If you took a truck or SUV from your inventory, added a lift kit, some large wheels and tires, custom graphics, a chrome roll bar and maybe a winch, do you think it would draw attention to your dealership? What if you then built a custom display in front of your dealership showing the vehicle’s off-road capability and then posted images and details on your website or Facebook page? Would you get more traffic to your website? Would you get more customers in your showroom? If you ask brothers Mike, Brad and Mitch Trotman of the Trotman Automotive Group in B.C., the answer would likely be a resounding “yes.”
For the last three years, Trotman Automotive Group has seen significant growth and expansion — it now owns and operates six dealerships in B.C.’s lower mainland and within its stores, sales are up significantly. Not only that, but the Trotman Group continues to look for ways to stand apart from the herd. One approach has been the formation of its own separate parts and customization business, appropriately named TAG Customs.
“The genesis for TAG customs, originated within our flagship dealership, Langley Chrysler,” says Mike Trotman, President and CEO of the Trotman Automotive Group. “We saw there was a need and an opportunity in the marketplace and it’s grown from there.”
Trotman says that staffing TAG Customs and creating a dedicated department for it within the group has added fuel to the fire. Since inception the business has expanded eight-fold.
Trotman refers to the “psychology of vehicle ownership” as being a key factor in the growth of the business. “Today, people often view their vehicles, much like their online profiles, tastes and other possessions as extensions of their personality,” he says. And if we all tend to crave things that help define our uniqueness why not extend that to the vehicles we drive as well?
Nissan’s Micra was launched with a range of personalization accessories including stripe kits, wheels and door handles
NEW REVENUE STREAMS, NEW MARKETS
Customizing vehicles is nothing new, it’s been happening almost since the first cars hit the road, with drivers wanting to stand out in terms of performance, style or both. The complexity of today’s cars and trucks mean the term personalization is perhaps different to what it was in the past, but people still want to make their individual stamp on the vehicles they own and drive.
Long popular in the U.S., the late-model customization trend is now starting to gain traction in Canada, something the Trotman Group has become acutely aware of. While highly accessorized vehicles can prove to be great image and traffic builders for both dealerships and the brands they represent, setting up a stand alone parts and accessories business can enable dealers to not only add another profit centre to the mix but also tap into new segments and attract new customers.
Jenny Clifford, Marketing Manager at Rhino Linings Corporation, says she’s seen some of the firm’s dealer clients perform really well by establishing an independent accessories business. “All trucks that are sprayed with a Rhino bedliner go through here,” she says “whether it’s specifically for a dealership or a retail customer who wants a liner.” By keeping the business separate from a dealership brand, retail customers, no matter what marque they drive, feel comfortable bringing their vehicle in.
Laird Sutherland, Fixed Operations Manager at Birchwood Buick GMC in Winnipeg, Man. says the store has had tremendous success with Rhino Linings. “We’ve had very little comeback and we spray it on every new truck we sell, apart from fleet orders.” Birchwood has also established its own vehicle accessories business — Birchwood Spa, complete with its own branding and website. “We’ve had a lot of our other dealerships within the group trying to solicit as much business as possible so we created Birchwood Spa.” Positioned as an independent reconditioning centre, different dealerships within the group have trucks sprayed there while even retail customers with used vehicles can take advantage of the services on offer. Sutherland says that for new vehicle sales, an on-site but separate accessory business can be advantageous because it can be done right there; the dealership still has 100 per cent control of the process and a bedliner or other accessory can be tied into a finance or leasing contract at any dealership within the group. “It’s become part of the sales process,” he says. “An item that’s pitched at $8 a month is a lot easier than trying to sell the customer the same thing at $650.”
AMBASSADORS FOR YOUR BUSINESS
Back at TAG Customs, the accessories business is not only helping stores like Langley Chrysler stand apart from their local competition it’s also enabling the Trotman Group to forge relationships with its client base and build communities. “Many owners who customize their vehicles are enthusiasts,” says Mike Trotman. “They’re proud of owning an accessorized Jeep Wrangler or Ram 1500 and they can be great ambassadors to what we’re doing at the dealership level.”
Although the Trotman brothers recognize that it is still early days yet, as does Laird Sutherland at Birchwood Buick GMC, they and other dealers are seeing a potentially huge opportunity in the accessories business.
Rhino Linings bedliners are a standard accessory on nearly every truck Birchwood GMC sells
OEM SUPPORT IS GROWING
So do the OEMs. At Nissan Canada, Michael Soutter, Director, Aftersales and Quality Assurance says that although the automaker has been marketing accessories in Canada for about 20 years, there’s been an uptick over the last few, with a more concerted effort to provide dealers with factory approved accessories.
“We’ve identified accessories as a growth opportunity for us,” says Soutter. As a result Nissan has increased the size and scope of its accessories development team and is introducing more accessories for more vehicles in the lineup along with corresponding marketing material, such as brochures and catalogues.
New product in the pipeline is also helping fuel the interest in accessories among consumers. Already, Nissan is gearing up with a line of accessories for the next generation Juke crossover and Titan full-size pickup, while for dealers in Canada, the recently launched Nissan Micra city car has resonated strongly with consumers. “The Micra stole the show when we unveiled it earlier this year,” says Soutter. He notes that displaying accessorized models has really helped spur interest in the car. “The feedback we’ve had on accessories for the Micra has been extraordinary,” he says. In fact, Nissan Canada has run contests among dealers to see which can do the most outstanding job in personalizing a Micra and putting it on display. Soutter says, one dealer even hoisted a wrapped and accessorized Micra onto a giant crane and displayed it in mid air.
He says that while Nissan has “barely scratched the surface” with its official parts and accessories program, the potential growth is significant. He says that accessories can not only serve as a potential new revenue stream, they can also have a big impact on the customer experience at the retail level. “On the Micra we have been particular when it comes to the parts and accessories we offer. We want to keep it affordable and show you can do a lot with a few dollars.” He says it’s important for both the OEM and its dealers to convey the message that accessorizing your vehicle doesn’t have to be expensive, that it adds a personal touch and via manufacturer backed warranty programs and bundle packages, the consumer gets added value and peace of mind.
Additionally, such an approach at the dealer level enables closer cooperation between departments, whether its sales, F&I, aftersales and service and that in turn can have a positive impact on the experience a dealership provides for its customers. “If you have a good product and a good program,” says Soutter, “your customers will have a good experience, your CSI will go up and your customer retention will increase.”
