Amazon will launch a car audio installation program to offer consumers the ability to find a qualified local installer, according to a reliable source.
The Internet giant is expected to start signing up 12 volt retailers soon to participate in the program, which could officially launch at some point after the upcoming January CES.
The program would present Amazon shoppers, within their shopping cart, the choice to purchase the service of an installer in their neighborhood. That retailer would set a price for the install and Amazon would pay the installer, less a referral fee.
We were told that Ray Windsor of Leadership Systems, who has led companies such as Eclipse and Audiobahn, was knowledgeable of the program. He said he could not comment on specifics at this time, but he said, “It seems to me that any time an installing retailer is provided with a second chance at building a relationship with a consumer who passed him up at first, he should take a serious look at participation. Which retailer does not want the attention of a consumer who needs his services?”
Amazon has been moving into installation services generally, according to recent reports. It plans to connect users to plumbers and electricians to help install the products that Amazon sells, reported The Wall Street Journal late last month. CBS news said it will also enlist “home media” and appliance technicians in the program.
Users will be able to select the service they need, review price quotes on the job and reviews on the servicemen from Amazon and Yelp users, said CBS News.
Amazon sales in car audio are estimated at $600 million by TWICE magazine’s annual Top 25 Car Electronics Retailers report. Amazon’s sales grew 4 percent in 2013 over 2012, according to TWICE.
I would think that this article was some kind of joke, but it’s not April 1st. Helping Amazon sell
more 12v product? You can’t be serious. Any of you guys really going to sign up for this? And Ray Windsor seems to be supporting this. Ray also appears to be in the consulting business. If this was the advice he was selling me, I would want my money back!
My question is what about an MaP pricing.
We signed an agreement with the manufacture stating we would not advertise below the minimum map price. Why is it the Internet has to not follow the same rules as set forth to the retailers. Sounds like it an even playing field. If the manufacturer wants to make their product devalued and sell more products and not stand behind their dealers why should their dealers support them. Looks like we need to have a line that will support their dealers and not allow transshipping, Internet sales below map pricing, or. Any other shenanigans.
Crutchfield seems to sell online and maintain. Map pricing. I don’t see them tarnishing the industry.
I had a customer today that found a radio that they bought from me two hours prior on Amazon for 1.58 above my cost. They returned it and bought it online.
Thanks Elpine
Here’s a situation where Alpine did not gain a customer they only devalue their product.
My question is what about an MaP pricing.
We signed an agreement with the manufacture stating we would not advertise below the minimum map price. Why is it the Internet has to not follow the same rules as set forth to the retailers. Sounds like it an even playing field. If the manufacturer wants to make their product devalued and sell more products and not stand behind their dealers why should their dealers support them. Looks like we need to have a line that will support their dealers and not allow transshipping, Internet sales below map pricing, or. Any other shenanigans.
Crutchfield seems to sell online and maintain. Map pricing. I don’t see them tarnishing the industry.
I had a customer today that found a radio that they bought from me two hours prior on Amazon for 1.58 about my cost.
Thanks Alpine
Any one who thinks that AMAZON is the most respected retailer in the country is in need of some serious HELP… It looks like the old screw the little guy and support the transshipper at 7% to 10% over cost.
Will this program be Transshipped like all of the other products scumazon sells !!!!
http://www.heraldnet.com/article/20141205/BIZ02/141209516
anyone who supports amazon is a fool. look at the diaper biz at the above link.
g
you Bring it in ask me to install it, you have everything but its not working because something is wrong today or some time down the line, its your resobelity to pay me a second time to deal with it. I put a warrenty on my Labor, NOT YOUR PARTS! AND I will not ship it to anyone for you and when you get it back you pay me to reinstall it.
Thats the Difference of Buying at the dealer your having do the work.
Amazon might get a cut thats ok but there also getting products that fail to work blown speakers, popped fuses and everything else, and the customer has to pay for R&R on top of the original install.
Buy it any place you want to, what do I can the manufacturer are not letting the dealers have much meat on the bone anymore anyway.
Oh and don’t bring me a Puzzle kit I won’t use it if i have to the price went up 50% more.
You know the kits: put Part Z in hole 3 grind off Part F D and B Cut out hole A stand on your head bite your tongue and hope Part Z Fits hole 3-6.
I’d rather Take Kit J and toss it into the trash.
POSTED ON BEHALF OF SCOTT:
Ray, I’ve been reading your articles and posts for years now. I’ve always tried to apply some of your thoughts and suggestions. You always speak of us specialist selling ourselves. If price is the only conversation, we specialist will lose that battle every time. You say we are the ones who know the product, can demonstrate the product, and can install the product to work right. We need to sell our expertise to the customer so he will get the most out of his purchase. In one of your articles you even use the analogy of a great cook not wanting to give away the ingredients of their special dish, and when they did, it never tasted as good. Suggesting the cook may have left out a couple key items that made their dish taste better than others.
Fast forward to today. The customer you speak of may have been in our store. We demonstrated the product, talked about how great we can make it sound. Sell ourselves and the merits of our certified installers who know how to get the most out of his purchase. He decides to go home and do a bit of research or online shopping. Oh wait, here is that same gizmo on Amazon for half the price, and look here, I can get it installed at that guy’s nice shop. After all, he was the one who said he could do it best…
I think it’s more like a chef who’s willing to let patrons bring in all the ingredients, good or bad, right or wrong and be held accountable for the final product.
I don’t think recognizing the validity of online shopping means that we have to accept every online selling practice as the way things are headed. Even within Amazon, there are certainly two models. One is “Shipped and Sold by Amazon”. The other is the marketplace, which is essentially eBay by Amazon. The difference is not clear to many Amazon shoppers.
The way it works is that Amazon is OK selling at MAP but refuses to police pricing on the marketplace and refuses to not have the “buy’ button. That means that if some garage-seller is undercutting something that Amazon has in stock, they’ll reduce their price. Think of it as the free market on steroids where Amazon decides that you’re going to make rational decisions about purchase because they make it difficult not to.
The Marketplace is the problem because those are the sellers who aren’t bound by their desire to have a brand that anyone respects. They’re there to move boxes. For car audio, those Discount Jungle and Car Stereo Deals guys are distributors. They are the same distributors that you call when you order something that you buy through distribution. Many of the manufacturers are perfectly happy with this arrangement because once the product leaves their warehouse, they don’t care where it goes because they make most of today’s margin today. Furthermore, they don’t have to offer warranty service on anything that’s not sold by an authorized dealer.
If your business can survive a shift to primarily labor charges, then support this model. If you need the margin you make selling gear, then being an expediter for a giant company that appears not to have profit as its motive is probably a good deal. Or, if you really can convert these sales into real customers, then maybe it’s a good deal too.
But, if you’re so great at converting customers, why focus on the ones who are searching only for the lowest prices? Why not target a bunch of BMW and Mercedes and Lexus driving doctors, dentists and other adult professionals with money to spend?
Clearly, Amazon is looking to eliminate one of its disadvantages in being an online seller of goods that require after sales service. Why help them, especially if their customers are going to come looking for you anyway? In addition, why choose to do business with the brands who shake your hand with one hand and poke you in the eye with the other one?
Our experience with installing customers products bought online was once that customer had a good experience with us, now they are comfortable continuing to buy online and have us install it. They keep buying online and want us to install it and we have product sitting on our shelves. Then our distributors and sales reps are saying charge the customer more on labor for items that were not bought from your shop. How much more can you charge. The right thing to do would be to charge the customer the amount that you lost on the products towards the labor. But we all know that will not work because now your labor charge will be extremely high. So we need to stick together as brick and mortar establishments and say that we will not install products bought online, PERIOD. Once the customers in your area know that this is your policy and they know you are the place to go and get it done right, they will buy from you. It’s these fly by night shops that are willing to take on any job for any price and when something goes wrong they are not there for their customers. It’s Remote start season now and we had people call us to flash there modules that they bought on Amazon. REALLY? My so called colleges of this diminishing industry said, I should have charged $50.00 to flash the module. NO WAY!!!!! Make $50.00 for flashing and lose potentially $200.00 for the install? NO WAY!!!! I’m in business to make money. I’m Legitimate, I have expenses and I need to make enough money to cover those expenses and to take some home to support my family. When Amazon is willing to support me and my family, I will install for them.
I have been in the 12 volt game for over 20 years
And if you have a second chance to gain a new customer
And a new set of feet to walk in your front door that’s
Great no matter where they come from I really think it’s not a bad idea lets face the fact Amazon not going any where
Any time soon if you can’t beat them join them
I don’t think labor only would keep any of us in business. …….amazon marketplace and eBay need to be stopped but our manufacturers don’t care that their core retailers are being undercut by the Internet. ….if you can’t beat the join them does not work here
anyone who supports a large competitor is on the way out. we are enabling the internet sale.
Regardless of the reason, bidding for the lowest price on installation just sounds like trouble.
Scott,
Amazon is the most respected retailer in the country. I agree you should not strive to make them look better in YOUR consumer’s eyes. BUT if it is NOT YOUR consumer because he elected to buy from some other place than your store… Might it make sense to have a second go at making that consumer into your consumer. After all he is obviously a 12 volt consumer and I perceive you make your living selling and installing 12 Volt stuff to consumers who want to buy 12 Volt stuff. I contend its best to turn that consumer into your consumer as opposed to inferring that he made a stupid mistake (whether he is stupid or not) by buying elsewhere. Show him the value add at your store and cause him to come to such a conclusion on his own.
Ray Windsor
Bravo to Matt Overpeck.
His model goes to great lengths to help a retailer remain above the fray and be Identified as different (and better), Profitable and therefore be able to better Predict his future. That is the way it ought to be. He will be true to that model. Retailers should most definitely be gravitating to Audio Mobile, and to other brands similarly positioned and committed.
Ray Windsor
I’m with Beau on this one. Why would I support and legitimize any purchase made at Amazon. I will install the customers product purchased online, and do so with a smile. He won’t receive our discounted labor rate that he would have had he made his purchase from us. But I will not partner with Amazon, adding to the value of THEIR customers purchase. That makes no sense!
I think we can all agree the internet is here to stay, as is the
reality of both low-ball on-line pricing and transshipped goods.
So the question is ‘what your plan’ to address these unfortunate realities?
I would submit that ANY opportunity to assist in the prime-directive of getting more potential customers ‘in the door’ IS
of unquestionable value, as nothing can really happen until
that takes place. This is what Ray was clearly implying…
Is this the perfect scenario; No. Clearly better for Amazon, as it’s their initiative. But ‘floor traffic matters’ no doubt.
On the other hand, selecting you vendor partners to be your core / push brands, whom are 110% aligned with business agenda of the Specialty Retailer segment, IS the key. If they can also deliver the composite balance of compelling value, attractive price points and stellar GP as well, then that’s the ‘Holy Grail’ for all retailers.
Continuing to simply try to “clerk lines” that now only seek to move more boxes, with lower price points, in the pursuit of higher velocity, is simply not a plan that can really deliver success for most 12V retailers. Question is, what’s your real ROI?
There is a short-list of brands that deliver the above benefits, and cannot be shopped online. These are the foundation you need to look at, if you want to change the ‘Status Quo’ and return to better days…
Here is an idea: Charge the customer a fee to check the equipment before its installed.
Offer them a warranty. Charge them $50 so they wont be hassled if/when a product failure arises. Chances are you will be on the upside with that and have a better relationship with a new customer.
Beau,
Thanks for taking time to read and comment. If I am not mistaken I detect a hint of frustration and perhaps some disappointment.
I hate to be the one to bring this fact to your attention but I feel compelled to. Most of the car audio product sold through the Internet, Amazon included, is sold with the knowledge of the supplier of that brand. Most of that product is not transshipped. It is shipped directly to the Internet retailer or to the guy who supplies the Internet retailer. ALL of this with the full and complete knowledge of the supplier of the brand. If there were a way to reverse this trend … BUT to me there does not seem to exist the desire, skills or care to reverse this trend by the suppliers who do it. That does not make it bad or good. BUT I assure you it IS. And its gonna CONTINUE to happen.
That said, in such an environment, in front of the consumer, a brick & mortar retailer I contend should consider the following attitude adjustment:
ONE: ALWAYS discover, when talking with a consumer, his Internet knowledge and intentions. Just hoping the consumer will not look on the Internet to research price and everything else you and he discuss is a failure to do your job.
TWO: Make a business decision about the cost of walking a consumer who wants an Internet price match, with a premium for the value you add when he buys directly from you. Remember that he has lots of choices with regard to where to buy, at which price to buy, where to install and at which price to install.
THREE: DO NOT “COP the INTERNET ATTITUDE” with a consumer who knows about the Internet. (Save that for the suppliers you think have violated your trust). Treat the consumer as if you want and respect his business. Educate him about your value add. Do all possible to make him your consumer. ABOVE ALL do this with a positive and professional attitude.
I know this only touches the surface of an important topic. I would be happy to chat directly. 949-228-2153 or [email protected]
Sincerely and Respectfully,
Ray Windsor
Manufacturers are in business to make themselves money, PERIOD! If you don’t like their business practices, find a manufacturer who supports the business model you want, not the other way around. Most (not all), local reps, regional reps and national reps are full of *&#T when it comes to this. Go by their actions, not their words. We changed who we did business with years ago, it has helped us thrive. Don’t plan on being in business long term selling headunits, if you haven’t figured that out yet, you got problems. Sell a head unit to sell the accessories that go with it and the labor to install it all, that’s where the $ is at.
Agreed. The manufacturers need to make a stance either for or against this idea. Would be interesting to see what they all have to say. Companies like Kenwood, Pioneer, Sony, Alpine (main head unit companies) in particular. If they going to keep telling the brick and mortar retailers that they do not offer warranties to internet sales, then they need to make that more clear. Make a bold statement on their websites. Maybe add some big bold veriage on the warranty cards that are in the boxes their product is in. Heck, put it on the box. Let’s see how serious they are about this no warranty to internet sales idea they really are.
Simon, let me speak on a point you made. First I agree with everything you just said, now I will say this. we are a authorized Pioneer service center and about two weeks ago we had a young lady bring a Pioneer deck in for warranty and she had purchased it from Amazon about three weeks prior and our tech contacted Pioneer for authorization and they faxed us back a noticed stating that they WILL NOT warranty any product purchased from a non authorized Pioneer car electronics dealer. That noticed listed at least 22 online places including Amazon.com, Sears.com, Sonicelectronics.com and several others. This is a step in the right direction but they’ve still got a lot of work to do.
Simon, it’s also on the Pioneer website: http://www.pioneerelectronics.com/PUSA/Where-To-Buy/Pioneer+Car+Audio+Video+Authorized+Internet+Dealers
In my mind, this contributes to legitimize the purchase of transshipped goods, further deteriorating the quality of our industry and bolstering the transshipping process. So let’s see, the consumer buys a transshipped product at barely above cost, it will likely carry no warranty, and then waltzes into an authorized to have it installed. Does this sound like something worthy of supporting (Mr. Windsor)?
I’m with Beau on this one. Why would I support and legitimize any purchase made at Amazon. I will install the customers product purchased online, and do so with a smile. He won’t receive our discounted labor rate that he would have had he made his purchase from us. But I will not partner with Amazon, adding to the value of THEIR customers purchase. That makes no sense!