Mobile Electronics Connected

But, "What's in it for ME?"

2011-07-26T11:49:00.000-07:00

OK, hang on a second before you decide to pass on reading this!

Yeah, I know I get my paycheck because of MERA and you just might think this is going to be just a push to join, attend the show and all that. But, the real deal here is a much deeper conversation we need to have about the Industry, the Country and the overall need to return to some simpler times in regards to how we treat one another.

We as a society have moved into the realm of "What's in it for me?" or even worse, "What are you going to give me?" When it comes to offering products and services to customers I've even noticed an odd trend of "If you don't like it tough!"

Now, these all only seem rude and possibly isolated comments and attitudes, but if you step back and take a look at the larger picture you'll notice a trend that has disrupted the entire give and take that makes the world go round. Instead of looking out for one another we've almost turned into a society of grab stuff and horde, to make sure we always have more...

When a customer walks into a store they music, video or some sort of convenience added to their vehicle. They think they want this product or that product, but honestly most haven't a clue of how to get to what they want. They literally have moved to give me everything I can buy for as little as possible and give me a list so I can so price match it everywhere.

The salesperson wants to sell the most stuff for the most profit and the least amount of thinking when it comes to how to install or even set up the system.

The installer wants to install the least amount of stuff, for the most amount of money and doesn't want something that can be altered much or "played with" by the customer.

Take those three, apply "What's in it for me?" and you get......Less Sales of ME products.

Something Has To Change

If you boil customers down to the lowest common denominator you'll find 2 types of customers.

Type 1 - Those who want to "play" with their stuff. These are the ones that jailbreak smart phones, have a better idea of what their "sound curve" should look like and are the bane of every installers existence. If/When they have an issue they will try to solve it themselves, typically make it worse and then what a helpful immediate solution without anyone making them feel stupid for trying to "fix it" i the first place.

Type 2 - Those who simply want things to work. These are the ones that simply want to pay money and then just have their stuff work without issue. If/When they have an issue they want a quick solution to their issue that is handled immediately.

The bad news is that these people are not going to change. They are the same customers for everyone and are so firmly engrained that regardless of what we do as an Industry, we cannot change them. Thus, we as an Industry must adapt our approach to deal products and services to them.

The Good News?

We as an Industry have an association and communications that are devoted to helping everyone better serve these two types of customers.

MERA and Mobile Electronics Magazine are yours to use to communicate, discuss topics and network with one another in a way that helps everyone move to deliver more products and services to consumers. But, they only work if YOU get involved. So, when you ask "What's in it for me?" the answer is EVERYTHING, but only if you are involved.

And guess what? It doesn't matter what type of customer you are (yes, even retailers are consumers when it comes to MERA and ME Mag,) both types can use MERA and ME Mag to benefit themselves with exactly the type of support needed.

You want better business and easier business, yes?

Som the real question is, "What are you waiting for?"

(And YES, you should reply, make a comment and become part of the solution!)

Let’s Follow AAA’s Lead

2011-06-23T16:55:00.000-07:00

AAA, the Automobile Association of America, announced that it was employing a fleet of “fast charge” trucks to help stranded motorist who drive electric vehicles. This makes sense, but what we really have to think about is the fact that they released this to the media for publication. They’re leveraging what has become a concern to potential electric vehicle owners, and as a result, electrical vehicle sellers and manufacturers: consumers are afraid of running out of “juice” somewhere on a lonely desolate road, with either nowhere to recharge, or no time to wait hours for a recharge.

This is a smart move by AAA, and it even has a broader positive effect on the marketplace. If even a small amount of consumer trepidation is shifted to a perception of more stable infrastructure support for electric vehicle technology, it could mean a big boost for future vehicle sales.

What this means for us is that eventually, we will see more of these vehicles in our bays ... or will we? Will the same fear that is currently causing consumers to balk at buying electric vehicles prompt them to shy away from adding aftermarket electronics?

Remember, it’s not about the truth of power efficiency in our head units, amplifiers and speakers. It’s about the perception that these units draw more power or are not “tuned” to the power system of the vehicle, and will therefore draw more power, which will directly result in decreased efficiency and driving distance.

And of course, you know that dealerships will use this argument to laud their “factory approved and electrical system compatible” system upgrades and sell them with little regard to pricing norms, since they would, in essence, be the only game in town.

This is something we seriously need to consider as an industry. MERA, our industry association and this magazine’s parent company, should add to its To Do list a compilation of electronic requirements for these vehicles, as well as a general comparison of aftermarket components to factory in terms of power consumption. In addition, we need to be able to tell customers—in terms they understand—how the addition of enhanced components—powerful amps and higher quality drivers—will affect their vehicle’s driving distance per charge from both a weight and power consumption perspective.

The OEMs turned the tables on us with SYNC, and we are still struggling to catch up. Let’s be proactive on this one, and take away their ammunition before they are able to use it.

Help Before Yelp

2011-06-08T15:23:00.000-07:00

Subway is a great place to eat. I’ve taken a liking to their breakfast sandwiches, and now they’ve got a deal where you can get a sandwich and coffee for less than the price of the sandwich alone.

Many of these locations are franchises, and so some will do things differently from others. But to a customer, none of that matters. Subway is Subway, and we consumers expect the same experience every time.

For the past week I visited the one near our offices a few times, and every time, I got lukewarm coffee. Plus, I like flavored creamers, and they don’t have any. Oh, well, I thought; until I happened to stop in the location near my house. Guess what – their coffee was hot, and a stack of French Vanilla creamers sat next to the Seattle’s Best dispenser.

What do most customers do in this situation? Simple – they go to the new location because it meets their needs. But I decided to take it a step further. I went to subway.com and found the spot where I could submit comments to specific locations. Here is what I wrote:

****
Dear Store # 338,
I go to your store because it is closest to where I work. As of today, you are losing my business for two reasons.
1. Your coffee is always cold.
2. You do not have flavored creamers.
At this point, the only reason I buy your coffee is because it makes my sandwich cheaper through your combo deal. When I get outside I throw it away.
Conversely, the store near my house has hot coffee and those little blue flavored creamers, so I can actually enjoy coffee with my morning sandwich.
If you can fix these issues, I will return.

Sincerely,

Solomon Daniels
****

I wasn’t doing it to be mean. I didn't roast them on Yelp. I was doing it to give feedback. I wanted the business owners to know what they were not taking care of my needs as a customer, and someone else was. I don’t want them to suffer; I want them to improve, because at the end of the day it means more choices for me.

Now imagine if you came in to open your store, and taped to the door was this note:

Dear Joe’s Car Audio (or whatever your store name is):

I am in need of speakers and I pass your store every day. However, I will go to Best Buy because your store does not exactly look inviting. It’s dark like a cave from what I can see through the door, and I can’t tell if you’re really having a sale like it says on your window because your signs never change.

If you can make me feel welcome, I will come in.

Sincerely,
A Future Customer – Maybe

Wouldn’t that just be great??!? It would, because it’s feedback. Your customer is telling you exactly what’s wrong and how to fix it. But as I mentioned earlier, most customers will not take the time. Instead, they will just move on to the next place that meets their needs.

So, now as business owners, we need to be mind readers too? Well … yes. But you don’t need to read customers’ minds; you just need to read your own—but in a different environment. Take the time to go into businesses you patronize as a customer, and think about the service you really get, and the service you just accept. Then, think about what would make your service experience a better one.

Once you’ve done it a few times, take your “customer mode” back to your own location. The exercise should give you a different point of view on how people see your business.

We have to do things like this because we need the business. It’s not in a customer’s best interest to give you feedback because they have many choices; you and your staff have to be the ones to see the business in the place of customers, have honest dialogue, and improve on the things that need improving.

Is Your Message Clear?

2011-04-13T21:34:00.000-07:00

I see things all the time that most people might skim right by and true this might just one of them, but then again, maybe not?

I went into a local establishment the other day actually to pick up a check for some work I had been doing for them and I see this sign. Now, the sign alone could almost be blamed on the sign maker, if the mistake wasn't compounded by being written below again to further remove doubt that it was incorrect. And let me put to rest that the punctuation here is INCORRECT. You can have a Ladies Night, a Ladies' Night or a Lady's Night. But unless they really want to attract Lads, there punctuation misses the mark.

Of course I have seen the argument in the past that misspelling a sign can get attention and have even heard a guy make the statement that people used to come into his shop all the time to correct his sign and he would say "Well, it made you come in didn't it?" I asked back, "Did they buy anything?" and never got an answer which in itself is an answer.

Whatever side of the argument you want to sit, to me the representation of any business is founded in how it communicates and communicating properly is paramount to success.

Signs Are Obvious

I'm sure (well I hope I am) that the majority of retailers do not have misspelled signs in front of their shop. The days of guys like Will Castro and his MBQuartz signs are hopefully behind us, as the image that projects is not one of a straight up business location. Let's face it, perception is reality and you've usually only got one shot to make a good impression, so be wise.

Ok, so the outside of your shop is with it and the inside is properly priced and signed, how does your installation bay look? As much of a fan of the 80's that I am the day of having posters of chicks on cars plastered all over the bay is over folks. Think about the message it sends and the level of professionalism it portrays...

Wait, What?!? You don't do that in your bay, you straightened that out years ago? OK, good that is very reassuring to here, now let me get to the real point I want to make. Social Media is your store. Not only the social media sites and pages that bear your companies name, but your personal account as well. I've seen things that might shock many, until you take a look at your own wall and then you might just turn a little red (anger, embarrassment, doesn't really matter which.)

Your Image is Your Sign

If you have a page set up for your store and then you also friend all your customers, your personal life is going to run into your business and remember the old adage, "Don't mix business and pleasure." If this is the case you either need to be very up on how to restrict who sees what on your personal page or learn how not to post things from your life that do not apply to your shop. Personal feelings about candidates aren't even the big issue, it is usually topics. A couple years ago I saw the biggest fallouts between people centered around Health Care Issues and believe you me when it came to that issue people got upset.

The biggest faux-pa on social media sites is the use of language, both in the 4-leter variety and then of course in the text-speak realm. While the urge to appear hip may seem proper for the medium, it never hurts to completely spell out words and only use capital letters at the beginning of sentences and not randomly during words. Avoid slurs and other such sensitive words, unless of course you are Fishman, where it seems to be expected? (Fish, you can thank me for the increase in FB friends later.)

My Bottom Line

This one is easy, think before you type, think before you print and use the Grandma Rule(s.) (Which have been updated to the 21st Century)

Would my Grandmother be offended?
Would my Grandmother understand what I said?

Cover those two and you'll have a clear an concise message. Now, if it is one that will drive business? That is yet another topic.

Remember When Tech Was New?

2011-04-13T12:34:00.000-07:00

About 50 years ago, the Soviet Union (USSR) launched the first man into space and the race for technological superiority was stepped up quite a few notches. Yuri Gagarin’s name would be forever etched into the history books and a new generation of dreamers were born. No longer would thoughts of advancement be confined to the ground, but to space and beyond. Although you may not believe that space flight has a lot to do with mobile electronics, without the space race, the real need for smaller and more efficient electronics would have never really have been pursued so feverishly.

Today technology is not longer driven by national pride, or from the fear of destruction by an opposing force, it has simply become the need to go faster and further with less. The next time you start to sell, design or install a system, think about the overall trend of how electronics have been used and how we’ve all been seeking more from less. Don't get stuck in the past, instead shoot toward the future.

Organization vs "Organization"

2011-03-25T11:52:00.000-07:00

The Mobile Electronics Industry seems to have gone through about a thousand iterations over the years and in each one we have seemed to have had at least 5 to 6 organizations looking to offer motivation, support and sometimes a direction. If I've learned anything in my 43 years on earth it is that regardless of what name you put on things, the only way to get people in any direction it is to give them true motivation. Now, I know there are tons of "motivational speakers" in the world and we here in our word have our hands full of them, but regardless of the message, nothing ever happens until actions result in consequences, either positive or negative.

So, let's look at the most recent event that has motivated retailers into action (most specifically retailers in Hawaii.)

We reported about House Bill 1178 in Hawaii that would have basically outlawed car audio in Hawaii. The Industry sprang into action to testify against the bill and it was tabled, but the root issue of the noise problem still needed to be addressed. Retailers in Hawaii met and talked over the issue and then talked about creating their own organization that could address future issues. After the meeting an email was sent out to ask if the retailers wanted to form an Org or if they wanted to use MERA as a fall back for situations such as this. The following conversations and correspondence all seemed to focus on what the name of the Org should be, if they should pay for an LLC and other accounting issues. Slowly retailers started to question the need for an Org and started asking for a campaign that would address the issue. Seemingly outside of the discussion about starting an Org, organization itself occurred.

Motivation Given

Sitting here in the Mainland I was cheering for the retailers of Hawaii and hoping their focus would not fall upon yet another Org when honestly enough already exist. I can't tell you how many times I've been told by a Rep, a Factory Person, a Retailer or even Enthusiasts what our Industry needs. It is at least once an event and usually 3 or 4 times. The words are different, but the bottom line message is always the same "We need an awareness campaign!" It then usually goes off with "You guys need to...." My question back is always, "What do you suggest?" or "What are you doing?" Of course no one has any answers back, but I've always said, "It cannot start at the top or from an Org, that just isn't going to happen, it has to start at the individual store level."

You see, while most say we need a Car Audio Awareness program, the reality is that we already have one, it just isn't the message we should be sending. Ask a normal consumer what they think about high power car audio systems and you'll find they are perfectly aware of the industry. They just don't LIKE it.... Boom, Boom, Boom is what you'll hear. "They don't respect me" is how they feel. Think about it and you know what I'm saying is true.

Back to Hawaii

Here they are faced with laws and a legislature that wants action. Did an Org step in and fix the issue? NO

So, who will come to the rescue?

The answer? "SensibleSound"

It isn't an organization, it isn't a group, it is just a simple grass root agenda started by a Rep who's sole purpose for creating the message that needs to be delivered was preservation. What is its primary means of spreading the message? It isn't a positioning statement, it isn't a Facebook page, it isn't a logo or video...it is a sticker, stuck on vehicles and stores. Everyone remembers KISS, right?

Let me be the first to give Kudos to Edric Taira of Foresight Industries for taking the initiative to create a simple message and to deliver it.

The Hawaii Legislature is also helping this grass root effort by supporting it with House Resolution 107 that calls for Installers to educate their customers in the respectful use of their systems.

Some people have focused too much on the fact that the House Bill was able to be submitted so easily, mostly because they ignore the fact that people were driven to action based upon disrespectful people using car audio systems. In order to have the ability to sell and install systems that we love, we must strive to never impact any one else's right to peace and calm. In the end it is a simple mater of respect and control, something that aids everyone.

That Org Question

Let me say this freely. I am not a fan of having an Organization or an association with an Organization simply because. Years ago I directly challenged SEMA's participation in our Industry and called them out for it. They could have replied by stepping up and answering the simple questions that I asked, or even by doing what I claimed they did not, instead they threw a fit and basically backed away completely. If an Organization brings value to a person or business it holds value, if the only reason to join can be served simply through open communication then is it really a value?

Asking the question "What's in it for me?" is a valid question, if an Organization can't answer the question....well, you decide.

At the end of the day simple organization can move mountains. In Hawaii, much like anywhere else, a motivating force created this organization. The real question will be, can they keep the effort up on their own, to not have to revisit the same fate in the future?

Talk to fellow retailers, keep up with your customers and above all, communicate and be a part of your community. The more you listen and talk, the easier it will be to avoid testifying in the State Legislature to protect your livelihood.

Gasoline Prices, Tsunamis and The American Consumer

2011-03-17T14:44:00.000-07:00

Last week I was asked to write about gasoline prices and how I thought they would effect the mobile electronics market as a whole. We’ve been through this dance before, and I’ve personally dealt with both the positive effect of fuel prices increases and the negative, but that all changed when the earth shook near the Island Nation of Japan.

You see, we look at Japan as one of the world’s premier technology providers, but the Middle East and other oil producing companies look at them as one of the world’s top oil consumers. In fact, they are the third largest consumer of oil using somewhere near 4.5 million barrels a day. Taking a look at this article by the Curious Capitalist will help shed some light on the numbers and logic. As you see, most likely we are in store for lower gasoline prices this summer, not higher ones.

If you read the entire article linked there, you’ll also see that this happens at a crucial point for economical recovery for the United States and other countries as well. If Japan can get its nuclear reactors under control and not suffer from any other geological disasters, they are a resilient enough of a country and culture to move forward quickly. They have good financial reserves, and with the aid of other countries, they will in effect help the world move away from recession by rebuilding and reinventing processes and approaches to adversity.

Now, aside from Japan, there are other issues that are coming to light regarding gasoline prices and alternatives, primarily hybrid vehicles. Most people who purchase these vehicles do so for a feeling that they are helping the environment and aiding the overall economics of their personal households by keeping fuel costs low. Well, after years of these vehicles in the market, there finally exists enough data to track how effective the fuel economy of hybrids actually is, and the results aren’t what their users really wanted. It turns out that in order to see a net gain by using a hybrid, gasoline prices would actually need to be near $7 a gallon. You can read the details of the survey here. As this type of data comes to light, more economical, less expensive gasoline vehicles will most likely rise in popularity. Of course, if gas prices lower, we may even see more of the traditional gas guzzlers gain traction as well.

The key to all of the above to mobile electronics retails should be to remain flexible, keep inventory low and concentrate on the ability to turn levels of systems versus relying on any one type of system install. A focus of sound, or on accessibility or even flexibility in integration will yield better profitability and much happier customers.

Sometimes just when things seem to be negative, a positive will exist. It just take the right attitude to move forward. In the coming weeks I believe we will watch Japan and learn.

- Rob Hephner

Rob Hephner: Japan’s History of Innovation After Tragedy

2011-03-14T15:54:00.000-07:00

While the physical damage is obvious by the reports shown on television and the Internet, the long term effects of the earthquake and tsunami in Japan will slowly show themselves and may be more far reaching than anyone can imagine.

Japan in a very tenacious country. They have endured much in their history and their discipline in adverse situations is legendary. While the events and aftereffect of this very large earthquake may have destroyed buildings and equipment, I would not think that it will destroy the spirit of the Japanese or their ability to move forward.

From a physical standpoint, most of the Japanese companies use a secondary and even tertiary backup plan for all manufacturing, as Keith Lehmann of Kenwood noted when I spoke with him earlier today.

“The real issue we have right now is the lack of information and understanding of what all has been effected,” stated Lehmann. He continued “Most of our workers had to spend the night at the factory due to the rolling blackouts and the lack of mass transit. Now they have returned home, but due to the power and transportation concerns, they are awaiting there at home, until further instructed.”

The biggest issue so far seems to be the interruption of the normal flow of operations, and that in itself may be the largest impact from the earthquake. How quickly operations can return to normal or be adapted will be the true test and will be what truly affects the mobile electronics industry. While manufacturing may not have been affected at all, the ability to design, test and create new products may be what has truly been compromised. Since it is no secret that Japan is a major player in the technology field, it may be that they will adapt in ways not yet thought of, or it may allow others to step forward in the market based upon a blow struck at the physical level.

The bottom-line is that until we know more about what has happened and until plans have been implemented to allow work flow to return to normal, we will not be able to understand the effect of this one geological event.

I for one believe that this may herald a new era of technological leaps in invention and may even lead to completely new ways to address not only mobile communication, but transportation issues as well. Through adversity and destruction, Japan has always bounced back different, better, more efficient and faster in their endeavors, and while some societies would look at this as a natural destructive force, don’t be surprised to see the Japanese react to it as simply another lesson of Tao and therefore calmly move toward a solution.

My fond wishes and prayers go to the people of Japan, and deep within my soul, I strongly believe that they will leap forward and prevail as they truly are the “Land of the Rising Sun.”