February 2008 - Feature
Tracking Anti-Theft Sales
By Kelli Wood
“The vehicle recovery piece of the market is tiny,” said Guidepoint’s Mueller. “Between everybody doing this on the consumer side, collectively, we might sell a million units out of the 16 million vehicles that are sold each year.”
The problem is that consumers don’t realize vehicle recovery products can pay for themselves.
“Some customers say that they don’t need a tracking system because they don’t drive outside their city area. A good response to that is, ‘That might be the case, but it won’t be for the thief,’” Mueller added. “Today, the whole notion of getting your car back, from an insurance standpoint, is important. As soon as you get your car back, the cost goes down. That’s why insurance companies give discounts for this kind of device. Damage goes through the roof when cars are stolen.”
LoJack is one of the most recognizable vehicle recovery systems, which uses radio frequency technology to track down vehicles. Another approach uses GPS tracking, which allows vehicle owners to track their vehicles via the Internet. Dealers don’t have to choose between the two types, either, as both have their advantages and disadvantages.
Devices that work via radio frequency allow law enforcement to track vehicles even if they’re hidden in covered structures. However, these devices also rely on the provider’s relationship with law enforcement.
The downside of GPS tracking devices is that they require a direct line of site. However, many of these systems allow users to monitor their vehicle’s location online at any time. In other words, consumers don’t have to become victims of vehicle theft to see the product in action. This is one of the reasons why providers recommend marketing these devices as a way for parents to monitor their children’s driving habits.
7. Institute a good-better-best approach to vehicle-security sales
When it comes to selling anti-theft and tracking systems, dealers should adopt the good-better-best approach used in menu selling. Experts say doing so increases the dealership’s chances of making the sale.
“Dealers tend to get locked into doing things a certain way,” said Mueller. “But if you offer more than one recovery product, you have a higher likelihood of selling the product.”
This recommendation is especially true if price is the objection. Innovative Aftermarket Systems’ Corbin said products such as window etch and body-part marking could be the perfect low-cost option for this strategy.
“Body-part labeling is so inexpensive that dealers should install it on every vehicle on the lot,” suggested Corbin. “This eliminates the need for the customer to come back to have it installed, and it’s not a huge loss if it doesn’t get purchased.”
Among IAS’ 2,500 dealers, those who pre-install the product have an average acceptance rate of between 50 and 60 percent. That percentage drops to 35 to 40 percent for those that don’t, said Corbin.
“These products are effective deterrents against theft, because most auto theft is committed for the purpose of stealing and reselling parts [which cannot be done with identification markings on the parts],” explained Douglas Duncan, founder and CEO of Safe-Guard Products International. “Body-part marking is non-intrusive to automobiles and it’s relatively low cost for the consumer.”