As I think about the year ahead, these are some of my New Year’s resolutions for my business. I suspect these might benefit any 12 volt shop.
#1 Revise my business plan for 2023. For me, I will evaluate every category I sell and decide if I want to continue selling it, expand it, limit it, or eliminate it. I will look at how electric vehicles may disrupt my industry and start working on a long-term business plan to allow my business to thrive in the new landscape.
#2 Work on my marketing plan for 2023. I will review what advertising mediums aren’t working and make some hard decisions there, especially in social media.
I will work to increase my networking with similar-minded businesses in the automotive world that can refer business to me. An example would be a body shop or automotive repair facility that caters to higher-end vehicles.
#3 I will evaluate what my competition is doing and adjust. This may mean I need to change absolutely nothing, or it could be as simple as changing how I market a category. But it could also be time to adjust prices or simply abandon a category that isn’t profitable anymore.
#4 I will evaluate my vendors, both good and bad, each and every one. For me that includes creating a point system based on the following:
How easy are they to do business with?
What is their freight policy?
What is their policy on master carton surcharges?
How hard is it to attain their VIR or GIR levels? Is it even worth it?
Have they priced themselves out of the market, as they’ve raised prices (from the tariffs through the pandemic)?
How do they handle defects? Field destroy, return for credit, return for repair? Have they opened up any local or online competition that has affected my margins or sell through rate?
#5 I will revisit what I am stocking and at what price points. Like many others, during the pandemic, I threw caution to the wind and bought what I could. Now I need a strong merchandising plan.
Am I selling the most profitable products at every price point? Do I have more than one item at the same price point? If so, why?
Am I holding onto a brand because I like the employees of that company, because I like their product better than others, or because it is the best business decision for my company. I’ll think LONG and HARD on this one.
#6 I will review my procedures and policies on EVERYTHING. Like others, it is possible I have fallen into the trap of doing something a certain way “just because I thought it was a good idea,” while there are things about my business that could be changed to make it more efficient, more profitable, and make life better for my employees and myself.
About Mr Retail
Mr Retail offers opinions and information on car audio retailing for CEoutlook. He wishes to remain anonymous. He has owned a retail store in this country for over 20 years now. Mr Retail loves what he does and loves the 12 volt industry and is happy to share his hard won expertise.
Photo: CNET
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