The Other 50% in Car Audio

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Andy Weymeyer, President of Audiofrog Responds to our story: 50% Don’t Know or Like Car Audio Shops

Recently, some new—or maybe not-so-new—market research has surfaced indicating that half of US consumers either don’t know about or don’t like dealing with aftermarket car audio and entertainment sellers. While all market research can be helpful, it’s really the interpretation that determines the usefulness of the data.

I’ve been a part of several consumer surveys in a past life and have been an eager consumer of market data about the CE industry for a long time. In my opinion, too much focus is given to big pieces of data like this. Anytime I see a survey about our little industry that indicates some “percentage of US consumers”, I brace myself for the impending fight about just who is to blame for this unconscionable level of consumer awareness. It didn’t take long for this one to start: “Manufacturers aren’t advertising. Shops don’t pitch products correctly. It’s the internet. Where’s my co-op? Distributors destroy my profitability.” All of it is true, but none of it matters much.

Andy Wehmeyer
Andy Wehmeyer, Audiofrog

I can’t count the number of product development pitches I’ve sat through where two hours of PowerPoint slides were summed up with the following lazy proposition: “The market for this product is three hundred million dollars and if we get two percent of the market that’s six million dollars. Do you want the money?” The most important follow up question that’s rarely asked is, “Your projection calls 6000 people a year to choose yours over someone else’s. Why would they?”

“Uh…it’s red?”

“Uh…it costs a little less?”

Enter Chuck Barris and his fuzzy hammer.

In trying to sort out my own perspective on this latest indictment of our industry, I turned to the Bureau of Labor Statistics. There are about 125 million consumer units (families) in the US. The average income of those units is $65,000 per year. Of that $65,000, taxes chew up $4,563. Transportation takes $8,999. $3,185 goes toward the purchase of automobiles. $2,700 is spent on gas and oil. $2,500 is spent on entertainment. $3,500 on health care. Pets, toys and hobbies cost $627. Reading materials cost $105 and so on and so forth. If you want to see the rest of the data, go here: http://www.bls.gov/cex/#tables

car radio50% of those consumer units don’t know us or don’t like us. Judging by the numbers, 50% can’t afford anything we have to offer without sacrificing something else, either. If they gave up books for their entire family, they could buy a pair of speakers.

Judging by the numbers, our opportunity isn’t to increase awareness among the general population of consumers. As an industry, we could all band together to make sure that everyone knew where to buy a 2-DIN app radio and it would never pay for itself. The opportunity isn’t in increasing awareness among the general public, it’s in increasing the desirability of what we do among likely purchasers.

To the retailers reading this, I’ll remind you: if the customer walks into your store and doesn’t immediately ask where the bathroom is, he’s a likely purchaser. You aren’t easy to find. He’s done some work. What are you going to do to get him to spend more in your store than he spends on all other entertainment expenses or on health care for his family? If you’re a tech who has opened your own store, is the person who greets him as good at communicating the benefits of what you provide as you are at fabricating? You often get only one shot. Who’s on your front line?

To the manufacturers reading, I ask you: what have you done to make sure the retailer’s star salesman has the enthusiasm, knowledge and skill necessary to sell your products? Once they’re sold and installed, will the customer be amazed?

If Bill is right and so is the BLS, there are 63 million families who do know about us and some of them love us. Some of them have money to spend and some of them are enthusiastic about spending it on something that sounds great, makes driving more fun or adds a measure of safety to their time in the car. Instead of crying about the people who don’t know us or who hate us, we should be singularly focused on the ones who love us.

If we do right by them, they’ll tell their friends who will tell their friends, who will tell their friends. Enthusiasm is contagious. Catch it from someone who has it and pass it on.

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19 Comments

  1. I would add that in today’s world, every retailer should be concerned with the establishment of clientele. It is the only equity that truly successful retailers / manufacturers have. It was the driving catalyst for the sale of Beats. Its what makes the apple stores the most successful ,by sales per square foot.

    Don’t look to vendors to do that for you. If they required to do so, they will not need the retailer.

    1. Steve, is 100 per cent correct. It’s not our job to motivate your staff, merchandise your offerings or instill passion in your customers. Our job us to insure we provide you with quality products that are perceived as necessary and value added. Additionally, we should provide proper training and support nothing more & nothing less. As Steve noted, if you want us to do the heavy lifting we will circumvent you and sell direct either with a Brick & Mortar Or On Line presence.

  2. Gary, The Zerohedge link is useful in understanding the real opportunity we have in a niche market sustained by enthusiastic customers. The big boxes are screwed in this category because they see expertise and service as expense to be minimized in the interest of selling ever-cheaper goods for less. That IS the race to zero. You can choose to compete in that race or run another one. We’re choosing to run another one. Will we be a billion-dollar-a-year company? I doubt it. Certainly not anytime soon. Most of the car audio retailers reading this column won’t be either. We don’t compete with products sold at Target and WalMart. There’s no good reason that you have to either.

    1. Gary your comments in this blog and other forums are always very negative, and seem to foreshadow impending doom. Have you considered that if that attitude is bleeding over into your day to day retail operations that people just don’t want to buy form YOU? People want to buy. Many stores (including mine) are growing fast. But you can’t grow while assuring yourself that the end is near. Be happy man, we’re on an upswing in the industry.

      1. no. I am very positive. just trying to point out our benefits. if education is considered a negative then…

    2. Not all retailers are created equal and you will always have the rise and fall of some organization (whether retail or not), but at the end of the day I think it is clear, Independent Retailers are once again in the forefront of product sales (ironically due to the decline of the retailers mentioned in this linked article). That said, no one should stick their head in the sand and believe their local independent business is known to all because the facts are exactly the opposite (whether you believe the original article of not).

      It is absolutely true most people do not know an independent car audio retailer exists. Its also true that this is an opportunity not an insurmountable problem. In fact, this “negative news” is great news! Start spreading the word and increase your business!

      So much of what we hear from “experts” today is the complexitization of simple business needs and efforts. This means we need to stop looking for the silver bullet and start doing the things we know we ought to but don’t.

      I don’t know about you, but aren’t you sick of hearing you need to clean your bathroom or bay? Really? You need to be told that?

      I for one have a more positive view on the state of today’s independent automotive electronics retailer for by far and away we are in a time that sees a greater percentage of good quality retailers than ever before. Why? Because most of the bad ones died over the last few years and good riddance.

      I have more negative views about the babies and thumb suckers who are always crying about the challenges. Folks, without challenges there are no opportunities! Suck it up and get to work!

  3. Bravo^2 and concur that’s it’s not about the
    glass “being half-empty,” as at least half-full.
    So the question is how do you make a great impression,
    especially in a category that’s still profitable, and not
    compromised by OEM factory systems?
    It’s rather easy answer…

    You have to do the work, as a prerequisite, in order to
    realize the desired results. I’m reminded of the quote;

    “Victory LOVES preparation.”

    So often I come upon 12V retailers who apparently
    ‘gave up’ trying to impress their potential clients, and
    ‘the tell’ is their 90’s look merchandising.

    The retailers we partner with have seen that you reap
    what you sow, and you best put a plan in place to bring
    your “A game” every day.

    Well done Andy!

  4. Well statement Andy Wehmeyer! We are in the world of connectivity. Makes our customer happy, makes our employee happy, makes our supplier happy then we will makes business.

  5. As a 20 year industry veteran in Canada, I fully agree with Andy’s response to the 50% story.

    We need more industry professionals like Andy to push the positive aspects of our industry. The Canadian market is not unlike the US market which leads me to believe that a Canadian consumer is very similar to a US consumer.

    The car audio retailers that sell with enthusiasm and passion and that invest in their businesses through advertising are the people that drive the industry. We need all the manufacturers and “smaller” retailers to get in the same mind set.

    The doom and gloom reports and the all around negative stories within the 12 Volt world truly mean nothing. There is and will always be a customer for a fun product that’s sold by a retailer that gives excellent service and support.

  6. Better yet, show them your expertise and wow them with your knowledge of the vehicle they own. Professional installation is something that is not available on the web !

  7. I’ve been doing this for quite a long time, since the waning days of 8 Track and CB Radio’s. I now offer for sale Back Up Cameras, Add on Nav Systems, Cruise Controls, Integrated Bluetooth Systems, Seat Heaters, DRL’s etc. There are quite a few factors that impact any business and statistics are only part of the story. One thing that has always been a constant is quite simple,”If they do not know it exists, then they do not have a desire for it.” They may have a need for it but the desire is absent. In my visits to retailers around the country, my first remark is usually “Where is Your Safety Solutions Area” and I get a blank look. A fast growing segment in our industry is safety related accessories but unfortunately you would never know it by walking into one of our retailers. What’s really frustrating is the “Missed Opportunity” when a customer, while waiting for speakers or an amplifier to be installed, is not apprised of the many aftermarket safety related items that can be installed right there. Most consumers are not aware they can have such products installed after the car leaves the showroom, yet most retailers compound this problem by not highlighting the category or even mentioning it to their captive audience. Back in the day we had new technologies and new products to draw people in continuously, Cassettes, CD’s, Cellular Car Phones, DVD Video Systems, iPod Integration, GPS. Today we need old fashioned merchandising & promotion from all partners in the equation.

  8. One of the best responses I’ve read in quite some time. Factual, dead-on accurate and a positive twist on a very bleak sounding article.
    Good job Andy!!

  9. Well put, and Manville is right, there is a need for an outstanding buying experience. I was recently talking to a few retailers about a woofer demo idea that is high impact, easy to do, and makes the customer instantly say, “wow, that is amazing and they have a good point. I DO need their help.” I will share this demo idea with any retailer who calls me. I want to know, if I have a great demo idea that insulates you from internet sales pressure and makes you look like a genius, how many retailers will take me up on my offer? If no one calls, I would consider that a flashing redlight and proof of Andy’s point that customer’s have money to spend, but the retailers are not creating the “demand” for those extra bucks in their pocket. By the way Andy, when I worked for Rob in retail, the customer asking for the bathroom was still an opportunity and needed to be recorded on our “walk cards” if we didn’t sell them anything.Even people who dialed the wrong number and called our store were offered a discount if they came in that week. I never landed one of those, but it was more about Rob teaching us a philosophy about everything being an opportunity. Do we need to double our floor traffic or double our closing rate. One of the two is a heck of a lot cheaper than the other.

  10. Just remember when that customer walks in your store, IT’S SHOWTIME !!!!!! Blow them away and make them feel good about being in your shop…

  11. You are so right, Andy. Our “Little Industry” offers a lot of cool things to consumers if the frontline will tell them. There is no better opportunity than the customer right in front of them. If that customer doesn’t need or want it, they may tell somebody that does if they see something exciting. The best advertising is the customer that walks out happy and enthusiastic about his purchase, no matter how big or how small. Show somebody something. They just might buy it!

  12. Bravo. Let’s amaze our customers with outstanding buying experiences and real value. Grumbling, reminiscing and moaning won’t get you anywhere.

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