Question to stereo shop workers for my class

Discussion in 'OT Technology' started by Ronin, Nov 28, 2006.

  1. Ronin

    Ronin Guest

    Assuming its ran by smart business savvy people and the demographics are good what kind of gross sales do you think one could do if:

    store sells mid to high end components for cars and home including installation services and just about every type of componenent you could want including security + does a amount of online sales as well, 4000sq ft store


    i cant find information like this anywhere, itd be nice to get estimates or what you have seen in personal experience

    i can give my instructor a bs answer for now but it got me wondering how well one could really do

    (im doing a business plan)
     
  2. twistid

    twistid Banged By Super Models Moderator

    Joined:
    Jul 15, 2001
    Messages:
    40,754
    Likes Received:
    94
    Location:
    The Kansass/Oklahomo Border
    there are a lot of variables... how big is the market you're in, is there competition(like other shops, chain stores, etc..), what gadgets come out that year that might take away from people stepping foot in your door(are you able to embrace this new tech???), is there new tech in what you sell that raises of average ticket sales, manufactures racing to the bottom dollar each year also drops average ticket sells(when the first year the cd players came out, everyone in the business had the highest average ticket sales since the 70's, and we though video wouuld be the next big thing... but too many other things took away from it's glory.), the internet is also a factor, and it goes on and on... people who have been in the business do not make as much, as they did before 9/11... with gas prices going up, and ford gm and dodge doing the empolyee pricing 0 down stuff.
     
  3. Ronin

    Ronin Guest

    Minimal competition, portland, oregon = shitty stereo shops and then magnolia, theres one decent stereo shop but you look inside and see what can be done better. I think if you did it right a good new stereo shop would rape and rape hard.

    :dunno:

    whats a gross revenue figure you have actually seen before in the past?
     
  4. twistid

    twistid Banged By Super Models Moderator

    Joined:
    Jul 15, 2001
    Messages:
    40,754
    Likes Received:
    94
    Location:
    The Kansass/Oklahomo Border
    my guess would be for a city the size of portland, an average mid level 12 volt stereo shop should be a minimum $5mil gross... if there is no real competition in town... with unknowns such as local ecommomy, customer base, and how many employees... and those would effect the numbers.

    i'd be curious as to the numbers the shop rebs works for pulls in.
     
    Last edited: Nov 28, 2006
  5. rebs

    rebs shares AIDS OT Supporter

    Joined:
    Sep 21, 2003
    Messages:
    120,513
    Likes Received:
    195
    Location:
    CA
    we avg 13-15k a day with 6~ other shops on the same street:o It would be more if we had more install space:o
     
  6. twistid

    twistid Banged By Super Models Moderator

    Joined:
    Jul 15, 2001
    Messages:
    40,754
    Likes Received:
    94
    Location:
    The Kansass/Oklahomo Border
    so if you're open 7 days a week, even hoildays... 4,745,000 to 5,475,00, with 6 other shops around you as competition???
     
  7. rebs

    rebs shares AIDS OT Supporter

    Joined:
    Sep 21, 2003
    Messages:
    120,513
    Likes Received:
    195
    Location:
    CA
    Id say so~
     
  8. Ronin

    Ronin Guest

    awesome thanks

    ill have to increase my start up funds number as well

    the theoretical shop im doing a plan for goes up to Revel F series, Vandersteen, paradigm studios

    mcintosh amps are at the upper end of the spectrum and most major receivers

    car stuff, pretty much mobilesq.com type stuff + a few others like boston acoustics, the goal is to have the best options at each major price point in a no BS environment (there are many other brands of course)

    then the business plan also includes a web site which will sell a lot off stuff via the web site and will serve as an advertiser for things unable to be sold online, ie Revel speakers
     
    Last edited by a moderator: Nov 29, 2006
  9. Ronin

    Ronin Guest

    cool, yeah like magnolia this shop is car AND home

    economy is good, lots of rich bedroom communities around the area, i think its only a matter of getting people aware of the store and stereos in general so im also figuring in a generous advertising campaign into the mix (radio, newspaper, internet, etc)


    staff would include licensed contractors ofcourse blah blah blah, the works, the only thing i dont have figured into the equation is a service center, how critical do you think in-house servicing would be?

    im also going to incorporate a penetration pricing strategy especially into the cost of installs for the first year to build a customer base :dunno:
     
    Last edited by a moderator: Nov 29, 2006
  10. Ronin

    Ronin Guest

    rebs: do you know how much your building lease is?
     
  11. rebs

    rebs shares AIDS OT Supporter

    Joined:
    Sep 21, 2003
    Messages:
    120,513
    Likes Received:
    195
    Location:
    CA
    probably not much since the boss owns it:o
     
  12. Ronin

    Ronin Guest

    lolz
     
  13. twistid

    twistid Banged By Super Models Moderator

    Joined:
    Jul 15, 2001
    Messages:
    40,754
    Likes Received:
    94
    Location:
    The Kansass/Oklahomo Border
    then you could probably triple it.

    print and tv ads are effective, radio isn't as effective as it used to be. around here tv ads cost 4 times as much as radio ads, and radio ads cost 4 times as much as print... the bosses wife is our webmaster, so there's very little cost there.

    the more people you employ, the more you'll need to make... so the more services you can offer, the better... home installs in new construction, will be money.

    don't give away your labor, people will pay for quality... word of mouth will help you, and can hurt you if you fail.
     
  14. twistid

    twistid Banged By Super Models Moderator

    Joined:
    Jul 15, 2001
    Messages:
    40,754
    Likes Received:
    94
    Location:
    The Kansass/Oklahomo Border
    manufactures require qualifying orders, usually they want you to load up on their stuff... and the big companies will try to tie up your funds, so you can't load up on any one else... so figure in that chunk of money as many as 4 times a year per sku.
     
  15. Ronin

    Ronin Guest

    when i meant penetration pricing on installs i was referring to reasonable, not ultra high price ala unique whips :mamoru:
     
  16. Ronin

    Ronin Guest

    details this fine wont be noticed in my plan for class

    this is like a 15-25 page relatively simple plan i just want it to be pretty good

    with this information ill probably rape the rest of the class now, mwahaha
     

Share This Page