Mobile Electronics Shift Gears
Thomas: Speakers, amps and accessories as a percentage are still very profitable, especially ones to do with connectivity. We have products with built-in connections and integrated adapters but we still sell accessories that extend the cable and make a nice, clean install.
Cardenas: We, as an industry, try to provide as much profit as we can. With price compression, particularly in CD receivers and entry-level speakers, none of us are making the same levels of profit as we used to. More profitable, of course, are navigation systems because they’re higher priced. Also, A/V receivers with Bluetooth, voice recognition and dual USB. Speakers, amps and subwoofers inherently tend to be higher profit.
Malone: In our world, it’s rear-seat entertainment; the installs are fairly simple, the product costs are still up there, but the perceived value is so high and it delivers a high satisfaction rate. Even if the consumer is on their second or third generation of that, they may have upgraded to a headrest system or added games because they know what they want from it. The challenge is that it’s on so many vehicles today that the opportunities are less but the profits are still very good.