Good kick-off to 2025 with increased vehicle sales
Vehicle sales in South Africa got off to a promising start in January, registering a 10.4% increase compared to the same period last year.
- Industry News
- 4 February 2025
Happy New Year to everyone. I think 2025 is going to be an interesting year for the world given what is transpiring at the moment.
I don’t believe that accessory sales are given enough “air time” by the franchised vehicle industry. If you look at the motorcycle and bicycle industries, they do a fantastic job of using the bike sale as a tool to sell all kinds of accessories. I saw a stat some time ago that said that Harley Davidson owners invest upwards of 20% of the bike price in accessories.
The retail motor vehicle industry differs very much from the motor bike and bicycle industries as they are both largely “hobbies” that people follow passionately. That does not mean that the vehicle industry should not be able to sell more accessories than it does.
It just requires some focus and there is no doubt that it will provide benefits financially as well as in client satisfaction and loyalty.
In many of the parts departments that I have been exposed to, the accessories are not displayed and are largely treated in the same way as a spark plug, bearing or filter is treated.
Accessories are often a desired purchase versus replacement parts. They need to be displayed and promoted in an area of the dealership where there is high customer traffic.
Opportunities and Benefits to the Dealership
• Structure and promote a pricing structure for accessories (including fitment – hopefully by your own workshop). There is Gross Profit in both departments.
• Analyse your new vehicle models and find possible accessories for each model. Make sure salespeople know what is expected of them and reward them accordingly.
• Find and promote accessories that can be sold to your service customers. Probably smaller cosmetic type items like carpets, head lamp guards, mud flaps etc.
• Promote your accessory initiatives to your database. If you have a usable database, you should be able to make vehicle-specific offers to your client base.
• Measure and track your performance so that you know what is working and what is not.
Dealerfloor (dealerfloor.co.za) and I will be publishing regular articles on dealership efficiency. I am really looking forward to sharing ideas with you. Join the conversation by sending a WhatsApp to 082-776-1887 to be added to our group.
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