November 2016
me-mag.com
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ation to create iz m to s u c l ta out to Designs deals to s’ elite u A y tr s u d In s for Las Vega le ic h e v g in n win
Are We There Yet?
Retailers Grade 2016 Performance Against Goals
Hot Dogs & Decibels
GNC and MECA Boost Sales With Seasonal Promo
Great Pics, Part 2
David MacKinnon Teaches Lighting, Lenses and More
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Volume 33// Issue 12
Ad Index
14 FEATURES 14 // News Feature: Seasonal Promotions
Reaching your target audience isn’t always a straight shot. But with the help of vendor partners and local businesses, a strong seasonal promotion, such as an SPL event, can make all the difference in the world.
Accele Electronics...................................... p. 2 & 3 ® ADS/idatalink Maestro ..................................... p. 59 Bracketron ........................................................... p. 12 CybCar .................................................................. p. 47 DD Audio ................................................................ p . 7 Escort / Cobra Electronics ......................... p. 23 First Integrated Technologies .................... p. 34 Harman / Infinity ............................................. p. 35 InstallerNet .......................................................... p. 41 K40 ............................................................................ p. 9 Kicker ........................................................................ p. 5 Metra ....................................................................... p. 19 Mito ......................................................................... p. 46 Mobile Electronics ........................................... p. 57 Orca: Mosconi ..................................................... p. 18 Rydeen Mobile Electronics ........................ p. 44 SiriusXM ................................................................ p. 13 Sony ......................................................................... p. 11 Scosche................................................................. p. 45 Voxx: Code Alram ............................................ p. 60
28 // Real World Retail: Industry Auto Designs
Las Vegas is known for many things. Now you can add another one to the list: automotive. By tapping into the local automotive community and offering both 12-volt and traditional automotive services, Industry Auto Designs has created a niche all its own.
36 // Behind the Scenes: AudioControl
Tuning a sound system can be one of the biggest challenges for any installer. But thanks to AudioControl’s tuning and DSP solutions, that challenge is made into just another step in the process. The company discusses its road to audio greatness in this month’s feature.
42 // Business Feature: Tax Preparation
It’s that dreaded time of year when paying attention to the year-end numbers can be the difference between a big refund or a painful audit.
48 // Tech Today: The Perfect Shot, Part 2
In part two of this feature, Joey Knapp brings in professional photographer David Mackinnon to explain the ins and outs of cameras, how they work and how an installer can get cameras to work for them and their latest builds.
42 ARTICLES 20 Retail News/Who’s Who 54 Installs
On the Cover
Sin City is known for its gambling, shows and wild party scene, but Top 50 Retailer Industry Auto Designs may give locals something else to set their sights on. As an all-in-one automotive shop, the company prides itself on its ability to sway customers from one area of interest to another, all in one visit. With its focus on insurance claims to fix damaged auto bodies, the shop redirects customers during their visit to educate them on 12-volt offerings, which both adds more money to the sale, and creates a bond that extends beyond that initial sale, creating a powerful word-of-mouth program to expand the business. COVER DESIGN: ROBIN LEBEL
4 Mobile Electronics November 2016
DEPARTMENTS 6 Feedback 8 Editor’s Forum 10 Stats 12 Helpful Stuff 24 New Products 58 From The President
facebook.com/MobileElectronics
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me-mag.com 5
feedback
Changing With The Seasons Brandon Green of The Car Audio Shop sees promise in converting newfound space to his shop’s needs while Luke Farley of Lynx Customs makes adjustments to prep for the coming winter. “In April of this year, our detailing partner, who had rented space from us for four years, moved out. They were in need of expansion, as were we, so it was a benefit for everyone. We converted the space (30 by 30 with two bay doors) into our fabrication area, half for wood and half for metal/welding. My brother (25 year welding veteran) now does fabrication and repair for local contractors on their equipment and trucks as well as custom building to meet their needs from here. This has allowed us to expand into another area and reach more clients to do safety lighting, wiring repair, and more on the same equipment. It has really been an area I never put much thought into but it is proving to be very beneficial.” Brandon Green, The Car Audio Shop, High Ridge, Mo. “For the past few years we have been doing Small Business Saturday sales instead of trying to compete with everyone else on Black Friday. This year I plan on using Facebook ads to promote our sales event.” Josh Mojica, GNC Customs, Goshen, Ind. “Finding good dependable employees is not easy. Buy if you are willing to put in the time and money to train them, then you can mold them into the employees you need.” Chad Paredes, Extreme Audio Systems Hawaii, Honolulu, Hawaii “Make your installation bays efficient and leave extra time in the day for a few walk-in’s. Try using Google Voice for sending text message appointment reminders to your clients. Offer free battery replacement
on key-fob’s and offer a lifetime warranty on key-fobs for extra profit. We added vehicle and bike detailing to our list of services about three months ago. It has been a fantastic growth and profit category for us. While we have a client’s car, truck or bike in our facility, we can also offer them our full detailing services, including ceramic coatings. If you want some extra profit, this is a great category that does not require a large investment and also compliments the window tint business.” Eric Carter, Cartronix, Valparaiso, Ind. “We started asking our vendors earlier in the year for Black Friday and Boxing Week deals so that we could get things organized in time.” Keith McCumber, Soundsgood Auto, Coquitlam, British Columbia “This entire year leading up to the holiday season has focused on growing our staff and positioning our self to maximize on the rush of business that we will receive over the winter. Last year, we counted and unfortunately turned away as much or more business than we did because of small staff and limited volume. It was an expensive summer with product expansion, advanced training, wild new marketing ideas, and hiring/firing. But we are now suited to service every customer that comes in!” Luke Farley, Lynx Customs, Denver, Co. “Start early to prepare for RS season. Get your hardware prepped early, get your SKU mix set and on the board, and start training as soon as you can.” Anonymous
6 Mobile Electronics November 2016
ADVERTISING SALES Kerry Moyer 703.598.3733 • kerrym@mobile-electronics.com ®
EDITORIAL Solomon Daniels 213.291.7888 • solomond@mobile-electronics.com Ted Goslin 800.949.6372 ext. 466 • tedg@mobile-electronics.com Creative Layout and Design: Robin LeBel Contributing Editors: Jamie Sorcher, Laura Kemmerer and Rosa Sophia.
Published by TM
mobile electronics association
Chris Cook, President 978.867.6759 • chrisc@mobile-electronics.com Kerry Moyer, VP Strategic Partnerships 703.598.3733 • kerrym@mobile-electronics.com Solomon Daniels, Dir. Media and Communications 213.291.7888 • solomond@mobile-electronics.com Richard Basler, Dir. Technology Solutions 978.645.6449 • richb@mobile-electronics.com Karin Drake, Events Manager 978.645.6478 • karindrake@mobile-electronics.com Robin Lebel, Creative Director 978.645.6456 • robinlebel@mobile-electronics.com 1)Title of publication: Mobile Electronics. 2) Publication No.: 957-170 6. ISSN# 1523-763X 3) Date of filing: Sept. 1, 2016. 4) Frequency of issue: Monthly. No. of issues published annually: 12) Annual subscription price: $35.00. 7) Complete mailing address of known office of publication: 85 Flagship Drive, Ste F, North Andover, MA 01845. 8) Complete mailing address of the headquarters or general business offices of the publisher: 85 Flagship Drive, Ste F, North Andover, MA 01845. 9) Full names and complete mailing address of Publisher, Editor and Managing Editor: Publisher: Chris Cook, 85 Flagship Drive, Ste F, North Andover, MA 01845; Editor/Managing Editor: Solomon Daniels/Ted Goslin, 85 Flagship Drive, Ste F, North Andover, MA 01845 10) Owner. MERA, Mobile Electronics Retailers Association, 85 Flagship Drive, Ste F, North Andover, MA 01845. 11) Known bondholders, mortgages, and other security holders owning or holding 1% or more of total amounts of bonds, mortgages or other securities: None. 12) Tax Status: Not applicable. 13) Name of Publication: Mobile Electronics. 14) Issue date for circulation data below: August 2016. 6. a) Total no. copies (net press run) Average: 12,484 Single Issue; 12,826. B1) Paid/Requested mail subscriptions Average: 6834, Single Issue: 6826. B3) Paid sales through dealers, etc.; Average: 0. Single issue; c. Requested distributed by other classes of mail: Average: 531, Single issue: 520. Total paid and/or requested circulation; Average 7365. Single issue: 7346. d) Non-requested distribution by mail; Average: 4382 Single issue: 4223. Free distribution through other classes of mail: Average: 0, Single issue: 0. e) Nonrequested distribution outside the mail; Average: 325. Single issue: 750. f) Total non-requested distribution; Average 4707, Single issue: 4973. g) Total distribution; Average: 12,072. Single issue: 12,319. h) Copies not distributed; h1) Office use, leftovers; Average: 412. Single Issue; 507 j) Total; Average: 12,484. Single issue; 12,826 Percent paid and/or requested circulation; Average: 61.01%. Single issue 59.63%.
editor’s FORUM Retail Report Card: C+ Retailers are doing well with the familiar, but not taking advantage of newer, inexpensive avenues to new business.
H
ard work without a plan is not necessarily work wasted, but at the very least it’s inefficient. I liken it to swimming in the ocean. You can pick a direction, put your head down and start stroking and kicking, but factors such as currents and muscle fatigue will move you off course. Every now and then you need to bring your head up, look around, then make the necessary adjustments. If you don’t, you may end up close to where you wanted to be, or you may not. That’s why, for the second year and moving forward, we have asked our retailers to bring their heads up from their sales swim and self-assess. You can see the results on our Stats page, but I wanted to share some insights of my own here. Staffing continues to be a big obstacle to growth. No surprise here, but let’s take it a step further. Most retailers I’ve spoken to are looking for the perfect storm of attributes in an employee: someone who is open to learning, experienced enough to contribute and not tainted to the point that he or she is stuck in their ways. And though there are some exceptions, experience always carries some stubbornness baggage, just like openness to learning brings along the inability to make a difference in the short term. Our industry needs to refocus on Level 1 learning: an inexpensive way to get high-potential candidates familiarized with our business in general and individual stores in particular. Couple this with a curriculum that brings them along quickly and doesn’t bore them to death with theory. Grade: CLess than half of our retailers tried something new this year. This is a simple question that can apply to anything, and it’s there to make a point to our retailers that growth needs to be ongoing. Remember “SHIFT” as our KnowledgeFest campaign? It’s about finding the higher gear to keep up with change. Staying the same won’t accomplish that. Grade: C Social media use is growing ... on purpose. More than half of the
8 Mobile Electronics November 2016
retailers who answered said they are seeing benefit from social media. What’s exciting about this is that retailers aren’t just letting their Facebook and Instagram pages do whatever they are going to do. Many are now employing strategy regarding what they are posting and how often they post. Then they are using the available analytics to see which types of posts generate the most buzz and move them toward the two treasured five-letter words: going viral. Grade: A Email marketing continues to be a foreign concept for many retailers. The one thing retailers aren’t doing is potentially the best thing for their business. Ads talk to generic prospects. Social media talks to more specific prospects. Email marketing talks to customers you already have. There is no easier way to make money than asking someone who’s already given you money; someone whom you have vetted and educated and with whom you’ve built rapport. You’ve made a significant investment in the relationship that potentially pays out over the long term. Are you going to be satisfied with one sale for all that work? With email marketing, you stay in touch and stay top of mind. Hopefully this time next year, we will see a different graph. Grade: D Online advertising hasn’t really been utilized. Back in the day, “word of mouth” was the answer I’d most often get to the question of how retailers attracted customers. Many of these retailers eschewed TV and radio advertising, citing cost or ineffectiveness. Based on these numbers, it looks like retailers are bringing that old mentality into the online advertising age. The difference is, online ads are less expensive and more targeted, and the results are measurable. I hope that more retailers will take the time to learn about SEO, keyword advertising and all the myriad opportunities to promote online. Grade: C Most retailers are at or ahead of their goals for the year. I always think of this being a gut answer from the retail owner. He (or she) knows the goals that were set, even if they weren’t made official through a companywide meeting. So more than likely, these answers aren’t scientific, and that’s fine. And while I am sure there is a little bravado that may be inflating the truth for some retailers, it’s great to see the optimism. Every year, with every new OEM feature added at the factory, the doomsayers of this industry pull out their “The End is Near” signs. And every year, our best retailers prove them wrong. Grade: B+
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stats
Eyes On The Prize
Retailers provide insight on how their target goals met reality for sales in 2016. SALES GOAL TARGET OBJECTIVES FOR 2016
Yes, we are on target - ................... 38% $$$$$$$$$$ Yes, we are somewhat ahead - ................... 13% $$$$$ Yes, we are significantly ahead - ................ 13% $$$$$ No, we are somewhat behind - ........ 29% $$$$$$$$ No, we are significantly behind - ...................... 7% $$$
OBSTACLES ENCOUNTERED TOWARD ACCOMPLISHING SALES GOAL
Staffing issues .................................... 60% $$$$$$$$$$ Cashflow issues ............................................. 33% $$$$$$ Local event(s) or circumstances............................11% $$ Didn’t execute parts of your plan ...................... 17% $$$ Unplanned/emergency expenditure - .............10% $$ Relocating - .......................................................... 25% $$$$$
WE DIDN’T ACCOMPLISH THIS
WE DID SOMEWHAT
WE DID WELL
WE DID REALLY WELL
N/A
BUILT RAPPORT WITH CURRENT CUSTOMERS
2%
19%
44%
35%
0%
IMPROVED THE CUSTOMER EXPERIENCE IN OUR STORE(S)
2%
29%
27%
40%
2%
INCREASED OUR REPEAT CUSTOMER BASE
6%
21%
44%
29%
0%
RAISED OUR AVERAGE TICKET OVER SAME PERIOD LAST YEAR
8%
28%
42%
6%
2%
USED EMAIL MARKETING MORE EFFECTIVELY
45%
31%
5%
6%
13%
USED SOCIAL MEDIA MORE EFFECTIVELY
13%
34%
31%
22%
0%
USED ONLINE ADVERTISING MORE EFFECTIVELY
35%
39%
10%
11%
5%
BENEFITTED FROM ONLINE REVIEWS
15%
29%
29%
24%
3%
TRIED SOMETHING NEW IN OUR STORE
10%
32%
37%
16%
5%
10 Mobile Electronics November 2016
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Sony prides itself on well controlled authorized distribution and online marketplace compliance. ©2016 Sony Electronics, Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Sony and the Sony logos are trademarks of Sony Corporation. Android Auto works with devices using Android 5.0 software or higher. Some devices may not yet support Android Auto, see the Google site for the latest list of compatible devices. Android Auto and its logo are trademarks of Google Inc. Apple CarPlay works with iPhone 5 and newer phones. Apple CarPlay and its logo are trademarks of Apple Inc. Features and specifications are subject to change without notice.
helpful stuff Book:
O Great One!: A Little Story About the Awesome Power of Recognition By David Novak and Christina Bourg www.ogothebook.com
It’s the season for turkey, family get-togethers, Thanksgiving so there is no better time to read this book and learn how to let your employees, co-workers, and your boss know how much you value them. The power of recognition can be greatly underestimated as writer David Novak realized during his years as a corporate executive. Yet, you can get better results in your professional life and personal life, too, if you just take the time to appreciate the contributions of others. Novak shares a parable that captures his personal experiences at both Pepsi and Yum! Brands in addition to his life outside the office. It begins with Jeff Johnson becoming the third-generation CEO of his family business following the death of his father. The Happy Face Toy Company had many hits in its earlier years, but its results have been on the decline for a decade. Jeff has just one year to turn things around. As he races to save his family’s legacy by returning the company to its former glory, he meets the stressed factory workers and indifferent executive team. It is a birthday gift from his own grandson gives Jeff an insight into why Happy Face lost its way. It motivates him to come with an idea that just might save the company. It doesn’t matter if you are managing an install bay, on the sales floor for a momand-pop shop, or running a chain of mobile electronics stores, the lessons here just might make you happier and more effective at work and in life.
Software/App:
Circle Pay
https://www.circle.com/en
If you’re at a dinner with a group of sales reps and need to split the bill several ways, it can get a bit complicated, especially when it’s a table of six or more. What if you have no cash on hand or need to send money to family in another country? With payment app, Circle Pay, it is simple to pay colleagues, friends, or co-workers—or get paid—with just an email or phone number. Just create a profile with an e-mail address, link your bank account or credit card info, and tap the app to send a payment to someone on the same network. The transfer of money is supposed to happen instantly. The free app is available for both iOS and Android. One distinction it is has among other payment apps: it works internationally. Circle Pay also sends money anywhere, but in any currency.
Sony is a registered trademark of Sony Corporation of America. JVC is a registered trademark of JVCKENWOOD USA Corporation. Pioneer is a registered trademark of Pioneer Electronics (USA) Inc.
12 Mobile Electronics November 2016
Sites To See:
Codecademy
https://www.codecademy.com/
Learning a second language in school used to be a helpful skill when looking for a job or trying to advance in your career. In the age of the Internet, language is equally important. Knowing JavaScript, Ruby, or Python—all programming languages—can help you in your work, find a job, or start a company. With online company Codecademy, you can learn how to program for free with its range of courses. The platform helps you learn skills like coding and designing web sites in an engaging manner with a hands-on approach and constant feedback.
Services:
Holosonics
https://holosonics.com/ When Mazda wanted to make a statement at the Vienna Motor Show a few years back, Audio Spotlight, made by Holosonic Research Labs, gave them the tools to do it. With a single speaker panel hung from above, it delivered a narrow beam of sound right in front of their flagship Mazda6 model. When an attendee stepped onto a decal on the show floor, it activated a narration about the car and its features. Holosonic has been making and installing Audio Spotlight systems for major corporations, retail stores, museums, and venues around the world for over 15 years. If you’re looking for a unique and impactful way to deliver a message either in-store or at a tradeshow, this could be worth a look and a listen!
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news feature
Refine and Shine Promotions during the year make car audio retailers a go-to destination for more than just products. WORDS BY JAMIE SORCHER
The Mid-Summer Mayhem event from GNC Customs featured an SPL contest, which included a People’s Choice award.
T
he spring and back-to-school seasons present car audio retailers with prime times for promotions, but savvy business owners know that generating business is easiest when you have ways to attract customers any time of the year. Sound-offs, Show & Shine events, Glow-Offs, and Cruise-Ins are just some
14 Mobile Electronics November 2016
of the many ways that retailers can build a place in the community and keep folks engaged in the 12-volt world. Some retailers are also finding that working with a charitable organization to donate a portion of proceeds can add another level to an event and build a place for their company in the local or regional area.
Earlier this year, GNC Customs of Goshen, Ind., hosted their 12th annual Mid-Summer Mayhem. The family event, held every August on a Saturday from 12 p.m. to 4 p.m., included a bounce house, games for children, and a hot dog eating contest. It featured an SPL competition and 2x points IASCA SQ event. There were over 100 competitors, over 100 door
prizes, and 50 trophies. More than 350 people came out for the annual show. It was also the first year that the retailer chose to donate proceeds to a charity, The Center for Healing & Hope, which provides affordable healthcare to the uninsured. But it started out much smaller. “How it came to be is really funny,” said Josh Mojica, general manager of GNC Customs, who owns the store with his two brothers, Jeremiah and Jared. “Back in 2002, when we established the business, the tuner scene was growing after the whole Fast & Furious movement. My brothers and I were drawn to that and we started a cruise night in the parking lot every Thursday night.” The cruise nights started after hours. “We closed at 6 p.m. and started the cruise-in at 7 so that at a certain point, the cars could turn on their lights,” said Mojica. After successfully hosting those events for a year, it was time to take things to the next level. “We wanted to do something a bit more special,” Mojica said. “We wanted to add in a cookout and make it an appreciation-type event even, although we had been in business for some time already.” The plan was for a modest event with 20 to 30 cars. “But one of our regular attendees at the cruise-ins thought we were having a full-blown car show,” said Mojica. “So word started to spread. Soon a local radio station began mentioning it. At the same time there was a local Spanish radio station that was growing, and this guy got them to mention it, too—that we were doing this car show. Well, at that point, we figured we needed to do something more than a cookout— we actually needed to a do a car show. We put together some gift certificates, did some judging, and gave out awards. That turned into what has now become Mid-Summer Mayhem.” By the third year, GNC added trophies. The event was growing, but so were the expenses with everything being funded by the store. “We were giving out trophies, we were still doing food, and still drawing about 30 to 40 cars,” said Mojica. “But the show was getting bigger. We
The event comes complete with a hotdog eating competition and a photo booth to enhance the experience for guests beyond just car audio. began looking to other businesses to help support the trophies and for door prizes. With a larger event, we needed to offset some of the costs to us.”
Motivated For More Fast forward to what the event has evolved into today and Mojica credits Knowledgefest for the motivation.
“Going to Knowledgefest for the first time changed our business,” he said. “It opened our eyes to what other people were doing. We started implementing more and making our vendor relationships stronger. We started leaning on our vendors and manufacturers to give us some things to give away.” A challenge for next year is where to
me-mag.com 15
news feature setting a date. For the last few years, GNC has chosen the first weekend in August. The timing has been beneficial in a number of ways. “We participate in another big local show—it is the largest show in the area—and we have a booth there,” said Steve Stern, commission of MECA (Mobile ElectronMojica. “We figure ics Competition Association) listens to a sound system it’s a great place during a competition. to start promoting our event. We make up a flyer. On hold the event. This year it was held in it we put the details about the car show— the parking lot right in front of the store, the hot dog eating contest, that we’ll be but since it is a shared space with some giving stuff away, and that there will be a new potential businesses moving into jumper for kids.” the complex, it could mean limited room. “We actually outgrew the space this year and had to shut down registration,” said Mojica. “There were 20 to 30 cars outside of the car show itself trying to get in but we couldn’t fit anymore.” No matter the location, one thing that remains in effect since even the earliest days of the event—the store will not be open for business the day of the show. “We are not here to sell anything so it wouldn’t hurt us if we took it off site,” said Mojica. “It won’t affect business.” Still, a big benefit to having the The last two years Mojica has gotten show in the parking lot is being able to 3,000 postcard-sized flyers printed. “We take folks in and at least show them the mail them out, if we remember, but usuoperation. “For someone who isn’t familally we’re handing them out at cruise iar with us, we’re able to take them in nights, car shows, or people come in and and give them a tour,” said Mojica. they ask for flyers to hand out to give to So how do you get an event like this their friends,” he said. going? According to Mojica, the first step Promoting on social media starts is simply looking at the calendar and three to four months out, according to
Mojica. Facebook posts start in earnest two months in advance. “We set it up as a Facebook event and invite people to that, and then they can invite their friends,” he said. “Also, because we have been doing this for so many years, we have people asking about it in advance which is why we do the flyers early.” Along with setting the date, retailers might want to think about a contingency plan for bad weather. Mojica, however, has opted not to do that. “Nope, we don’t have a rain date,” Mojica said. Two years back, it was cloudy, which resulted in a lower number of cars—about 80 instead of the usual 100 or so. “We had one year, 2008, where it was full-on storms. We were getting calls about what we were going to do and I said, yes, we’re having the show. No matter what, we were doing it. Everything was ordered. Everything was paid for and we had people coming from a distance—so we were doing it. It cleared up and got so hot that afternoon that I got a sunburn. It was an awesome show— it was so packed. You couldn’t even open the doors to get into the cars.” The week before the show Mojica writes up a schedule for the event. “The reason I do it then is because I am waiting to finalize what door prizes we will have,” he said. “People have been so generous that we do need a schedule of what we’re going to give away and when.” When participants register for the show, they get a ticket and fill out their name. A winner is called every 15 minutes. Raffle tickets were also available for attendees to purchase. GNC has a staff of eight and extended family and volunteers who help man the event. “There are probably 20 people that are working with us,” said Mojica. The judges are also volunteers.
“We don’t make any money on these. We supply score sheets for free as long as the retailer donates all the money to the charity, or if they’re collecting toys for something like Toys For Tots. MECA gives up all profits so that a retailer can give every penny to the charity.” Steven Stern, Commissioner, MECA
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Everyone Is Welcome A compliment to the car show is how it has evolved to include a wide range of attendees. It isn’t a niche event. “We get a number of young guys, we get car clubs, and what we really like are these older gentlemen who come with their wives and their older cars,” said Mojica. “Some of the people we have never seen before. For instance, for the last two out of three years, the best of show award has gone to someone that I didn’t meet until the day of the show.” The diversity has been a big sell to car fans. “Guys with imports think there are no shows for them unless they do their own little car meet,” said Mojica. “Then every weekend there is a cruise-in or a car show for classic cars and old muscle cars and older cars. Our show is for everyone. We have motorcycles, lifted trucks, lower trucks, sports cars, exotic cars, cars with the big wheels, and we even do low-rider bicycles.” “At the end of the day this is about keeping the car scene alive,” summed Mojica. “Yes, we’re kind of promoting ourselves, but we’re doing something for the community. We want to give back.”
Set Up A Sound-Off “We’re definitely seeing a resurgence in interest,” said Steve Stern, commissioner for MECA, the Mobile Electronics Competition Association. “We had five or six years where things were kind of slow, not just for this competition organization, but for all of us. With gas prices down the last 18 months, it has made a difference. Not just for our retailers selling stuff, but people have
money to go to the shows, and they have more money to buy equipment.” MECA is not only a car audio competition club, but a training association. The group has over 100 stores that are active members along with 35 manufacturers. The association joined forces with dBDRA (dB Drag Racing Association) and IASCA (International Autosound Challenge Association) for a unified finals event last month that was held at the Kentucky Exposition Center in Louisville, Ky. The event included all competitors from SQ to SPL and allowed for the opportunity to compete in multiple formats. “We’re now heading into our 19th season,” said Stern. “And we have shows already booking for 2017.” MECA typically does about 150 events in the U.S. a year. In states including California, Florida, and Arizona, where winter weather isn’t a factor, there are events going on all year. Stern said retailers can enhance any of their events by aligning with a charity. “Look at our schedule and you’ll see about 10 percent of the events are associated with charities,” he said. “We are raising money for breast cancer research, for the flood in Louisiana. I don’t have a total yet for this year, but I bet we raised $40,000 for charities. When you give back to the community, it helps car audio retailers raise their profile. It helps to define them as a business and as a community partner— someone that people want to do business with.” During the fourth quarter, particularly around the holidays, said Stern, is an ideal time to partner with
Custom Audio’s “Shake The Lake” event features the MECA Finals and drew record numbers for 2016.
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news feature year can make it hard to get someone’s attention, but if you’re doing something for charity in the neighborhood, and doing good, people will pay attention.” What MECA prides itself on most is running the big shows for retailers. “That is the pinnacle, the best we can offer,” Stern said. “We run the sound part. These are Sondralee Orengia (right), owner of Custom Audio, not only puts on sound events with MECA, high-profile events for retailbut offers classes for older customers called “Ask ers and for most of them a MECA event is their major 101,” which teaches things like Bluetooth pairing promotion of the year. They and connecting to WiFi. may have two—one in the a charity for a promotion. “We don’t spring and one around backmake any money on these,” he said. “We to-school time.” supply score sheets for free as long as To produce an event, said Stern, is a the retailer donates all the money to the reasonable venture. “We’re talking a few charity, or if they’re collecting toys for hundred dollars,” he said. “Most of what something like Toys For Tots. MECA gives retailers are helping us to pay for are the up all profits so that a retailer can give awards. Some retailers want to give out every penny to the charity. This time of big fancy awards and others don’t want
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to spend too much on trophies. Awards might cost $350 to $500, but if you get just one customer to come back to your store because of the show, you’ve paid for it.” One way to get those customers to visit the store, said Stern, is to develop some kind of coupon or be-back device—an incentive-- where people who were at the show can bring it back to the retailers at another time for some kind of bonus. “Maybe it’s a tee-shirt, a 20 percent discount, half off an install,” he said. “It can be anything just so the retailer knows that if they get three back in a week, or 20 back in two months, then that event was pretty successful.” Retailer and MECA member Sondralee Orengia of Custom Audio in Erie, Pa., a store which has been in business for 33 years, tries to do some kind of promotion every month whether it is a competition or a class. “We teach classes called Ask 101,” she said. “These are primarily for our older
customers. How to use your car, how to connect to WiFi, how to pair up Bluetooth, and how to clear out a screen. The classes, she said, have proven popular and valuable. Custom Audio will typically host two MECA car stereo competitions a year—in July and September. An event draws about 100 cars which includes 50 competitors. For promotion, Orengia hits other local events. “We take our car to car shows and hand out flyers inviting people to our show,” she said. But promoting happens all year even when it isn’t related to one of the retailer’s car shows. “When we have a slow moment we also take the opportunity to get our business cards everywhere we can. We’ll take them to AutoZone, Napa, Walmart, and to local car dealers.”
Black Friday: Boom or Backlash The hype on social media and the Internet has already started for Black Friday which falls on November 26. It
looks like this year the classic Black Friday could have a comeback which is good news for brick-and-mortar stores. In the last few years, big box stores and major malls opted to open Thanksgiving evening which reduced the impact of Black Friday. In somewhat of a backlash this year, many stores and malls are opting to close on Thanksgiving including Costco, Dillard’s, Home Depot, Home Goods, Ikea, Lowe’s, Mall of America (the biggest shopping mall in the country), Marshalls, P.C. Richard & Son, and Staples to name a few. Electronics retailer hhgregg, based in Indianapolis, Ind., recently said in a statement that they will remain closed on Thanksgiving this year, too, in a reversal of previously starting Black Friday sales on Thursday evening. The company said it was “drawing a line in the sand” by becoming one of the first major electronics retailers to close on the holiday. Whatever mobile electronics retailers decide to do, the outlook is positive
for this year’s event which now stretches from just the one day to almost a week. According to the National Retail Federation, sales are expected to increase 3.6 percent to $655 billion. Online sales are expected to increase 7 to 10 percent to $117 billion. Car audio retailers can make the most of this time by creating an in-store experience and environment to solidify customer loyalty. Whether it is a discount on a service, a giveaway if a customer buys a gift card, or entering a customer in a drawing for a prize, there is still a way to engage them this holiday season in a way that makes sense. Retailers can also promote specials on social media to drive traffic into the store. One thing Custom Audio’s Orengia said is certain for retailers who want to be successful—they need to have a digital presence. “In our industry retailers need to catch up with technology,” she said. “They need to be on social media.”
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retail news
Chris Hilbert (right) is presented an award from the Air Force recruitment office for his efforts in completing the build.
Force of Sound
By decking out an Air Force recruiting vehicle, Sound Decisions gained widespread attention and new avenues for business. WORDS BY TED GOSLIN
Every now and then a build will come in to a shop that plants major seeds for the future. That scenario happened for Chris Hilbert and his shop, Sound Decisions, out of Racine, Wisc. After completing a stealth box build for a client, he returned with a bigger job. That client was Master Sergeant Chris Moore of the 347th Air Force recruiting squadron out of Oak Creek, Wisc.; the job was to turn a 2014 Ford Expedition into a recruiting tool for the Air Force. According to Hilbert, it’s working. “Moore has trucks similar to that in Texas and had great success with that. He was really happy. He asked us for estimates and went with it,” Hilbert said. “It needed to be loud, visible on the outside
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and have lots of lights. The truck got tons of exposure at Oshkosh. The biggest thing was to get them more recruiting. Chris gets paid commission for the more people he signs up for the Air Force. He said this has made his job incredibly easy.” But the job was anything but easy for Hilbert and his team, comprised of installers Ian Glacio and Dave Northart. Due to the truck being leased, anything installed had to be easily removable once the lease ended. The build included a 20-inch flat panel screen and Xbox that were supplied by the Air Force. Audio equipment included one JL Audio XD1000/5v2 amplifier, four JL Audio 12-inch subwoofers, one JL Audio MM100S (marine control center) and two
JL Audio MX650-CCX-SG-TLD-B component coaxial systems. Stinger, Compustar, iDatalink and Cobra rounded out the mix with various accessory products. Overall, the build took 10 days to complete. Although creating a custom build that is easily removable is a rare feat for the shop, they were well prepared thanks to their previous training with Sonus, learning techniques that would come in handy with this and other builds. “I paid for my guys to go through training at Sonus two years ago. They implemented lots of techniques from that in this truck. There’s fiberglass in the rear panels where the speakers are. Two screws hold each one of those panels in place completely. Using what we have there, it’s easy to come out if we have to work on it,” Hilbert said. “We knew the Xbox had problems with overheating, that’s why we made mesh compartments so it doesn’t overheat. They say they’ve run the system for as long as 12 hours without having to start the vehicle. Being in the back of the truck, it’s important so you don’t gas people out when hey
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Who’s Who Chad Paredes Extreme Audio Systems Hawaii Honolulu, Hawaii Years of industry experience: 20+ Hobbies: Love collecting watches What you’re really good at: Custom car audio fabrication
The rear of the vehicle included a 20-inch flat panel screen and Xbox that were supplied by the Air Force.
Luke Farley are playing the game.” Since completing the job, Hilbert posted the job on the store’s social media pages and website to attract attention. It worked. “Because of the pictures we sent, a store in Nebraska inquired to us about what we did and how we did it. I know the store in Nebraska saw all the same work we did and was asked by the recruitment office there, too. I posted this to our MESA forum where dealers actively search for this business,” Hilbert added. “This is something that can be done any time. They need to go to events, they need to attract young people, which are our 12-volt clients anyway. Keep in mind [the military] have funds for this type of work.” Despite the budget to pay for the custom aspects, some of the parts had to be donated due to budget limitations toward accessories. Compustar and Stinger both contributed products to help make the vehicle the best it could be, given its high exposure rate. The truck also represented the made in America theme in the sense that all JL Audio marine products were made in the U.S.
On a personal level, the build meant a great deal to Hilbert due to his father having spent time in the Air Force, which provided him the skills he needed to get a job with Honeywell in 1972. Eventually, he’d turn his skills to the 12-volt industry by opening Sound Decisions, passing it on to his son in 2009 when he passed away. To top it off, the Air Force was gracious enough to give the shop an award for their service, given how much they sacrificed to finish the job. What they lost in labor dollars, they made up for in exposure to get more work and free advertising from multiple news stories, both local and national, as well as social media exposure and a follow-up job they recently completed for the Air Force on a golf cart. “It’s gotten a lot of exposure for all the right reasons and it gets your name out there,” Hilbert said. “We donated a fair amount of the labor for this project to make it go. We met their deadlines, achieved their goals, it was trouble free and more importantly, it’s doing everything it’s supposed to.”
Lynx Customs Denver, Co. Years of industry experience: 8 Hobbies: Snowboarding, traveling, poker, and of hanging with family What you’re really good at: Giving customers a personalized experience. They come in as clients and leave as friends!
Erick Markland Markland Designs of Atlanta Atlanta, Ga. Years of industry experience: 6 Hobbies: Electronics, sports and art What you’re really good at: Troubleshooting and OEM integration
Gary Greenslate Audio Solutions StL St. Louis, Mo. Years of industry experience: 3 Hobbies: Baseball, spending time with my children and car audio What you’re really good at: Anything I want as long as I put my mind to it and put in the time and effort
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retail news
Top 50 Installer Erick Markland has become a master craftsman through hard work and networking with other top installers to gain knowledge.
Strength In Numbers In the world of 12-volt, sharing knowledge amongst installers fosters growth and helps encourage the next generation. WORDS BY ROSA SOPHIA
When plants grow together, experiments have shown they can recognize each other via chemical signals and support each other’s growth. This intricate support system in nature can be seen in all things. Every day, people support each other, as well, by sharing knowledge and experience to help others. This is also conducive to growth in the mobile electronics industry. In Georgia, Erick Markland runs a small business, of Markland Designs of Atlanta—made up of just him and one other person. Recently, Markland fostered connections with fellow installers Charles
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Brazil and Miguel Vega, friendships that have proven to be continually supportive. Markland has been in the industry for six years. “I just opened my own business in the last two years,” he said, adding that roughly 80 percent of the work he does is custom, while 20 percent is from day to day walk-ins. When he met Vega and Brazil—both Top 12 installers in 2016—at a Sonus training last year, they’ve been friends ever since and Markland has visited both of their shops. “Literally from that training, we’ve been inseparable,” Markland said of Vega. “We talk every day.” The three of them keep in touch via phone and Face Time. “We all push each other. We network a lot, talk a lot, share our projects, give each other opinions on how we would do it, what we’d implement.” Markland added that they utilize a little bit of each other’s styles, “without losing our own identity in our work. That’s the biggest thing. We push each other to be better.” With the same goal to continue to improve and be better than they were the previous year, the three friends now support each other and share knowledge the best they can. “I think Charles and Miguel have more
Miguel Vega and Charles Brazil are Top 12 Installers who have cultivated relationships with Markland, making all better in the process.
[work] on a larger scale. They do a lot larger builds than I do,” Markland said. “They do restoration work and older vehicles, while I have a lot of newer vehicles.” Markland is interested in getting into working on more older vehicles, such as classics. “They have more experience,” he added. “We definitely get ideas off each other. Some of the cars I’ve worked on, they haven’t, and vice versa. They call and ask questions.” Markland stressed the importance of being open to sharing knowledge with others in the industry. “I know a lot of people put a price tag on knowledge. We all have to learn from somebody. I think that’s very valuable,” he said, adding that training and trying to become better is essential. “That’s something I try to do. Always try to learn something new. I’ve had the privilege of meeting a lot of veterans [in the industry].” It’s important to remain united. Like others in the natural world, those in the 12-volt industry can lend support where needed, for the greater good. Helping to guide people and lead them is paramount. “I would be doing a disservice if I did not share the knowledge others have shared with me,” Markland said.
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new products
Backup-Cameras, Speaker Adapters, New Model Solutions and More! MTX Audio RZR Specific Full Range Speaker Pods
https://www.mtx.com/rzrpod65dash-mount-sxs-speakers Notable: MTX Audio announced the release of new speaker pods designed specifically for Polaris RZR side-by-side vehicles. These new speaker pods are designed to work with select RZR XP1000 and 900 models. The RZRPOD65 is the company’s first aftermarket RZR solution, a rotationally molded, all-weather enclosure that houses a 6.5-inch full range coaxial all-weather speaker. A unique feature is that rather than mounting in the “kick panel” where it can get kicked and damaged as well as being hard to hear, these pods attach to the cage and are designed to fit the contours of the dashboard. This placement (closer to the riders ears) provides much better staging and sound quality.
Audiomobile Next-Gen Elite Series
www.audiomobile.net Notable: Audiomobile has released the first model of its ‘Next Gen’ of the Elite series, the Elite 2510 S4 subwoofer. As with the original Elite 2210, the new series features premium features, including Low-profile, SLX cast-aluminum frame, exotic, ‘CCAW’ (Copper-Clad Aluminum Wire) voice coils, powerful, large diameter ceramic magnet, premium, high-modulus, “CLS” (Composite Laminated Sandwich) cones, and patent-pending “ICAR” (Inter-Cooled Alloy Radiator) heatsink. This proprietary technology provides both superior Conduction and convection cooling, directly to voice coil and top-plate, to vanquish heat and power-compression, as well as significantly increased long-term thermal power-handling, now over 500 watts RMS. 24 Mobile Electronics November 2016
VOXX Electronics Back-up Camera Systems
http://www.voxxelectronics.com/backup-cameras/ Notable: VOXX has announced another expansion to the Advanced Driver Assistance Systems (ADAS) product line with the introduction of two new high-performance back-up cameras offering wider viewing angles and trajectory parking grid-lines that move. The ACA801 and ACA501 cameras offer a high performance 1089 HD CCD lens with sensors that create high output results with cleaner, higher quality images than past CMOS cameras. License Plate Mounted Back-Up Camera (ACA801) features selectable trajectory parking grid-lines that move for distance measurement and includes a license plate bracket and butterfly mount for easy installation. Universal Mount Back-Up Camera (ACA501) features selectable on-screen built-in parking lines for distance measurement. The ACA501 includes a low-profile metal housing for easy mount and low maintenance. The ACA801 and ACA501 are available nationwide for an MSRP of $139 and $129, respectively.
Metra Universal Speaker Adapters
www.metraonline.com Notable: Metra Electronics has introduced universal speaker mounting adapters to fit a variety of applications (part number 82-4203). These adapters were specifically designed to adapt speakers measuring six inches to 6.75 inches and will mount easily in different locations. Most current aftermarket speakers will fall into the 6-inche to 6.75-inch size.
Omega R&D Linkr Smartphone Mobile Control Platform
www.caralarm.com Notable: Omega is now shipping its long-awaited Linkr-M1 Mobile Smartphone Control Platform. Linkr is a Smartphone app and telematics hardware platform that was built as a global platform, which currently supports six languages, has a built-in back-up lithium battery, and is a fully configurable and scalable. It is manufactured with name brand cellular components, and is certified by American & International cellular carriers. The APP is available for both ios and Android. Also, with Linkr, all plans including the low cost “Lite-User” plan are fully featured including full GPS Tracking services (Location, 2 Geo-fences, a Security-Fence, Speed Alert, etc). me-mag.com 25
new products
Eleven Engineering SKAA Diz Solutions For Headphone Brands
www.elevenengineering.com Notable: As a result of Apple’s iPhone 7 and iPhone 7 Plus having no 3.5 mm headphone jack, Eleven Engineering has announced SKAA Diz solutions for quality-centric headphone brands. Diz has been designed and engineered for those brands wishing to enter the market with wireless headphones that take advantage of Apple’s Lightning high-quality digital audio. On the wireless side, while Bluetooth remains viable for low-end headphones, many quality-centric headphone brands are concluding that using lackluster Bluetooth makes less and less sense as Apple continues to raise the quality bar. Which is why the company created the SKAA Diz transmitter for Lightning. Brands wishing to ship wireless Lightning headphones can move to market very quickly by taking advantage of Eleven’s headphone reference designs and Eleven’s already-proven Diz transmitter.
Rockford Fosgate Stage 5 Premium Audio Kit Solution For Polaris RZR
www.rockfordfosgate.com Notable: The outdoor environment can be unforgiving on audio gear as both terrain and weather can wreak havoc on these components. With that in mind, Rockford Fosgate is now shipping the new Stage 5 Audio Kit Solution (RZRSTAGE5). Utilizing Rockford Fosgate’s premium Power Series components, the top-of-the-line RZR-STAGE5 has an MSRP of $3,599.99. The new RZR-STAGE5 is a complete audio kit with a PMX-2 stereo in the cockpit controlling 1,150 watts of power. Rockford Fosgate also offers Polaris® RZR® kits ranging from Stage 1 (RZR-STAGE1) to Stage 4 (RZR-STAGE4), as well as the MOTO-REAR1 add-on Rear Speaker Kit (for use with RZR-STAGE2 and RZR-STAGE3 Kits), with prices ranging from $349.99 to $2,199.99.
StereoActive Watersports Radio
https://www.fusionentertainment.com/watersports/products/stereoactives/ws-sa150r Notable: Stereoactive is the world’s first purpose-built, portable, IPx7 waterproof, floating, watersports stereo. It has built-in Bluetooth audio streaming, AM/FM radio with weatherband available in the U.S. and USB audio playback. Users can easily and securely attach the stereo to any paddleboard, kayak, canoe, boat or even hot tub with the unique Puck-It mount system. Stereoactive lets users take Fusion sound with them where no other stereo system will go. 26 Mobile Electronics November 2016
Fortin 3X Lock and Remote Starter Update For VW And Audio Solutions
www.fortin.ca Notable: Fortin has announced a 3X LOCK and remote starter update for its Volkswagen and Audi integrated remote starter and bypass solution (2006+ Push-to-Start and key vehicles). This update is now available for both EVO-ONE and EVO-ALL platforms with simple firmware updates. The solution offers 3X LOCK remote starter and monitors and controls the OEM remote while the engine is running which allows a full LOCK, UNLOCK and trunk release functions control. Popular long range RF Kits as well as compatible smartphone and telematic apps can also be connected directly to the EVO-ALL or the EVO-ONE module. No extra and costly remote starter or device required. Coming up this fall, Fortin will introduce the first phase of its data bypass solution for both Volkswagen and Audi vehicles as well as a custom fit T-Harness solution.
Rostra GM 8-Inch LCD Multi-Camera Video Interface
www.rostra.com Notable: Rostra Precision Controls has introduced the GM 8-inch LCD Multi-camera Video Interface. The interface allows for the installation of multiple cameras around the vehicle, providing strong safety through added driver awareness. The interface covers a number of popular GM trucks and cars, including the Chevrolet Silverado, Colorado, Camaro, GMC Sierra and Canyon. Camera options include rearview, sideview/blindspot, forward-facing, cargo/trailer and any other camera mounting location chosen. Drivers can also connect their mobile phone to the included HDMI input and instantly share their phone’s screen to the dashboard of their vehicle. me-mag.com   27
real world retail
They say what happens in Vegas stays there, but the same isn’t true with Top 50 Retailer, Industry Auto Designs, which inspires strong word-of-mouth with its jack-of-all-trades business style. WORDS BY TED GOSLIN
L
as Vegas has many names. The City That Never Sleeps, City of Lights, Disneyland for adults and Sin City top the list. But today, it has a dual identity. By night, it’s an adult playground. By day, a resort destination where millions of families flock each year to experience its gorgeous pools, lavish buffets, shows for different ages and theme park attraction rides like the roller coaster at New York,
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New York. One could say, the city has something for everyone. In that spirit, the same can be said of Industry Auto Designs Las Vegas, a destination for auto enthusiasts looking to both repair and enhance their vehicles, all at once. For owner Andrew Evens, creating a one-stop-shop came naturally, given his background as a born wrench monkey. “Since I was a kid, I’ve always had tools in my hand. My dad worked in a body shop. He would always bring home stuff
to tinker with. I had a carburetor as a toy. I remember the springs on it,” Evens said. “My mom’s father was always into wood working and would build stuff for the county fair. Whenever we went to his house as kids, we were always painting something. It’s like Karate Kid. You don’t realize why you’re doing it at the time but looking back, you realize how much you learned as a kid. I was lucky enough to have those two influences to set my path.” As Evens got older, he worked with his dad at the body shop to earn an
allowance. His work focused on wiring, replacing things like harnesses. “Come high school time, my friends were really happy because I had a shop to work out of and would do their stuff on the side,” Evens added. “When I was about 14, I was putting in radios and wiring cars. I would charge them and get rides to school out of it. I was always the one negotiating to get a ride the next morning, to avoid taking the bus. It was always good side money.” Having what he called “normal retail jobs” as a teenager didn’t stop Evens from continuing to learn anything and everything automotive when he could. For the duration of high school, Evens’s dad, Mike, owned a body shop that allowed him to continue his education. At the age of 15, Evens bought his first car thanks
to a wholesale deal with local dealer Premier Audio, which would soon take on Evens as his apprentice. While there, Evens learned both through wiring books and by installing remote starts and car alarms. “That came on pretty easy and I was pretty much running his shop,” Evens said. After high school, Evens attended ITT Technical Institute in Williamsville, N.Y., looking to learn the trade of computer drafting and design given his love of the structural engineering concept. “I took every course there was to take. I took drafting and residential structures and a bunch of the engineering courses. I took everything I could take technology-wise,” Evens said. “I liked drawing, electrical schematics and computers at the time. The problem is that most of those job offerings were 11 bucks an hour. I was already making $40 to $50,000 as an installer. So I went mainstream doing car audio full time.” Evens began working at Stereo Advantage in Williamsville, spending four years picking up as much 12-volt knowledge as he could. After his stint there, he became store manager at Circuit City, but didn’t last given the lack of excitement he experienced. “That was kind of boring to me. All the radios had harnesses. There was not a lot of actual installing there,” he said. “It was good money. But they started to close down stores because they paid too well.” By 2004, Evens had the itch to move. He thought about a place that was warm and would give him a fresh start. Las Vegas sprang to mind. “Everything was built out here, it was sunny with palm trees,” Evens said. So he rented out his house in New York, moved to Vegas and took a job as an install manager at Audio Excellence. After about eight months, Evens had a reputation in town, given that as an automotive community, Las Vegas is quite small. He did more research, landed at VIP Motoring, a highend retailer and was able to fulfill his desire for large custom builds. But that too wouldn’t last. Once the housing market crashed, Evens found himself out of work. He became a union bartender in the
nightclub scene. But he never forgot his roots, always keeping his tools close by to take on jobs whenever they arose. Soon enough, 2009 came, the market began to recover and Evens got that familiar itch again. “I made a lot of money in the nightclub, but woke up one morning and said I didn’t want to be around a bunch of drunk people anymore. I realized that these people have disposable income. They’re about flash, buying the newest car out there. I decided it was a good idea to follow my passion,” Evens said. “I took a month off from all work, found a spot with 1,200 square feet of space and opened my store.” But there was much more to it than that.
A Little Bit Of Everything Finding the right location in any city is a challenge. There are factors like number of cars and walk-by traffic, distance to competitors and types of nearby businesses to consider. For Evens, finding his first location, then moving to his current location across the street, were no-brainers once he saw what was nearby. “We’re about a mile from Las Vegas Blvd, three miles from the airport on the Southwest side of Vegas,” Evens said. “If a customer has to drop off a car and is going out of town, I’ll tell them to leave their car Sunday night when they go to the airport, then we have no time restraints. They leave and come back and the job is done. We don’t have that stress. I tag a lot of that being close to the airport.” Convenience and an awareness of his customer demographic contributed to his shop’s location, which rests in a business park. The original facility consisted of a single car bay, one office and a 10 by 10 showroom. Eight months after opening, Evens had to upgrade to a larger space of 2,500 square feet. And even that wasn’t enough, considering how quickly he was expanding his business plan. “I started accumulating more and more of what I was sending out. I started selling car stereos and TVs. As there became a need for more wheels and tires and paint work, I started getting tools to handle the work and buying up the
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real world retail
FAST FACTS
INDUSTRY AUTO DESIGNS
www.industryautodesigns.com
KEY STAFF Owner(s) - Andrew Evens General Manager - Derek Beauneister Body Shop Manager/Insurance claim specialist - Kyle Beach Auto body and paint - Mike Evens (Dad) Auto body and paint - Sebastian Fitzgerald Window film/tint specialist - Hector Carpio Upholstery - Jose Gradilla
Andrew Evens, owner of Industry Auto Designs, started the business without traditional loans or financial backing, acquiring items as needed during his journey.
30 Mobile Electronics November 2016
machinery I needed with a couple lifts, wheel and tire machines,” Evens said. “The shop was big enough to do upholstery work as well. I got a guy from VIP to do upholstery at that time too. He stayed there for three years with combined units of two suites next door to each other. The next goal was to get a big enough unit.” With more and more work being referred to the shop, Evens quickly saw more opportunities for revenue and continued adding equipment to handle the work. At one point, he found he was sending away work that he could do in-house. “We needed a paint booth. I did the math and saw I was sending away about 30 percent of my money. My next building was 8,000 square feet. We have everything in one roof now,” he said. “From my experience, stay where you can afford rent and people will come to you from your work and referrals.” Today, the shop houses a full auto body and fabrication facility, two offices, a 20 by 15 foot boutique-style showroom, menu boards, a TV, a couch, two restrooms, a 20 by 20 woodshop, a break room, upholstery shop, and main tech bay that houses up to 19 vehicles at once. “If someone comes in, got in
an accident, they see the shop, see we do good work with audio and video, they ask about it. If someone comes in and wants to spend money, we have the ability to do it,” Evens said.
Firm Foundations Every great roller coaster enthusiast knows that putting rides in a theme park is only half the battle. You need great ride operators and characters populating the park to capture the essence of its theme. Industry Auto Designs follows the same logic. “I want to provide the best quality work using the best methods and most advanced tools available to me and we take pride in every job as if it were our own vehicle. The work behind the scenes is just as important as the superficial end result. We want to continue to learn and take pride in what we build every day,” Evens said. “All staff are crosstrained. I like to train everybody to be hands-on.” Having that hand-on training in different areas allows the shop to have versatility. That versatility works well with the salary-based pay structure Evens has applied. “Anybody that comes in may come in under one salary and have the ability to diversify themselves through
Sales staff make sure to listen to customers thoroughly before suggesting any solutions they may be seeking.
Keeping with the boutique theme, the shop offers a small showroom, complete with consultation table and couch, which allows sales staff to focus on building relationships rather than just selling product from the floor. their knowledge,” he added. Training consists of both an employee handbook that Evens has been developing, and shadowing of veteran employees by the newest staff member. Thanks to these foundations, the business has seen a strong staff tenure, which allows for a consistency in work performance. “Derek has been on staff with me two years now,” Evens said. “Mainly, people don’t leave here. Sebastian and my father are new to last year because we’ve expanded to that auto body portion. The window tinter has been here for going on three years.” As an incentive, workers receive bonuses for completing big jobs that bring in big money. “That pretty much goes with the salary part of it. Derek has
locked out some big deals,” Evens said. “We did some Budweiser systems and I threw him a kick back for it. It was 30K worth of stuff.” At the same time, if an employee needs it, Evens will find a way to get more work in the door through his various connections and regular clients. “If someone comes to me for more money, we work. It’s not an employee/ boss relationship. I know every aspect of the business, know every tool in the bay. I’ve worked at other shops where the owner doesn’t know the business and is just there for the economical side,” Evens said. “I work with these guys day in/day out, like a family and team rather than a boss/employee relationship. I’ll take guys out to dinner to Outback. There are times
when we sell so many tires that a vendor will take us out to a go-kart place.”
Not Your Grandpa’s Auto Shop If its service offerings are any indication, Industry Auto Designs (IAD) prides itself on being different from the competition. Besides being a one-stop-shop and being located away from any main retail drag in town, the shop has the uncanny ability to reach out to its customer base at will and have an almost immediate response. This is partly due to the small community of automotive enthusiasts that live in Las Vegas, who have pegged IAD as their go-to retailer. It’s also thanks to the large number of insurance claims the shop handles, which creates crossover work once the client is in the shop.
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real world retail
“It’s kind of funny when they see the business, don’t realize where they’re walking into on a referral and go ‘Wow!’ We often install something on a vehicle that three other places told the customer couldn’t be done,” Evens said. “Fry’s or Best Buy hang on as retailers but don’t have the products or tools to do a vehicle like a Rolls Royce Ghost. We’ll assess all of that when the client is here and they’ll ask what else we can do.” In a town like Las Vegas, word-ofmouth travels fast, not just between clients but other retailers and vendors. “We have other work from body shops come in. Not all those body shops have wiring guys. We do wiring and troubleshooting using computers and diagnostic equipment,” Evens said. Aside from the specialty jobs that require word-of-mouth, Evens has designed his shop to win over customers
32 Mobile Electronics November 2016
the old-fashioned way: with helpful, friendly sales staff. Just don’t call it sales to his face. “I don’t like the sales aspect of it. I set the business up that way so I don’t have to act like a salesman. When you walk in here, I already have a product I have to push out on you. I don’t want to feel like a pusher,” Evens stressed. “For me, sales is the only unnatural part about it. They’re here for a reason, they have a problem. Just sit and listen to someone. You’ll pick up in conversation something that they would not normally tell a sales guy at a big box retailer. Get people what they want at a fair market price without sacrificing quality. If they do not know what they want, educate them.” Evens further stressed the need to win over customers with presentation. “I’ve received a ton of compliments from vendors and insurance agents saying how clean the shop is. They’ve been to other shops and have seen parts all over the floor. That’s why they’re here.” Not only are there no parts on the floor, but there is very little product on the floor, following very much in line with how a boutique shop should be. “We have the bare necessities in stock, like 6.5-inch components and coaxials. I have my collection from buying out a failing shop with dash kits and large filing cabinets. We’re not your average shop with 10 years of dust on kits. If someone walks in today, we can handle most jobs with basic parts. But for everything else, I use shipping companies,”
Evens said. “Everything I need can be shipped by the following morning. People now are coming in for two days worth of work. Now you have to build something or integrate something anyway.” All customers have the option of waiting for their vehicles in the waiting room or arrange for them to get a ride to where they may need to go. The shop also offers complimentary car washes with full detailing for all vehicles as an added bonus. “A lot of shops don’t do that. At the end of the day, if a customer gets a cleaner vehicle, it’s like walking into a clean house. You feel a lot better,” Evens said. Before a vehicle is detailed, the installation bay executes its high quality work through team work, with only some employees, like Evens’s father, focusing on specific jobs like auto body or window tinting. Otherwise, everyone helps out as needed. “The majority of vehicles are not in and out type jobs. The average job time is probably a day to day and a half,” Evens said. “We have hourly labor rates. Insurance pays a discounted rate due to volume. We charge $95 an hour max, $85 for insurance. Because we are a DMV licensed facility also, we have to have those rates posted. Custom labor is about $125 an hour. Mechanical/electrical is $95 an hour.” Thanks to the training and anything goes atmosphere, the shop is able to function cohesively as one unit, regardless of the work that comes in. “Everybody works as a team. Everyone helps to maintain a safe work
The 8,000 square foot facility includes separate areas for each type of work the shop offers, including wood working, upholstery and paint. me-mag.com 33
real world retail
environment that’s organized and presentable for other companies as well as clientele,” Evens said.
Ride Of Your Life After a year that’s seen some of the biggest growth in the shop’s history, 2016 has provided IAD with more than its fair share of achievements, including making the Top 50 Installers and Retailers lists, attending KnowledgeFest for the first time and finalizing its place in the new
34 Mobile Electronics November 2016
building. “Being able to get in this building, get everything permitted, zoned out and pass all inspections was big for us. For a normal car audio shop, inspectors check if you have enough fire extinguishers for your square feet. For me, it’s environmental, fire, building, DMV. I’ve had a huge amount of time spent on getting that in line,” Evens said. “It’s cool because we’ve had the same person who knows the type of facility I run come in over and over and they are not on edge.” As if creating a business from scratch was hard enough, Evens had to do it with no credit, which was the same struggle he had when buying a house. But he persevered and was able to make both things happen. “Being self-employed and being able to get stuff like a house is a hard battle. It’s that whole thing if you don’t have credit, when you need credit you can’t get credit. I’ve been able to get what I’ve needed and more,” Evens said. “Now I have business credit cards with
a business name. It’s always just been an evolution for me. I’ve operated with zero debt. Every decision I’ve done, I’ve had time to think about.” While doing things slowly out of time is a tool based out of necessity for Evens, he is grateful for it, given how it fits his methodical nature of taking things one at a time. “No matter how many things you have going on, take a deep breath, make a list, attack what you can, push what you can, handle what you can today. Things don’t always go smooth. Paint doesn’t always dry,” he said. “The second most pertinent thing is to be honest with the customer. Tell them ‘We’ve had a hell of a day, jobs ran late, what can we do to get it to you tomorrow?’ There are no excuses.” As his lease slowly comes to its end, Evens has his sights set on purchasing a building that the shop can call home. He also hopes that the purchase includes a strip mall that he can use to create a collective of businesses to support one another. Crafting an experience, much like what Disneyland or Las Vegas offers, is the shop’s primary goal. It’s what Evens tells his employees before they start every shift. Every day the store operates is a new opportunity to infuse customers with that same level of passion. “The one thing is you have to wake up every morning and want to go to work. If you’re going to start a business, it has to be something you’re passionate about,” Evens said. “You can’t start a business under the pretenses that you’re going to make money. If you’re just in it for the money, you’ll go out a lot faster than something you like doing. This customer with a Harley-Davidson came in and said, ‘I could live here.’ We built it that way.”
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behind the scenes
The production team poses outside the Mountlake Terrace facility. The smaller facility in Spokane is home base for muc to maximize efficiency without sacrificing a friendly atmosphere.
Sound Obsession By offering products that help retailers elevate audio system performance for their customers, AudioControl has become known as a top DSP and system tuning solutions provider amongst top installers, taking its nearly 40 years of experience into the 12-volt amplifier market. WORDS BY JAMIE SORCHER
Chris Bennett, National Sales Manager for Mobile
36 Mobile Electronics November 2016
The Pacific Northwest, well known as a music and tech haven, and also the birthplace of grunge, is where you will find the home of AudioControl. The distinctive
geographical setting is appropriate for a company with its own unique heritage. Started by musician and former Boeing worker Greg Mackie in his basement in
ch of the mobile products, board level testing, and manufacturing. The physical layouts of both plants have been designed
1977, AudioControl has grown up from its humble roots to become a highly respected brand in the consumer technology world. In business for almost 40 years, the company designs and builds top-notch audio equipment (for both home and car) from scratch. With two facilities in Washington State, including an 8,000 square-foot building in Spokane and a 24,000 square-foot operation in Seattle, AudioControl takes tremendous pride in its manufacturing facilities and full U.S. production capability. CEO Alex Camara now leads the company’s development, and amongst the changes over the past
few years, brought in Chris Bennett as National Sales Manager-Mobile. Today, the company has about 50 employees—including obsessive audio experts and accomplished engineers— who are completely passionate about what they do. “One of the most interesting things for me coming on board a year and a half ago is that AudioControl has an incredible heritage and continues to drive forward its US-based engineering and product development, doing outstanding things across the 12-volt market,” said Chris Bennett. “Factoring longevity, product innova-
tion and build quality, AudioControl has been one of the most consistent 12-volt companies that has ever existed. And not only do we sell to the entire country, we also ship products all over the globe to every continent except Antarctica,” Bennett added. According to Brandon Cook, director of technical services, who has been with AudioControl for 10 years, everyone is passionate about what they do from a quality standpoint. “What we’re doing is providing the means for folks to experience their favorite thing—music in their car,” he said. “That is what our 12-volt products do. They let folks immerse
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behind the scenes
The compact LC2i 2-channel processor has active input circuitry and is able to accept speaker-level signals of up to 400 watts per channel from factory-installed source units or amplifiers. It converts them to high quality pre-amp signals that can then be directed to after-market processors and/or amplifiers. Users can enjoy maximum sound quality while maintaining the use of factory volume and steering wheel controls. themselves in a unique and amazing mobile audio experience rather than settling for something average.” That passion, Cook added, translates all the way from customer service and technical support to the engineering department. From hand-selected internal parts to the carefully tested finished goods, the passion runs deep at AudioControl. “I have a passion for an elegant interface,” Cook said. “Something that the installer can use to make great sound, increase efficiency and use to make a fair profit.”
Brandon Cook, Director of Technical Services, has been with AudioControl for 10 years. 38 Mobile Electronics November 2016
Open The Gates And Pave The Way But what has changed for the company
in recent years on the car side is a deeper focus on OEM integration. “We have seen large double-digit growth every single year for the last four years,” Bennett said. “We have this huge history of products, but with OE integration, the sky is the limit,” Bennett said. “Because of this growth, we are able to be very forward thinking and innovative in what we’re doing this year and next year. What we can accomplish with factory integration is mind-boggling.” In fact, he said, the mobile products in development now will pave the way for the future. “They are the gateway into the next 15 years as far as I can tell,” Bennett said. “We’re establishing ourselves as a
go-to brand for premium OE integration solutions that top installers will rely upon for the next 15 to 20 years.” In the last year alone, the mobile team has been exceptionally busy. “We’ve taken everything we manufacture here, looked at it, and then either touched it cosmetically or made rolling changes to it,” Bennett said. “We have all new packaging.” The results have not gone unnoticed. “Our customers have recognized it,” he added. “Even today, I had someone who hasn’t been a dealer for 12 years who sent in his application and said he is so looking forward to being an AudioControl dealer again.” Back at CES 2016, AudioControl intro -duced its new lineup of high-performance DSP matrix processors and their first ever full-range processing amplifiers. The two new matrix processors utilize AudioControl’s new DSP software platform, designed to deliver the best, most intuitive real-time user experience. The DM-810 has eight active highlevel speaker inputs, six pre-amp inputs, and two digital inputs plus 10 pre-amp outputs. The DM-608 has six eight active high-level speaker inputs, six pre-amp inputs, and two digital inputs plus eight pre-amp outputs. “With our DM-810 signal processor, there are so many features that differentiate it,” Bennett said. DSP in the marketplace on the car side of things, however, is nothing new. “It’s been around more than 20 years,” Bennett said. “But how do you interface it? That has been the real issue. There are probably hundreds of installers out there who have installed a DSP-based processor before, plugged in their laptop, and tried to figure out the interface. They might spend countless hours trying to tune it. Our whole premise is that if it is intuitive enough, an installer can get in, get the install done and do the tuning in 30 minutes versus four hours—and have the same kind of audio output or better. We wait to release our solution until the interface is absolutely perfect.” But Bennett and the mobile team have no plans to rest on their laurels. “We have an aggressive goal of what we want
to accomplish and we’re trying to do that for all the retailers,” he said. “As aftermarket head unit sales decrease and as it’s getting more and more difficult to interface with OEM audio systems, we’re going to make sure we’re providing the products and support for 12-volt retailers, enabling them to do what they do best.”
Everything Else Is Just An Amplifier Earlier this year, AudioControl started shipping one of its new products, the LC-4.800 amplifier, part of the company’s first lineup of versatile full-range amplifiers which also includes the D-4.800. The two 4-channel models feature over 200 watts RMS at 2 Ohms. The LC-4.800 and D-4.800—which incorporate AudioControl’s new "smart user" DSP software— have six high-level speaker inputs that allow for signals to be summed directly into the amplifier. AudioControl has also included much of its signal processing technology, such as its popular LC2i, AccuBASS™ bass management, GTO™ Great-Turn-ON, as well as Linkwitz-Riley Crossovers and more. “We have shipped over 500 of the LC-4.800 units to rave reviews,” Bennett said. “What is really unique about this amplifier is that it is the only solution on the market that has internal 6-channel summing. A retailer can look at that and put together an OE package where
The DM810 digital signal processor has eight active high-level speaker inputs, six pre-amp inputs, and two digital inputs plus 10 pre-amp outputs. It features AudioControl’s new DSP software platform, designed to deliver its new “smart user” installer interface with ergonomically designed features to simplify and provide the best real-time user experience.
According to AudioControl, the LC-4.800 multi-channel amplifier is the only amplifier on the market that has internal 6-channel summing. The company’s patented AccuBASS circuit compensates for factory system bass roll-off and provides optimized bass performance. me-mag.com 39
behind the scenes AudioControl is not only well known for its excellent audio equipment, but for its sense of humor. Product manuals and the outside of the many product boxes are fun to read and easy to understand. The company consistently gets feedback from customers who say they enjoy reading the manuals.
they don’t have to sell the customer on multiple interfaces to match the signal properly. That technology resides in the amplifier, making life easier for installers. We’ve had huge success with that.” Ultimately, that is a big part of the growth plan for 2017—setting the standard, having more amplifiers with very unique features and input capabilities, along with processing functionality that no one else has even thought of yet. "Our motto on amplifiers is ‘everything else is just an amplifier’ because
40 Mobile Electronics November 2016
our new products are a direct result of real innovation, delivering features and performance that set them apart in a competitive market,” Bennett added.
Pleasing The People While product, performance, and packaging are critical to AudioControl’s continued success, it still comes down to the people who make it all happen. “We’re one of the only companies that when you call us, you get a live person,” Bennett explained. “I actually answered a
technical support question while I was in the hospital on Thanksgiving. Those are things that drive home what we’re doing." "We are proud of the fact that we are one of the last remaining U.S. manufacturers of car audio equipment,” Bennett concluded. “The end result is that we want the customer to have the best possible experience and give installers a brand they can be proud to represent and install in their shops.”
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me-mag.com 41 www.InstallerNet.com • 800-444-1644
business feature
Not Too Taxing Retailers and experts agree, taking care of your taxes doesn’t have to be altogether taxing. By keeping solid records and maintaining regular contact with a CPA, business owners can stay worry-free. WORDS BY ROSA SOPHIA
Famed poet Ralph Waldo Emerson once said, “A man builds a fine house; and now he has a master, and a task for life: he is to furnish, watch, show it, and keep it in repair, the rest of his days.” Those who build businesses dedicate themselves to keeping that business in good repair, and cultivating their dreams. What comes with owning a business? Great responsibility—and taxes. Most people shudder when tax season comes around, but retailers and experts agree that businesses can prepare for taxes by staying organized and remaining on top of record keeping throughout the year. By continuously staying on track, a
42 Mobile Electronics November 2016
business owner can ensure that taxes are a breeze. Dennis Dunlap, CPA and Managing Director of Dunlap & Associates, stated that the most important aspect of tax preparation is reviewing accounting information on a regular basis with an accountant or a tax advisor. “It requires a proactive approach,” he said. “At the mid-year point, and then maybe at the end of September. Then, again updating the plan and coming up to the end of the year. A lot of times, people get surprised by tax liability because they’re not paying attention to the numbers as they go throughout the year.”
The Proactive Approach Depending on the size of the business, the complexity involved in recording income and expenditures may differ. Ernie Onate is the owner of Sound Innovations in Union City, Calif., a small store with three employees. “With respect to taxes, I rely on QuickBooks,” Onate said. “It takes the thinking out of it. Payroll taxes, state and federal taxes. I do my own reconciliations and monitoring of files through QuickBooks at the end of the year. I prepare it and send it to the accountant. Once you categorize them, it prepares everything for you.”
Given its small size of just three employees, Sound Innovations relies on a program like Quickbooks to keep track of all invoices and work performed to avoid end-of-year headaches when prepping for tax season. Onate noted that as long as everything is entered properly and correctly, the program works well for him. Staying on top of things and recording data accurately is essential. Ben Vollmer of BusinessWorx echoes the same advice, encouraging owners to talk with their CPA or tax preparer on a regular basis. “Prepare ahead of time. That’s the number one thing most people don’t do. Talk to them,” he stressed. “Our meeting was on a quarterly basis. It cost $150 every time I did it, but it saved me at the end of the year. The biggest mistake people do is wait until March to figure out last year’s taxes. Get on that way more often in a more predictable schedule.” While the business is small, Sound Innovations must remain just as prepared for taxes as any other larger company. “I don’t have employees that do sales, just installations. I’m the only one who handles customers,” Onate said.
“Administrative, phone calls, emails, it’s all me. Employees are hourly. They clock in. All jobs are calculated hours on a sheet indicating how many hours, and materials used. They give it to me and I prepare the invoice for the customer based on that information.” And all information must be recorded correctly for tax purposes. “You really want to be looking at your financial information through the year and your accountant should be able to keep you apprised of what the likely tax liability will be,” Dunlap explained. “Also, they should advise you of some opportunities to plan to minimize your taxes as well.”
Impeccable Records It’s important to keep things organized, but what happens when the business grows beyond basic bookkeeping? The larger the business, the more complex the tax situation becomes. Onate may not
have as much to record as other mobile electronics retailers who handle more involved events or sales. “Being different than most stores out there, we are a little more on the specialized side. Even though we’re retail, we’re boutique-oriented with high-end clientele. I don’t do sales or special events,” Onate said. “I don’t do traditional semi-annual sales, Christmas, or Black Friday. People come for our reputation and service, not for pricing. If they’re looking for the best price, we’re not their store. If they’re looking for quality, they’re here for that reason.” While Onate doesn’t need to consider special events for the business’s taxes, there are some special expenditures that need to be recorded, such as manufacturer trainings. “Recently, I had an employee go to Arizona for a seminar,” Onate said. “I paid for his flight and travel expenses. It was entered into QuickBooks as a travel and
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business feature
The official IRS website, www.irs.gov, provides a litany of information on prepping both business and personal taxes, along with downloadable forms, payment plan options and sections that answer common questions, among other features.
44 Mobile Electronics November 2016
educational expense.” When it comes to planning for special events, Vollmer stated it would depend on what the event was. “At my store, we didn’t do events like other stores do. My customers aren’t price sensitive,” he said. “We did car audio competitions, helped drive people to hang out in our store. It was branding, not about sales.” Expenditures for special events can be listed under special categories within tax preparation software. “I just put it in categories in QuickBooks. You can create categories. I have one for advertising, but it’s broad, so you can have it for Facebook, Google, website—you can break it down as specifically as you want or as general as you want,” Vollmer said. “A training event or flying an employee somewhere, that can go under training. Air fare or food still costs money. The category of employee training was good enough. Employee training ‘dash’ air fare.” Each expense recorded must be carefully noted with all the details of the expense. Using good software is a must because the program will keep a business accountable with automated tools. “The advantage of a full bookkeeping program is that it will require you to keep your books in balance,” Dunlap said. “A basic accounting always requires a debit and credit, and when you’re entering transactions into QuickBooks, you’re required to enter debit or credit.” In a more rudimentary system, such as keeping records with Excel, there are too many opportunities to make mistakes, because “it’s very easy to forget to enter a transaction or to fail to enter all the necessary attributes in a transaction,” Dunlap explained. “For example, when you write checks, if you use Quick Book to pay bills, you write the check, it’s going to record the expense. Say for example you write a check to pay electric, it records it to utilities, expense, and will reduce the balance in the bank account. Whereas if you’re maintaining accounts in Excel, you could easily fail to enter one side of a transaction. It becomes difficult to reconcile your accounts at the end of the period.”
An Unwelcome Surprise Vollmer again noted the importance of talking to one’s accountant more than just once a year. Taxes can sneak up and surprise a business if owners aren’t careful. “I think what most owners don’t realize, at least in Georgia, sales tax and employee taxes— they’re the one tax that will haunt you forever,” Vollmer warned. “You can’t sell a business in Georgia if you don’t pay sales tax.” In Vollmer’s experience running a business, he noted money for sales tax was not kept in the operational account. Instead, it was sent to a sales account right away. “There’s three different types of taxes: sales and use tax, payroll taxes, and annual taxes. Our accountant, we talk to him on a quarterly basis,” Vollmer said. “You need to know what your financials are. We do work before we need to.” Being prepared means ensuring nothing is left until the last minute, and anticipated changes as well as plans are taken care of well in advance. “We figure out a plan,” added Vollmer. Dunlap stated that keeping track of employee payroll properly, as well as what any vendors or even independent contractors are paid, is extremely important. “It’s required on a quarterly basis. Businesses will report to the IRS and also their state department of revenue exactly how much they paid to each employee. It’s very critical and this is why a good accounting package is important,” Dunlap said. “It’s important from the standpoint of tracking employee benefits. If a company offers a 401K plan, and you are an employee
and you’re taking money out of each paycheck to put in a 401k plan, your employer has to have an accurate record of what they took out and how much went in the plan on your behalf for each and every payroll. QuickBooks will keep track of each payroll and generate reports you need to submit to IRS and state tax agencies.” If an employee is paid by commission, how they prepare for their taxes depends on their personal situation. “It really depends on your own situation, because there are people paid on commission who are paid as an employee, and there are others who are paid on commission who are not paid as an employee,” Dunlap said. “Someone who is paid as an independent contractor on a commission basis is required to keep track of their own tax obligations. Keep track and put the money aside to make sure you’ve got it available because you as an independent contractor are responsible for taxes, and responsible for self-employment tax.”
Be Prepared Depending on the size of the business, the situation may differ. Either way, having good software is essential. “An accounting system that can help you keep track is dirt cheap,” Vollmer said. “There are some free, open source programs out there I’ve never used.” Dunlap added that a lot of family owned businesses use QuickBooks. “It’s readily available, and a lot of people know how to use it,” he said. “While it’s not as sophisticated as some more higher-end accounting packages, it does
me-mag.com 45
business feature
The Quickbooks user interface is one useful program on the market that allows retailers to keep track of a variety of metrics, including work and payment dates, names, addresses, types of work and all previous work done for each client.
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46 Mobile Electronics November 2016
a good job.” Other programs available include Sage, which Dunlap added is a competitor of QuickBooks. “It is frequently used by not real large companies, but companies larger than those that might use QuickBooks,” he said. When businesses become much larger, more involved processes are needed. “As businesses become more sophisticated, and by more sophisticated I mean companies with a full-time IT staff, you get into much more sophisticated products that require ongoing maintenance and programing.” It’s important to use a program that works well for the specific business’s needs. However, Vollmer stated the system is not as important as speaking whatever “language” the business’s CPA speaks in terms of programming. “Your CPA speaks QuickBooks, you speak QuickBooks. I spoke whatever my CPA spoke,” he said. “If my CPA spoke something else, I wanted to speak whatever my CPA spoke.” But what are the differences when it comes to small stores versus large stores? When it comes to a very small store, the owner may factor in the profit of the
Sound Innovations performs a large amount of custom work that requires detailed record-keeping, including this custom Charger build.
store with their own personal tax situation, according to Dunlap. “The smaller store might be taking into consideration the personal tax responsibility of the owners,” he added. “The large store may be owned by a large corporation as opposed to individuals.” Vollmer stated the bigger the business, the more complex things become. “There is no difference as far as how it should be taken care of,” he said. “The difference is the more moving pieces that are there.” Communicating regularly with a tax advisor or CPA, Dunlap said, is the best step that can be taken. “Keep them informed and allow them to help you to prepare for your tax obligations and also to consult with you regarding the opportunities for taxes.” Dunlap added that there are numerous tax strategies, and to figure out which ones are best for a specific situation, it’s important to discuss things with a CPA. “You really need to be talking to the person who knows your business and knows your unique tax situation,” Dunlap added. “They’ll be the person to give you the best advice.”
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tech today
The Perfect Shot, Pa Extending beyond composition, professional photographer David MacKinnon provides insight into the functionality of cameras for capturing the best possible images of your work. WORDS BY DAVID MACKINNON
I
n the last issue, Joey Knapp provided a detailed look at the composition portion of the photography presentation that he, (2016 Installer of the Year) Matt Schaffer and I presented at KnowledgeFest 2016 in Dallas, Texas. In this article, we are going to take a look at how a camera works and provide some insight into balancing shutter speed and aperture to create amazing images and different image effects.
The Digital SLR Camera We are going to focus on an SLR (Single Lens Reflex) camera for this article. While you can certainly use a point-and-shoot or phone/tablet camera to take great photographs, there are occasions when you want more control over the image you are taking. A quick note on ‘what to buy’ if you are camera shopping. Once you take a picture, in most cases, you can never go back and capture that exact moment in time again. So capture the most resolution and detail you can. Shoot your photos in Raw format (if
48 Mobile Electronics November 2016
available) to capture more dynamic range (dark and light portions of the image). You can always throw away unnecessary information and resolution in Lightroom, but you can’t create it from nothing if you didn’t capture it. So, go big. You won’t be disappointed.
Taking a Photograph A DSLR camera has an image sensor at the back of the body. The (interchangeable) lens focuses light coming from the object you want to photograph onto this sensor. When you look through the viewfinder to compose the image, light from the object is reflected upwards by a mirror into a five-sided glass prism that outputs the image to your eye. When you press the shutter release, the mirror flips up and allows the light from the object to be passed to the image sensor. The pixels on the image sensor record the amount of red, green and blue light. That information is processed by the camera’s computer and stored on the memory card. If you are thinking to
yourself “wow, that’s really simple,” then you are right. Taking a picture is simple.
Controlling Light To capture an image, we need to ensure the image sensor on our camera stores the right amount of light information to accurately reproduce the image. Think of this like setting the gains on your amplifiers—you want to get loud, but not distort. We control the amount of light the sensor captures in two ways—by adjusting how long the mirror is held up, and by adjusting an opening in the lens. How long the mirror is held up is called the exposure. This is measured in seconds. New cameras have exposure times that are adjustable from as fast as 1/8000 of a second up to ‘as long as you hold the shutter release’. Each step is a doubling or halving of the previous—so 1/4000, 1/2000, 1/1000, 1/500 and so on. Controlling how much light passes through the lens is called adjusting the aperture. The aperture is controlled by a multi-element iris in the lens. The
art 2
adjustment is called the f-stop. Each stop is a doubling or halving of area from one step to another. The stop number itself does not directly describe the amount of light coming through the lens. A large opening is a low number—some high quality lenses can open up as wide as f1.4 and close down as small as f22 or more. How wide the lens will open is often directly correlated to the cost of the lens. The last and least talked-about factor that governs image exposure is the sensitivity of the image sensor. Unlike in a film camera where the chemical composition of the film determines how it responds to light, the sensor on a digital camera can’t physically change its response. So, why do cameras have a sensitivity adjustment? The image processor in the camera can manipulate the information the sensor captures. It does this by boosting or cutting levels. Just as you can turn up the gain on an amplifier to increase a small signal, so too can you increase the net output of the image sensor. The parallel to an amp carries the same issue—noise.
When you increase a weak signal, you increase the noise in the signal by the same amount. A strong signal drowns out the noise. Each increase of ISO setting, from 100 to 200, and 200 to 400, is a doubling of the effective sensitivity of the sensor. It is worth noting that, with each new camera model that companies like Canon, Nikon and Sony decrease the amount of noise the image sensors produce and consequently allow you to use higher ISO settings without as much noise being saved with the image.
Balancing Image Exposure Combining the aperture setting, exposure time and ISO setting is what determines the exposure (or brightness level) of the photograph you take. The reasons for not using a high ISO rating are clear – you can get noise in the photo. Why not just use a wide aperture and short exposure time? The answer is ‘depth of field’. Depth of field refers to how much of the image is in focus relative to the
objects distance from the camera. A large aperture (low f-stop number) produces a shallow depth of field. A small aperture (high f-stop) produces a deep depth of field. If you are taking a photograph of something, and the objects in the photo are all the same distance away from the camera, depth of field doesn’t matter much. An example would be a photo of a radio in the dash of a car, taken from the back seat of the car. Conversely, if you are trying to capture a custom installation in a trunk or hatch, and are shooting at a high angle, you will want as much of the content to be in focus as possible. So, what are the pro’s and con’s of the exposure time? Why not just use a small aperture and hold the mirror up for a while? The answer here is motion blur. If you move the camera while trying to capture an image, the photograph will be blurry. We have all taken a blurry photo because we couldn’t hold the camera still, or because the object where were photographing was moving. In most cases, if
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tech today Exposure Triangle – This shows the relationship between Aperture, Shutter Speed and ISO Sensitivity Settings. Balancing all three of these and their inherent behaviours will determine what your photo looks like.
you have good technique, then you can hand-hold a camera for exposure times down to about 1/80 or 1/60 of a second. Below that, it’s very hard to keep things perfectly still. When it comes to taking photographs of car audio installations, most of the time, nothing is moving. We can use moderate to long exposures to capture a lot of
information. One tool that dramatically improves our ability to take long-exposure photographs is a tripod. When you go tripod shopping, choose one that is quite flexible in terms of the position of the legs. You want them to be able to move independently of each other. You should also choose a head (the part on the top of the tripod that lets you tilt and
pan the camera) that will support the weight of your camera and lens. You will also want a head that is easily adjusted – this makes setting up shots faster.
Combining it all Luckily, the ratio between exposure time and aperture is linear. If we cut the exposure time in half, but double
Field of Vision These four images where taken with the camera in the same location, on a tripod. The only change between each is the lens and the how far each lens is zoomed in.
This is an 18-135mm lens, set at 18mm
50 Mobile Electronics November 2016
This is an 18-135mm lens, set at 135mm
the amount of light we capture, we get a properly exposed photograph. You can mix and match to produce the photograph you want. If you are taking a photo for a build-log or Facebook post, then it is my opinion that you want as much of the photo to be in focus as possible. The photo should tell the story—what, how and why. If the corners of the image are blurry, then in many cases, so is the information. So when might you want to use a shallow depth of field? If you are taking a photograph for marketing purposes – a brochure, web banner, flyer or website, and the content is not something that you are using to provide information, then you can use a shallow depth of field in an artistic sense. A little blur away from the subject can also draw focus to what you want the viewer to see. As with anything, don’t overdo. You can add blur using your computer—you can’t remove it. When it comes to motion blur—there are limited applications in car audio photography. You may want to exploit this is if you are trying to show the motion of a motorized panel. Time the exposure to show the full range of motion of the
part. Otherwise, you want everything clear, focussed and sharp. If you where taking a photograph of a car driving down the road, then allowing the wheels to be blurred can add a sense of motion or action to the photo. The background behind the vehicle will also be blurred, so long as you can track the vehicle with your camera.
Lighting Lighting can be tricky. The interior of a vehicle is a very complex shape. There are also limited light sources and a lot of opportunities for shadows. The best condition for photographing audio systems is a situation where light is evenly distributed around the vehicle—a nice overcast day works well. You will also want to get the vehicle out of the direct path of the sun. Being in the shadow of a building helps to further diffuse the light entering the vehicle. You may need to increase the exposure time to compensate, but even lighting makes a huge difference. Here are a few simple lighting tricks. If you are having trouble with over-exposed portions of a photo, then have a friend hold up a white bed sheet outside
This is a 70-300mm lens, set at 70mm
of the vehicle to diffuse the light. If you can avoid it, don’t use a flash. There are a lot of reflective surfaces in a vehicle. The light from the flash will bounce off these surfaces and over-expose parts of the image. Flash lighting rarely looks natural, unless you use a lot of it, and make it your primary light source. In that case, you may want to use more than one flash to prevent shadows. You can use a work light to help fill in dark areas of a photo. Make sure the light pattern is wide—you don’t want to create a hot-spot. You will also need to pay attention to the type of light you use—LED, fluorescent and incandescent lighting all have different color content. Make sure you choose something that matches your main light source.
Lenses What lenses should you have for your camera? All of them would be fun, but hey, this isn’t the Snap-On truck, is it? Most moderate to good quality DSLR camera’s include a lens with focal length of 18 to 55mm. What do these numbers mean? They are the distance from the image convergence point of the lens
This is a 70-300mm lens, set at 300mm
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tech today
Overall Exposure The following images were adjusted in Adobe Photoshop. They show the overall difference in exposure as the lens is adjusted by one full stop.
Image at -2 stops
Image at -1 stop
Normal Exposure
Image at +1 stop 52 Mobile Electronics November 2016
Image at +2 stops
Depth of Field These images where taken with a 50mm lens from the same location. The only change between each image is the aperture and shutter speed. Both are changed to maintain the same overall exposure. Note the difference in focus at the outer edges of the images based on the aperture setting.
Aperture set to f1.8, shutter at 1/2000 sec
Aperture set to f5.6, shutter at 1/250 sec
Aperture set to f10, shutter at 1/60 sec
Aperture set to f22, shutter at 1/13 sec
to your image sensor. Glad you asked? Nope? That’s ok. You can think of them as the amount of zoom a lens has. A really low number like 10, 12 or 18mm means that the lens has a wide field of vision. Lower is wider. A high number like 55 to 135 is a moderate amount of zoom. Zooming in let’s you fill the image with an object that is smaller or further away. Super zoom or telephoto lenses are in the range of 150mm-on up. Consumer level lenses top out around 300m. Some professional lenses go as high as 800mm. As cool as a $13,000.00 lens is, there is no
application for this in car audio. In my experience, you want to look for a lens that is as wide as possible. For normal day to day build-log or Facebook posts, 17 or 18mm is a good lower limit. If you want to get inside the vehicle and capture everything—door to door or fender to fender, then look for a really wide lens like a 10 or 12mm. Trial and Error Let’s wrap up this article by saying that there are as many ways to take a photograph as there are objects to photograph. The best way to take better
photos is to experiment. Take several photos of something, then look at them on your computer. The screen of a phone or camera isn’t big enough to confirm that everything is exposed properly and in focus. If you like what you see, make some notes on how you achieved the photo. If you don’t like something, work on a way to fix it. Moving the camera, changing the lighting or zooming in or out can have a dramatic affect on the end result.
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installs
Clean Sweep
SUBMITTED BY: JOSH MOJICA, GNC CUSTOMS, GOSHEN, IND.
After impressing a client with a previous build, Top 50 Installers Jeremiah Mojica and Andrew Emelander were asked to perform a second install on this 2016 BMW X5M. The team added a JL Audio 10TW3, driven by a JL Audio XD300/1D to the client's OEM Bang & Olufsen audio system. The key to the installation was to not compromise the cargo area or make something removable. This was accomplished by building a custom enclosure, using the stacking method, in the wall that housed a small storage compartment. The client only lost about two inches of floor space. Red vinyl, carbon fiber vinyl, charcoal carpet, and a pressed grill with a "M" badge were used to make the install enclosure match the rest of the interior while still giving it a little pop.
54 Mobile Electronics November 2016
me-mag.com   55
installs
Building The Goat SUBMITTED BY: LUKE FARLEY, LYNX CUSTOMS, DENVER, CO.
A customer came in with the challenge of putting in $50,000 worth of product into their 2015 Toyota Tacoma. The vehicle, nicknamed “The Billy Goat,” required a major overhaul and four months of work to complete. Parts included a Pioneer head unit, Focal Flax Speakers and two Rockford Fosgate T1 Slim subs. A custom Billy Goat emblem lights up the steering wheel.
56 Mobile Electronics November 2016
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Focus on Your Foundation Back to the basics. Yes, you have heard it before and will continue to hear it until they sink in. Many businesses are built on the idea that your passion will propel you forward regardless of your plan or lack thereof. While a passion for what you do can be essential, it is rarely enough to establish a successful business. To achieve success, you must first define what success will look like when you get there. Many of us look at others success and try to build towards that end. However, a true foundation for your business should be a product of your creation, not a copy of someone else’s success. If the basics are important, we should attempt to define them: Purpose – You must define the guiding principles that will drive your business. These include your vision, mission statement and goals. This is where you define what success looks like. Are they still relevant? Does your business measure up to what you defined? If not, take the time and make the corrections. Then make sure to communicate them to your team. People – Without your team there is little you can do to succeed. If you attempt to do it all you will never grow beyond your own abilities. Hire the right people. Those that share your vision and are willing to contribute to greater success that you can achieve on your own. Take good care of them. Your people are your business’s greatest asset. Operations – How you do what you do. Policies, procedures, position titles and responsibilities and so on. Properly defining these will provide a solid reference when situations arrive that require a decision. Operational guidelines should be written and shared amongst your team. When all are on the same page and proper expectations are set, your business will run smoother. Sales – You must have income! What products and services are you selling and how much will your business make when they are sold? Define a product mix that is in line with your goals. Make sure your services are properly valued and priced as such. Leave your emotions at the door and look for brands that are in line with your business needs. Review your market and set your pricing accordingly. Marketing – Get the word out! You may be the best in your market or working towards it, but that is not enough. To get people calling, emailing and visiting your business requires great effort. Your participation in local events, charities and community groups should be a priority. Getting known in your market will go a long way to building your business. There are also many marketing tools available that include having a professional website, email marketing services and social media. Education – Learning should be part of your strategy. Attend local vendor training when available. Attend KnowledgeFest and
58 Mobile Electronics November 2016
other relevant trade events. Call other business owners for ideas that you could implement. Join and participate with industry associations that are focused on your business. Research – Make time to research new technologies and business processes that could benefit your business. Look outside the box. Read business publications outside of our industry. Should you find a great idea, try it in your own business and see if it produces a better result than your current procedure. Measurement – Measure your progress. Build a dashboard that provides insightful information. Any system will work. A whiteboard, daily notebook, spreadsheet or software that allows you to measure and compare results. When you define your vision, mission and goals, you set in motion what you defined as success for your business. Is your goal to become a million-dollar a year business? Then define what it will take to get there and track your progress along the way. You should always be able to provide an answer to this question: Am I on track with my goals? If you know the answer you are positioned to succeed. Leadership – Providing it will make or break your business. Your strategy should be focused on being competitive in your market to become the market leader. Challenge your team to be the best they can be and leaders in their areas of responsibility. If you are challenged to lead, then take an educational leadership course such as Dale Carnegie. Your leadership is critical to your success and should be taken seriously. Listen to your team members by having regular meetings. Be a decision maker and direction setter. Your drive and passion will be infectious, causing those around you to be motivated to succeed as well. Now that you have a better idea of some key business fundamentals, you can look at your situation to determine if you should tear down and rebuild some processes. Many procedures tend to evolve out of the need to fulfill a desire or demand. You may also find that you are doing things right and can share your success stories with others. Regardless of the outcome, as a business owner it is always good to set aside time to review your business. You will be glad you did!
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