Visit a more established mobile-electronics shop here on a weekend and its likely to have the feel of a car rally, with young people coming and going in often tricked-out machines and all atwitter about the latest 12-volt gear they plan to add to their rides.
The somewhat frenzied scenes leave an impression that aftermarket retailers are up to their vent windows in business, with more work than they can shake a wiring harness at.
The reality isnt nearly that rosy. To the contrary, say those in the industry, sales have been flat for the last several years and are projected to remain that way. They attribute the malaise largely to automakers putting more gadgets into vehicles and to more complex electrical systems in those new cars that discourage aftermarket add-ons.
For example, most new cars now come equipped with compact disc players, they say, and some new cars electrical systems are complicated enough now that installing an aftermarket component can cause other parts of the system to malfunction.
To break free of that trend, some shops are trying to carve out niches, such as doing more custom design-and-build work or developing close ties with auto dealerships that can provide a steady supply of work. Others are hoping to get boosts from newer product sectors that still are maturing or are just emerging, such as satellite radio tuners, in-car mounted DVD units, portable navigation systems, and the integration of hugely popular iPod music and video players into cars electronic systems.
Theres been big growth in navigation. Navigation is becoming more and more affordable, and thats driving some increased demand for aftermarket installations, says Bob Heale, owner of Sounds on Wheels, at 12410 E. Indiana.
Mobile navigation devices use global positioning system (GPS) technology to display detailed maps and provide turn-by-turn directions, including through voice prompts, and even can provide real-time traffic alerts.
Also showing promise, Heale says, are mobile applications for Bluetooth short-range wireless technology, such as for receiving cell phone calls through a cars stereo system.
The bread-and-butter products, though, continue to be stereos, speakers, amplifiers, security alarms, and remote-start and keyless-entry systems. Popular among some young auto-sound enthusiasts are those monster subwoofers that, when cranked up, can be heard for blocks and rattle wall hangings inside nearby homes.
To diversify their product mix and augment cash flow, some shops offer other products, ranging from radar detectors and marine audio equipment to cell phones, windshield wiper blades, and accent lighting.
Heale says Sound on Wheels also does a lot of power door lock, power window, and cruise control installations. The business considers itself to be a specialty shop, taking on out-of-the-ordinary projects, he says, adding, We do a lot of dealership cars.
Even with that expertise, and despite a 27-year history here, the company has felt the effects of the recent stagnant market, which Heale describes as middling.
I wouldnt say strong, and I wouldnt say weak, he says. Its about the same as it has been the past few years. It was strong up to 9/11.
Over the years, Sound on Wheels has gone from multiple locations to just the one in Spokane Valley, which has proven best for not spreading itself too thin, he says. He adds that he decided recently for that same reason to pass on an opportunity to buy five Northwest stores operated by another company.
Sound on Wheels customers are mostly age 35 to 50, which is older than that of most other such shops here, probably due to its focus on specialty work, Heale says.
The products it sells range from as little as around $150 for stereo units to $1,000 and up for DVD systems, he says. As far as what customers seem willing to spend, he says, Its unlimited. Ive seen people spend $15,000 on a vehicle thats worth $4,000.
Brian Lombardi, Spokane-based general manager for six Aspen Sound stores, including two here and one in Coeur dAlene, says the industry overall has been sluggish, but adds, For us its been pretty good. In the last 10 years, weve only had one decrease in (annual) sales. Our goal for this year is about 8 percent growth, and so far it looks like were going to hit it.
He says demand for certain products varies heavily depending on the season.
Typically this time of year we do a lot of amplifiers and subwoofers. Closer to summer, were going to do a lot of marine work, and that will carry on through the summer, he says. In-dash DVD players tend to sell at about the same pace year-round, but overhead and headrest players designed to entertain back-seat passengers are in greatest demand in spring and summer, during vacation season, he says. Remote-start and keyless-entry sales heat up during the winter months, and satellite tuners are strongest around Christmastime, perhaps as gifts, Lombardi says.
On the marine side, he says, The wakeboard business has gotten really big for us over the last four or five years. With the tow-bar-equipped boats designed for pulling skiers and wakeboard enthusiasts, the huge thing now is to have speakers on them so the people behind the boats can groove to the music while they maneuver over the water, he says.
Well put in a radio, amplifier, and speakers just for that, and theyre expensive, Lombardi says.
Aspen Sound is just getting into portable navigation systems this year, and though its too early to gauge customer response, he says hes excited about their potentialalong with that of iPod-related systemsfor boosting store revenues.
Bluetooth technologys infiltration into mobile-electronics products also holds promise, Lombardi says. As cars become more and more complicated, it works better for us to have it be wireless because theres less chance for it to interfere with any wiring in the vehicle, he says.
Generally speaking, the industry is following a trend similar to other retail sectors, he says, where the high end is getting higher and the low end is getting lower. Good compact disc players, for example, cost half what they did five years ago, but customers also now can spend huge sums on other goodies, he says.
A typical customer billing at Aspen Sound now is probably around $750, but, $10,000 is very common. I would say we probably have two or three of those a month, and, on the high end, have made $20,000 sales perhaps six times over the last two years, he says.
Its not uncommon for the system to exceed the price of the vehicle, Lombardi says. Most customers, he says, share the attitude that the car is just what gets you from point A to point B. The system is what keeps you entertained.
He and Heale say regular training of shop technicians is more crucial than ever now because of the complexity of car wiring systems, and that finding top-notch installers can be difficult. Unlike the old days, Lombardi says, Its getting to where, if youre not qualified, you really cant work on your car.
Best Buy Co., Circuit City Inc., and Car Toys Inc. are other chains that carve out sizable chunks of the market here.
Don Rothenstein, Seattle-based director of mobile electronics for the 52-store Car Toys chain, says declining prices have contributed to the soft market because you have to sell more of the same thing to generate the same revenue. Even the shrinking sales of sport-utility vehicles have hurt the market, since lots of DVD player installations are in SUVS, he says.
We do what we do pretty well, and that helps us a lot, Rothenstein asserts. iPod is also a positive in that it isin partthe new CD player for the car. I think you will see before long cars that come with a slot for the iPod. The whole iPod world is an area of growth.
Though Car Toys has no plans to open more stores this year, Rothenstein says, We expect our business to be positive, to be growing for the year. For all the upsides mentioned, we remain optimistic.
Contact Kim Crompton at (509) 344-1263 or via e-mail at kimc@spokanejournal.com.