Interlocks Are Paying the Rent and More

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Ignition interlock installations continue to rise around the country presenting a growing opportunity for 12 volt retailers.

Ignition interlock installations rose dramatically from about 142,000 nationally in 2014 to over 232,000 in 2015, the last year for which full year statistics are available according to the Traffic Injury Research Foundation.   It projects narrower growth to over 226,000 installation in 2016.

Interlock devices help reduce alcohol-impaired traffic fatalities, which number over 10,000 per year.

 

LifeSafer ignition interlock
LifeSafer ignition interlock

Some dealers we spoke with are seeing dramatic increases in installations of interlocks, which prevent a customer from using his car until he passes a breathalyzer test.

Stereo West Auto Toys’ Brian Hampson said the Omaha, NE retailer brings in $15,000 a month in interlock installations and the category is growing at a rate of $500 per month.

The 2-store chain uses Smart Start interlocks and has an exclusive in the area for installing that brand.

A dedicated employee handles the interlock scheduling all day long.  The shop does 5 installs a day not counting calibrations as it doesn’t require special appointments for calibrations.

Hampson said, “Smart Start does a lot of the marketing for us. They reach out to the attorneys and they do a lot of SEO work on the website and handle all the scheduling and appointments for their customers.  And since we have a dedicated team, they know how many cars they can book a day and we allow them to book up to that threshold.”

Hampson believes he will eventually need to hire a dedicated installer to the handle the interlocks, but currently the car audio installers take on the work load.

Stereo West launched in 2010. The two stores have a total of 7 installers and bring in $2.5 million a year.  About half their business is in remote start.

Custom Sounds, with 18 stores, has been installing interlock devices for four years although it dabbled in the category a bit before that.  It now brings in about $200,000 a year in the category, which is growing.  “We make sure that those Intoxaclock customers are treated well and are very happy, because most places don’t treat them very well.  As a result of our low amount of complaints, the vendor has continued to send more and more business our way,” said Custom Sounds President Mike Cofield.

Bryan Turvaville’s 806 Autoworks in Amarillo, TX is a high end shop that’s not set up to handle a lot of casual customers.  But it serves about 150 interlock clients. Interlocks add about $1,500 to $2,000 to Turvaville’s cash flow each month.  “They pay my rent and a few of the utility bills every month,” he said.  The shop just hired an employee who is being trained on interlock installation, as Turvaville looks to grow the category.

Dave Bran of The Audio Connection, Baltimore, MD has been involved with interlocks since their inception in the early 90s.  The chain helped test the Guardian interlock. In addition to The Audio Connection’s two stores it has three satellite locations just for interlock installs, typically consisting of a garage with a single installer.

The chain has about 800 interlock clients that bring in about $5,500 a week.  “It peaked two years ago.  Then in Maryland, they brought in 3 or 4 more providers, so it became a little more competitive,” said Bran. At its peak he was bringing in $7,000 a week.

The satellite stores alone generate about $2,000 a week. Why the satellite locations?  “It got very busy and the interlock manufacturers, they look for opening up locations, so it was more of a pre-emptive strike to keep them from opening up centers close to us,” Bran said.

He now carries Guardian and LifeSafer.  After three decades in interlocks Bran’s advice to other 12 volt retailers is that the category can be a nice side niche for stores, and help pay the rent or help to hire an extra person, when you need just a bit more income to justify that new hire.  But “you’ve got to manage it well because the people who come in for these things are not generally happy customers buying cool things for the car. They are stuck…so sometimes you are not the good guy and have to communicate well with customers.”

 

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