What’s Happening

Guardians of 12-Volt

Industry professionals discuss ways of guarding business interests, diversifying to ensure longevity and protecting businesses during times of potential economic distress.

WORDS BY ROSA SOPHIA

With the pandemic came uncertainty, product shortages and plenty of online training. While business at many shops is currently booming, some retailers express growing concern for a potential economic slump. Jason Kranitz of Kingpin University in Las Vegas, Nev., who was featured on the February cover of Mobile Electronics magazine, said he feels a recession could be on its way.

“Right now, people are getting stimulus money,” he said, adding that a lot of the recent retail business feels like the “easy money” of the ’90s. “It’ll dry up, and shops will have to find business again.”

Brandon Green of The Car Audio Shop in High Ridge, Mo. agrees this is a possibility, but he noted that well-prepared businesses will likely continue to manage as they always have. “Even things like vehicle and technology changes already separate businesses that really go out and market themselves and educate themselves, from those that don’t want to learn or put in effort to improve themselves,” he said, adding, “I think we’ll be fine.” Retailers and business owners agreed that being able to adapt to changes is key.

Staying Focused on Core Values

Vernon, Conn.-based A.C.T. Audio has recently learned that pinpointing core values—and continuing to revisit them during company meetings—helps maintain a straightforward trajectory, and also improves store culture.

Shop owner James P. Smith said the business has seen a lot of recent change,

including an expanding staff and ongoing renovations. “I’m also trying to develop a way to put outside perspective on a company. This is a process I want to try to develop,” he said, adding that he hopes it can also help other shops. “Every day we come in and walk past things that need to be addressed, but we don’t necessarily see or notice them. We might be blinded to issues with employees because of our relationships, or we’re putting things on the back burner.”

Recently, he recorded video while walking through the store, and then reviewed it. “In the video, I’ll see things I had to fix that I had forgotten about,” he said. “We’ve become so immune to our surroundings. What process can we use to review that, and bring it to the forefront to take care of it more promptly?”

Essential to a well-managed business, he said, is discovering one’s core values. Smith advised identifying them and then writing them down. Then, most importantly, “You have to hold yourself and your employees accountable.” He added that he reviews the business’s core values with employees during a monthly store meeting.

“You always want to review your core values, because they can change as you grow. I recently added ‘communication’ to our list. As our business grows, communication becomes more important between me and my employees,” he said. “It also doesn’t hurt to evaluate your employees once a year or even more to make sure they’re also adhering to your core values. Just because they were when you hired them, doesn’t mean they are a year later. And if they aren’t, why aren’t they?”

Choosing to adhere to core values has drastically changed and improved the overall culture of his business, Smith said. “We’re all on the same page now. We’re moving forward faster than ever, and we enjoy the days even more, because we’re all in this together.”

A.C.T. Audio follows the core values of integrity, growth, truthfulness, communication and professionalism, which Smith said have definitions according to the store’s mission and vision for the future.

Instead of worrying too much, he tries to focus on his strategy. “When COVID- 19 first started, some business owners slipped, and others were proactive in trying to move forward,” he explained.

“When I found out my state was going to shut down, I called every estimate in the books and said, ‘Get your car here and I can get it done during the shutdown.’”

This resulted in a month’s worth of work that helped the shop pay the bills. “When things like that happen, I assess the situation and decide on the best course of action.”

Supplementing Income with Fleet Work and Diversification

For Joey Knapp of Pinnacle Autosound, work has been about the same. “We do cars, boats and golf carts.” Additionally, he added, the business picked up two new types of jobs: “We are building tech displays for a local bank. They wanted to make a center where clients could communicate on tablets with customer service to set up new accounts. They couldn’t find any contractors to do it, and someone I knew who worked at the bank suggested me. I’ve done two banks so far, and we have more lined up.”

For another company, Knapp made tablet holder stands with an integrated thumbprint reader for employees. “That also helped push us to our best year so

far,” he said, adding that he didn’t actively seek out these jobs, but was hired due to his connection to people in the local community.

With plenty of fabrication tools on hand, Knapp added that he sees a lot of opportunity for diversification into other projects. “There’s so much I could do with the laser in terms of marketing,” he said. “I even made Christmas ornaments for a local art gallery for fundraising. If things ever slowed down more, I’d start pushing into that area.”

Keeping ideas like this in the back of his mind, he said, helps him to be prepared.

Tomas Keenan of Break Free Academy in Dallas, Texas, said he’s always been a proponent of diversification as a way to protect one’s business interests and to expand. “If you haven’t considered getting involved with GPS tracking or a service-based business attached to necessary industries, you need to do it,” he said, recommending 12-volt shops service mandatory industries. “Can we help HVAC companies, for example? Food delivery trucks? Larger companies like Amazon and UPS? The answer is in fleet work.”

When Keenan worked in retail, he said,

a customer might be quoted $10,000 for an audio system. “They would almost fall over in shock. Now, in the commercial industry, you’re dealing with a fleet of 100 trucks and the owner says they want to install backup cameras.” Keenan said when he told them how much it would cost, they paid without even flinching. “It’s all perspective,” he explained.

Smith agreed, adding that fleet work is a great way to supplement the store’s income. “If we go into a recession, fleet work isn’t going away. We still need freight transportation across the country, school buses and emergency vehicles.”

A.C.T. Audio—with its recently created branch of the business A.C.T. Audio Fleet—has been installing cameras in an auto parts retailer chain in New England and GPS tracking in fleet vehicles, Smith said.

Preparing for Change

Keenan advised business owners ensure they have funds stashed away. “If people think a recession isn’t coming, I think they are wrong. That’s just my opinion,” he said, adding that he also feels cryptocurrency will gain more traction in the near future.

While Kranitz and Keenan both anticipate a potential slump, industry professionals are continuing to prepare for any eventuality. Knapp explained that while he does plan ahead, he tends to be more reactionary in his thinking.

“I don’t have enough insight to do mass-planning,” he said, adding that he’s been keeping more product on hand because of this year’s backordering problems.

Although business may drop off once things go back to normal, he noted he still feels his shop will be better off than it was before. COVID-19 led to an uptick in business from new customers—people he wouldn’t have met if not for the pandemic.

Diversifying and staying prepared is always good advice, no matter the situation the industry faces. Sales trainer Del Ellis said he’s always been a believer in diversifying. “There’re so many things out there you can do,” he said. “If you can’t beat them, join them.” An unwillingness to change, he added, will be the downfall of any business. “You definitely want to diversify to protect yourself.”

Tony Dehnke of 12volt Biz said that he could see business declining once people

start spending more money on flights, concerts and other entertainment instead of RVs and “staycation” vehicles, which has been a recent trend.

“However,” he added, “at the same time, people may really like their upgrades and want to keep doing them. This might be the challenge for our industry: How do we stay in touch with all the clients”—including the new ones who emerged to spend stimulus money—“to remind them of what we do and how much they love the results?”

Working On the Business

The Car Audio Shop’s revenue is only slightly down from the previous year because COVID-19 prompted a monthlong shut-down, according to Green. The business continues expanding. “I’m feeling positive and hopeful that everything will go well,” he said, adding that he expects services at his new, second location to remain pretty much the same, although the location’s demographic is slightly different.

“The new place gives us about 1,800 more square feet, and it’s set up differently,” he said. “It’ll be good for the events

and the clubs we sponsor, once we can get back to that. It’ll allow us to do more in the community we support.”

During KnowledgeFestWest.Live this month, MEA President Chris Cook interviewed Dave Elkin of DOW Technologies and asked him about product shortages and the impacts of COVID-19 on the industry. Elkin stressed the importance of staying professional and prepared. He advised business owners to work on their businesses—not in them.

“It’s nice to have a customer in the shop today, but you have to always think of how you’ll bring the next customer in tomorrow,” he said. “Look at your business through the eyes of your customer. Does your shop look inviting? Would you send your wife or your mom there? Manage your actions to make changes you need to change. Network with folks locally, build relationships, and make sure you get your messages out.”

The industry continues to deal with product shortages, and Elkin also highlighted the trend of spending money on recreational vehicles. “I think we’re seeing a lot of technology we put in everyday drivers extending to those other vehicles.

Shops should be prepared to be able to handle all types of installations in a variety of different vehicles, because I think that trend is going to continue,” he said.

Blind spot radar and similar technologies have recently become available for motorcycles and RVs, according to Elkin, who said safety and convenience is on the rise. But in these uncertain times, what’s the best advice?

“Take the time to hone your skillset,” Elkin said. “Understand inventory turns and when it’s time to start dropping prices, or get things out of the barn. Sometimes you have to take a loss to monetize the value of sitting inventory so you can spend it on something that will turn faster. Don’t lose your passion. Find the balance between personal and professional life. That look a long time for me to learn,” he added.