3-7-2017, Canadian Car Stereo -- Recently [an online 12-volt publication] published an article on how millennials are keeping their used cars longer…I think this statement is untrue. I think people are keeping their used vehicles longer.

The study they are referring to states, that most younger new car buyers are not purchasing a new car until the age of 29. That means the younger generation who grew up on iPads and iPods will spend roughly 11 years in their used car. Let’s visually break this down. It’s 2017, if a millennial is now 18, he/she was born in 1999. If this “used car” was their first car, let’s say it is a 2004-2008 vehicle or if they are lucky they got a 2010-2014 vehicle.

Let’s go to the other end of the spectrum, a 65-year-old man or women, bought a new car at sixty. That would be a 2012 vehicle. Let’s pretend a young couple got married at twenty-one, and bought a new car and a house before starting their family. Fast forward today, they have a 4-year-old child. They would have bought roughly a 2013ish vehicle, they have a home and most likely are just finishing up car payments etc. Are they going to try and delay buying a new car, most likely? Don’t misunderstand me, I don’t have a crystal ball, but is your store set up to sell/cater to this demographic?

This article came out the same week Pioneer Electronics launched their “Fall in Love with Your Car Again” campaign. We can all laugh at these videos, but it does make you think.  Have you ever had your vehicle professionally detailed?  It gives you the same feeling. Most people looking to upgrade or replace their car’s radio is out of necessity not passion.  A customer has a 2008 Mazda 3 that does not have bluetooth for hands free calling or audio streaming.  But it does have a 3.5mm audio jack for a “media” input according to the extra button on their radio.

Read the rest of the story HERE.

Sound impossible? Ready to start writing furious comments? Then you’re ready to have a real conversation about our industry. Throughout social media and mobile electronics publications, we have seen dozens of retailers step up their game by creating boutique stores and installation bays utilizing all the latest installation techniques catering to automotive enthusiasts. But what about the customers who buy elsewhere? How likely are they to come in to your store? 

Unless you have been living under a rock for the past ten years, you already know online sales are growing at an alarming rate and taking money out of our brick and mortar stores. Look at Radio Shack, Circuit City and Best Buy. Radio Shack is in bankruptcy, Circuit City is gone and Best Buy had to do a major restructuring of their store’s culture and core business practices. Did you know that an article in Forbes stated that Best Buy is growing by 17 percent in Q4 this year in online sales?

Let’s take an honest look in the mirror. People don’t buy from us for only three reasons. I call this the three P’s:

1. Price: They found it somewhere at a lower price.
2. Product: They did not see or were not shown the features they were looking for.
3. Personality: They did not like your store or the salesperson.

Really take a moment to think about the three P’s. Have you ever wanted to buy something, and when you got to the store, something about it made you decide not to buy? These examples are about people who came into your store. What about the people we never see—the online shoppers?

The other factor to consider is that people are more comfortable sitting at home in their pajamas, reading reviews and purchasing in the security of their own homes than talking to a salesperson. The Ace up our sleeve in the 12-volt industry is that they need it installed and they need parts!

Remember, these customers are not your customers; they have already chosen to buy somewhere else. Why not try to get them into your store? The online shopper is already your best customer. Why? They already like car audio, they have a credit card and they need parts to install it. Another huge bonus of this customer is the possibility of an add-on sale—for example, a steering wheel adaptor, backup camera, sub boxes or any other product category in your store. How much would you pay to have a customer with these qualities in your store? 

To get online shoppers in your store, you must go where the customers are—online.  Place a banner on your website stating, “Amazon Certified Installation Center” or “EBay Certified Installation Center.” Then start using Facebook Ads. Don’t show your latest specials or installations. Instead, make sure your ad states, “Bought your electronics online? We would love to help you install it. We will test the equipment and provide any parts you need to install it yourself.” (You can word this any way you like, but you get the idea.) Only spend $20 a week on this ad, but target ages 20 to 35 (this is the biggest demographic buying online). Why not state, “We install audio products purchased online.” We don’t want to scare them off, we want to help them with their purchase. Once they are in the store, we can talk to them about installing it if they don’t feel comfortable. If you can get one person off a Facebook Ad to buy parts for a head unit installation, you will make $450 off one sale! Let’s break it down:

• Data Retention Harness                      $250
• Backup Camera                                  $100
• Steering Wheel Adaptor                       $100

These are reasonable expectations for one customer from a $20 ad. That means $80.00 a month in ads becomes $1,800 in sales with four, yes, four customers. Keep in mind, this customer already has the expectation to buy. After all, they are coming down to your store to buy their parts! For the math gurus out there, that’s $21,600 in sales in one year. We are not shooting for the moon here; this is a very obtainable goal.

If you don’t know how to do Facebook Ads, sign up for my monthly newsletter at www.canadiancarstereo.com and I will send you a video on how to do place ads designed for the 12-volt market in your area. As salespeople, we waste $20 a week on all sorts of stupid stuff. For $20 dollars a week, you can create a new category in your store. Imagine if you could get one of these customers to have their online product installed: $200 x 12 months is $2,400. That is $21,600 + $2,400 = $24,000 for $1,040 in advertising. The biggest, BIGGEST thing to remember is, your ads are running 24 hours a day even when you’re closed. That’s the cheapest salesperson you will ever hire. What if you ran ads that read, “Do you have any used mobile audio equipment? We would love to help you install it yourself.” Once again, this is not your customer; these are new customers, but the other type of customer already enjoys car audio, so let’s get them into your store. Show them the newest products, like Apple CarPlay! 

By catering to “online and used product” customers, with the goal of one customer a week from each of these new categories, the potential business is $48,000 for $2,080 in advertising. This is how we increase your 12-volt business by 15 percent in 45 days by creating a whole new category for your store.