JUST AUDIO & ALARMS: DOWNSIZING TO THE EXTREME “There used to be four locations of Just Audio & Alarms, two of which I owned,” said Luis Cuenca, who purchased the then-10-year-old stores in 1999. “In this location alone we had eight guys, and it quickly occurred to me that managing and being accountable for two locations was too much. So I decided that it was time to go back to being an installer.” Cuenca did just that, eliminating the additional location and cutting the staff of his Harbor Boulevard location to three: himself, an installer and his wife. He sells and per- forms installations with the help of Carlos Anguiano, and his spouse manages the administrative elements of the business. However, a tour of his small showroom tells a story of a man and shop that were once very much into the competition scene.
EAR FOR AUDIO, TONGUE FOR TALENT “I used to be a competitor, and later an IASCA judge,” Cuenca explained of the trophies that adorn the shelves above his showroom, adding that he became very good at tuning systems, to the point that he could tune most sys- tems by ear. “My store is known for custom installations and system tuning. I get at least two to three customers a month who come in for tuning alone. Some of them have even gotten to calling me ‘Doctor Luis.’” Cuenca assesses his customer base as average income
earners between 20 to 35, with close to 80 percent being referral or repeat customers as opposed to walk-ins. The average ticket at Just Audio & Alarms is anywhere between $100 and $300, most of which comes from head unit sales. Cuenca attributes another large chunk of revenue to getting full pop for labor. This, he said, is his competitive advantage. “We still have quite a few shops around here, and they are all my competitors,” he added. “But from what I’ve seen, most shops use installers with less than five years of experience. I’ve been doing this for over 25 years.” Cuenca said he doesn’t shop his competitors because customers do it for him. Because of the close proximity of shops, customers will frequently shop a few stores before making purchasing decisions. And they use that proximity to play retailers off one another to get the best price, ac- cording to Cuenca. “Most times a customer will come in and tell me he saw a head unit or speakers for a lesser price at this or that store, and they’re throwing in free instal- lation,” he explained. “I tell them I will be happy to match the price, but they will pay full price for labor.” That’s when he tries to move the conversation away from price. “I usually have one line that closes the sale. I tell them, ‘You’re trusting your car, your baby, to a shop that will have to take part of it apart to put something in. Isn’t the dif- ference between five years’ and 25 years’ experience worth $25 or $30 extra?’ That usually gets them.”
www.me-mag.com 39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68