SAN FRANCISCO — The June 2011 AOA Accessories Trend Report from izmocars, which studied accessories sales data of dealerships most severely impacted by the tsunami, 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.
izmocars is a provider of automotive business solutions, including online marketing solutions, enterprise-level automotive CRM, iConsult – sales performance coaching and AddOnAuto – an in-store accessories sales solution.
The AOA report studied more than 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 percent – these dealerships ramped up accessories revenue by more than 30 percent, from an average of $400 per vehicle sold in the preceding five months, to more than $525.
Accessories closing ratios also were on the rise at these dealerships, increasing from 50 percent to 58 percent, while the average number of parts sold per customer also rose by almost 22 percent – 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
4. Electronics
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)
1. Wheels/Tires
2. Upholstery
3. Electronics
4. Step Bars
5. Navigation
By Revenue, Jan – May 2011 (All Dealers)
1. Upholstery
2. Wheels
3. Step Bars
4. Electronics
5. Body Side Moldings
