Mobile Electronics August Issue, 8-2-2016 -- With inevitable constant change in the automotive sound industry, retailers must always explore creative new ways of keeping their businesses prosperous. Author Johnny Rich said, “The future is certain. It is just not known.” As new ways of meeting goals are examined, retailers shape their own futures. One way of doing this is via co-branding, which offers an option for financial security, among other benefits.
Steve Beagelman of SMB Franchise Advisors has over 25 years of experience in the franchise industry. He is a Certified Franchise Executive and has worked with brands such as Rita’s Water Ice, Hollywood Tans and Saladworks. “You have to choose a partner who’s willing to be somewhat flexible,” he stated in regards to selecting a company to co-brand with. “If your brand is too strict and rigid, it’s hard to make a co-brand situation work. You need what I call two willing partners to work together.” Recently, one notable company within 12-volt has chosen to co-brand with franchising brand, Tint World. Such a decision can be a difficult one, and depends on whether such a relationship would be fruitful for both parties. What are the benefits—are there any downsides?
A Changing Market
At SEMA in 2008, Auto Sound Specialists of Union City, Calif. learned about Tint World, but at the time, things didn’t work out. “We realized it would be a nice fit, but it wasn’t the time for us,” said Kenny McCardie, owner of Auto Sound. “Their infrastructure we didn’t think could support us being in Northern California. Even at that point, we identified that the basic idea definitely fits what we do here. We kept an eye on them from 2008 until present. A few years ago they opened in Northern California. That's when we realized it was time to reconsider.”
McCardie acknowledged that everyone is struggling. Co-branding can be a good solution depending on a company’s needs. “A lot of times as independent owners, we think ‘it's my way,’ and are reluctant and almost afraid of change,” McCardie said. “But we're living in a changing world and economy. We need to make the adjustments.”
With co-branding can come a whole host of benefits including financial stability, improved marketing and technical support. Beagelman of SMB Franchise Advisors added, “It is certainly very synergistic—you already have a staff, already have customers coming in, why not offer an additional product line?”
McCardie pointed out the car audio electronics industry has been shrinking. “Instead of being afraid of the change, working with other organizations will help us grow. So many doors will open because we have the help of a larger company,” he said, pointing out more of the benefits. “As a small business, there's only so much we can do.”
According to Anthony Foley, the Franchise Development Director at Tint World, they’ve developed solutions for marketing and IT support, and also help franchisees understand business management. Tint World has been open since 1982 and the corporate office is located in Boca Raton, Fla. “Every individual business is different,” he said. “Every owner has a unique spin on how they want to enter the business and get customers. We understand that. We all have a unique perspective on how businesses need to run. We know what business owners are looking for. We know what makes their businesses operate in a fluid fashion. We've been in their shoes.”
Tint World aims to make business more automated for the franchisee and places special focus on the core profit, according to Foley.
“How do we help them drive more revenue more efficiently?” Foley said. “How do we help them drive more business? Cover conversions, key performance indicators—that gives us a good barometer on where business is and where we need to go. Where are you now and where do you hope to be?” This is an important question business owners must ask daily, and the answer is subject to change as the business evolves. Each retailer chooses the best ways to further their own goals. For some retailers, such as Auto Sound Specialists, co-branding can be a good solution. For others, remaining independent might be the better choice—this all depends on individual needs and aspirations for the future.
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