If you embrace driver safety “it will be your strongest profit generating category within 24 months without a doubt,” said Steve Witt of American Road Products at a KnowledgeFest seminar.
“I’m here this morning to tell you that if you care about your business, you had better embrace the safety category,” he said.
Why? While car audio is declining, driver safety is growing by 260 percent this year. The margins can be 50 percent of MAP (Minimum Advertised Price) and the products are not yet widely installed in cars on the road.
Plus the government is about to spend a lot of money advertising backup cameras, specifically as part of its mandate that all cars on the road include backup cameras by June of 2018, said Witt.
It is a different kind of sale than music and entertainment. And your key audience is soccer moms in SUVs. But you are already selling them remote start and window tint, so it makes sense to add safety to the sales pitch. And here’s another reason why you should, said Witt.
You now have the opportunity to be the hero of your market.
35,000 people die each year in accidents and over 2 million are injured. “So your store can be part of the solution or part of the problem. Doing nothing is part of the problem,” he said.
Three quarters of all accidents are due to driver inattention. But if you get a warning only 1.5 seconds before an incident, you can prevent 90 percent of crashes. Sp lane departure and crash warning can save a lot of lives.
“It is the antithesis of what we’ve all done for 30 years, If selling entertainment is selling happiness and fun, in selling safety you are selling fear and money. So you sales pitch is not how wonderful the sound stage will be. But all you have to do is say, can I ask you sir or ma’am what’s your insurance deductible?”
Insurance rates are climbing so people are raising their deductibles to keep prices down. The average cost to State Farm for a backup claim is $2,200. If you want to install a $600 backup protection system in a Ford truck, the customer says he doesn’t have the money and you say, ‘what’s your deductible.’”
“So your approach has to shift away from the fun and entertainment, but we have to move into this category aggressively and quickly because …with the OEMs, we probably have 5 to 8 years to grab a hold of this and make the kind of money and higher margins we did with audio.”
There’s a second category in driver safety that can be your biggest cash generator says Witt. We’ll bring that to you in Part 2 to come….