Don’t Panic, But Do Respond

By Mr Retail

The state of retail is sure volatile in 2025. From traffic flow to pricing changes, tariffs, product availability, and overall consumer sentiment, this year is unlike anything we have seen.

So, the question becomes, how do I navigate through all the uncertainty? My suggestion is pretty simple, “Don’t panic, but DO respond.” Now, that might sound like a cliché, so let’s dig deeper.

Right off, the first thing you can’t do is put your head in the sand and keep doing what you have been for the last 2-3 years. You need to develop a plan if you haven’t done so already. Doing nothing is a surefire way to require brushing up your resume, as your shop may not be around in the future. That said, let’s go over some key items to get your juices flowing and start planning your success through this weird environment.

First off, you are probably in one of two camps as it relates to inventory. Either you stocked up before the tariff increases, or you let your inventory drop and just ordered as needed.

If you chose to buy before the tariffs, a lot of your inventory is now worth anywhere from 20-50 percent more, depending on the brand. There are a few exceptions as some brands lowered prices, so you will need to address those product lines differently. Our shop fell in the former camp and loaded up on inventory as our cash flow allowed. If your cash reserves didn’t permit it, I completely understand.

Most of my buys were great decisions, but a couple of categories have seen a significant slowdown for us this year. Our overall sales volume is up, but I would be a fool not to look at each category on its own. If any of these items are seasonal, like motorcycle audio as an example, now is the time to decide if inventory levels are fine, high, or low.

And then look at your cash situation. If you have product you bought at lower pricing and have too much of it, now is the perfect time to run an in-store promotion. You can lower pricing from current retail to the old retail and move some of this inventory before it ends up sitting for 8 months when the season kicks off again. I am just using motorcycle audio as an example as I am in Maryland and our volume in this category slows down from September-February. Tint could be another example of inventory that may be seasonal. Remote start, on the other hand is about to get hot again as fall is right around the corner.

If you didn’t stock up, I suggest being careful with any volume buying unless you know the product is going to move before the invoice is due. Don’t let yourself get caught losing a sale, but just be wise in any buying.

Next up is pricing. Don’t start doing deep discounts, as it is another surefire way to need a resume soon. You may be raising cash flow, but you are killing profitability. As we discussed, if you are a 15 percent net profit business and you run a 20 percent off sale, all things being equal, you just lost 5 percent, which is not sustainable. I suggest looking for opportunities for add-on selling and creating packages that keep your margin intact, but that help raise your average ticket. Does EVERYONE you talk to get offered your 5 most popular categories, or just the item they asked about?

The last thing to talk about is advertising. You still need to do it. You do need to be smart about it, but your audience needs to know you are still there and are still innovating. Send a marketing email, do a private evening event for a category you want to grow and invite key clients. Do more free social media posts.

Finally, just know we will get through this if we make decisions using sound accounting and marketing decisions, not our panicked, overworked, stressed out minds. If you are truly stressed, take a 2-4 day vacation and do NOT think about your company. Relax, unwind, and get recharged. You will come back to work with a fresh mind and, in no time,  be farther ahead than before you left. I believe in you.

Mr Retail, Mark Miller

Mark is the CEO of Westminster Speed & Sound, an award-winning retailer in Westminster, Maryland. The company was founded in 1969, and Mark took it over in 1990 at the age of 23. He first started in the industry in 1986, so he has been at it for a while. He has served on the board of MERA, taught seminars in over a dozen different cities, and served on the SEMA New Product Awards judging team. He has been married to his wife Dawn for 33 years now and has four grown children and four grandchildren. His hobbies include being a sound engineer, doing life coaching, and being active in the local and national Porsche community.

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