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How Shops Diversify Diversifying into unexplored categories or expanding skillsets can provide numerous benefits. Retailers share how diversifying into categories such as paint protection, car wrapping and motorcycle audio helped raise awareness and increase bottom line profits. WORDS BY ROSA SOPHIA
When it comes to finding new avenues for exploration, retailers agree that diversifying can revitalize a business, but can also offer unexpected challenges. LYNX Customs in Centennial, Colo. began diversifying into car wrapping a couple of years ago, according to owner Luke Farley. In 2017, the team wrapped four or five cars, but the following year, they wrapped over 50, Farley added. “It suddenly became one of our biggest categories,” he said. “It’s had a huge impact on our bottom line, so much that we’re changing our business branding and advertising to target that market.” The shop expects to double the number of vehicle wraps in 2019. “Product diversification can always be tricky. We’ve had really good luck with it and we found that some of our skillsets transferred right
14 Mobile Electronics March 2019
over.” Farley noted that technicians who were already installing window tint and paint protection were able to pick up car wrapping techniques quickly. Other mobile electronics shops might do well to consider the category, Farley said, adding that the shop obtained specialized training. Still, he advised shop owners and managers to be very careful when deciding to diversify. “You don’t want to get stuck with products you can’t sell, or spread yourself too thin to where you’re trying to be everything to everyone,” he said. “There’s a lot to consider as far as strategy when you choose to diversify.”
Plan and Execute a Careful Strategy When Parish Tanner of Ocala Car Audio in Ocala, Fla. was thinking about what his business could expand into, he said he thought about who he most enjoyed doing business with, as well as
what category might be profitable for the shop. “I ride motorcycles myself, so I went and purchased another Harley [Davidson] in the third quarter of 2015,” Tanner said. “From 2009 to 2015, we’d only done nine Harleys. In 2016, we did 13 Harleys. In 2017, we did 26. Last year, I did 80.” Tanner attributed this to the demo vehicle, and the shop’s sponsorship of local bike nights. “I was at one every month and just started hanging out in that crowd,” he said. “We have brought in some accessory lines,” he added. “We sell seats and grips and other bolt-on stuff.” Recent growth in the Harley-Davidson market gave Tanner a chance to bring this into Ocala Car Audio. “We’ll run some advertising,” he noted, “but usually we’ll just do sponsorships.” However, Tanner said, the addition of paint protection film to the shop’s list of
