The average car audio retailer will post sales of about $550,000 this year, marking significant growth over last year, according to businessWORX, based on results from 71 of their customers.
For these stores, total invoices for the day averaged over $2,500, this year. Total customers sold over the lifetime of the store averaged over 7,000.
These car audio shops saw strong gains in many aspects of their business in 2015, based on data through November, with some projections for December.
Average revenue was up from about $400,000 last year, marking a 37 percent increase. And the average tickets for the day rose 35 percent from $1,873 per retailer last year.
As a group, the retailers showed extremely high customer satisfaction. A businessWORX customer satisfaction score based on the Net Promoter Score (your score when customers are asked if they would recommend your shop to a friend) was well over 9 on a scale of 1 to 10, with 10 being the best score. The Net Promoter Score is considered a leading indicator of a business’s future growth.
Ben Vollmer of businessWORX said, “Specialist retailers take care of their customers. There are hack shops out there and hack mechanics, but the shops investing in their business do very well with customers.”
New customers represent about 20 percent of specialists’ client base on average. Vollmer warns that new customers are expensive. “If you spend $1,000 a month on a Yellow Page ad for new customers, you’re probably better off figuring out how to re-engage your existing customers.” This would be achieved through methods like email blasts. The average number of email addresses in the businessWORX stores’ customer base was 1,567.68 in 2015, up from 677.69 in 2014.
A great goal for any retailer next year is to encourage past customers to make one additional purchase in the coming year. The average number of invoices per customer per year for specialists is about 2. Moving that up to 3 would produce a significant boost in revenue, Vollmer said.
Photo: JC Audio