Could creating a highly profitable accessory program in your store be as simple as following best practice tips?
Hurlbert Toyota is the epitome of success in the making. This won’t be the last you hear of this store. In fact, this is only the beginning. Maybe you’re the type of person who likes bullet points or a handout; someone who thrives on a plan. This story is for you. Take your copy of Insignia’s best practice tips, and follow along step by step as the magic unfolds.
In 2016, Roy Hurlbert linked up with Insignia’s Jamie Perkins. It was like Batman and Robin. John Lennon and Paul McCartney. Starsky and Hutch. Like a store looking to sell accessories in the showroom, and an expert consultant (okay, so that’s what it actually was). From 2016 to 2017, the store went from $115,000 to $250,000 in accessory sales. In 2018, they’re already up 30%. How? Refer to page 16, tip 12, paragraph 1 of your best practice guide.
New Hampshire brothers Roy and Jeff Hurlbert are the dealer principals of Hurlbert Toyota, and they don’t govern from afar. These dealer principals, along with Parts Manager Chris Eagen, syphoned energy and enthusiasm off of their consultant, Jamie, (in fairness, he had extra to share) and created a strategy. The dealership bought in to the Guided Development training program, locking in Jamie’s monthly training and support. This level of upper management buy in paved the way for a profitable future. From there, they moved right down the best practice list, checking off boxes.
For the first time, the dealership implemented the accessory shopping experience into their sales process. Instead of enduring another sales pitch, customers are ushered in to a comfortable and inviting setting specifically created for Vehicle Personalization. Wait time is no longer wasted time. The area features a 50 inch television screen displaying the Insignia system and seating that reminds you of being in your living room. Eagen spearheaded creating this location, converting their “Scion” signage and structuring the area, as Jamie stood back in admiration like a proud father.
The entire team works together from the top down, as Accessories Champion Nick Bertsimas (Best Practice tip 11--check) actively supports the sales staff throughout the process. The sales team is not just encouraged by highly involved ownership, they’re also incentivized (Best Practice Tip 10--check). The accessory presentation process is tied to the sales bonus program, with each presentation counting towards the end of the year bonus program.
Using the strategic process, the dealership moves 90 vehicles a month out the door and every one of them is presented with personalization. The team sees that accessory sales benefit everyone. “Offering accessories is a major part of profitability and sales person pay”, Roy says. “The margin on cars is so thin. The key is having someone like Jamie come in every month and work with our sales team. We really appreciate Jamie’s input and guidance.”
Management strategy and process appointed, personalization profit center immaculately arranged, sales process prepared--check, check, check. Now for the showroom. The team developed specific packages to display on demo vehicles on the sales floor, souping up the interior and exterior to advertise the sparkle and shine of what could be. In the last quarter of 2017 alone, 11 of those custom kits went out the door, adding $650 of profit, 11 times over. According to Jamie, interiors and packages really supported the dealer’s growth last year and continues to be a major source of revenue in 2018.
So what does the doting consultant attribute Hurlbert Toyota’s up and up to? Mostly, it’s two highly engaged dealer principals, Roy and Jeff. “They really drive the program to make sure it’s part of the overall business. They invest time and each month we sit down to review the performance,” Jamie says. As for the brothers? “It’s worth our time to visit with Jamie and get his input,” Roy says. “He provides great idea’s and other best practices for us to consider.”
Get your full copy of the best practice tips and a pen--there’s a clear path to success and it’s yours for the taking.