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AOA Accessories Midyear Trend Report: Electronics Continue as Profit-leader, Protection Gains Momentum, Factory Performance Revs Up
Auto dealers continue to generate profits from accessory sales with average gross margins of 47% and average net profit margins of 32.8%, according to izmocars report
SAN FRANCISCO, September 15, 2011 -- izmocars (www.izmocars.com) today released its Midyear 2011 AOA Accessories Trend Report1, which analyzes accessories sales of dealerships across the country. The report highlights the accessories that were most popular with consumers in Q2 versus Q1; the accessories categories that gained and/or held the most traction across different U.S. regions, and the vehicle models that are attracting the highest volume of accessories sales in dealerships.
“At the midyear point, dealership accessories sales trends continued to reflect economic pressures on car owners and changes in vehicle ownership cycles, as well as adoption of in-vehicle technology…which, given the high profits generated by electronics sales, is a good thing for auto dealers,” said izmocars Vice President Sidney Haider. “Car owners are not only paying more attention to practical protection-based products, they are also purchasing aftermarket products that help ‘fuel’ efficiency. Meanwhile, accessories sales continue to prove themselves as high-margin, net-profit winners for dealerships.”
Key trends illuminated in the report included some old familiars, with the ‘Electronics’ category ranking as the number one accessories profit-driver for dealerships studied for the first six months of the year, driven by remote starter sales. And, in terms of pure retail dollars, the ‘Upholstery’ category continued its rank at the top, perhaps a result of record cold temperatures this winter, as the category was dominated by sales of leather and heated seats.
Protection products showed up as an emerging trend in accessories sales for Q2 of this year, in terms of dealer profits, ‘volume of parts sold’ and in the ‘Aftermarket Exterior’ category, reflecting extended car ownership cycles and economic challenges that are driving consumers to focus on practical, protection-based products that prolong vehicle life. Another emerging trend, possibly driven by economic realities and high gas prices, was in the ‘Factory Performance’ category where sales of products that increased efficiencies - such as exhaust tips, full exhaust systems, air intakes and air filters, suspension products, superchargers and brake products - dominated.
The AOA report is based on sales data from a diverse sampling of 180 dealerships, representing 13 brands and 5 regions across 30 states. The dealerships studied in this report, in aggregate, sold $10.6 million in accessories in Q2 2011, for a total of over $20 million for the first half of the year. The average dealership analyzed increased accessories sales by $475 per-vehicle-sold, with average gross margins of 47% and average net profit margins of 32.8%, compared to 45% and 28% respectively for all of 2010.
To view the full report, click here: www.izmocars.com/trend-reports/AOA-MID-YEAR-TREND-REPORT-11.PDF
(1) All dealerships in the report sampling utilized AddOnAuto from 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.
CONTACT: mWEBB Communications for izmocars, Melanie Webber, +1-424-603-4340, firstname.lastname@example.org, or Angela Jacobson, +1-714-454-8776, email@example.com