Friday, 2 November 2007
SEMA show emphasizes the power of vehicle customization
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Note to car dealers: custom accessories increase profit margins. Okay, we all know that, but every year when the Specialty Equipment Market Association (SEMA) show rolls around, we’re reminded just how strong the aftermarket industry is. Think somewhere around $37 billion dollars in retail sales annually, with $4.5 billion of that going to wheel sales alone.
Dealers are then presented with an incredible opportunity – especially those selling makes and models with strong enthusiast followings. According to a recent Automotive News article, for example, a Subaru dealer in Rockland County, New York increased monthly sales from 5 news cars per month to over 180 by adding custom items such as wheels, sunroofs and special leather upholstery to its inventory. It’s not always about competing with other automakers – sometimes in-brand competition is just as intense.
HUMMER buyers tack on an additional $1,000 to $2,000 on average, according to Automotive News, while Ford customers enjoy modifying Mustangs, Tauruses and F-series trucks. According to DTC Retail Consulting’s Tom Carre, 50 percent of car buyers will buy accessories when given the opportunity. Carre recommends marking accessory prices clearly, rewarding salespeople for selling accessories, mixing up showrooms with recently modified vehicles and selling gift certificates to shoppers that may be redeemed later.
Sources: Automotive News and SEMA
Image: Ford media [2008 Ford F-150 FX2 Sport]
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