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“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:

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, they 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 should be priced with a 10-15% markup based on brand and value.  Now that they are priced appropriately, revenues may be split between parts, service, and sales.

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.

Since the release of the popular film “The Fast and the Furious”, car accessorizing has shifted from being a secret of car gear enthusiasts to a mainstream phenomenon. It even factors into customer retention for service conversions. Two sequels later and the aftermarket accessory market continues to average 8% growth annually. Car dealerships would be wise to keep up. The demand for car accessories is high. And, just like fashion accessories, there are hundreds of options. And, trends change rapidly. Here are four reasons why people love to personalize their vehicles.

Purchasing a car is the second largest investment most people will make. And, unfortunately, many compare the experience to a visit with the dentist. John Krafcik, Hyundai Motor America CEO stated “Americans would rather go to the dentist than visit a car dealer.”  So many things can go wrong from the time a prospect sets foot on the lot to the time they roll off in their new car. Many deals fall apart during one fatal stage, the uncomfortable transition to F&I.  During this time period many prospects are likely to change their mind.