is the key to growing a large and profitable book of business. This tool and process in the hands of a capable selling professional is the key to experiencing compounding sales and income.

#3 Commit to Selling Accessories – If you cannot beat them, join them. The best part about selling accessories is that your cost is not a published item, so it leaves you room to actually create a profitable deal even though the vehicle selling price may be low. The key to selling anything starts with knowing your product and accessory product knowledge is critical to know what item in your tool bag works best with what vehicle.  Knowing the benefits and drawbacks of these items when making recommendations to your clients will be perceived by them as counseling instead of selling which makes you look like the expert.

This is tactical selling at its best, and is a strategy that anyone can use to give themselves a pay raise today!

 

 Connect with Kurtis:

www.kmethod.com 

http://kmethod.com/blog/

DealerElite.net: http://www.dealerelite.net/profile/KurtisSmith

LinkedIn:  http://www.linkedin.com/in/kurtismith  

 

 

 

*This piece has been updated with data from 2020.

Everyone wants a piece of the $46 billion dollar pie, unfortunately, dealerships are not getting their fair share, according to SEMA. They only capture approximately 10% of the lucrative accessories revenue stream.

“A car is the largest object you’re ever going to wear.”- BMW Designer Chris Chapman

 The Lipstick Index and Accessories

I know what you are thinking. What does lipstick have to do with the automobile industry? Well, they have a lot to do with each other when you are thinking of accessories and the best time to sell them. According to Leonard Lauder of Estee Lauder, when the economy takes a downturn, they sell more lipstick. According to the New York Times, people are focusing more on affordable luxury. Rather than spending money on something they cannot afford, they spend a small amount on a large number of items to improve what they can afford.

This translates into the vehicle personalization business because people will buy an affordable vehicle and then accessorize to give it an “upscale” look and feel. Or simply add a few items to personalize their ride!

Automobile Accessories Market

Since the turmoil in the automotive industry in 2008, automobile personalization has still managed to climb in popularity. According to Foresight research, 44% of all buyers spend at least $250 and intend to spend a whopping $1,810. The average amount spent and intended to be spent per new vehicle sold equaled $815 and availability was influential in selecting a dealer by 23% of all buyers.

Keeping Up with the Trends

If you haven’t started selling accessories now is the time. According to the SEMA 2011 Market Report, the following are the top 10 most popular generic accessories. Click on the 2011 SEMA Market Report for detailed information on OEM and Aftermarket, and what’s popular by brand.

1. Remote Engine Start
2. Floor Mats, All Weather
3. Heated Seats, Front Only
4. Leather Seats
5. IPOD Interface
6. Back-up Camera System
7. Headrest DVD System
8. Vent Visor Front and Rear Set
9. Drop Down DVD System
10. Window Tint

Have you been setting Sales goals for 2012?  How about this one: Make more money per vehicle sold

With all the content that’s out there it’s hard to keep customers engaged. This is not to mention the hundreds of 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:

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.