Dealership accessory sales are generating significant profits for dealerships across the country, according to izmocars’ 2010 AOA Accessories Trend Report. Asampling of 140 dealerships were analyzed, all of whom increased accessory sales by nearly $500 per-vehicle-sold*. The report reveals strongconsumer interest in electronics add-ons, and a desire to balance style with economy. Despite last year’s challenging economy, profit drivers such as factory exterior items (providing a touch of style at a manageable price), electronics, as well as the standards like step bars and upholstery, sold extremely well at dealerships across the country. With the right tools and best practices in place, according to the report, U.S. dealerships share of the accessories market could nearly double in the year ahead.

The Top Ten Accessories Categories of 2010

The upholstery category was number one, dominated by sales of leather and heated seats. The 2010 consumer, however, put much emphasis on style and little on utility—with a strong showing for add-ons with wallet-friendly price points. Electronics, particularly remote entry systems, also performed especially well. The top categories were:

Top Five Accessories Categories by Region

Accessory sales vary by region, with climate having a big impact. ‘Electronics’ is the volume leader in both the Mid-Atlantic and Northeast, while ranking number two in the Midwest. ‘Electronics’ top-sellers were almost exclusively iterations of remote starters, attractive to consumers living in cold climates. ‘Window Tint’ ranks number one in the South, and ‘Step Bars’ rank in the top four everywhere except the South. Overall, ‘Factory Exterior’ is a consistent big seller (ranking number one or number two) across all regions, while ‘Body Side Moldings’ spread the wealth everywhere except the Mid-Atlantic. The top four categories by region were:

America’s Best-Dressed Makes and Models

Among the dealers studied, Toyota (1) and Honda (2) represented the top two brands for both overall accessories revenue and profits-per-sale. Lexus (3) and Scion (4) also make a strong showing, and Ford rounds out the top five. Surprisingly, the top five most-accessorized models within these top brands are dominated not by trucks, but cars:

Toyota Camry

Honda CR-V

Lexus RX

Scion tc

Ford Fusion

The dealerships studied in the AOA Accessories Trend Report represent 13 brands and five regions across 30 states. A combination of technology, process and strategy contribute to their over $20 million in accessories sold in 2010, average gross margins of 45 percent and average net profit margins of 28 percent. Four dealerships were standouts; Rick Case Honda, Michael’s Toyota, Germain Lexus and Dick Brooks Honda. Their closing ratios ranged from 50 percent to 96 percent, with three in four hitting closing ratios above 80 percent. All at least doubled accessory sales, with Dick Brooks Honda growing sales thirteen-fold, and Michael’s Toyota tripling sales in just eight months. Germain Lexus achieved accessories revenue per-car-sold of $1,082!

To read the detailed AOA “2010 Accessories Trend Report,” go to www.izmocars.com.

*Q4 2010 averages

** SEMA 2010 Annual Market Report

Mike Martinez is chief sales and marketing officer for izmocars.com. For more information about izmocars and the AOA “2010 Accessories Trend Report,” go to www.izmocars.com.

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