LAKE FOREST, CA, OCTOBER 2019 – As we approach the New Year, we need to look at how marketing of accessories has changed.
Traditional OEM accessory sales through dealership parts departments is waning. Today, new vehicle owners rarely return to dealerships before the first service interval of six months to a year relying on the internet and Amazon for their vehicle accessory purchases.
So, what can be done to hold on to this lost revenue for both the OEM and dealer? Rather than going head to head with Amazon, accessories bundled at Ports or at Vehicle Prep Centers achieve much higher take rates than can be achieved through traditional parts department and internet sales.
Recently we launched a successful Port Inclusion program with one of our European vehicle manufacturers. In just three years, they achieved a 1,124% sales increase with a single part number, a quality stainless steel license plate frame branded with their CI image. This profit center benefited both the vehicle manufacturer and their dealer network, with a sale penetration rate of over 80% to new vehicles sold, up from just 5.4%.
“In 2019, more than $12 billion worth of auto parts and accessories are expected to be sold online in the U.S. - twice the volume of just four years ago...Amazon is likely to capture nearly two-thirds of this profit center according to Hedges & Co. - Fixed Ops August 2019”
Aside from the increased profits, consumer satisfaction is ensured by providing a genuine quality accessory, backed by the new vehicle warranty, dealer technical expertise, and the correct brand presentation.
CAM, Inc is dedicated to working with our customers on this new approach. With over 5 years’ experience and several ongoing successful programs, let us assist you in developing a strong, successful accessory program with increased profits throughout your organization. To learn more, reach out to us directly or call your Senior Account Executive, Peter Triolo.
Henry P. Camisasca, President