The Blog
What happened? We used to be known for lots of premium products in our industry back when we installed things in peoples' cars that were, at the time, innovative and hard to find. That was a long time ago. In this post, I attempt to identify some of the problems (or you could call them challenges if you want) that independent 12-volt retailers encounter when answering the question of where they fall on the spectrum of offering commodity or premium products.
Although we, as an industry, have created many new product categories outside of "car audio”, many of our products are simply commodities now. It’s not like in the 1980s and (for a while there) in the 90s when we had things that you just couldn’t get anywhere else. What we offer as an industry, for the most part, can be found just about anywhere that other, similar items are sold. Let me put it another way; to many consumers, the products in the same category do the exact same things for the most part. If you are an independent specialist 12-volt retailer, I'm not telling you anything you probably don't already know.
Some of the newer product categories include adding Bluetooth hands-free functionality, portable device integration, OEM audio upgrades, safety systems such as reverse-backing aids, GPS vehicle tracking and others. Since many of these new product categories still involve aftermarket car electronics, they sometimes suffer the consequence of a commodity because of the supply chain in which the majority of these products come to market. It all depends on how they are being presented to end users by retailers and what solutions these new product categories provide.
The possible exception of the dealer-expediter channel is one which still allows tiered margins in solution-oriented product packages that sort of automatically get passed to the consumer, often wrapped into vehicle loans. It's transparent to the end user in that channel, at least when it comes to the nickel and dime differences that appear when shopping for a single product. It also doesn't hurt that in the dealer-expediter channel, the dealership usually will stand behind the product and installation as if it was their own instead of hanging voided warranties in a customer's face as they so often do with aftermarket electronics not purchased with the car. Car dealer work can also be tough to get, at least initially getting “in,” with the dealers and leveling out on cash flow as they start paying on terms.
Product wise, we have some cool new twists on old favorites, but we are basically still saying take this thing out and put our thing in its place with many "core" car audio products. Although that approach used to work to improve a vehicle's sound, it's not necessarily the case anymore. The parts-changing mentality isn't necessarily a guarantee that the sound will improve. Sure it'll change, but there's no guarantee it'll improve. The fact that we have a lot of products that do much of the same thing leaves consumers with (a) a lot of choice or (b) a lot of confusion.
Even though I personally think it’s both of these, the reality is an abundance of supply and confusion about whether or not any one single offering is clearly better (meaning worth more money or effort to find/get), you are going to have the challenge of maintaining any kind of MSRP or MAP pricing with that abundance. This is true even if it’s a perceived abundance (in other words advertised everywhere, even if it’s not really always readily available). Now, the market of what people are willing to pay (with no other clear distinction) sets that price. That's our first problem with this commodity challenge. We’re pissed off about things that we’re essentially clerking, not necessarily selling!
The second problem is that our clientele is all over the place in terms of the demographics purchasing the different product categories, but it's clear that a lot of retailers - focus on a challenging, web-savvy group of 16-30 year old males and then also with products that are really commoditized. My view there is why play that game? You aren't going to win people!
Here’s an idea; let your customers who shop you on price for something that may be very low margin for you to be competitive, and that’s widely distributed such as head units, buy them elsewhere (like online) and then sell customers the installation, sell them the adapters, and all the other costs of getting that head unit in there. Sell your services and let the warranty and return (if necessary) be their problem. With some of the entry level car audio products , maybe it’s not even worth your time to deal with it if it’s going to be a price war. With a few exceptions, why even offer more than 2 or 3 premium head units with at least SOME margin? Why not consider WHICH 2 or 3 multi-channel amplifiers meet the customer’s needs for functionality, footprint, and value and sell only those. Why not sell only the things you can profit from and that have fantastic results and reliability?
Here’s another; maybe offer a couple entry-level loss leader 12v products from any of the popular categories to get people in to the store, but you have to ask yourself as a retailer if that's attracting a customer for a commodity product (the answer is yes) and if that's in your business' best interest. A retailer can play that game, he or she just needs to be prepared to accept lower margins on what he or she is selling by offering products that everyone else sells to be able to get the sale and gain a customer. We simply can’t expect 40-plus point margins on every commodity item we offer. You can’t clerk things that people come in and ask for and expect a payout from selling those same things. It’s not a reality in today’s world. It's completely the retailer's choice, but you can't have both paradigms of commodity and premium value propositions in the same product at the same time.
To put it another way, why not swim in a better pool than one that's full of too many people swimming in too many directions? Why are independent 12-volt specialist retailers jumping in and trying to swim around in that crowded public pool where all the rest of the commodity sellers are swimming and urinating at the same time? What are we – a bunch of rats in a cage just hitting the feeder bar for a pellet because that’s all there is to do? Come on people. Surely you can have more input into the destiny of your business than that! It's just too easy to shop for commodity products of any kind (not just 12-volt) on price using the Internet. The second problem in a nutshell then, is that many independent specialist retailers focus far too much effort in an already challenging and crowded space when they could focus on so many other things to improve their business. Don’t just be good at what you do, be GREAT at what you do. Be the best in your community to the degree there just isn’t anywhere else people can go to get that experience and reliability. Be THAT retailer!
The third thing is that, when it comes to the product categories 12-volt retailers can make money on (let’s call it premium items — regardless of actual cost), they are not always firmly adopting them into their primary group of offerings during sales presentations, in customer-facing marketing, and they are probably not demonstrating (in person to prospective customers) the value or uniqueness that these products offer to a particular customer. Whether it's a great audio experience with products YOU specifically choose to endorse and recommend, or pairing someone's Bluetooth phone to their demo car/demo board and showing how the hands-free call process works, or showing back-up cameras and sensors in a "community vehicle safety seminar" they host, 12-volt brick and mortar retailers could be doing a lot more to take command of emerging categories and products in existing categories that they can dominate. Sometimes to do this you have to get out from behind the counter, get out of the store and go identify those places to deliver your message!
With this commodity versus premium products perception problem comes the fact that smaller, independent retailers are often not evolving to actively identify the innovative and opportune products, perhaps because some of this is not "core car audio" that appeals to their own interests and lie in their comfort zones. The bigger picture is that a specialist retailer needs to cherry pick what's innovative or what's opportune yet not being exploited as a commodity in all of these product categories and then go after them vigorously. Become the authority and the expert. Act faster and more proactively than the bigger businesses can. Although some independent retailers are doing it well, most are not.
Let's hear your challenges and success stories! What categories do you see as your current and future opportunities? What are you doing as a retailer to carve out your specialty expertise and opportunity among the many products available to you? What are you showing customers, promoting, and getting people excited about?
Please post here in the comments section and let us know!
John Haynes, Product Manager for Al & Ed’s Autosound, a 24-store specialist 12-volt retailer in Southern California, submitted a letter to Mobile Electronics magazine recently. He said it was an open letter to the industry. After much thought about the contents of the letter, I thought it was appropriate to comment about how we might help to frame the concerns that John, and probably every brick and mortar retailer, should share about the future of relationships between vendors and retailers.
Here’s a copy of the letter. I provide commentary afterward:
Pirates Legitimized: The Next Great Threat to the Mobile Electronics Retailer
It’s been a tough couple of years, starting with the economic crash in October, 2008. The U.S. economy, and specifically any industry that was tied to disposable income, took a real hit. Unfortunately, the mobile electronics industry doesn’t sell a single thing that anyone needs. It only sells products that people purchase when they have a little “extra money”, and when the family savings is paying the mortgage or putting food on the table, the retailers suffer.
Things are starting to improve, though, although slowly. We’re getting better news from Wall Street, the government pundits have officially announced that the recession is over, tax refunds are flowing and consumers are once again feeding a pent-up demand for entertainment. Things may not get back to the glory days of the mid-1980s, but it looks like it’s going to be OK, after all.
But, as consumers return, a new threat to the industry looms. It’s been growing over the past few years, getting stronger and stronger, and now threatens to cut up the limited consumer pie into smaller and smaller pieces. The unauthorized, grey-market Internet retailer has been gobbling up customers at an amazing rate, and now are some of the biggest mobile electronics retailers in the country. Of course, they have a slight advantage over the “real” dealer — they don’t have to abide by Minimum Advertised Pricing policies, and they have captured their market share by cheating the authorized retailers out of legitimate sales. Hey…why should your customer buy at MAP when many retailers are willing to sell the stuff for a few points over cost? You already know who these online hijackers are, but if you don’t they’re easy to find. Just go to Google Shopping, eBay, Amazon or PriceGrabber and type in your favorite model number. Sort prices from low to high, and you’ll have your list.
It’s not the customer’s fault. Charlie Consumer, sitting in his bedroom at 2:00am, can’t really tell the difference when they’re shopping online. In fact, the websites that many of the illegitimate retailers run are some of the best on the ‘net in terms of presentation, information, support and policies. Most are not the shady “bait-and-switch” type of operations people talk about. In most cases, they will ship brand-new product, on time, and handle any warranty issues. It’s easy when they do million of dollars in business to absorb a return here and there, and they’re willing to do it to maintain their customer satisfaction ratings. In a way, it’s better to be unauthorized — at least that way you don’t have to follow any rules.
But times change, and right now product pipelines are tightening up. The recession caused many manufacturers to pull back on production, and large backorder situations are the word of the day. Some manufacturers are taking a look at the industry, themselves and their distribution channels, and have decided to reclaim their brand value by tightening up on loose product shipments. Some of our manufacturers have always been tough, believing that their integrity is greater than moving a few more boxes of product. All of this has caused shortages in the grey-market shops. Of course, there is a way to make it a lot easier to get product to sell, and many of the online cheats have made their phone calls.
Now, these companies want to go legit, and be authorized by the manufacturers. One online predator is even adding installation bays to skirt some of the contractual blockades put in place. Believe it or not, the manufacturers are talking to them, too. After all, they sure represent a lot of business. They’ve sold a bunch of it so far, so why not? Some vendors have even said things like: “If we authorize them, then they will have to comply with all of the rules. At least we can control them better that way”, or “they’re just going to do it anyway, we may as well authorize them.” While that may be true, there is a bigger and more important issue.
What about the retailers already in place? What about the 12-volters who have been struggling against this onslaught, doing their part to educate the customer, to do quality installs and represent, proudly, not only the brands, but the industry? For years, they have given up customers to retail pirates who hijack their customers with unfair pricing that most manufacturers seem to do little about. What about those guys? Is it right that now, the very people who cheated and stole their way into consumers’ hearts, are to be legitimized and be allowed to cut into the limited consumer market with the manufacturer’s blessing? I don’t think so.
There are enough customers for every legitimate dealer, and the customers will find them if they’re not distracted. The thought of the online pirates, who basically flew the middle finger at the manufacturers, the authorized dealers and the entire industry, sitting down and talking to the vendors is a crime. It’s not fair, it’s not right and it should be stopped. Maybe the right answer is: “Sorry, maybe you should have been more cooperative when we asked you to stop destroying my brand value. We’re fine with the dealer base we have.”
The discussions are already happening. Vendors are already being lured into talks. I’m urging each and every mobile electronics retailer to make a stand. Call, write or e-mail your vendors and give the word. Let them know that you are a proud and supporting dealer, that you and the industry have been damaged by the grey-market pirates, and that you would sure appreciate it if your vendor would support you, instead of them. I’m challenging each vendor to think about the way these companies have done business, trashing their product pricing and damaging their dealer base, and to tell them “No, we’re not interested. We have enough dealers”. Even better would be for our manufacturers to make a corporate statement denouncing these retailers and stating their support for their existing, authorized dealers.
It works in other industries; it can work in ours. With all the challenges facing us today, we don’t need one more big one, the legitimizing of the current crop of industry cheaters. Let’s not reward their bad behavior with the prize they are seeking — product flow and the badge of “Authorized Dealer.”
John Haynes, Product Manager
My comments on John's letter:
John makes some very valid points in his letter. I don’t believe that it’s only because of a recession that people are “looking around” on the Internet for great deals. I believe that the Internet is a vehicle that delivers such robust information in such short periods that just about everything (with the possible exception of impulse buys and dining out) can be researched, analyzed and even purchased online without ever having to leave the comfort of one’s home or office. It’s the Internet age we’ve all been hearing about, and it’s actually been here for some time. It’s just in recent years since the slices of “12-volt pie” are getting thinner for everyone in the supply chain that it’s become a serious point of discussion. What are we going to do? What do we want to be when we grow up as an industry?
Certainly the industry has matured. The things we offer and install used to be scarcely available in all but the most premium cars, and now that’s changed considerably. The electronic entertainment and safety creature comforts that come with today’s cars are getting better and better. This leads me to our framing of John’s position.
If cars aren’t getting any easier to work on, and integration with existing electronics (rather than complete removal and replacement) continues to be how we must approach the installation of our equipment, then it’s an interesting paradox that so much of the complexity of the equation is left up to chance when products are sold over the Internet rather than through an installing brick-and-mortar retailer. We’re leaving a big X factor out there assuming that the products will be installed correctly and safely. We’re also betting that the customer’s user experience in this scenario will leave them satisfied by what our industry offers. That’s a real big X factor — as unknown as what it’s going to take (time and money) to clean up the BP oil spill in the Gulf (though this is obviously not a direct comparison). Nobody really knows yet what the long-term costs and implications are to the Gulf region, just as we can really only speculate as to how the continued sale of our 12-volt products, well below any MAP pricing policies and without some certainty about safe and correct installation, will fare for us as an industry.
Looking at it from some manufacturers’ perspectives, particularly the head unit companies, they sell in many more channels than just specialty brick and mortar independent retailers. If the brick and mortar retailers are only a small piece of their distribution channels, then isn’t it already clear that they must branch out beyond the 12-volt industry anyway? It’s not like Pep Boys and Sears haven’t been already selling brand-name head units and speakers for years now. Many of those larger retail outlets have also had an online presence too. So what’s the answer?
I believe that although head units are still a viable business for used cars, the specialist retailer has many more opportunities to provide a consumer with better sound, increased connectivity and more entertainment when driving with a mix of products that may or may not include head units. It totally depends upon the customer’s vehicle. As in my last blog post, I underscored the importance of having something to demonstrate, first-hand, what your reference of great sound in a car really is. Add other more “installation intensive” products like safety, security, remote start and complex audio pieces and it’s easy to see where it becomes important for distribution of a product to include HOW that product will be installed for an end user.
I will say that on top of this, retailers MUST have robust websites that drive customers to their stores. Manufacturers who SAY they support specialist retailers need to be on top of providing brick-and-mortar retailer locators. It’s a little unfair to have a manufacturer showing products on their own website and then drive the online consumer right to an online retailer, to a national retailer, or to an invalid/unscrubbed database of retailers who may not be delivering the kind of experience we’d like customers to have. If the customer is provided the information they need to visit a retailer in person, the 12-volt retailers with brick-and-mortar stores need to also be willing to present a professional image to the customer leads referred by manufacturers. A great website is a must-have in this case, as important as a demo vehicle, in my opinion.
Of course we all buy things online. Well, most of us anyway. From time to time, even people like me who want to support local businesses simply can’t find what I need or find anyone to demonstrate a certain degree of expertise about a given product or service. In some cases, buying online is a means to an end because a local business or retailer didn’t even try very hard. I am just pointing out that even though we might not like the availability of car audio at online retailers, it is part of the world we live in today. The question is, how are we going to deal with it in a way that’s right for the long-term health of our whole industry?
Knowing we are not going to arrive at a solution today, how do you feel (and this is directed at all areas of the business — manufacturers, retailers and everyone in the supply chain in between)? How has the unauthorized, online retailer situation affected your business and, if so, in which categories specifically? How do you feel about larger vendors considering some online retailers as “authorized” partners? What companies are shining stars in your business relationships right now?
Please let us know your comments by posting a response below!
By Todd Ramsey
For some time now I have been beating the drum that, as people in the 12-volt Aftermarket Automotive Electronics industry, we need to have the stuff we sell and install in our OWN cars. In an Editor’s Forum column in Mobile Electronics magazine earlier this year, I volunteered that I have been one of those people who, sadly, had been lagging in my efforts, over a period of years, to get aftermarket gear in some form or fashion into my own vehicles. Although I did a few things over the past 5 years to my vehicles, they’ve amounted to only the addition of head units or a GPS navigation rear-view mirror. I haven’t had a real audio system since probably 2004. So, in essence I volunteered to you all that I was part of the problem that our whole industry has — not making the time or effort to install the things we ask other people (i.e. customers) to purchase for their cars! I am not alone though. What a bunch of hypocrites we are!
It all started at this 12-volt Awareness Summit in Dallas, Texas, nearly two years ago now. Along with many people who I’d consider industry leaders, I flew to Dallas so we could all hold hands and summon the “awareness gods” and figure out how to raise industry awareness of our category to people who already knew of us (but perhaps thought we only put large, neighborhood-disturbing audio systems in cars) as well as the many, many people who knew nothing of us. The latter group, of course, was the most challenging to figure out a strategy to reach because many of them have gotten by just fine without using ANY of the technology we sell or install. Maybe they have it from the factory, maybe they just don’t care, maybe (we theorized) there was a notable contingent of regular people who simply wouldn’t know what we had to offer in the way of 12-volt aftermarket automotive electronic enhancements unless we could SHOW IT TO THEM! Go figure.
At that very same meeting, I asked a whole bunch of people across all industry categories (executives, non-execs, retailers large and small, reps, and even association and media people) if they had audio systems or other 12-volt aftermarket electronics in their own vehicles. Guess what the answer overwhelmingly was? “No, I have the stock system,” or “No, I haven’t done anything to my car.” WOW — that’s something to note right there and something that got me thinking. We’re at least partially to blame for our situation. We did this to ourselves. Without cool products to install and then show to our customers, we can’t very well make the case that these prospective customers should purchase and install them in their own cars. In essence, many of us industry people are not walking the walk.
There are many reasons for this. We might not actually like what’s available sometimes (which is often my position). The reliability or performance could be questionable, or for the price it doesn’t provide significant value for us (and thus the customer). The supplier might have issues when it comes to availability, support, or warranty. Sometimes you’re just flat out are challenged by the scale of getting something into your car because you’ve made it into a big project in your mind, or the car offers a difficult technical challenge on its own. For all those reasons, and probably many others, we’ve gotten really good at not installing the equipment we sell to our customers. We have gotten really good at saying we will eventually get to it and yet we don’t. That, my friends, sucks!
The thing is, if it’s that much of a hurdle for us to engage in the process, what do you think the public at large feels like? We must consider our approach to offering what we can sell and install so we’re not reinventing the wheel for weeks on end with projects that don’t quit (and often end up paying out poorly). We have to think more about what can be done in several days, maybe a week’s time. For the majority of prospective customers, that’s well within your target.
In my own 2008 Chevy Tahoe I’ve been enjoying a Rosen Factory Fit GM head unit (with all the bells and whistles) and recently installed a JBL MS-8 to enhance the sound of my non-Bose factory speakers. I am going to put an Infinity Bass Link in for a powered subwoofer and Hertz entry-level component front speakers (with Scosche’s Accumat sound deadening) in the short term for a simple upgrade to what I have already done. Later, I plan to do separate amplifiers for front, rear and sub (possibly JL xD) with a custom enclosure in the rear (driver’s) side panel. The subwoofer is still to be determined as it depends on space and amplifier power. At that time I will probably revisit the component speakers in the front and move the existing ones to the rear. I also have a Clifford 590.2x two-way security/RS system with a SmartStart module for use with my iPhone.
I am not building a month-long install, nor am I trying to compete for Installer of the Year. I drive my vehicle regularly (as do most of you), so I want to do measurable upgrades, live with them for a while, then move on to the next step. By adding upgrades this way, I believe I can speak with relative certainty when I recommend things for others, particularly when it comes to taking into account the overall plan for what they are trying to accomplish and the reliability of these products over time.
What do you have in your own car? Post it here in the comments and let us know. Also if you have nothing, please post that too, only let us know WHY you’ve got nothing in there (yet). What are you waiting for?
By Todd Ramsey
For so many 12-volt specialist retailers, getting it right with the customer on the first job is key to establishing the perception that they are experts, particularly when they have already closed deals and customers are anxiously waiting on the installation of whatever it is they’ve purchased. Although much of the challenge to getting all the elements right is within the control of the retailer, there are always a few things retailers and installers consider wild card elements. One of these is product failure and the process and hidden costs to get it taken care of.
Here’s the scenario: Small retailer special orders an item or sells something they don’t regularly stock more than one of. Installer puts the item in (perhaps as part of several things being installed) and discovers a failed product out of the box. They retrace some steps to try to gather information that may accompany a tech support call and, ultimately, taking care of this problem requires the retailer to order a replacement part.
There are several things the retailer must consider now. First, the cash flow of purchasing the second item (for those not on terms with a vendor). Second, the time it takes to deliver the new product. Third, inconveniencing the client due to the extra time required to make things right and schedule installation of the replacement part. Fourth, the cost of sending back the defective part to the manufacturer and what happens to that before it becomes credited or returned (repaired or replaced), ready to sell.
Although the manufacturer or supplier can’t always control the impacts of the first, second or third items directly, many could actually create policies or programs that help with that fourth issue — the costs of shipping returned items that, in principle, are not the retailer’s fault.
In discussions with several small 12-volt retailers who have tried to streamline their inventory to smaller levels and turn it more frequently, not to mention that it’s impossible for them to hold every single application specific part in inventory anyway, many feel that the manufacturer should bear some responsibility for the cost of returning items that are defective out of the box.
Surely with the volume of a manufacturer’s product shipments, it would be much less costly for them to send a call tag for an item to be returned and then, if upon testing and inspection the product is found to be defective, the manufacturer would absorb that cost. If the manufacturer finds the retailer is at fault, then at least if the retailer were charged it would be at a much lower rate than the manufacturer pays for shipping costs versus the “retail” rates that retailers usually pay through UPS, FedEx, etc.
Considering that margins on many products are thinner than they have been, but also adding any costs to reschedule or accommodate clients because of unforeseen product failure that extends the amount of time required for product installation (or necessitates a subsequent visit), the retailer bears a cost anyway. Such a return shipping amnesty program could create more loyalty among retailers who are looking for more of a partnership with a supplier, and it would certainly give customers greater confidence that the retailers they buy from can take care of any problems that arise.
Of course there are opportunities for manufacturers in such a program. They could either leverage the returns data to track some unknown manufacturing issues contributing to failures or, if the problem was due to an installation error, they’d quickly have a short list of training topics to get out there and spread to their retailer dealer base. If there are no faults found on a returned product, the retailer would pay anyway — but they could have a vendor profile that their sales or support rep can leverage to provide input on where the retailers can improve to avoid those issues in the future. Either way, whether it’s the ultimate fault of the product (manufacturing defect or damage in transit) or from the retailer (due to installation errors), there’s an opportunity here to deal with it in a way that limits the burden on retailers when it’s not their fault and to use it as a focused customer support opportunity when faulty product installations are the fault of retailers.
What do you retailers think? Would you like to see your key vendors help you mitigate the damage control of the “surprise” product failure when it requires otherwise costly return shipping on your end? How are you handling it now? Please comment here on our blog and let us know!
By Todd Ramsey
Installer and Retailer of the Year are some fantastic titles to behold. In the run-up to those titles though, there are many people and retailers who are doing great things to become noticed in the industry, to their suppliers and others in their company. The Installer and Retailer of the Year contests are about doing a great job, setting examples for colleagues and industry, and achieving some industry recognition in the process, all by being nominated to the list for voting. What are the people and companies who are on it now doing right that you could emulate? Remember it’s about making the industry better overall, which is everyone’s responsibility.
We’re just over one week into the Mobile Electronics magazine Installer and Retailer of the year voting and it’s going to continue through the end of March and into early April. I’ve gotten a lot of calls and e-mails from people who are on the list asking how they get votes now that they are nominated. Here are some of the tips I can offer to campaign for votes from industry colleagues and other people in your circle of trades.
Installer Candidates
First, think about why someone would vote for you. Are you hoping you are just popular enough to get a vote from your work colleagues and a few reps or are you thinking beyond that? What is it about your commitment to the career path and the innovation in your daily work that is truly setting a great example for others? Answer that question and you have an idea of what you need to be presenting to the people you’re asking to vote.
Also, think about your range of expertise and new skills you have learned (or are continuing to learn). Installer of the Year shouldn’t be about who makes the shiny fiberglass trunk install or who built the biggest show car. Although those can be great achievements to consider, those installers providing support to their fellow colleagues and inventive solutions for their customers on an everyday basis are really the individuals who have the greatest chance to make positive impressions that keep our business fun and on track toward providing customer satisfaction.
Retailer Candidates
As retailers, think beyond just the brands and categories you sell. Think more about how your industry participation is helping put a great face on the fantastic things we CAN do for our customers. Think about how your company adds value to your community and to your employees by showing each and every day how we do care about what we put out there in the marketplace and we do want people to enjoy their 12-volt investments, regardless of how much they spend. Think about why you would do business with your store(s) if YOU were the customer!
Also think about how your company is positioned as an employer and adding to the enrichment of each individual working for the company. Consider how you may have creatively weathered some rough times and kept morale up. Be proud of what is great about working for your company through your employees’ eyes and if you aren’t sure what that is exactly, just ask them!
Soliciting Votes
Once you have identified some of the reasons you are qualified to ask for someone’s vote, please take that step and campaign for votes. Ask your reps, suppliers, factory personnel and other links in your supply chain to vote for you for those important reasons you have identified. Ask colleagues at work and other complimentary business partners (car dealerships, tool trucks, repair shops, etc.) to vote for you. Mobile Electronics magazine only counts votes cast by people in the trade or associated somehow with the trade and you (or your business) so reach out to these people, tell them how important their vote is to you, tell them what you have identified as reasons you feel earned their vote of confidence and then send them the link to the ME-Mag.com voting page to cast their vote for you (or your shop).
Click here to visit the voting page!
It’s an important tool for marketing yourself and your business to be included Mobile Electronics magazine’s Installer and/or Retailer of the Year process, from the Top 100 to the award winners at the Mobile Electronics Industry Awards. Take every opportunity to let your supply chain know you are actively involved in making the industry better and utilize the buzz of the nomination to generate interest and conversations in your business among your customers. It’s going to be an exciting next several weeks so don’t be left out.
And if you were not nominated in any of your categories, please take some time and get to know the installers and retailers by visiting their websites, social networking pages, and even in person where you can. Surely you can gain some perspective from seeing things they might be doing well that you want to emulate. Equally important, your vote is important to the industry and Mobile Electronics magazine wants you to cast informed votes for the person and retailers you think are the best in the business.
For those who want to make the list next year, start thinking about it now and campaign by showing your industry colleagues, and customers, how great your work is, how dedicated to your industry you are and how you enrich your colleagues and community with your enthusiasm for your career! People respect that and surely want to vote for it!
Nominees, get out there and campaign! Industry colleagues at large, get over to ME-mag.com and vote!
By Todd Ramsey So CES 2010 is over. It was my 23rd consecutive CES in Las Vegas and it’s certainly gone through some changes as a show, as has the profile of attendees and exhibitors, and navigating through all there is to see. There’s never really enough time to get it all in. Technology overload! I love it!
From a big-picture perspective on CES in the 12-volt aftermarket electronics segment, this show was less about groundbreaking products and more about whether the companies that were once exhibitors but did not attend, and the domestic retailers who chose not to get out and experience the show firsthand, can keep avoiding the show. Can a business in the 12-volt market really afford not to be a part of CES, even if in some small way? It leaves a lot of questions about how successful that strategy really is and what added value both parties may be missing. In particular, the networking and opportunity to recharge your industry vision is in full force at CES if you choose to engage, this year in particular due to the absence of MERA’s KnowledgeFest in 2009.
Products wise, there were still some trends and innovations happening in 12-volt aftermarket electronics. In particular, the integration companies like Scosche, Metra, NAV-TV, Dice and others had a range of exciting new opportunities that make life installing easier.
Metra showed several new dash kits with factory-matched finishes on the Ford F-150 and other Ford models with integrated electronic climate controls. They also had one for the 2010 Camaro. Perhaps the biggest relief, if installing aftermarket head units is your headache, is that Metra’s Axxess line has a self-programming steering wheel control (SWC) adapter that “learns” the type of controls (data, resistance, etc.) in the vehicle. If you have ever programmed the current SWC adapters, you know this will be a real time saver.
Scosche has their Ford Flex dash kit, which is awfully hard to distinguish from the OEM panel. There’s also a 2010 Mustang panel that has an integrated touch-screen climate control panel that Roger Alves, the company’s president, told me will begin to appear in other kits they offer, too. Watch for details on this one by the time our next issue hits the street. Scosche had two booths in the North Hall, which was the polar opposite of some companies that weren’t even there! Portable device accessories are huge for the company.
Companies like Audio Control and InstallerNet were focusing a lot of effort on simply sharing how retailers with whom they already do business are creatively positioning themselves to capture opportunities others are leaving behind and how they are partnering to help do more of that. Building business relationships was really a primary theme at this show, even more than in years past.
We did make it to some of the off-site venues, the most comprehensive of which was at Rockford Fosgate in the Palms. Lots of new stuff for the company, including audiophile-grade composite cone component speakers, ear buds for portable devices, new amplifiers and custom airbrushed amplifier shrouds to compliment one-off installations.
Frankly, getting to every off-site venue for non-exhibiting companies that were still at CES would be impossible so that’s one of the questionable strategies I mentioned that could affect a company’s efforts to gain new customers and not just serve existing ones. Even a small booth at the show to let people know there’s another thing off site would be nice. One example of a company that did this was Boss Audio, with a booth at the show and a suite at the Hilton.
At this show, I heard a lot of “oh, are they here? I didn’t know or hear about that,” which tells me the opportunity to capture attention on the show floor in the North Hall at LVCC is still very much there, even if only with a small booth.
Lots of other products and companies to report on, in addition to what we reported on from the show in Hotwire, will be appearing in the coming weeks on ME-Mag.com. We’ll have comprehensive show coverage in the next print issue of ME-Magazine! There was also a critical board meeting of the 12-volt Initiative that was held to assess where the organization is with regard to the progress of the 12-volt Awareness Campaign, so we will bring you up to date on that outcome as well.
Beyond products though, the CES show again proves that there are many opportunities to connect with colleagues and industry friends. It’s a great venue to rediscover the passion and innovative ideas that have always driven the 12-volt aftermarket electronics industry forward.
By Chris Cook
Money has a cruel way of making or breaking business. Some say you must spend money to make it (the government seems to get half this model) others say you shouldn’t spend money until you make it. Still another school of thought says you need to borrow against the future to fund the present and pay for the past (the current government model). Regardless of your school of thought, money is an ever-present constant that drives or crashes your business.
Although more money doesn’t solve every issue, it does make dealing with challenges less stressful. So how do you live another day when things get tight? Yeah, I know the stress of this situation leaves you praying for the local pro ball team to stop in for a no-holds-barred shopping fest. But if that doesn’t happen you might stop to take a deep breath and look for ways to make some money today while doing your best to save a little as well.
The doors are open with no installs scheduled and your first three walk-ins want something repaired that the installer you let go a month ago didn’t quite get right. Your sales guy is running late (probably putting in a job application at the local Starbucks) and you look out the front window and see the tumbleweeds rolling through the parking lot. If this sounds at all similar to your day then you are in luck!
Cleaning and organizing can help to get your head on straight. It also sets the stage for some customer traffic. Seems like every time I started straightening up customers would show up and interrupt things (I’m just saying). Then desperation would take hold and drive me to review last month’s invoices looking for customers who could use some more stuff for their cars. I would start with my top 10 picks then categorize the rest by potential. Next, I would get down my pitch and start making calls. The pitch can be anything that gets customers in the door. Try the system tune-up angle or the direct-sell by offering what they still need to make their system complete. Whatever your pitch, remember the mission: get customers in the door. You can sell once that happens. I can attest to finishing out the end of many months on the positive by providing an additional level of customer service that fills the cash register with money, money, money!
It seems nearly every car dealer in the nation is jumping on the “trash your car for cash” bandwagon. Driving by a new car dealer provides a view of old cars hanging out of dumpsters, piled on one another and spray painted with endearing terms like “Junk” and “Trash”.
It’s very rare for Congress to get an idea that provides an incentive to encourage growth in the free market. The Cash for Clunkers program is no exception. Although any growth that provides some glimpse of hope for a market that has been stuck in the gutter should be cause for rejoicing, we should first look at the real impact of this artificially simulated growth. So what does it cost us to add a new fuel-efficient car to our neighbors' driveways? I have heard that it’s around $6,000 of our hard-earned cash in the form of tax dollars. If congress was capable of getting a clue they would quickly realize that the increased consumer demand is directly related to the novel idea that if they give people their own money to spend, the net effect is stimulus to our economy. With this newfound wisdom I would expect them to go back to Washington (after they finish up getting a dose of reality from some town hall meetings) and get cracking on some new tax cuts so our hard-earned income can be used to buy some great new stuff, like say some cool consumer electronics for the car.
Maybe we should offer up a new program for “CARS”, the Car Audio Rebate Program. We could encourage consumers to bring their electrically inefficient amplifiers that by nature and lack of efficiency must contribute to global warming and trade them in for lighter, more efficient amplifiers that are sure to contribute to better fuel economy. Then bring old tape decks and CD players that create unnecessary waste from tapes and CDs that are clogging our landfills with unnecessary waste. Trade them in for more environmentally friendly MP3 Players. Take up this cause and call your congress person today and suggest that your tax dollars be put to good use by providing the consumer with the necessary simulating incentives to buy more mobile electronics!
So if you’re thinking that I am just venting a bit of frustration about how I feel our government is out of control and spending all our money on stuff we don’t want, I will clear it up with one of my favorite quotes from our second American President, John Adams, “In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.”
You are in the middle of an install, your other installer took lunch with your slacker sales guy and the phone is ringing again, and again. Oh yeah, let’s not even try to find the wireless phone with the dead or dying battery that is taped on with your precious number 33+ electrical tape. Yes, I know you have an answering machine or service, so you let them leave a message; you can get to it when you’re not so busy. And why not let it ring, you just had someone come in with a brown box full of used equipment looking for installation, and it’s time to explain the pain you desire to inflict upon them if they don’t put it back in the trunk and come back to buy some of your stuff. The good news is that while he was headed to car to properly store his box o’stereo, your sales guy and installer pulled into the parking lot and decided to strike up a conversation. Good, you think, maybe they can earn their keep while I get this install completed.
So you take a deep breath, grab a bite of the breakfast you remembered about bringing in that morning and jump back in the car. What, the phone is ringing again! You reach for the phone you left in the passenger seat then look up to see it sitting on the workbench. You think to yourself again, why don’t they stop calling and just stop by the store? That is most likely how the call will end up anyway. As a matter of fact, maybe you should just make that your message so they don’t call back anymore.
Although this is just a made-up scenario, it is a story that plays out at retailers all across this nation. Heck, it’s played out fairly similar when I ran a store. That said, constantly letting phone calls go to your voicemail is a surefire way to turn potential customers away. The phone is just one tool in your box of marketing stuff. It is a very important tool as it is a primary means of communicating with potential customers looking to find out if you have the solution that will make the daily drive a more entertaining and informed one.
Take the time to develop a system to take advantage of this tool so you never gain a reputation of not being available. Let the phone pass from team member to the other like a baton in a relay race. Make answering on or before the first ring a priority. Pre-plan your response to specific questions, always with the goal of turning the call into dollars. Develop a question and answer template (this is good for your website too – but that is a whole other blog post).
If you make the effort, I can assure you that you will turn an annoyance into an opportunity!
By Chris Cook
For me, not a day goes by without hearing about another addition to the wireless landscape. Whether a new phone, service offering application and/or network, we are barraged with a plethora of wireless offerings designed to improve our world. On the other hand, I hear little about innovation in the mobile electronics industry. Mostly products announced appear to be more evolutionary than revolutionary. I’m not saying we have no innovation, but the trends from our past that provided us with new digital innovations have been few and far between.
So what can we do to pull excitement from others to bolster our own presence? First, take a look at how you are presenting your store to the consumer. This presentation defines how you are perceived thus opening or closing the door to new business.
That said, are you taking full advantage when marketing the name Mobile Electronics? As I mentioned, consumers may be confused as to which products are for sale behind your doors. For me, the name is still synonymous with our industry and no explanation is required. However, from both the wireless industry and for many consumers, our name provides confusion not clarification. Take a moment to think about the wireless phone industry. Do you see a connection to our industry or do you view them as one industry? I tend to see them as one but also separate, with some overlapping areas. However the separation may be more confusion of each rather than an actual difference.
Let’s take the title for what it is and market and sell products that fit under this ever-broadening umbrella. If you have the ability to broaden your offering to include both wireless accessories and traditional car audio and video products then take advantage of the name and position your store as a one-stop shopping experience offering many ways to connect and enhance both traditional mobile electronics and wireless devices. By making the wireless connection with consumers you will add value to your marketing and hopefully draw more customers into your store!
By Chris Cook
Do you recall a time when selling brand names on the Internet was the exception and not the norm? When a call to your supplier launched an investigation of how this rogue reseller got their hands on your best sellers? Things have certainly changed as the Internet sales channel has evolved. Take a moment and Google your best sellers and you will probably find them readily available on websites like eBay.com, LogJamElectronics.com, BottomDollar.com and Yahoo Shopping.
At this stage, competing with those online retailers probably seems like a losing battle. It’s easy to get tired, and frustrated, with the situation when you’re competing with online resellers that seem to outnumber the stars in the sky. So what to do? Maybe call a hacker and have them shut down the Internet? Not likely, but at times a nice thought. I guess you are waiting for the usual advice to “offer good customer service and installation expertise” and everything will be alright? Not a chance. Although following that advice never hurts business, you need to look at this in a more proactive way.
First, do you have a Web presence? Is it a good one? You know, one you or your kids would visit and shop at? Have you ever thought of offering a best Internet price guarantee? Yeah, I know what you’re thinking, how would you compete selling products for less then you bought them for? Fine print helps because you can offer to beat any authorized Internet retailer (which certainly makes a difference to customers who want a valid warranty). The idea is to get customers in your store by letting them know (using your website) that you are the local guy willing to offer full service for Internet pricing on these products.
Maybe take it a step further by setting up your own e-commerce and or mail-order business using free or inexpensive software? We’ve provided you with a short list of e-commerce software providers at the end of this post. There’s no reason you can’t compete in the online world, too, while also promoting brick-and-mortar business and your installation expertise.
So let’s say you set up an e-commerce section of your site. How would you handle fulfillment? One way to handle this would be to use Amazon.com’s e-commerce fulfillment service to handle this for your business.
At the end of the month (or day) it’s how well you execute your plan to get customers in your store using any means possible (including the Internet). So log on, take a good look at your Web presence and see what you can do to break the logjam without making bottom dollar!
E-commerce providers:
Vendio (free to install and use, takes a percentage of Internet sales)
Zen Cart (free to install and use, paid support)
Your favorite industry news and information source, Mobile Electronics is joining the Blogosphere! Providing some of the best insights from our staff and key members of our industry, this venue will allow us the opportunity to discuss important developments on new technology, market conditions, technical conundrums and an assortment of hot industry topics. We will also continue to include the latest news on products and people that are making a difference.
Our hope is that this effort will further our quest to grow the industry by allowing us to connect directly with retailers on a range of topics. To get the discussion started, I would like to offer up the first two discussion topics: Where is our industry headed and how can we get there? And, tell us what is making the difference between closing the doors and growing your business? Feel free to send us your suggestions by clicking on the "comments" section and posting them. Stay tuned for more exciting topics!
|
|