Real World Retail: KarTele Mobile Electronics

FAST FACTS

LOCATION:Waterbury, Conn.Number of Locations: 1Square Footage: 1,500Type: Traditional RetailNumber of Employees: 4

MAIN FOCUS

60% Remote Start40% Car & Marine Audio20% Accessories

KEY STAFF

Owners: Mike Hungerford, Skyler Arnold

Seasonal Sales: George Mowad

Sales and Shop Assistant: Greg Hungerford

Hungerford hopes to offer more motorcycle audio and custom fabrication in the near future, with the potential of collaborating under the same roof with a local shop that works on bikes.

Despite a global crisis, KarTele Mobile Electronics has entered its most profitable quarter of the year, and looks forward to expanding into additional categories to better serve the community.

WORDS BY ROSA SOPHIA

While Mike Hungerford has been co-owner of KarTele Mobile Electronics in Waterbury, Conn. for three years as of April first, he’s been in the industry for close to 20 years. Of store ownership, he said, “It’s been a learning curve.”

KarTele originally opened in 1994 as a cell phone store, and later switched to 12-volt. For the past year, Hungerford ran a different sale each month to celebrate the shop’s 25 years in business and included a free USB cable with any Android Auto or Apple CarPlay compatible unit. Anniversary sales focused on something different each month— lighting, audio, remote start or backup cameras. Now, the shop is approaching its twenty-sixth year in business. Over half of the business’s revenue comes from remote starts, while the rest comes from car audio, marine audio and accessories. “All year long, [for the anniversary celebrations, if we noticed] any veterans come in wearing a service hat, or if they had veteran plates, when they came in to pay for the job, they received free installation,” Hungerford added. “Many of them are on fixed incomes, and it was very well-received and appreciated.”

Hungerford said that even after all these years, the business has maintained its approach to customer service. “Because of how we take care of our clients, we’ve been able to last in an industry that constantly changes and we are generating a higher revenue than ever before,” he added, noting that all jobs— big and small—are treated with the same level of importance.

Big Ideas and a Small Support System

In the near future, Hungerford hopes to expand the size of the shop in its current building, doubling the size of the showroom and tripling the bay. “I also want a dedicated wood room and fabrication area,” he said, adding, “I want to change people’s opinions on the industry in our area. I want customers to know they can trust us with their vehicles.”

Though the shop has a staff, it’s mainly seasonal. As spring and summer approaches, Hungerford said he will be

working alone. “George Mowad works here in the winter as my salesperson when we’re jamming 10 to 12 remote starters a day,” he said. “He had a surgery this past year, so my brother came in and took over.”

Greg Hungerford, Mike’s brother, took on a number of tasks including helping in the bay, taking dashes apart and pulling cars in and out of the garage. “Right now, it’s a one-man operation. Today I had to close the store because we were down working at the marina,” he added. While Hungerford has to handle a lot of duties on his own, he has help from a supportive family and network of friends.

“If I have a big job with a deadline, I can always find someone willing to come by and help out with phones and walk-in customers,” he said. “My daughter Rachael has helped clean the store on occasion. My girlfriend Chrissi is always

Customers often say multiple people recommended KarTele. In fact, most of the shop’s business comes from outside referrals.

offering to help clean the shop and showroom or get me a new roll of tape while I’m jammed under a dash.”

The toughest thing about so often working solo, Hungerford said, is how busy the store has become. “Cars are dropped off. Twenty-five to 30 customers come through the door in a day, and I get a whole slew of phone calls,” he added.

As the shop continues to grow and revenue increases at a steady rate, Hungerford said he has recognized an opportunity to offer more services to clients. This will in turn lead to hiring specialized team members.

Adding Services to Increase Revenue

Hungerford said the shop will begin diversifying into window tint this summer, adding that it was one thing he’d never learned to do before.

“I might set up a tint area here,” he said. “That was half the reason we remodeled the garage recently. It was too dusty before.” Hungerford hopes to hire a full-time window tinter, as long as the shop can generate enough revenue. “We get calls all the time,” he said. “Right now, I refer them to another shop locally who does it, but I would like everything in-house.”

Furthermore, Hungerford said the shop will be getting into custom motorcycle builds. “We do a lot of audio, but no custom fabrication yet,” he said, adding that he has been exploring the idea of collaborating with another local shop that does motorcycle audio. The two businesses have already been working together, he said, but they would like to get under one roof. “We’re considering collaborating as two separate businesses, but in the same building.”

Next on the list is a dedicated area for custom fabrication, which is something Hungerford feels is lacking in his area. He recently attended Dealer Boot Camp at Mobile Solutions, sponsored by Sony Car Audio, and learned a lot. “That’s the direction I’m heading in,” he added. “Custom fabrication.”

Referrals Account for a Bulk of the Business

The shop is located in a very busy area, according to Hungerford, and positive interaction with other local businesses has led to many referrals. Much of the shop’s revenue accounts for referrals. Auto parts stores such as Auto Zone, O’Reilly’s Auto Parts, Advanced Auto and Pep Boys all stand within close proximity.

“All the auto parts stores around here send people to me,” Hungerford said. “We also have great relationships with local dealerships that sell used cars. A lot of our business comes from word-of-mouth

KarTele stands behind the few product lines it carries, Hungerford said, which demonstrates to customers that the shop believes in quality and will not just sell anything.

referrals.” Customers often tell Hungerford that multiple people recommended KarTele to them. “There’s nothing better than referrals,” he added. “I didn’t spend anything to get that customer.”

Additionally, he said the shop has a high close rate when it comes to sales. “A customer usually has an idea of what they want when they come in, but not specifically,” he said. “You have to qualify them by asking questions to find out their main goal. About 60 percent of the time, someone will say, ‘I just want a little bass. I don’t want to spend a lot.’ Next thing you know, they’re putting together a full system.”

Sales should be approached by asking a lot of questions, Hungerford added. “I wait out the awkward pauses and let them fill the space,” he said. “Often, they fill that space with, ‘Okay, when can you do it?’”

KarTele carries a very small selection of brands with the intention of standing behind the product and demonstrating quality. “I don’t have 30 brands of radios,” Hungerford said. “We keep our product line streamlined. I think it helps because it shows we believe in this product, and we aren’t just throwing everything at a customer.”

The shop also continues to freshen the appearance of the showroom, with the intention of exposing returning customers to something they might not have noticed on their last visit. “The constant rotation keeps the display nice and clean as well,” he said, adding that he also enjoys decorating for holidays. “There’s nothing better than seeing people smiling when they walk in and see how festive, clean and welcoming the store is.”

This year, KarTele Mobile Electronics was given the Sony Circle of Excellence, Top 50 Dealer award. Hungerford feels that much of the business’s achievements are due to the positive store culture he continues to nurture.

Demonstrating Commitment to Quality

When it comes to training, Hungerford likes to focus on OEM integration. He also attends trainings on remote starters, simply because it drives such a large percentage of the business. He noted that he likes to give customers a chance to explore the showroom before discussing a project.

“Every customer who walks in is greeted, even if I’m on the phone or with another client. As they wait, they can have a seat in our showroom or make a complimentary cup of coffee,” he said, adding that the showroom layout is designed to get clients thinking about the possibilities. “They may have come in for a remote starter, but they’ll also see we offer WeatherTech Floor Liners and LED lights.”

Hungerford feels the shop’s increased revenue, especially lately, is related to the positive store culture he continues to nurture. “We build relationships with vendors and salespeople, and we are dedicated to every customer—no matter how much or how little they are spending,” he added.

The main hurdle? Demonstrating commitment to craft. “We often fix work from other facilities, and it’s getting bad.” Hungerford noted how much free training is available to retailers, adding that shops should take advantage of these opportunities. “A lot of them don’t,” he said.

“We are still seeing speakers selftapped into doors without bracketing, poor wiring techniques, bad grounding and sloppy work. That’s not the kind of stuff we do here.” Some customers arrive at the shop with a negative feeling toward the aftermarket industry because of bad experiences elsewhere, he said, adding, “It’s my job to show we’re strict about the quality of work we do and our installation practices.”

Go Fast Solutions Goes Above and Beyond

KarTele Mobile Electronics gets most of its equipment from Go Fast Solutions, which Hungerford said often goes above and beyond to support the shop as a retailer. “David Prinz has really transformed that company to meet the needs of this industry,” he said. “Jonathan Mercado has been extremely important to our success,” he added, noting that Mercado, the company rep, is always willing to help the shop get what they need. “He’s a wealth of knowledge.”

Recently, the shop ordered a dash kit for a Cadillac. The kit was scheduled for delivery, but got lost in transit. When Hungerford called Mercado the day before the job was scheduled, Mercado called a half hour later and said he found the product and was having it overnighted. “Another time, I had a customer here who only spoke Spanish. I don’t. We made it work. I pointed at products, and we were figuring things out. It got to the point where they were ready to buy,” Hungerford said. “I wanted to explain a couple things to them. Just by chance, Jonathan happened to call. I asked for his help and he translated the entire thing and helped me close the sale.”

KarTele also deals with Directed Electronics. Remote starters are a top seller for the shop, and Hungerford said customers love the Bluetooth control and OEM remote on the Viper DS4.

Restaurant Placemat Ad Garners No Clients

When the shop advertised in three local restaurants on their placemats, they didn’t receive a single call, according to Hungerford. When he signed up, he carefully considered the placement of the ad. “I wanted our ad to be seen, so I requested the top righthand side of the placemat, so a plate wouldn’t cover it while customers were dining. We thought it would be a good spot, and our goal was to hopefully get a few responses from it,” he said, adding, “It wasn’t expensive, but it did absolutely nothing.”

Thriving Despite Worldwide Crisis

Some shops in the industry have had to close temporarily due to COVID-19, while others have lost business. For KarTele, however, business has never been better. Hungerford said the shop services some breathalyzers, but most of their business is not in that category. To help safeguard against illness, the shop has been disinfecting each car when it comes in and again before it leaves, Hungerford said.

“There was about a week when the door didn’t open at all,” he added. “People were scared.” He went home for a few days, and then the phone started ringing. Hungerford reopened, putting a sign on the door stating that only one person was allowed in at a time. “Customers started coming in wearing face masks. It built back up and we had the best April we’ve ever had.” He said he wasn’t sure why business was so good, but added it could have been because of the stimulus checks. Either way, the shop had a marked improvement in business. “This has also been the best quarter of the year—off the charts,” he added. “The biggest seller has been Sony Car Audio.”

Hungerford said he endeavors to keep traffic down in the showroom. “Yesterday, I had someone here and we were working on a sale. Someone else opened the door, saw I had a customer and said, ‘I’ll wait outside.’ They waited in their car until the customer left, and then they came in,” he explained. “People have been very respectful.”