Fixed Ops Journal - December 2017 - 28

FIXED OPS JOURNAL

This year's SEMA show
offered an array of new
accessories that can
boost dealer profits.

AUTO
ADD-ONS
7 habits of highly successful dealerships for accessories sales



dkushma@crain.com

he accessories market is bigger
than ever, but dealerships still
aren't taking full advantage of it.
From fuzzy dice to satellite navigation, auto accessories are a $40 billion-a-year
business - generating more revenue, by
some accounts, than collision repair. Profit
margins on accessories sales routinely approach 50 percent.
Half of new-vehicle buyers say they plan to
customize their purchases, industry surveys
suggest. When they do - 6 million new vehicles are accessorized in the first two years of
ownership - customers typically spend between $300 and $800. Truck buyers spend
$1,500 on average.
Yet only about 5 percent of customers buy
add-on accessories from the dealership where
they purchased their vehicle, the dealer software provider Reynolds & Reynolds estimates.
As new-vehicle sales and profits stall after
years of growth, franchised dealerships in the
U.S. must look elsewhere to pick up the revenue slack. Dealerships and automakers have
ample opportunities to increase their share of
the accessories market, now dominated by aftermarket providers, and to build customer
loyalty in the process.

PAGE 28

DECEMBER 2017

"We've got to do a better job of selling" accessories, says Trevor Gile, managing partner
of Motorcars Honda in Cleveland Heights,
Ohio. "That'll be the next big movement to
capture every penny."
Gile says dealerships must "get the nut
cracked" of installing accessories more quickly and efficiently. He is revising his service department's processes to help accomplish that
goal, Gile told Fixed Ops Journal.

"

"

T

DAVID KUSHMA

"We've got to do a better
job of selling [accessories].
That'll be the next big
movement to capture every
penny."
TREVOR GILE, managing partner
of Motorcars Honda

Mark Seng, global aftermarket practice
leader at the data analysis firm IHS Markit,
says "dealerships are getting aggressive across
the board" about selling accessories, "and
OEMs are focusing on the aftermarket, too."
"The dealer is positioned better in the consumer's mind" than independent competitors
to provide sophisticated accessories such as
electronics, Seng said in an interview at last

month's Specialty Equipment Market Association show in Las Vegas. But he adds that it
now "takes a much greater level of expertise"
to sell accessories successfully.

Seven keys
To capture a greater share of the aftermarket, dealerships need to offer accessories to
customers as an integral part of the new-vehicle sales process, dealers, suppliers and industry consultants agree.
That means committing to adequate pay,
training, equipment and support for dealership employees, including those in fixed operations, to sell accessories, industry experts say.
Among their recommendations:
Get service and parts employees involved in promoting accessories,
both during the new-vehicle sales
process and when owners come in
for service. Enabling vehicle buyers to talk to
specialists who install accessories can provide
a reassuring source of expertise.
Dealerships often "drop the ball in creating
an introduction from sales to service" for
new-vehicle buyers, says Gina Allen, fixed operations director of the Santa Margarita Auto
Group, which operates Ford and Toyota dealerships in Rancho Santa Margarita, Calif. As a

1

see SUCCESS, Page 29



Table of Contents for the Digital Edition of Fixed Ops Journal - December 2017

Fixed Ops Journal - December 2017
Contents
Editor’s Letter
Service Counter
Legal Lane
Big verdict
Ho-ho-ho
Battery charge
Price is right
Tomorrow’s techs
Selling accessories
SEMA dreams
To the rescue
Profit Builder
Richard Truett
On the line
Letters
Real time
Feedback
After hours
Efficiency expert
Longer lasting
Shop Talk
Five Minutes With
Fixed in Time
Fixed Ops Journal - December 2017 - Intro
Fixed Ops Journal - December 2017 - Fixed Ops Journal - December 2017
Fixed Ops Journal - December 2017 - Cover2
Fixed Ops Journal - December 2017 - Contents
Fixed Ops Journal - December 2017 - Editor’s Letter
Fixed Ops Journal - December 2017 - 5
Fixed Ops Journal - December 2017 - Service Counter
Fixed Ops Journal - December 2017 - 7
Fixed Ops Journal - December 2017 - Legal Lane
Fixed Ops Journal - December 2017 - Big verdict
Fixed Ops Journal - December 2017 - 10
Fixed Ops Journal - December 2017 - 11
Fixed Ops Journal - December 2017 - Ho-ho-ho
Fixed Ops Journal - December 2017 - 13
Fixed Ops Journal - December 2017 - Battery charge
Fixed Ops Journal - December 2017 - 15
Fixed Ops Journal - December 2017 - 16
Fixed Ops Journal - December 2017 - 17
Fixed Ops Journal - December 2017 - 18
Fixed Ops Journal - December 2017 - 19
Fixed Ops Journal - December 2017 - 20
Fixed Ops Journal - December 2017 - 21
Fixed Ops Journal - December 2017 - Price is right
Fixed Ops Journal - December 2017 - 23
Fixed Ops Journal - December 2017 - Tomorrow’s techs
Fixed Ops Journal - December 2017 - 25
Fixed Ops Journal - December 2017 - 26
Fixed Ops Journal - December 2017 - 27
Fixed Ops Journal - December 2017 - Selling accessories
Fixed Ops Journal - December 2017 - 29
Fixed Ops Journal - December 2017 - SEMA dreams
Fixed Ops Journal - December 2017 - 31
Fixed Ops Journal - December 2017 - To the rescue
Fixed Ops Journal - December 2017 - 33
Fixed Ops Journal - December 2017 - Profit Builder
Fixed Ops Journal - December 2017 - Richard Truett
Fixed Ops Journal - December 2017 - On the line
Fixed Ops Journal - December 2017 - Letters
Fixed Ops Journal - December 2017 - Real time
Fixed Ops Journal - December 2017 - 39
Fixed Ops Journal - December 2017 - Feedback
Fixed Ops Journal - December 2017 - After hours
Fixed Ops Journal - December 2017 - Efficiency expert
Fixed Ops Journal - December 2017 - Longer lasting
Fixed Ops Journal - December 2017 - Shop Talk
Fixed Ops Journal - December 2017 - Five Minutes With
Fixed Ops Journal - December 2017 - Fixed in Time
Fixed Ops Journal - December 2017 - Cover3
Fixed Ops Journal - December 2017 - Cover4
https://www.nxtbook.com/nxtbooks/crain/fixedops_202006
https://www.nxtbook.com/nxtbooks/crain/fixedops_202004
https://www.nxtbook.com/nxtbooks/crain/fixedops_202002
https://www.nxtbook.com/nxtbooks/crain/fixedops_201912
https://www.nxtbook.com/nxtbooks/crain/fixedops_201910
https://www.nxtbook.com/nxtbooks/crain/fixedops_201908
https://www.nxtbook.com/nxtbooks/crain/fixedops_201906
https://www.nxtbook.com/nxtbooks/crain/fixedops_201904
https://www.nxtbook.com/nxtbooks/crain/fixedops_201902
https://www.nxtbook.com/nxtbooks/crain/fixedops_201812
https://www.nxtbook.com/nxtbooks/crain/fixedops_201810
https://www.nxtbook.com/nxtbooks/crain/fixedops_201808
https://www.nxtbook.com/nxtbooks/crain/fixedops_201806
https://www.nxtbook.com/nxtbooks/crain/fixedops_201804
https://www.nxtbook.com/nxtbooks/crain/fixedops_201802
https://www.nxtbook.com/nxtbooks/crain/fixedops_201712
https://www.nxtbook.com/nxtbooks/crain/fixedops_201709
https://www.nxtbook.com/nxtbooks/crain/fixedops_201706
https://www.nxtbook.com/nxtbooks/crain/fixedops_201704
https://www.nxtbook.com/nxtbooks/crain/fixedops_201702
https://www.nxtbook.com/nxtbooks/crain/fixedops_201611
https://www.nxtbook.com/nxtbooks/crain/fixedops_201608
https://www.nxtbook.com/nxtbooks/crain/fixedops_201605
https://www.nxtbook.com/nxtbooks/crain/fixedops_201602
https://www.nxtbook.com/nxtbooks/crain/fixedops_201708
https://www.nxtbookmedia.com