With Right In-Store Accessories Sales Process, One in Two New-Vehicle Buyers Will Buy Accessories (Up from One in Ten) – Driving 500% Gain in Accessory Revenue-Per-Vehicle-Sold
San Francisco, CA – June 1, 2010 –izmocars (www.izmocars.com), a leading Internet business solutions provider for the auto retailing industry, today released the findings of a national dealership report, revealing that when it comes to selling accessories to new-vehicle buyers, the right timing – along with providing rich visualization of the potential enhancements – makes all the difference. In a nine-month study of 120-plus dealerships, car buyers presented with an online configurator (allowing them to interactively customize their new car from a menu of accessory options) – precisely at the time of purchase – were dramatically more likely to buy. One in two buyers experiencing that process purchased accessories (up from one in ten before), and the average dealership generated $400-$600 in accessory-revenue-per-vehicle-
sold, up from $80-$120 before – representing a revenue gain of 500%.
Capturing a bigger slice of the vast $32 billion auto accessories pie(1) has never been more critical for car dealerships, given economic realities. The industry has just emerged from the worst new-vehicle sales year in 40 years (with sales down 62.5% over the last decade(2)), while the auto accessories market has seen explosive 37% growth in that same ten years.(3) Data indicates that 92% of consumers are willing to buy auto accessories; over 60% would spend more than $1,000,(4) and 70% personalize their new vehicle within 30 days of purchase.(5) But while enhancement sales represent among the highest-margin sales at dealerships, historically dealers have been unable to fully seize this literally million-dollar-per-dealership opportunity(6)- accounting for a mere 10-17%(7) of total sales in a market heavily dominated by independent chains and mail-order/online outlets.
“Dealerships actually have powerful, built-in advantages to ‘own’ far more of the accessories market than they do. Psychologically, consumers are far more likely to spend on enhancements at that exciting time of purchase, and the customer is physically in the showroom at that ‘sweet spot moment,’” said Sidney Haider, president of izmocars accessories division. “This new data shows that if the right interactive and engaging tools are presented at the right time and are supported with the right sales and delivery process, a dealership can increase accessory sales astronomically. The average dealer adopting this process is generating $500-$1,000 in extra profit, per vehicle – representing a much-needed new revenue stream of $1 million a year.”
The dealerships studied were using izmocars’ AddOnAuto (AOA) in-store accessory solution, which makes for a seamless consumer experience by integrating accessories shopping and financing with the car purchase, while making it very easy for dealers to get into accessories sales, by eliminating the need to carry physical inventory or contract with 3rd-party resellers and installers.
AddOnAuto Consumer Benefits:
* After negotiating the car purchase and waiting for finance, or even while waiting in the service department, (rather than idly watching TV, etc.), customers are presented with a fun, visual online configurator that allows them to ‘add on’ literally thousands of available accessories for their exact trim level – interactively creating a customized, ‘dream’ version of their new car while still protecting from incompatible accessories configuration or requiring the dealership to stock accessories inventory.
* With the menu-based platform, the consumer can make decisions in minutes and add their accessories purchase on to their monthly payment. AOA automatically coordinates the purchase, financing (pre-calculating payments), and installation processes across the dealership, whether that customer wants to pay upfront or in lower monthly payments.
AddOnAuto Dealer Benefits:
* The 100% Web-based, unlimited, virtual inventory system eliminates the need to hold any physical inventory, or have expensive accessories kiosks or showrooms.
* Connects dealers directly to thousands of accessories and a large, constantly updated OEM and aftermarket vendor database, ensuring powerful consumer choice and sales power without expense.
* Includes a transaction engine, price and parts management, DMS integration and robust email marketing to database of unsold accessories customers.
* Control: Dealer’s virtual storefront completely customized and branded – and managers control exactly when to sell, how to visualize and pricing.
* Unlike existing accessories solutions, offers true visualization and customization (not limited to one trim level), including interior images, body kits, and a much vaster menu of products.
"With AOA’s menu based selling concept we were able to present accessories to all our customers and stay consistent in our pricing. In the month of November 2009, we sold accessories worth $125,000. This would not have been possible without AOA,” said Shawnee Wandless, Accessory Manager, Acton Toyota.
To read AOA dealership case studies click here:
1 SEMA Data, 2009
2 NADA Data 2010
3 SEMA release, 2010
4 Used Car News/NIADA, 4.2010/MyRide Survey 10/2007
5 SEMA Data, cited Consumer Reports, 11.09
6 SEMA data, cited Used Car News, 2010
7 U.S. new-vehicle dealers sell 10% of all performance parts/accessories and 17% of appearance-related accessories. (SEMA data cited AOL Autos, 2.2010)
izmocars is a leading provider of Automotive Business Solutions including: Website and Online Marketing Solutions, Enterprise-level Automotive CRM, iConsult – Sales Performance Coaching and AddOnAuto – an In-Store Accessories Sales Solution.
izmocars is also the world’s leader in Interactive Media Content for the automotive industry.
Founded in 2002, izmocars services some of the most successful eDealers in the country. izmocars is based in San Francisco, with offices in Long Beach, CA, Chattanooga, TN, Philadelphia, PA, and Brussels in Europe.
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