What’s Happening: The Industry Responds to COVID-19

During an unprecedented global emergency, the 12-volt industry is coming together in mutual support to help keep employees and clients safe and healthy.

WORDS BY ROSA SOPHIA

By mid-March, schools began closing in response to the spread of COVID-19, social distancing became the norm and restaurants that hadn’t closed offered takeout and delivery only. All major sporting events were suspended. Travel restrictions were put into place all over the world, and stay-at-home orders were soon to follow in various cities around the country. Mobile electronics businesses have responded by switching to appointment-only, closing the retail sides of their stores—or by closing entirely. Many have been able to stay open, which accounts for about 65 of the industry.

Sound Wave Customs in Virginia Beach, Va. is limiting the number of clients in their showroom and has closed their waiting area, according to the business’s Facebook page. If they aren’t feeling well, customers are asked not to come in.

Odin Mattes of Earmark Car Audio & Tint in Plano, Texas said the shop has seen an immediate drop in business, and has since closed temporarily. “February is traditionally the slowest month of the

year for us,” Mattes said. “This February was a little softer than usual after a good January.” While March started out well, he added, it’s since dried up. The shop’s main categories are car audio, remote start and security, and window tint and paint protection.

At the time of this writing, Absolute Electronix in Rockville, Md. still had a steady stream of business, according to owner Ata Ehdaivand. The shop closed the retail side of the store and decided to only allow one client in the store at a time. “We still have good business,” he said, “but we’re also in a very rich county. We’re not recession-proof, or depression-proof, but it takes a little bit more to get us in a bad situation. We’ll see. I have high hopes.”

Ehdaivand added he sees this as an opportunity for the industry to work together and strengthen collectively, stating, “This is the time for the cream to rise.” If a business doesn’t reopen, he said, “It doesn’t mean they don’t do good work. It just means they weren’t in a strong place.”

During an owner and manager roundtable hosted online by Mobile Electronics Association, Kevin Hallinan of WINNING, Inc. encouraged attendees to cultivate a positive mindset right away. “Do the

best you can. We’ve never seen a time like this in our country and our world. It can either bond people together, or drive them apart. I’ve personally seen more bonding,” he said, adding, “We all have a choice when it comes to our beliefs and our mindsets.”Initial Impact on the 12-Volt Industry

Ethan Blau, owner of Sound Wave Customs, said things began to change on the day of the shop’s annual Salepocalypse event, which was held on Friday the 13th of March. “I felt like we were going to have a record year,” Blau said. “A day or so before the sale, though, the governor started shutting things down.” Everything was already set up, he said, adding, “Manufacturer reps were coming in from out of town. I had tons of product. One person canceled because their company wouldn’t let them fly.” While moving ahead with the sale, Blau took extra precautions. The shop was deep-cleaned and they acquired additional hand sanitizer.

Before the sale every year, Blau said, there is usually a long line before the event opens at six p.m., while radio stations set up in the parking lot and keep attendees entertained. This year, it took a little longer for the line to build. “Luckily, at about 5:45, we had around 30 or 40 people in line,” he said. “It was a lot lighter than any other year, but we also sold higher-end stuff.”

Despite the announcements made on that day—schools were closed, and local officials recommended self-quarantining—Blau said Salepocalypse went well. Still, he added, revenue was down about 20 to 25 percent from last year. It wasn’t until Wednesday of the following week that business began to slow, and Sound Wave Customs started seeing cancellations and no-shows. “This is my livelihood,” Blau added. “It’s scary.”

Ehdaivand said the first thing the shop did was switch employees’ pay from salary to commission. “They were more than happy to do whatever it takes to save this place,” he added. “We talked about it, made a plan and that was that.”

Keeping Employees and Customers Safe

Nick Beckman of Lawton, Okla.-based High Volume Car Stereo said the shop is ready to make adjustments where needed. Switching to appointment-only helps maintain social distancing, he added. “Here in Oklahoma, things are very spread out, but everyone should still follow the rules and apply preventative measures,” he said.

It’s important to keep employees and customers safe, Blau agreed. “We all have to band together on this,” he said, adding, “Not just in 12-volt, but also in the service industry. We’re all in a difficult spot.”

Tomas Keenan of Top Class Installations noted that his business has no facility, but it does have 11 field technicians who go out and perform the work.

Top Class is located in New York, one of the hardest hit areas in the country.

Non-essential businesses in the state shut down by March 22. “We’re in GPS tracking, so we fall under logistics and technology support for trucking companies.” Employees at Top Class kept working until they no longer felt comfortable. “We are not producing anything at this time,” Keenan added, “but we are still operational in the office-end of things.”

Focusing On Business Structure

Keenan is also the author of Unf*ck Your Business: Stop Business Self-Sabotage by Getting Clear on Your Core Values NOW. Keenan stated that it’s important for owners to take this time to work on their businesses. “If you can’t interact with customers, you probably still have a facility you can go to,” he said. “Go organize stuff. Revamp a display. Swap out the gear. Start building or fine-tuning processes that support the functions of your business.”

Keenan said this can include considering the shop’s intake process for vehicles, creating check-in forms, taking a closer look at operations such as software and more. “There’s never been a better time to start working on the foundational stuff that makes your business more efficient,” he said, adding, “Rather than panicking, focus on something you can impact—not something you have no control over.”

Blau echoed Keenan’s advice. “Stay positive,” he said. “If I have to be closed, I have to look at the next thing. For example, I want to rewrite my 63-page employee handbook. I can do that from home or the office.” Blau said he may also use the time to do additional deep-cleaning, organizing, building new displays for the showroom or completely change the layout of the showroom. “It’s important to keep things new and fresh,” he added. “I would like to paint my bay floor, maybe reorganize the tool boxes.”

Mattes said there aren’t many projects to do around the shop during the downtime. “I bought a new car last year, and we haven’t had time to put a demo system in it. We talked about doing that so it’s ready when things come back around.”

Many businesses have had to close temporarily as a result of the spread of COVID-19, including Earmark Car Audio & Tint in Plano, Texas. Other shops have been able to stay open while taking the necessary precautions to protect staff and clients.

Continuing to Learn and Grow

Stay productive, Keenan urged. Retailers agreed now is not the time to be stagnant. Some manufacturers and distributors are holding online trainings to help retailers keep up-to-date. Additionally, Kingpin University is offering free online courses during the pandemic to help retailers and technicians stay educated. To take advantage of these sessions, visit The 12V Empire Facebook Group and request to join.

“So many people get nervous and worried—I get it, I really do—especially as a business owner who is worried about payroll and my family at home,” Keenan said. “Stay positive. Keep working. No matter how small the amount is daily, you have to keep pushing forward. It’s difficult in these trying times, but it will allow us to keep things together. Not just in our industry—but in any industry.”

Ehdaivand is one of many industry professionals taking part in online calls to discuss how the industry can move through the crisis together. He said he focuses on trying to move discussions in a positive direction. “Let’s talk about what we can do to go forward,” he said, adding that manufacturers and dealers need to find a way to work together to find solutions during this difficult time. “They can’t lose business, and neither can we. We have to work together to keep the industry strong despite this.”No

Emergency Plan? Create One Now

Some people have no plan for an emergency of any kind, Keenan said, and now is the time to start building one. “One thing I learned many years ago is to take a set percentage of money and divert it to a hidden bank account every week when I get paid,” he said. “It should be a local bank within driving distance, but not close. Across town would be ideal, so it’s not easily accessed. When you set it up, don’t get an ATM card or turn on online banking. Make it very difficult even for you to pull money from the account.” Keenan advised setting up a direct deposit once weekly—whatever number works best for the individual. “You’d be surprised in one or two years how much money accrues,” he added.

Ehdaivand admitted the team at Absolute Electronix probably wasn’t as prepared as they could have been. However, he said, “We didn’t panic. We made changes as quickly as we could.” The changes, he added, were implemented based on the potential for total loss of business. “Luckily, that hasn’t happened.”

Blau admitted he doesn’t have enough of an emergency plan in place, beyond insurance preparations for hurricanes. “I think if you haven’t done it already, now

is the time to think about planning for future emergencies,” he said, adding that while no one wants to think something bad might happen, it’s still important to be prepared for it. “Make sure you have a one, two or three-month shut-down plan with money set aside,” he added. “I applaud those who have more solid plans in place.”

Beckman said he thinks his shop is in a good position to be able to handle what’s ahead. “Ignition interlocks make us an essential business,” he said. “I’ve already told my employees I’m paying them for six months, even if I do zero business. The money we make, we reinvest into the business. We haven’t been wasteful with spending.”

Beckman said he’s also been working toward having at least six months of finances set aside so there’s a backup in case an emergency happens. “I haven’t gotten there yet, but I still think we’re well-suited to be able to deal with this based on how we’ve handled the business.” He added that if he’s not making any money, he will call banks and lenders to put off personal bills, too.

Keenan said now is the time to apply for the Small Business Administration’s COVID-19 economic injury loan. “Right before this, my business started applying for an SBA loan without knowing any of this would happen. I am glad we got a head start. The system is inundated with requests.” He added that businesses should apply for this loan right away, and continue seeking out resources to stay informed during the spread of Coronavirus.

Staying Connected and Providing Mutual Support

Most importantly, industry professionals should stay productive, Keenan said. “As much as you may want to sit back on the couch and drink, it’s not the time,” he added. “Get your body moving. We’re all

at home now. If you’re not into exercise, you leaving the house on a daily basis was probably more exercise than you’re getting now. Do something to make up for that lost movement.”

Keenan also recommended eating well, meditating and maintaining stress. “Look up Dr. Joe Dispenza,” he said. “He talks a lot about meditation and what it will do for a person.” Keenan noted that during stressful situations, the immune system is weakened. “The more stress you take on, the worse you eat, the more you sit around—the higher the risk you could catch something, even a common cold.”

Although things are difficult, retailers agreed staying productive and trying to be positive is the best way to move forward. “We all work a lot of hours,” Blau said. “There are days and weeks that seem to never end, especially if you’re short-staffed. Spend time with your family, too. It’s important. Take some extra days and be with them.”

Additionally, Sound Wave Customs is staying connected with its customer base by remaining active on social media.

Ehdaivand advised owners and managers to take their health and their family’s health seriously. “The business will figure itself out at some point,” he said. “Good, bad or indifferent—it will figure itself out.”

Now is the time to plan how the business will recover when things return to normal, Blau said. “Think about marketing. Plan budgeting, and how to be stronger with less liquid.”

Keenan added, “Work on the structure of your business at this time. When we come through this on the other side, you will have that foundation strengthened and you’ll be able to just take off.”

Through creative thinking, businesses can remain relevant during difficult times. During the weekly Mobile Electronics Association roundtable, John Schwartz of Perfectionist Auto Sound and Security underscored this fact. “We can be relevant right now,” he said. “Money is just a side effect of great service.”