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Accessory Sales - The Forgotten Profit!

Every dealer principal, general manager...

sales manager, parts manager and service manager would agree that accessory sales are an incredible source of gross profit, and more so than almost anything else sold in a dealership, every department can individually benefit from it. The sales department can add gross to a vehicle sale, the parts department obviously earns gross from the sale of the part and the service department sells labor for the installation thereof. Unfortunately though, most dealership's accessory sales are almost purely incidental, in that a customer requested the addition of an accessory rather than having it offered to him by the dealership. The reason being, accessory sales fall into a no-mans-land world where no one is responsible for the sales of accessories.

The parts manager feels that the sales department is responsible; the sales department assumes that parts and service is responsible and many general managers and dealers simply assume that it is getting done. In fact, everyone is responsible, and one person needs to monitor it to prove so.

Sales Department - The sales department should have several vehicles in the showroom and on the lot with accessories already added to them. This allows customers to see what they will look like. Those showroom cars should, in fact, have the accessories priced as well; something like "add $7 to your monthly payment" affixed directly on the accessory. There should also be an accessory display in the showroom, with other items, not installed on the showroom cars on display. Vehicles sold with accessories draw more attention on the lot and in public too, as they look different, prompting people to ask "Where did you get it?"

Financial Services Office - The financial services manager should have an accessory menu of items to offer to customers while they're in the Financial Services Office. It will be a second proposal and will subtly encourage the customer to purchase accessories, adding gross.

Parts Department - Obviously every accessory sale will go through parts, but parts managers need to realize that this is an incredibly competitive market, and their standard 40% markup very well may need to be reviewed. Working closely with the sales manager, the two can participate in joint promotions. Remember, every sales-department-instigated accessory sale is gravy business for parts. There usually is, and definitely should be, an accessory display in parts.

Service Department � Service, of course, will have to install all of the accessories sold through the sales department, but there should also be active promotion of accessory sales each and every day in the service drive to existing customers. Accessories are typically easy labor installations, able to be performed by the newest apprentices, and can add significant hours per RO. A small display in the drive and a catalogue in the waiting area are an absolute must. Weekly or monthly accessory specials are, again, all additional work above and beyond the customer�s everyday maintenance. As you can see, accessories can be sold at almost every point of the dealership, and, surprisingly enough, we don't sell them well in any one area. Your next managers� meeting should have accessories on the agenda, and someone needs to champion the overall implementation and encourage all through incentives or whatever to sell, sell, sell. Wouldn't you want to add that extra gross profit to the bottom line?

Good luck and good selling.