Are you under pressure from your DMS to enter into a contract that you are unsure about? Find a DMS who can step in and help you gain control over your current situation and enable you to improve customer satisfaction and dealership profits. DOWNLOAD
June AOA Accessories Trend Report shows auto dealers most impacted by tsunami generating 30% more accessories revenue, than in each of previous five months.
San Francisco, CA, July 12, 2011
izmocars (http://www.izmocars.com) today released its June 2011 AOA Accessories Trend Report(1), which studied accessories sales data of dealerships whose inventory was the most severely impacted by the tsunami. The report reveals significant increases in accessories revenue for June, versus each of the previous five months, for these import-brand dealerships. This is particularly striking in a month that saw auto sales slow to their weakest pace in a year, impacted by low inventory, bad news on the economic front and post-Memorial Day sales slowdowns.
The AOA report studied over 150 Honda, Toyota, Lexus and Acura dealerships across the country and found that for the month of June – when vehicle sales for Honda and Toyota dropped by 21%(2) - these dealerships ramped up accessories revenue by over 30%, from an average of $400 per vehicle sold in the preceding five months, to over $525.
Accessories closing ratios also were on the rise at these dealerships, increasing from 50% to 58%, while the average number of parts sold per customer also rose by almost 22% -- from 1.8 to 2.2.
"While there is not a direct correlation between low inventory and increased accessories revenue, this report clearly indicates that dealerships are rising to the challenges of stifled inventory and compensating for lost revenue with new strategies, such as accessories sales which, we believe, are positioned to be a chief driver of increased profits by-car-sold in the months and years to come," said izmocars Vice President Sidney Haider. "Our AOA data over the past year shows that the ROI from accessories sales done the right way is undeniable. The results of this study underscore the importance - and benefits - of having an accessories sales strategy, not only in this economic climate, but also as vehicle stocks return and pent-up consumer demand for vehicles is released."
Top Five Accessories Categories by Volume and Revenue
June's top selling and revenue-generating accessories for the Japanese import-brand dealerships in the study showed some variation from the Top 5 of the overall market in Q1(3). Electronics and Body Side Moldings show up in the Top 5 by volume sold for these import-brands replacing Roof Racks/Cargo Carriers and Factory Interior which were in the Top 5s in Q1 among all brands. The only variance in the Top 5 revenue generators for these import-brands is the elimination of Body Side Moldings and the addition of Navigation, a high profit item and critical add on for summer road trippers.
Top 5 Accessories Categories (By Volume Sold and Revenue)
Jan – May 2011 vs. June 2011
By Volume of Parts Sold, June 2011 (Japanese-Import)
1. Floor Mats
2. Factory Exterior
3. Body Side Moldings
5. Window Tint
By Volume of Parts Sold, Jan - May 2011 (All Dealers)
1. Factory Exterior
2. Window Tint
3. Floor Mats
4. Factory Interior
5. Roof Racks and Cargo Carriers
By Revenue, June 2011 (Japanese-Import)
4. Step Bars
By Revenue, Jan - May 2011 (All Dealers)
3. Step Bars
5. Body Side Moldings
(1) All dealerships in the report sampling utilized AddOnAuto from izmocars.
(2) Automotive News, Low Stocks Stifle June Sales, July 4,2011: http://www.autonews.com/apps/pbcs.dll/article?AID=/20110704/RETAIL01/307049970/1448
(3) AddOnAuto 2011 Q1 Auto Accessories Sales – A Trend Report: http://www.izmocars.com
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.