Sonic Electronix opened up an installation shop in its current online retail headquarters in Valencia, CA. this month.
The discounter had planned to open a store that was separate from its online headquarters, but it ran into real estate problems and decided to expand its current location by 25,000 square feet instead.
It now has 4 bays and 2 installers. The installation shop covers about 5,000 square feet. Sonic charges $85 an hour for labor fees. If you bring in products purchased elsewhere, including Walmart or Best Buy, you pay an extra 20 to 25 percent. There’s also a fee for testing merchandise if you bring in a product that is not working properly.
“The install bays just opened last week,” said the 28 year old CEO, Nate Victor, noting the store has already installed systems in a Lamborghini and a 2012 Dodge Charger.
Victor didn’t want to talk about sales numbers although he said his online business has continued to grow. The company has been adding more employees and Victor has embedded a layer of upper management in the operation that helps with business planning and strategy. Sonic’s director of operations formerly worked at Fry’s and the VP of eCommerce comes from Teleflora, the flower delivery company.
Sonic also has a 40,000 square foot warehouse in Kentucky.
We asked Victor where he sees the business of car audio and electronics heading. He said, “I think there’s so much potential with integration with smartphones. We’ve seen a little with O’Car and Jackson Electronics’ iRoc…..I think you need to have the ability to have the smartphone power the whole system. You have a platform like Android that can power all these stereos. Head units are slower than any other device you use. People are used to quick, snappy interfaces. All that will finally come out.”
Sonic’s web site says its sales grew by 98% in 2005, by over 95% in 2006 and kept growing at a rapid pace since “to the point that we have shipped over 500,000 orders since our inception.”
Source: CEoutlook
Well Nathan, I certainly didn’t imply in any way that you have no overhead. It seems you have taken on a huge task with an enormous amount of overhead. The only problem that I have with you or anyone or any company in the industry is bad business practices and giving away product, which does hurt the industry as a whole. I’ve been in this business for 22 years and we’re not starving. I was previously in the automotive speed and custom parts business and saw it take the same direction as car audio has begun. It certainly did make the trip to zero. It does seem you are trying to go in a more conventional direction with your business and if that is the case, I would certainly wish you success.
Hahah… How do I get dragged into every car audio discussion. I guess it’s a high class problem to have. 🙂
As far as people’s negativity… Stop complaining and work hard, you’ll be fine. The main problem with our industry is lack of marketing. Which me and Nate have hyped car audio more than anyone online.
@Nate
I’ll take are of my open invoices ASAP..
To the other shop owners out there, match prices and work on your pitch and quit bitching, there’s plenty of business out there for everyone.
@bill
And as far as my “rejects” go. If they worked for me they have talent, period.
@Olan/Mike: I find it amusing that we supposedly have no overhead. I assure you we do. If you would like, I will pay for you to fly out here so you can see for yourselves and apologize to other readers. We have no plans on giving away our services and we look forward to it becoming quite profitable.
@Bill: Reject employees? Is that what you call guys who have their check bounce by their famous ex-employer? The same ex-employer that also owes us $700 in unpaid invoices? Speak what you know Bill instead of sounding like an ____. Those guys deserve to make a living and are great individuals. I stand by my team, their skills, and our hiring process.
I wish the best to all of you local shop owners. We are investing a lot into creating a place where car audio can flourish locally and online. Our goal is to help market the entire industry to the customer and educate. Not many in our industry do this, including many manufacturers. I hope to one day change your prejudices and hatred for our business. Stay tough and strong. It is tough out there for everyone, not just your shop. We are not without competition, and we are continue to strive to grow our business and offerings. I encourage you to do the same. Have a blessed day.
Mike Ruppe, rather than being such a hater you should team up with Sonic or just be happy for the success of others… after all, you are in NC and Sonic is in CA!
Wow! A lot of ill will on here. How about good luck Sonic, hope this works out for you as well as your other ventures!
I still find it funny how Nate picks up all of soundman car audio’s reject employees with hopes of legitimizing his business as “real” car audio.
I suppose they’ll do dollar installs to go along with, as Mike Ruppe put it, “the race to zero” on product sales pricing. We see all these places come and go , and rightly so, but each one does take it’s toll on the industry. We all suffer because of the sellers that whore out product. Maybe this will be Sonic’s demise.
Nate will soon find what overhead really means.
They are already in the race to ZERO, what are they going to do now? I know put in for free. Yeah that’s the ticket.