Retail Roundtable: Regionals Have Their Say
Sasicki: The constant battling of eroding pricing. The introduction of 4K/UHD has helped in raising ASPs [average selling prices], but it is a competitive business and everyone is fighting for customers’ dollars, so you need to be better [by] offering installation, having great salespeople, amazing displays and a commitment to consistently offer better service with the best pricing around.
McMaster: I purchased [Wilshire Home Entertainment] this year. In April, we were able to get funding from an SBA [Small Business Administration] lender. The SBA loan took almost a year to 18 months to close. So that was probably the biggest business challenge. Aside from that, maintaining our pre-sold business [was also a challenge].
The first half of 2014 wasn’t as strong as the first half of 2013, for whatever reason. And so [the company had to] build back up our book of pre-sold business back to the 2013 level, which we have done as of the last 30 days.
We invested in some fall marketing, in local events, we sponsored local magazines, we kept our online ad spend [for paid search via Google] at a higher level [than last year] all the way through summer. Usually, we cut back on it in the summer months and we just kept it higher than we did last year.
DEALERSCOPE: What do you foresee for 2015 as the biggest challenge?