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Hey Guys,

I've been looking into opening my own car audio shop online, and i need to find out a rough estimate as to how many people would buy over the internet and or phone? prices would obviously be cheaper but all warrenties would be gurenteed and what not.

Alls i need to know is if people would be interested or not.

Cheers Guys,

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https://www.sau.com.au/forums/topic/222038-new-car-audio-shop-proposal/
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Hey Guys,

I've been looking into opening my own car audio shop online, and i need to find out a rough estimate as to how many people would buy over the internet and or phone? prices would obviously be cheaper but all warrenties would be gurenteed and what not.

Alls i need to know is if people would be interested or not.

Cheers Guys,

not to be rude - keep dreaming on. even with the few things I have the shop site DOES NOT come close to paying for itself.

do you have industry background? can you fit? (properly not backyard crap!)

how are you sourcing the stock? if via transhippers out of the USA - good luck on warranty. if via chinese distros - same. good luck with quality levels there and quantity. most want 100+ per item orders PAID UP FRONT.

as I said keep dreaming. I'm a 20 yr veteran in this field and the last thing we really need is another online shop saying we can get this cheaper than XXX..

there is such a thing as profit margin that keeps the main shops open. erode this and you will be wondering where your store went that you ask all the dumb questions to.

Not to mention you see how much it costs to post any type of sub...

I'd have to agree with Chris here. There is a >huge< difference between "a bloke who can put a speaker in a car" to a pro audio fitter.

And unless you're prepared to support the product you sell, don't bother. I work in IT; if you cant support the products you sell on any level, you're dooomed. Even wholesalers have dedicated support departments these days, and they expect the people they deal with to be competent and experienced.

If you're happy to make a career of it, then I say do it. But make sure you do it right, cause if you don't it'll bite you. And if you do it well, the word of mouth business will be more than enough to live off. Its not a job for amateurs or people who just wanna make a 5% on each piece.

-D

  • 2 weeks later...

Totally agree with chris on this one!!! If you are going to do it you have to do it right. Do a SWOT on your idea, if you don't know what this is, maybe it is better that you find a job.

Remeber business seceeds together, not by undercutting each others prices (which F-up things and creates bad will agaist each other) but by working together to help deliver what the customer needs.

but in saying all this. id love to get all the gear i use in the car as cheap as possible like seriously who doesnt. especially when im on apprentice wages. sorry for u ppl with wads of cash but yeh. also i do understand that u guys are trying to make a living off selling and installing aswell so dont come back at me with that lol

Edited by skylinekid

Any audio is NOT cheap, and selling is only a small price in the big scheme of becoming a name.

People that have an AWESOME name in the business have this because of their installation work, not because of the products or stock they are selling.

Take FHRX, quite possibly one of the best installation shops in Australia, he knows his products, knows the cars he is placing them into, knows the in's and out's of the audio, and how each sound type will react on what speakers, through what amps, being sent from what headunits and DSP's, etc.

I dont know these figures for sure, but I would estimate the majority of an audio seller/installer's profit would be from the installations and custom fabrication work performed, and they name comes from a mix of 3 things, the installation work being performed, the after-sales service (where most businesses fall over and run once you've paid) and the knowledge of the products being used in the system.

As others have said, if you have the capitol behind you to set up and perform PROFESSIONAL installations, you have a chance at making yourself some money, but expect hard long hours, working from 6am (being onsite at 6am), through to leaving customers at 9pm to go home and doing the paperwork and cashflow, paying the bills, etc.

Then you need the time for seeing suppliers, talking and making deals on product, etc.

Also, just because you can install a head unit, follow 'prefered cabling', and get amps, speakers and sub into a car doesn't mean it's professional, it's like detailing a car, you have to look at the finer more detailed points of the installation.

Take Marty's installation of how to install speakers into a Skyline door in this thread: http://www.skylinesaustralia.com/forums/In...li-t164820.html

Look at the attention to detail, he hasn't just stuck a set of 4 x 5's into the door, used the same wire and stuck the cover back over and produced the car to the customer, he has used Dynamatting and sound deadening on BOTH SECTIONS of the door to limit vibration and hold the sound inside the car for the occupants to enjoy, he has also used defusers to stop the sound bouncing back into the speaker and giving a slightly echo'ed effect, he has tied the stock loom back do that it doesn't vibrate, and also so it can be re-used to go back to stock if selling up.

Marty also solders his connections for secure connection and good contact, he paints the wooden mounting spacers he created, you dont see the paint, but the paint protects the wood a bit, helps it become water resistant (resistant, not water proof), He even uses colour coded shrink wrap (small thing, but it's the small things that make the install).

Audio install is like like running a car, the selling of the gear is like filling with fuel, it seems to cost a lot, but when compared to servicing costs, rego, insurance, tires, and replacement of other parts, the fuel starts to look cheap (even at $1.70/litres these days).

With audio the purchase and re-sale of audio gear will net you maybe 5% of the price of the goods, but then you need to store, warrant, replace, ship, insure, etc and it will all add up.

I purchased a Yellow-top from FHRX, it had been in his shop for just under 4 months, the costs in that time where initial purchase for $300, delivery to shop (est. $40), storage, insurance on the shop for theft, fire, acts of god (or vandals), he had to pay rent on his premises, and the insurance and rent for the space where the battery sat would be $10 for 4 months (easily in Sydney), and then he sold it to me one day for $353. Given the figures I pulled from me rear end, he maybe made $10, but I used EFTPOS and American Express to pay, so there is a 2% surcharge charged to him, the paper he used to print the tax invoice, the ink to print the invoice, and the printer and laptop, so he would have lost about $5 on that item.

Think about it, selling is not where it's at, installing is, and getting a GOOD name for yourself is not an easy job, and 1 flapup will cost you everything.

B.

almost. though with the market heading where it is labour is a better option though everyone still thinks they can fit and can a stupidly low price.

few people really understand what it takes to run a shop andthe overheads associated with it.

for another analogy. (random numbers here.) I buy a CD player at $70 - resell it at $120. now I make before tax $50. gov't takes $5 of that for GST. that leaves me $45. out of that I have to: pay myself,pay all the shop expenses and still make a profit. by the time I do that I see $5 IF I AM LUCKY! now you want to take that $5 and say you can do it cheaper. not really possible.

I watched the EBAY sellers try this with a local product. there was all of $10 in it from cost to sale price. one of them to beat the others LOST money selling it $15 BELOW the wholesale cost..

seriously sit down and look at what you are attempting. you will chew through $200k/yr minimum doing it.

id love to get all the gear i use in the car as cheap as possible like seriously who doesnt. especially when im on apprentice wages.

Theres lots of people in your situation, who dont have a lot of bucks to spend - go shopping on ebay, look for sales, buy second hand, or only buy what you can afford - and install it yourself to save more $$$'s.

all i can say is best of luck on your ideas. they work well in your head but are not practical with so much competition these days. like Trav33 stated, ebay can easily undercut your prices with overseas suppliers, not to mention those already running locally but also distribute online as a 2nd/etc store, therefore means of business.

i work in the car audio industry and all i can say is know ur gear inside out, know how to install it and tune it (most important factor), and of course have a positive attitude! with these 3 characteristics you should at least have the basics of how its done. missing one of the above and you'll lose it all

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