RETAIL WARS
tion to alarms and stereos because our customers were asking for them,” he said. “This year, the big thing around here is HID lighting, so we sell HID lighting.” Khalil has taken this “whatever you want, at any price point” approach to heart with mobile electronics products as well. His showroom and stockroom are filled with sev- eral brands in each product category. “‘I admit I ‘stack’ em high and let ‘em fly’ because I feel you have to meet a customer’s expectations and sell them something they can afford,” he said. “If a customer wants an alarm, I can show him one at $90, $140, $150,$200 and on up.” While Khalil does sell several high-end brands, he also buys products based on opportunities from manufacturers and distributors, but most important is the warranty. “A lot of retailers don’t like to buy certain brands because they feel like they’re junk. Nothing is junk if it has a good war- ranty. For every one of the brands you see in my store, if the company does not give me an exchange warranty, I don’t buy from them,” he explained, adding that this is key to the service he wants to offer his customers. “If a product fails, a lot of shops will charge a customer $40 - $50 to swap the product. We get an exchange warranty so we pass it along to our customers. If you exchange it and make the process easy, he’s going to come back to you, 100 percent.”
WIN-WIN-WIN Like most retailers, Bristol Sound cites word of mouth and referrals as the primary sources of business. But word of mouth has to start somewhere, and Khalil leverages the needs of his community —in a good way. “We have quite a few car clubs around here,” he ex- plained.” They like to show off their cars, but they don’t have places to hold their shows. So I work with them and act as the middleman.” Khalil goes to local high schools that, due to budget cuts, are in need of funds for various teams. He then brokers a deal in which the car club gets space to show off, while the school gets the “door.” “The school agrees to give us space to put on the show, and they charge for every-
42 Mobile Electronics April | May 2011
one who comes in to see,” he said. “They get 100 percent of the entrance fees for their program. This usually adds up to between $3,000 and $10,000, depending on the show.” To pay for the show costs, Khalil collects $25 from each show entrant to help pay for trophies, tickets and other nec- essary items. Then, he turns to industry partners and asks them to sponsor products for the show, which are raffled off to pay for the remainder of expenses. As for clean-up, se- curity and other “people” tasks, Khalil turns to the parents and students of the school. “‘This money is for you,’ I tell them. ‘You’ve got to be the security. You’ve got to clean up.’ I make them work,” he added. When all is said and done, Khalil is happy to break even.
“It’s not about the money, it’s about the promotion. It’s bet- ter than advertising,” he said. “Before the show, people are bringing their cars to us to get ready. After the show, even more people come to us because they saw what we did for cars that were at the show, or because they want to be ready for the next one. In addition, we’ve helped out our local schools and created a great relationship with them.”
DIVERSIFY AND APPLY Khalil says sales are brisk due to tax returns, and wheels and tires help offset slower car audio sales. In addition, offering in-store financing has boosted sales, though not as much as in previous years. “Our average ticket was be- tween $300 to $400 three years ago. Now it’s down to between $80 to $100,” he said. Even with additional income, customer buying habits
have changed. Rather than splurging on wants, many consumers spend less on the “want” and either save the rest or spend it on needs. Khalil says this has netted ex- tremely price-conscious customers, and his store is ready to accommodate them. “What sells now is not the $1,000 head units, but the $300 head units,” he expanded. “‘Do you have one that does this and this for that price? Can you match Best Buy?’ they ask. ‘I can do that,’ I tell them. ‘Let’s go.’” ■
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