LvC possibly in latest SEMA News Magazine

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I was contacted today by Steve Campbel with SEMA. He writes an article in the SEMA News Magazine. He is preparing to write an article about the Luxury Vehicle market with regard to aftermarket accessories. He contacted me today to ask me questions about LS Koncepts and the growing segment in the Luxury Vehicle market. He asked me a series of questions on the aftermarket segement. I mentioned LvC as a great marketing tool for up and coming products. I'm hoping that it makes it into the SEMA News Magazine because we have had tremendous success here. I'd like to share the questions and my responses below.

Questions for Companies Involved in the Luxury-Product Market

1. Why should retailers be selling products for luxury vehicles? This is the single most under utilized market today especially for a vehicle like the Lincoln LS. The growing popularity for having aftermarket products today for the luxury sedan is growing by leaps and bounds. The market for luxury sedan vehicles is seeing a boom in the 18-25 year old category. These owners want more aftermarket products to individualize their vehicle. We started LS Koncepts to bring aftermarket products to the market place. Simply, no one was making products for the Lincoln LS and the demand was there. You can find aftermarket parts for any Honda or Toyota but finding aftermarket parts for a luxury sedan like the Lincoln LS is very limited.

2. Has your company seen an increase in the sales of products for the luxury automobile market over the past five years? If so, why do you think the increase is occurring? We have seen an increase in sales due the younger demographic buying the Lincoln LS. We have seen an increase in business from the 18-25 year old crowd. Unfortunately, the early models of the Lincoln LS haven’t been holding their value very well so the buyers of the cars have been younger and this drives for more demand for aftermarket parts. The younger crowd likes their individuality!

3. Are their products specific to the luxury market that are doing particularly well? If so, what types of products? Products that we have seen do well is all lines of performance items like cold air intakes, cat-back exhausts and control module flashers. One of our biggest sellers is an item from Kurtz Kustomz Motorsports called the KKM True-Rev Sport Induction Kit. Owners of the Lincoln LS have flocked to this great product for increasing performance.

4. How do you market your luxury products? We market our products on numerous online forums such as LincolnvsCadillac.com. With a high amount of website traffic on forums like that we can introduce products and discuss them with the customers. This way they can provide instant feedback on the products. Good or bad, we want to hear what they think of the product. We also market our products to dealers that want to show a line of aftermarket products to potential buyers of the car. We can't ignore the power of the internet either with sites like Google, Yahoo and MSN. Search engine optimization is a powerful tool.

5. What is the single most significant item currently in the luxury segment, and why is it so noteworthy? We firmly believe that any performance item such as a cold air intake, exhaust or other performance enhancing item is significant to a luxury sedan owner. We have seen a tremendous amount of demand for these types of products with aesthetic enhancements coming in a close second.

6. What do your customers ask about most often in the luxury-product category and what specifically do they want to know? Performance, performance, performance! Owners of the Lincoln LS know they have a great looking vehicle so all they want now is to increase the performance of this well balanced car. The next item customers want are more readily available body kits for all years for the Lincoln LS. We need more manufacturers ready to make body kits for the Lincoln LS. Right now no one makes an aftermarket body kit for the 2003-2006 Lincoln LS. This is a market waiting to be tapped into with potentially high dividends.

7. Are you seeing any significant shifts in the luxury-product segment, either in the type of parts or in the philosophy of the manufacturers? We have pushed a couple of companies to re-think how they produce items for the Lincoln LS. However, they feel that the investment may not provide much return on the investment. This is simply not true. If the products are of quality build, attractive and genuinely priced right the sky is the limit.

8. Has the increase in fuel prices affected the luxury-product market in any way? We have not noticed any huge affect on the luxury sedan market in terms of aftermarket product sales. Since the Lincoln LS is available in a V6 we have offered performance items that increase fuel efficiency. We feel that even though fuel prices have gone up considerably in the past couple of years people still want their luxury sedans and SUV’s. They are here to stay!

9. Can retailers who have targeted niches—hot rods, compact cars, trucks—benefit from moving into luxury products? If so, how? Without question! The Lincoln LS was not marketed very much by Lincoln in the last 3 years or so but this car has proved popular with a lot of people who drive it. Also, look at the popularity of the Chrysler 300. With cars like that we feel this has started a wind fall in regards to aftermarket products. Luxury sedans will be the compact cars of the future with aftermarket products. We recommend that you take a stroll to any large car event like NOPI and you’ll see a tremendous amount of luxury sedans at those events.

10. What do your foresee as “the next big thing” in luxury accessories? We have seen a tremendous amount of response for items like navigation systems, audio systems, 20” plus wheels, lambo door kits and supercharger kits. However, our most requested item is body kits for the Lincoln LS. People want to make their car look even better with a great styling body kit. Also, we can not say it enough but any type of performance enhancement can not be ignored.

11. What is the greatest cause for concern or the biggest challenge in luxury products? The biggest concern is the limited resources for producing and offering aftermarket parts/accessories for the luxury sedans. Companies think that there is not any demand for products but that is definitely not true. We need more companies willing to step up and produce items for these luxury sedans. We predict in the next few years that more and more luxury sedan owners will out number the compact sport owners. Those are numbers you can not ignore.

12. Where do the greatest opportunities lie? The greatest opportunities are companies willing to take some risk in manufacturing and developing new and exciting products for the luxury sedan market. We have learned from experience that you give the customer what they want and that is choice. The luxury sedan market is a market that can not be ignored. LS Koncepts has not ignored this opportunity and we look to provide even more choices in the future for our customers as long as more manufacturing companies can step to the challenge.
 
Way to go Ken. Maybe we can get a few more aftermarket parts producers on board.
 
I was sent the article that will show up in next month's SEMA News Magazine. The writer of the article is Steve Campbel and he is putting the LvC section in so we'll get some good press out of this. He interviewed seven people for this article and I was one of them. Below is the article in it's raw form. However, he did ask for some photos with our products on the cars. I don't know if any of mine will show up but the article is a good start.

BUSINESS

High-End Profit

Why Retailers Should Stock Luxury-Vehicle Accessories

By Steve Campbell

Over the last few years, the accessory market for luxury vehicles has expanded dramatically. In fact, the SEMA Show now includes a High-End Luxury exhibitor category that didn’t exist until last year. Part of the reason is the increase in vehicles that fall under the luxury umbrella—including not only traditional sedans and coupes but also SUVs, crossovers and even some pickups. In addition, many in the young 20s to early 30s demographic—people who first became enthusiasts as sport-compact drivers—have now begun to acquire greater disposable income and are moving up in class. In addition, conventional buyers of luxury vehicles have come to view certain modifications and accessories as acceptable.

“Technology has progressed so much that high-end vehicle owners are beginning to show confidence toward the quality and practicality of aftermarket parts,” said Kyle Roedler, Owner of Chrome-n-Motion. And that change applies not only to older vehicles that are coming out of warranty but to brand-new cars and trucks straight off the showroom floor.

“In years past as an aftermarket supplier we wouldn't see inquiries for new vehicle products for two to three years,” noted Steve Hedke of British Pacific Land Rover Parts & Accessories. “Now we're seeing interest immediately in specialized accessories for towing or load carrying. The dealers are missing out on these sales by not determining the needs of their customers at the point of sale.”

Part of the proliferation of luxury accessories can be tied to the increase in media outlets that cover the phenomenon. In addition to magazines such Makes & Models, DUB, Dupont Registry and Modified Luxury & Exotic, recent television hits including “Pimp My Ride,” “Overhaulin’” and one-off shows on Speed Channel have embraced the luxury market. There is a further media blitz through the seemingly endless variety of websites—enthusiast as well as retail and manufacturing—that focus on luxury cars, highlighting the segment as thoroughly as any other in current existence.

The market for luxury accessories is in some ways very much like other markets—but there are also discernable differences. For instance, performance and cosmetic products are perennial favorites among every automotive sector, and they are similarly sought after by the luxury crowd. In fact, said Dennis McDonald, owner of Arcata Auto Supply most of the items that his company sells to the luxury market are crossover products from other segments.

“If you think of a product selling to only one market segment as a retailer or manufacturer, you have really limited your customer base,” he pointed out. “It's like years ago when street-rod products were discovered by the street-machine crowd.”

We heard the same product types mentioned as hot for luxury vehicles as we often hear when discussing other segments. In addition to those products cited above, luxury marketers talked about body kits, computer reprogrammers, audio/video equipment as well as cosmetic additions such as grilles, door handles and pillar covers. But while appearance changes are acceptable and performance enhancements are highly desirable, we also heard that ride and handling are premium qualities that most luxury buyers don’t want to sacrifice.

“When it comes to the luxury market, it’s a different clientele,” explained Steve Larkin, president and CEO of Luxury Motorworks Ltd. “They don’t want to bastardize their cars. They want to be able to put aftermarket products on them and still have them feel and drive as they did from the factory, though with a little bit of performance. Dropping the car and giving it a better stance and a little better road feel is okay as long as it doesn’t jar the fillings out of your teeth. We strive to create products that can be installed in the vehicle with all of the factory pieces still in place and be able to remove the product without anybody knowing it was ever there.”

One significant trend on the luxury SUV side is the move toward practical applications. Where once the luxury SUV driver seemed averse to using the vehicle to tow or haul, that taboo now appears to be a thing of the past. The market is now replete with mats, guards, roof racks, towing hitches and even some light off-road equipment such as grille guards and side steps, all designed specifically for high-end SUVs. The philosophy of the manufacturers has shifted from offering a set option package to that of providing individual products that can be easily tailored to the customer’s personal preferences.

Chief among those preferences are wheels and tires. Perhaps more than any other segment, luxury buyers see rolling stock as a top value, immediately changing the look of the vehicle.

“They want a good selection of brands,” said Shawn Williams, owner of Street Concepts. “Ride quality is first and foremost. They want a big enough wheel and tire, but they don’t want to sacrifice the ride quality of the vehicle. The sport compact guys are looking for the handling and the sportiness of the car, where the luxury car buyer is looking to keep the ride and comfort.”

In many instances, performance products are viable options. Cold air intakes and exhaust systems are good examples of products that add perceivable performance but need not detrimentally alter driving characteristics. Depending on driving style, superchargers may be the optimum performance add-on, and they are more affordable to luxury-product customers than to most others. Suspension products, too, may be considered by luxury buyers if not take to extremes. As the market expands, however, more and different consumers will seek products that appeal specifically to them.

While some in the luxury segment limit their marketing strategies to word of mouth, others employ the full gamut of publicity options. Consumer and trade magazines as well as trade shows and outdoor advertising are included in the mix, and showrooms are also considered important.

“We have product in stock and on display,” said McDonald. “If the customer can see the products and touch them, they are more likely to buy them. I have always fixed up my vehicles—Cadillacs and Lincolns—to use as rolling advertisements. They show the customers that we sell the products for these vehicles, too.”

As with so much else in 21st Century commerce, the Internet also plays a very large roll in marketing to luxury buyers.

“We market our products on numerous online forums such as www.LincolnvsCadillac.com,” said Ken Garrison, owner of LS Koncepts. “With a high amount of website traffic on forums like that, we can introduce products and discuss them with customers. They can provide instant feedback on the products. Good or bad, we want to hear what they think. We also can’t ignore the power of sites like Google, Yahoo and MSN. Search-engine optimization is a powerful tool. We also market our products to new-vehicle dealers that want to show a line of aftermarket products to potential buyers of their cars.”

Since the onset of drastic increases in fuel prices, some prospective new-vehicle buyers have delayed or altered their purchase decisions. In the case of luxury vehicles, however, that effect has been less dramatic. The buyers of luxury cars are less likely to worry about the price at the pump when considering a new purchase, and the carmakers have begun to concentrate on finding ways to improve fuel efficiency while increasing power. However, the cost of fuel has affected the luxury specialty-equipment industry.

“The increase in fuel prices has affected all markets, including automotive,” said Weizrung Lee of Rennen International. “It’s increasing the costs of day-to-day living expenses for people generally. The luxury-product market is affected by the fuel prices because increases in fuels have caused increased costs in obtaining products and raw materials. Luckily, profit margins are high enough for companies to still make a profit and stay in business.”

Those profit margins are among the best reasons for retailers who are already doing business in a targeted niche to consider adding luxury products to their mix. If a business caters to hot rods, chances are pretty good that its customers drive luxury vehicles on a daily basis, and those customers have already shown themselves to be interested in specialty-equipment products. With Generation X now moving up from compact cars into the next logical segment, those buyers who are leaving a sport compact for something more luxurious are also pre-qualified aftermarket customers, and the same holds true for a traditional truck or SUV buyer who purchases a more lushly appointed model. Luxury products also add prestige to a retail outlet.

“They increase customer flow, word of mouth, and allow a retailer to work on a variety of vehicles,” said Lee. “Some consumers may have vehicles that belong to all of the market segments, and a retailer that has the ability to carry products for various different segments of the industry may become a one-stop shop for all of their customers’ needs.”

The market for luxury-vehicle accessories is growing. That fact is firmly established. But where it is growing and what product mix will succeed is a subject for ongoing debate. Such electrical and electronic systems as lighting, navigation and entertainment are ripe for the luxury market.

“Audio/video is still going to play a major role in any luxury-car market,” said Williams. “With Sirius talking about doing video feeds and the success KVH has had with its satellite dishes on SUVs, I think that live video and live TV in vehicles is probably the next big thing. Really, it’s technology, period, like Bluetooth. These cars are really gadget cars for the gadget guy.”

On the other hand, there is a train of thought that heads the other way, particularly in the case of luxury SUVs and pickups. Simply because those vehicles may be in the luxury category does not stop them from being trucks.

“While wheel and trim packages remain popular to distinguish one vehicle from others, there is a developing crossover to utilitarian use for luxury SUVs, and they'll be worked harder,” said Hedke. “They'll be expected to provide performance, comfort and mileage while hauling the kids, groceries or maybe the boat. It's a tall order, but all-wheel drive with good cargo space will mean more protection gear than in the past, especially for the interior.”

The hurdles to clear in the luxury market have less to do with demand or product variety than with concerns that affect every facet of the specialty-equipment market. Product value is an issue throughout the aftermarket, but it is paramount in the luxury segment, and luxury-vehicle buyers expect effective warranties with their purchases. They also expect the products they purchase to integrate fully and seamlessly with the vehicle’s onboard systems. Manufacturers must ensure that their accessories will not set off warning or check-engine lights and that they meet or exceed the quality of the OEM equipment. If the products are compatible, reliable and superior in fit and finish, the luxury segment is wide open.
 
My man!!!.....That's what I'm talking bout right there. Someone ready to step up. You definetly accomplished that!
 
Ok folks! Here is the finished article with my LS in the magazine. I have to say this is the second time in my life I have had a car in a magazine. Anyway, you can view the full article with pictures here:

http://www.sema.org/main/semaorghome.aspx?id=55718

I have the SEMA News magazine that they sent me. It can be purchased at any store that carries SEMA News Magazine. This is great press for LvC as well!
 
Ken, Great job! You are a very important part to the LS community. Keep up the wonderful work, and thank you
 
Thanks for the kind words. I'm hoping that article will allow more manufacturers to step up and make aftermarket products for the vehicle like the LS.
 
Ken dont forget about us little ones here at LVC when you go big time!! ;)

Congrats!
 
This is sweet, thanks man, maybe if we get more things to buy and hook up our babies I would be willing to stick it out and keep mine. I am leaving them a nice comment at the end of the article, hope others join in on that too.
 
Beamer said:
This is sweet, thanks man, maybe if we get more things to buy and hook up our babies I would be willing to stick it out and keep mine.
Click to expand...
With the luck you've had replacing it, I'd think that was a message from God to keep it. ;)

Congratulations, Ken!
 
GrayGhost1 said:
Ok folks! Here is the finished article with my LS in the magazine. I have to say this is the second time in my life I have had a car in a magazine. Anyway, you can view the full article with pictures here:

http://www.sema.org/main/semaorghome.aspx?id=55718

I have the SEMA News magazine that they sent me. It can be purchased at any store that carries SEMA News Magazine. This is great press for LvC as well!
Click to expand...

Nice work my friend! But.....

Would you please go out and have some nice pictures of your LS taken?!?! Don't make me drive down there!
 
mholhut said:
Nice work my friend! But.....

Would you please go out and have some nice pictures of your LS taken?!?! Don't make me drive down there!
Click to expand...
YES!! I'm planning to clean up the ride this weekend and get some good clean shots of it. The guy asked me to send him some photos and that was actually the worst one out of the bunch.
 
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