Despite a resurgence in the coronavirus pandemic, the SEMA Show is still slated to go ahead this November in Las Vegas. And in spite of the social distancing and face mask requirements, it’s going to be a booming success yet again. The question you might be asking is, “Why would SEMA be so important that it doesn’t get canceled (yet)?”

The answer is this: 282. More than $282 billion dollars US is spent on automotive aftermarket in North America, and just $16 billion is in e-commerce. And according to Hedges & Company, that portion is growing at 14 to 16 percent annually.  

More than $150 billion is spent out of pocket in North America on aftermarket auto parts, specifically. It’s big business, and accessories are a serious slice of the $150 billion in aftermarket sales pie.

How much of that business are YOU capturing?

Hesitant to Go Aftermarket?

It’s common for dealerships to shy away from aftermarket accessories, and OEMs like to push their own products as add-ons in the service department. However, there’s no comparison for brand name in certain circles. Thule, for example, is easily the most recognized authority in bike carriers, roof racks, and storage. There’s no doubt that WeatherTech made their name on the best floor liners on the market. And for lighting, Hella is the standard.

But dealers steer clear because they’ve had issues in the past. Mostly, they’re warranty issues because a vehicle buyer wasn’t told the accessories weren’t covered under factory warranty, leading to a confrontation. But that’s less of a product problem and more of an education thing.

Why Go Aftermarket?

Plain and simple, there’s big money in aftermarket accessory and parts sales. The margins are often as good or better than OEM parts. With brand name components that are seen as the best in the industry, it makes for an easier sale.

It lets customers ‘build’ a personalized vehicle also, using the parts they would buy after they leave the dealership with a bone-stock vehicle. This is particularly true for truck buyers who want a lift kit, larger wheels, tonneau cover, and any number of trim items. An old SEMA survey showed that the average truck buyer spent $2250 on accessories and equipment and SUV buyers were just a tick over $2000.

The money is there.

Keys to Doing It Well

Some automakers have a decent range of high-quality OE accessories. If that’s the case, use them as much as you can. But when customers opt not to buy accessories, ask yourself if they’re spending a couple grand elsewhere afterward. They likely are. It’s right then that you pivot to the aftermarket gear.

Stock popular aftermarket accessories. You know which parts are selling most often – things like wheels and tires, running boards, floor liners, and such. Have them on hand for fast installation when a customer chooses to go that route. A delay of even a few hours can easily be the difference between a buyer and a shopper.

Offer financing at time of vehicle purchase. There’s usually a bunch of room to finance accessories when you’re setting up the deal in the F&I office. Let customers know that now is the time to buy them and have them installed for a couple of bucks a payment.

Make it everyone’s job. Selling aftermarket parts and accessories isn’t just the parts manager’s responsibility. Salespeople and sales managers should know what’s available and how to sell it. F&I managers should have a product page for adding accessories. And the service team as well, obviously.

Build demo vehicles. Take a popular model and absolutely deck it out in available aftermarket accessories. When a customer decides to buy a similar model, walk around the demo afterward and show them what they could add. And eventually, someone will come along to buy the demo also.

There’s a ton of money on the table with aftermarket parts and accessories. Get after it. You’ll be keeping more of the customer’s purchases in house, and that only serves to reinforce store loyalty.