Installer Shortage Keeps Squeezing Sales

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Is your install bay profitable?

Some say the shortage of installers is getting worse, some say it’s stayed the same since prior to the pandemic.  But almost all believe the shortage is impacting business.

Many dealers report their shops are under-performing or they can’t expand because they can’t find qualified installers. Some shops are considering closing.

“We have grandfather installers in our bays,” said Dean Magnussen owner of Sound Warehouse, UT,  referring to the lack of younger techs.

Carlos Ramirez of NVS Audio, Linden NJ said, “I’ve been hiring for six months. I need four techs.  I was only able to get one….We have 40 bikes here at the shop.  I’m willing to take anything. I just need someone to show up.”

Pete Riker of the 4-store chain The Specialists, AZ said, “Even though we’re fully staffed, it’s holding our growth back. As a company we have 12 technicians but only three are even close to their full potential.” Many of the new recruits, he said, lack the passion for the industry that brought older members into the 12 volt profession, and they are not as willing to learn and advance in the trade.

“Laborwise, we’re only at about 60 percent efficiency.”  If all 12 techs were at full potential, he said, “I could get another 30 percent in just labor dollars, which would be huge.”

SkillsUSA Mobile Electronics Training
SkillsUSA Mobile Electronics training

Some custom shops that rely on highly skilled labor have all but given up on finding qualified installers. Chris McNulty of Elettromedia and former shop owner said, “They resign themselves to working 60 hours a week …As an owner..you pay someone $50 or $60K a year and end up going back behind them and finishing things that they didn’t care about or they screwed up. You realize you would have spent the same amount of time and not had to pay someone.”

Jason Kranitz who ran Kingpin University and is about to relaunch a training school said dealers are not willing to pay to have a new installer trained.  He offered a program where an installer would work side by side with his installers to learn how to make adapters and to set up and scope a car plus learn the core car audio basics for a fee of $8,000.  “It’s our fault as an industry.  These shops don’t want to train.  They don’t want to spend the money because they can’t guarantee the guy won’t go work for someone else. But if we don’t start training and getting new blood in, it’s just going to be a constant battle,” he said.

How to Find Installers

To find installers, Proline, NY now looks for younger mechanics.  They are already good with tools.  “We take them through the learning curve–removing door panels, taking apart the engine bay to run wires for an audio system.  They are very knowledgeable with their tools so it’s an easier transition,” said owner Shef Sadik.

Sound Warehouse awards employees $500 if they find an installer.  It also gives a signing bonus of $1,000 to new techs who stay on for a certain period of time.   But Magnussen notes Sound Warehouse is seeing fewer younger customers as well as fewer young people who want to get into our industry.

The Specialists found a program in Arizona called Pima JTED that trains high school students in trades such as automotive.  The Specialists now has three interns at the shop from that program.  Under the program, a local community college provides trade school credits for high schoolers.  Additionally,  Riker is able to go into local high schools and teach about car audio installation. Vendors Rockford, XS Power and Compustar donated product so that he could make what he called, “a training cart with a full audio system with the battery from XS Power so it’s really a mobile training car …with speakers, amps a head unit, but you can take it apart and test different circuits…”  He’s done several guest speaker appearances at the schools.  “At the last one, I took a big Rockford 15 inch subwoofer.  We had it flapping, and playing music on YouTube.   The kids had never seen anything like it…..”

Other resources include the Installer Institute of FL. one of the few training centers specifically for car audio in the country. The school may be contacted by those interested in hiring graduates at 386-672-5771. Monica Anderson is the director.

SkillsUSA helps teach high schoolers the mobile electronics trade.  Contributions to this program help it expand to additional states.  See more here and here.

 

 

 

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6 Comments

  1. 55.00 per billed hour
    I’ve had techs make in excess of 130k
    Others that either don’t have the skills or are very single skilled technicians would still do 80-85+
    We don’t ever slow down. It’s not a thing. Retailer of the year. I have multiple award winning techs and salesmen here to learn and grow from. We are not slowing down and are always looking for new talent.
    Come build cool stuff ****
    I’m always hiring for all positions. Growing is what we do
    Growing our business and growing our people. http://Www.titanmotoring.net
    Call me

    -Ray

  2. I would think lack of pay is a major issue. (Along with laziness from the next generation) I ran a bay at Best Buy in 2014 and was only paid $14/hr. I switched careers but kept part-time installing at BB, eventually was in the $21/hr range when I was laid off in 2021. $21/hr is practically nothing these days. While I have moved on to other ventures, I still do side gigs from time to time, and I won’t touch a job unless I am making $500/day (it’s pretty much large marine installs now). While I loved installing, there is not a lot of money for installers. You can sit on your ass in the AC at home with full benefits for $25/hr with zero experience in the given field… why would anyone bust their ass for $20/hr in the heat and come home with cut up hands and bruises. There is no real career growth – and the job gets a lot more difficult as you age. By the time you become a skilled installer it’s pretty time for you to move on to something else (which may include running a shop).

    1. Meanwhile, the federal minimum wage is $7.25/hr and hasn’t been touched since 2009. Remember all that minimum wage argument a few years back? That ended in nothing happening?

  3. Yes as a Industry we have failed to get new talent. 1st We don’t promote at HS level go to school job fairs. 2nd we need a real trade school to become electrician takes 4yrs become auto mechanic 2 to 4 yrs a pumber 3 to 5yrs just example. We need a trade school at least a min of 1yr with all new technology coming out and refresher courses such as knowledge fest to get new certifications & training Than have levels once you graduate like trades start off after you graduate installer apprentice than installer than hopefully become master installer

  4. So.. how much is everyone paying techs to come on?

    I’ve been at Best Buy for 13 years, and every shop in town has tried to poach me so far. Their offers always come in at my current pay rate at Best Buy, but without benefits or 240 hours of paid vacation annually. Why would I want to go work for someone to get paid less money?

    They complain about being booked so far out, but unless they’re offering a nice fat check to come on board, the only people they’ll attract is entry level green horns (not that that’s bad, but it takes a few years for a newbie to learn the trade and become profitable and efficient). And the shops in town here DO talk about being a month out, and having more work than they know what to do with. Hmm.

    I see it at Best Buy, too. Hiring on under $20/hr.. who’s going to come work for that? No one.

    Well, if anyone needs me I’ll be enjoying my PTO until I get a nice $75k offer or something. LOL

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