Lake Forest, CA - Camisasca Automotive Manufacturing, Inc. provides their outlook on Genuine Accessory Sales Programs for 2024.
With inventory levels rebounded, new vehicle turnover at the dealership level may soon show signs of slowing. High interest rates and inflation affect new vehicle buyers from the bottom up. And when these New Vehicle sales decline, the OEM must then find alternative ways of creating profit.
This usually leads to a renewed emphasis on Service. However, this profit center is currently in flux due to a changing industry, and as such is often in need of re-investment. Reasons for this could be several; one the dealer has enjoyed record sales and now has more local vehicles to service than their facility can support. Two, the hard push into EVs has changed the service environment requiring more charging stations, new diagnostics, and re-training. All of which require capital investment.
Service networks do not have capacity to service all vehicles in the local market.
Service networks require capital investment in support of EVs.
Service teams are restricted due to low unemployment and changes in training.
So then with new car sales diminishing, and service centers in need of capital investment, where can dealers and OEs find the incremental income to bridge the gap? The answer is Accessories, but as costs rise and dealers resist added inventory due to slower TO, how do you guarantee accessory sales?
The answer - replace costly PIO and DIO options with less costly domestically sourced Genuine Accessories such as our License Plate Frames, Hitch Plugs, and Valve Stem Caps. Consumers are less adverse to small dollar amount items that can still make their ownership experience personalized, while dealers have to invest less capital per vehicle into inventory. They are still guaranteed the accessory sale for their targets, and without dipping into new vehicle sales profit, can reinvest into:
Dealer Facelifts CI updates
More sophisticated marketing strategy.
EV Charging System installations.
Service network revamp.
*Image Courtesy Mazda Cape Cod.
All while making up for lost vehicle revenue from retracting sales. As new vehicles become more “closed source” due to government, OE, and legal regulations, these products remain one of the few ways a consumer can still outfit their vehicle.
OE brands embrace high volume sales of CAMI’s low cost domestically sourced genuine products. With award winning quality PPM and little to no model line maintenance, suddenly +$1mil OE annual revenues are helping reverse the trend of shrinking profits.
Contact CAMI today for assistance in part number recommendations for various vehicle factory trim levels, and feedback on overall program best-practices.