Dealership Accessory Sales Re-Emerged in 2010, According to New AOA Accessories Trend Report

SAN FRANCISCO, Feb. 5, 2011 /PRNewswire/ -- A new Accessories Trend Report, released today at NADA 2011 by izmocars' AOA, reveals that accessories sales generated significant profits for dealerships across the country in 2010, driven by consumer interest in electronics add-ons, and a desire to balance style with economy. The report, which analyzed sales from a sampling of 140 dealerships all of whom increased accessory sales by nearly $500 per-vehicle-sold in 2010*, also revealed that top-selling accessories categories vary significantly by region.

"This report clearly indicates that dealership accessory sales and profits have evolved well beyond just floor mats," said izmocars CMO Mike Martinez.  "Even in last year's challenging economy, profit drivers such as factory exterior items (providing a touch of style at a manageable price), electronics, and old reliables like step bars and upholstery, sold extremely well at dealerships across the country. Given the results in this study, we believe that, with the right tools, U.S. auto dealership share of the accessories market could nearly double in the year ahead."

Auto accessories represent a $28 billion market, but one that, until recently, has remained elusive for franchised dealerships, whose share of the market dropped from 10.9% in 1999, to 5.3% in 2009.**  

The dealerships studied in the AOA Accessories Trend Report represent 13 brands, and 5 regions across 30 states.  They sold $20 million in accessories in 2010, with average gross margins of 45% and average net profit margins of 28%.

AOA Accessories Trend Report Highlights:

The Top Ten Accessories Categories of 2010

'Upholstery' was #1 overall in 2010 in terms of sheer retail sales dollars and dealer profits. However, in terms of volume of parts sold, it's clear that the 2010 consumer put a lot of emphasis on style and a little on utility - with a strong preference for add-ons with wallet-friendly price points (that drive big dealer profit numbers through sheer volume and ease-of-sale). Technology is also a powerful chapter in the 2010 accessories story, with electronics, particularly remote entry systems, performing especially well.

Top Five Accessories Categories by Region

Accessory sales vary significantly by region, with climate apparently having a big impact. 'Electronics' is the dominant volume leader in both the Mid-Atlantic and Northeast, while ranking #2 in the Midwest. A closer look at the Electronics category reveals why:  Electronics' top-sellers are almost exclusively iterations of remote starters, attractive to consumers living in cold climates.  'Window Tint' ranks #1 in the sunny South, and 'Step Bars' rank in the top five everywhere except the South.  Overall, 'Factory Exterior' is a consistent big seller (ranking #1 or #2) across all regions, while 'Body Side Moldings' spread the wealth everywhere except the Mid-Atlantic.

America's Best-Dressed Models (and Makes)

Among the dealers studied, Toyota and Honda represented the top two brands for both overall accessories revenue and profits-per-sale, with import siblings Lexus and Scion also making a strong showing, and Ford rounding out the top five. And when analyzing the most-accessorized model within these top brands (in terms of overall accessories sales), the results are surprising to industry insiders as the top five models are dominated not by trucks, but cars.

To read a copy of the detailed AOA "2010 Accessories Trend Report," go to www.izmocars.com. To speak to an expert on this dealership market, contact [email protected].

*All dealerships in the report sampling utilized AddOnAuto from izmocars. www.izmocars.com/solutions/aoa

**SEMA Annual Market Report, 2010

About izmocars

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.

SOURCE izmocars