Real World Retail

STAYING TUNED

Auto Sound was founded 50 years ago by Ronald Needleman, Sr. Today, the business operates on the same high standards, facing today’s challenges with skill and flexibility.

WORDS BY ROSA SOPHIA

In September of 1971—50 years ago—Ronald Needleman, Sr. opened Auto Sound in his home garage, focusing only on dealership work. Ron Needleman, Jr. was born September 21 of the same month, and since the family can’t quite recall the exact date the business opened, they celebrate its founding on Ron’s birthday. Today, Auto Sound has three locations: Plainville, Mass. serves as the company’s corporate office and warehouse, managed by Ron’s brother Paul. Ron Needleman, Jr. is the manager at the Middletown, Mass. location, which has about 5,000 square feet. The newest location is in Scarborough, Maine.

The business has about 40 employees and a high rate of retention. Fourteen of the team members have been with Auto Sound for over 20 years. About 75% of its revenue remains rooted in dealership work, with a team of mobile technicians who are on the road doing installations. “We do a lot of remote starts, moonroofs, leather interior, car audio and mobile video, tonneau covers and running boards,” Needleman said. However, due to recent shortages in vehicles at dealerships, he added that Auto Sound has seen a doubling of retail business while dealership business has shrunk. “More people seem to be keeping their cars and upgrading them,” he said, “rather than buying a new car—because they just can’t find a new car.” Needleman, Jr. said between all three locations, they might work on 30 to 40 cars per day. Before the increase in retail sales, it was about 20 to 25. He added this also depends on the time of year. During the winter, the number of cars double due to remote start installations.

“We used to do lower-ticket items, but CarPlay [units] have doubled ticket prices on a typical car radio installation,” he said.

Celebrating 50 Years of Car Audio

Over the years, the business has gone through many changes while remaining true to its core of dealership service. During the 1990s, the business had seven stores but over the years, the family decided to consolidate the locations into three larger retail spaces. Ron Needleman, Jr. recalled his father’s beginnings in the industry, stating that he attended Northeastern University to become an electrical engineer. His father’s work at Automatic Radio designing car radios led to his realization that car audio was growing faster every year. Recognizing the need, Needleman, Sr. partnered with Bernie Feldman to open Auto Sound. The two men were partners for about five years, said Needleman, Jr. Audio VOXX then invited them on-board, and the two companies have been closely partnered ever since. Both

Feldman and Needleman, Sr. worked for Audio VOXX while running Auto Sound. “My father ended up the vice president of engineering,” he said. “He designed radios made to fit into certain cars and look like a factory radio. He traveled all over the world and found manufacturers to build the products he was designing, while running Auto Sound with my mother answering phones out of our home.” To celebrate the momentous anniversary, Audio VOXX hosted a party at its corporate headquarters in New York. Ronald Needleman, Sr., Ron Needleman, Jr., Paul Needleman and Howard Honigbaum—Auto Sound’s president—flew up to attend. Needleman, Jr. noted that he’s learned a lot from his father. “Working with him from a very young age helped us see how he did things firsthand,” he said. One thing they learned from his father, according to Needleman, Jr., is the importance of building a team of great people. Also, “Don’t be afraid to admit that while you might excel at certain things, you have other people to support you in areas where you might not be as strong.”

Expanding to Meet Needs

Following continued requests from dealers in Maine looking for moonroofs

and leather interiors, Needleman, Jr. said he bought a box truck and hired an installer, sending him up to install at dealerships. “When it got busier, we opened a small garage in Westbrook, Maine, which didn’t have a retail store,” he said. This past year, the shop expanded into a much larger facility with a retail showroom in Scarborough, according to Needleman, Jr., who added that the location has about 4,500 square feet of space. The team expects the Scarborough location to attract even more business in the near future due to in-process land development bringing in mixed-use retail, condominiums and homes. “We’ve already started getting more business,” he added. During the COVID-19 pandemic, the business has kept its focus on selling quality service rather than brands or products. When something’s unavailable, Auto Sound will offer another product of equal quality. “If someone’s looking for a Viper and we don’t have it, we’ll recommend a Prestige,” he said, adding that because of the business’s longevity, its client base trusts them. Auto Sound, he added, stands behind its products. In the end, “You’re selling yourself and your services.” Where necessary, the business has had

to alter its buying patterns. Fortunately, when the pandemic began, Needleman, Jr. said, “we had a feeling, so we started buying more. We’ve been stocking retail products, and we’re heavily loaded with CarPlay pieces and remote starters.” Because they were able to stock up, Auto Sound has had other businesses reach out via Facebook groups. “People will ask for certain items,” Needleman, Jr. said. “I’ll share them when I can, but we also have to make sure we have enough.” One brand the shop never carried until now is BOSS Audio, which Needleman, Jr. said they brought in within the last year to fill in some of the void. “We’ve had good luck with them, but we aren’t selling them to audiophiles,” he said. “If someone just wants CarPlay and they aren’t looking for a high-end system, it works well. We aren’t selling as many of them as we were six months ago, because we’ve gotten more Alpine and Sony recently.” The team has also had to source product through other channels: “I’ve ordered on eBay and Amazon because Metra Electronics or a distributor doesn’t have something specific. You find yourself buying from different places just to make the sale,” he said, adding, “You reach out and find it where you can.”

Add-Ons Continue to Increase Ticket Sizes

The typical ticket at Auto Sound is around $5,000. Needleman, Jr. said the majority of their clients aren’t looking for high-end systems, though the shop sometimes builds custom enclosures. Auto Sound offers “Winter Packages,” which include heated seats and remote starters. Depending on how busy things are, Needleman, Jr. said they’ll offer a discount when these items are bundled. “Add-ons provide us with additional revenue. If you’re selling a radio with a back-up camera, or any other small add-on, you’ll get a lot of additional revenue.” Another popular add-on to a remote start installation is CarLink, to start the car from the user’s cell phone. “Sometimes if we’re doing a sunroof, we’ll add a wind deflector on the top,” he said. If a relatively new salesperson needs assistance with a more complicated job, they’ll hand it over to Ron or Paul. Most team members stick to their specialties, but will branch out into other categories depending on the individual. Auto Sound welcomes those who want to learn more and expand their skillsets, Needleman, Jr. added.

Foreseeing a Bright Future in 12-Volt

Although the COVID-19 pandemic and inventory shortages brought a lot of uncertainty, Needleman, Jr. said the Auto Sound team is pleasantly surprised with how well things have gone. Retail sales are up as much as 75 percent. “The future looks bright,” he said. “Because of the shortage on new cars, we were able to focus more on growing our retail business.” What’s the bottom line for a business? It’s simple, according to Needleman, Jr.: “Do a good job,” he said, adding that his father instilled in him the importance of community and word-of-mouth. Because of the longevity of the business, many clients find the shop through a friend or another business. Car dealers will tell their customers about Auto Sound, and existing customers will post about the business online. “It’s amazing how many people know our name. In the old days, it was real talk around the dinner table, or at neighborhood BBQs,” he said, adding, “Today, with social media, it’s great to see someone post a simple question like ‘Where should I get a remote starter?’ and see all these random people reply to the post with links to our company.”

FAST FACTS

MAIN LOCATION: PLAINVILLE, MASS.

NUMBER OF LOCATIONS: THREE

SQUARE FOOTAGE: 10,000

TYPE: TRADITIONAL RETAIL

NUMBER OF EMPLOYEES: FORTY

KEY STAFF

OWNERS: RON NEEDLEMAN, JR. & PAUL NEEDLEMAN

ADVISOR: RONALD NEEDLEMAN, SR.

GENERAL MANAGER, MIDDLETON: RON NEEDLEMAN, JR.

GENERAL MANAGER, PLAINVILLE: PAUL NEEDLEMAN

GENERAL MANAGER, SCARBOROUGH: JEFF THERRIAULT

PRESIDENT: HOWARD HONIGBAUM

ACCOUNTS AND HR: BETH KRESSLER

DIRECTOR OF OPERATIONS: ANDY SUSSMAN

TERRITORY SALES MANAGERS: RON DEMOURA, ED DEAO, JEFF MITCHELL

“What Would Dad Do?”

Ronald Needleman, Sr. has been retired for 20 years, though he remains Auto Sound’s key advisor. Although Ron Needleman, Jr. and Paul Needleman are the official owners of the business, they often ask themselves, “What would Dad do?” “We are always mindful of this question,” said Needleman, Jr. “We stop to think, ‘What would Dad do in this situation?’ He’s just a phone call away if we want to run something by him.” Needleman, Jr. shared a number of key lessons he’s learned from his father over the years, lessons which other retailers can apply to their own businesses. Chief among these lessons is, “Listen to your team. Try to be a part of that team as much as you can. Just because we own the company doesn’t mean you won’t find us cleaning the garage or vacuuming the showroom,” he explained. Additionally, one must never take customers for granted: “Treat every customer like they’re your only customer,” he said. “Dad was always huge on going out of his way and bending over backward to make sure every customer had an outstanding experience.” Happy customers, he noted, tell their friends—and so do unhappy customers. “Dad also taught us never to settle,” said Needleman, Jr., adding that no matter how good business is, there’s always something to work on, something to improve. “Owning a business is about continuing to grow and improve through education. Education might be learning about new products, but education can also be about learning more every day about your customers and their needs. Never stop learning.”

Detailed Quotes Aid in Closing Sales

When customers call and request a quote, the team asks for vehicle and contact information. Then, Needleman said, a quote is created that resembles an invoice. Since implementing this detailed quote system at the start of the pandemic, close rates have increased overall. Needleman, Jr. said the team chose that particular time to make the change because they had the time to try something new. Every product is included in the quote along with links to further resources. “They can look at each part so they fully understand what we’re doing,” he explained. “People will call back a week or two later and book it. They give us the quote number. We make sure we have product and we book the appointment.” Needleman feels the new quoting process informs customers and inspires them to trust Auto Sound. “Most people don’t want to do the installation themselves. And most people who come in or call are ready to buy from us.” Additionally, Needleman said the shop uses 12Volt.Biz Toolbox for scheduling customers. The software sends the customer a text to confirm, then a reminder before the appointment. “Afterward, they get a text asking if they’re satisfied and it sends a link to give us a Google review,” he added. “It’s very effective, and we do get reviews that way.” Overall, the best marketing comes from Facebook. Andy Sussman, director of operations, handles marketing for the company and manages the website, where at least 10 to 15 quote requests come in every day from prospective clients.