Money Maker Few Car Stereo Shops Talk About

share on:
ignition key for ignition interlock device

For some car audio retailers, installing ignition interlocks that help prevent drunk driving, is a significant and reliable money maker.

It’s a category that appears set for expansion as at least 5 states including California are now considering legislation that would make ignition interlocks mandatory,  sometimes for a first offense.

Maryland just passed such a law.  MADD  (Mothers Against Drunk Driving) is hopeful that California will follow suit this year, a spokesman told us.  Ohio, Michigan, North Carolina, Pennsylvania and Massachusetts are other states considering joining the 26 that have aggressive interlock laws.

The devices prevent cars from starting unless the driver breathes into the interlock and passes a breathalyzer test.

They are gaining in use because they actually cut drunk driving deaths by about half. States are continually strengthening interlock device laws and usage is going up by about 30,000 units per year, according to Roth Interlock Research.

As of 2014, there were approximately 1,400,000 impaired driving arrests and about 1 million convictions.  About 23 percent of these result in interlock installations, said Roth.

Many dealers, however, are leery of renting the devices.  For one thing, the customer is typically embarrassed and may associate the car stereo shop with his tangle with the law.  And some customers are uncooperative or fail to pay their bill.

Interlock Installs Roth Interlock ResearchBut some stores say they have few problems with the program and that it’s a great revenue stream.  And some say they convert some clients to car stereo customers.

If you are not yet participating in a program, or if you are in one of the 5 states where new laws are pending, you may want to consider installing interlocks such as Intoxalock, Smart Start, Guardian, Draeger and others.  Some retailers said the programs bring in over $2,500 a month in plus business.  Dealers typically get $79 to $200 for installation of the interlock which takes about 1-2 hours to install and then $10 to $25 for calibrating the system every month or two, which can take only a few minutes.

Mitch Schaffer from Mobile Edge, PA says the program brings in a about 15 new customers. If you include the monthly calibrations, he’ll see about 10 customers on some days from the program. The clients set up a lease with Intoxalock, set an installation date and the shop gets a work order.  Every two months, (the interval varies by state) the customer comes back for recalibration of the device.   “It’s very simple for us.  We just have to install it to a certain standard,” he said.

Mobile Edge has been installing interlocks for 18 years. Schaffer said, “Most of these people are just very nice good people that made a dumb mistake and they got caught.  The other 10 percent are mad at the world and blame everyone else.”  He found that by stating rules upfront and explaining the shop is here to help them, in almost every case, the client cooperates.

All Pro Audio, LA owner Calvin Clouatre won’t carry the interlock devices.  He had considered it at one time and watched an installation, which only took 30 minutes.  But when the customer entered the bay to be trained on the device, he was still there three hours later.  Clouatre was told this was not unusual and opted to steer clear of the category.

Other dealers say this happens only occasionally.

PJs Auto Sound, Erie, PA just started carrying interlocks two weeks ago. Beach Auto Sound, CA is considering offering interlocks with the new law pending in California.  “We don’t know if it will be worth the effort,” said Beach Auto Sounds’ Tom Sweere.

Chad Beyer of Radio Active, TN says he does a lot of Intoxalock installs.  The laws continue to get stricter each year, which makes for a growing number of customers.

“So far this year, just in installation we’ve done over $11,000, so that’s about $40,000 a year…We do at least 10 a week.  Including recalibrations, we do in excess of 100 a month.  We charge $15 plus tax and it takes about two minutes.  Installation of the devices [for the first time] takes about an hour, or two hours if you have to run wires.”  Beyer has been installing Intoxalock for 5 years.  He says he even gets cross sales in car stereo including a $5,800 sale for a full system.

One tip from dealers is to establish late fees for those who are late for appointments. Some charge $25 if the customer shows up a day or two later.

Interlocks are sold at new and used car dealers and independent repair shops as well as car stereo shops.  A regional representative for Draeger said car stereo shops represent about 15 percent of his retail locations.


Get the news before your competitors do. CEoutlook is the daily brief read by over 6,500 dealers, reps and manufacturers across the mobile electronics industry. Subscribe free.

share on:

3 Comments

  1. We need the “Meth Immobilizers” here in Missouri. We could have all kinds of fun with that. Better than a shindig or even an hootenanny I am thinkin’.

  2. Great story-
    From my understanding some states have “contracts” so it locks out the independent dealer.
    I wonder if there is a list of states that would have/not have the option for the independent dealer to participate in this. It would save some time researching it to find out you can’t do it.
    Thanks,

  3. We have been approached by three or four of these companies looking for installation locations. Each of these companies pitched it on the fact of driving customers into your store and that not all of these customers are rough around the edges. Further driving it home, saying these clients are just thankful to have their ability to drive back. All of these suppliers said it is not just drunks, they are business people, judges, moms, and other upstanding citizens. Also, if there is an issue with the customer or product the company acts as the buffer. Ultimately, we passed but our closest “competition” (more so friends) decided to go for it. They have been doing 5 years and only converted 6or7 to store customers. He has told us numerous times that customers have been disruptive in the store and call very mad when their(the cutsomer) actions have rendered the car immobile. I am sure it is good business for some shops but we were left with too many questions. The biggest concern was never getting a straight answer on how the manufacturers insurance covers us when their client manages to override the system or has a passenger blow for them and they cause an accident and/or kill someone. When something like this happens everyone down the line gets sued. Ultimately, the shop would be off the hook, but what about attorney fees, court time, and stigma of being associated with that in your community?

Comments are closed.