Hello again fellas,
I was just wondering about the basic pricing of different aspects of doing car audio installs. The reason I'm asking is because I just funded a car audio buisness in my town and I want to be able to beat out all the other brick and mortar bizs
around this area. Everything is done mobile so I don't have any overhead cost except buying my tools and products.
I know a few things about doing this work but I was never licenses to do car audio and what work I have done in the past I have never really charged a whole lot to do it. One because they were friends or family and two because I like doing it and learning things. I figured someone in the forum has either owned their own shop or is very familiar with the prices and could help me alot.
Help greatly appreciated
P.S. Got some help from swez and cpkittle on my last system and everything is still working great box specs were to the T. Thanks guys!
Replies (17)
Hoova63 on 07/8/2007 13:52:57
Also if it matters any I live in South Carolina because I know in certain cases with some things regions definitely play a difference in prices.
kirchatndftbl on 07/8/2007 13:55:48
what products and brands are you selling
prices vary upon state taxes, brands, etc.....
SQLThump on 07/8/2007 14:06:15
You will probably have take into consideration complexities of some installations in terms of OEM stereo design. Ever try putting anything in a BMW, or with any form of factory navigation?
Also, another thing to take into consideration in terms of overhead, is parts used in an installation, including connectors, power, groung, and RCA cables, speaker wire, fuses, fuse blocks, d-blocks, and probably the biggest killer, wiring harness adapters.
Be carefull doing this, because if you make a major error on a customers vehcile, its coming out of your pocket to fix it, possibly at the cost of being sued. Make sure you never bite off a project you truly can't chew, and have some money set aside in case of FUBAR on a customer car.
Generally, shops carry insurance to avoid having to worry about this so much. I have seen professional shops screw up their fair share of times too.
Just watch yourself, what you sink your money into, and have a backup plan. And a really good broom, because nobody likes a bunch of stripped off wire ends, botched connectors plactic shavings and the like in their driveway.
Hoova63 on 07/8/2007 14:11:06
It's funny u mention the bmw because I have actually put one of those installs on the backburner to learn a little more about them. I have been told by a pro installer friend of mine that the bmw is a carnival even for a HU
Hoova63 on 07/8/2007 14:13:54
As far as the products are concerned I have distributors spread out across the U.S. so I don't carry just one specific brand. I pretty much don't have to much of a problem with prices on the equipment though because I just do some product research at certain stores and just beat out there prices(cheating). I was leaning more towards installs with question.
swez on 07/8/2007 14:25:13
Yes, pricing for install work is very regional and based on the competition in the immediate area. For the most part, Big Box stores have fixed fees for basic install needs and sometimes toss in the labor for free or part of a package.
Smaller brick and motar shops have lower overhead and if hungry for biz, they can go low on install fees too. However, a custom, quality install salon is often very pricey. Each thing they fabricate from scratch is often labor intensive and if using fiberglass, the looks and performance are superb, but some are so exotic, they command a high price.
Since you are working mobile and perhaps out of a work van or SUV, expenses are ideally low after you have the tools and plenty of everyday hardware on hand. But it often boils down to what the customer is willing to pay in a given market/region for a given service.
Here, the trick is effciency, good quality parts, hardware at bulk prices and how much is your time/skills really worth in a given area. We have a few choices too:
1. What level of service can we offer? (Skills & experience)
2. Can we set a price and get enough biz to make it pay well?
3. Can we buy gear at wholesale and sell at a good profit margin? (25% margin or more)
4. What is the market willing to pay?
Once you have determined these parameters, then test the market and see what customers are willing to pay or will pay your fixed fees. One can go low ball and get lots of work and experience or limit your customer base to less price pressures and make more per install.
Other then that, shop the competition and see if you can carve out a niche market that makes sense and enough $$$ to meet your needs.
Comments?
Swez
Hoova63 on 07/8/2007 14:37:35
Yeah that's pretty much how I have been working so far to create a reputation and build up clients. My first question to my customers( it might sound a little far out there), is usually what there looking to spend for the work they want done. Then I make the decision of can it be done at that price and is it profitable for me. But it seems like I'm coming up very short when the whole thing is over. Also I', not sure why but my state seems to be very lowkey I guess u could say as far as car audio is concerned. For some reason ppl here would rather buy from a pawnshop then from a person with pawnshop prices and warranties on products and work. Weird stuff here in SC. But thanks swez,sql, and kirch I will sit and think of another plan of attack.
swez on 07/8/2007 16:44:24
I feel your dilemma Hoova... but this is part of the learning curve in this type of work and figuring out what the market will bare is part of the equation too.
As you have probably figured out by now, some cars are a snap to work on and the install process goes pretty smoothly. There are also some vehicles that give even the most experienced installers fits. (Most GM cars huh?) Knowing the ones that are way more labor intensive is half the battle. The other half is what is the least you would consider doing the job for? If the customer likes your price and you make a few bucks or just need the extra experience, take it and go.
After a while, you'll get a feel for how much time a given vehicle needs for said services. If you can't manage $10.00/hr or more, is this worth your while? If this is your choosen profession, probably not enough pay unless you get lots of customers and referrals.
But, if this is just side monies and you're looking to pick up some extra cash for other interests, only you can say how much your time and skills are worth. The goal is to please customers and make money doing so.
The "What's it worth to you" strategy is not a good place to be. Yes, we can do this... but will end up on the short end of the stick many times. (Figured that out yet huh?)
A better strategy is to set a minimum amount you are willing to take for a given job, add some cushion and negotiate for the best possible deal between you and the customer. If they low-balling your work, walk away. If you can do the job at their price and make a little money and gain some extra experience, that's a judgment call only you can make.
Hey, we all face this challenge in the beginning of a venture. I have done too many jobs that netted out to about $5.00/hr + parts and materials. Those really suck too. But, it was good experience that did help later. Yeah, loosing our butts on a job is the pits, but it is part of the learning curve too. In the meantime, don't quit your day job just yet... SMILE
I feel your pain bro,
Swez
SQLThump on 07/9/2007 11:21:24
I have tried this in the past, and ended up getting burned one too many times. The expeirence was priceless as always, but nonetheless, I lost money just as much as I made money, and endedup barely breaking even.
Just trying to prevent another car audio buff from getting burned.
Hoova63 on 07/9/2007 17:07:52
Yeah sql that's about where it's putting me too but I don't even see breaking even. (sucks). I think I'm going to focus more on just selling the products at good prices right now. I go to my local swap meet every weekend and its a pretty good place to start out. Only downfall with that is when ppl come there most only want to spend like 50 to 100 dollars at a time. But being there every weekend is the key to that, plus it comes out to a few calls during the week so.
I guess like u said swez its a learning curve and a deep one. haha
swez on 07/10/2007 01:05:57
This is one thing to do for a hobby and making money is not an issue. We often DIY to save money. Helping friends is a good thing to gain more experience and perhaps make a few bucks if your friend sees the work involved and values your help.
However, if we do work for a friend or client and get minimal return for it, either they are not true friends or we are in the wrong business.
Swez
SQLThump on 07/10/2007 04:11:48
Well said Swez! I have lost a couple of "freinds" who couldn't put their money where their bass was.
Now it's pretty much to the point where I make them go out and buy all the neccassary parts, and depending on how good the freind is, I base the price. Free is a usual price nowadays. Those are the good freinds. The type that pays you with a 6 pack, and consumes 3.
Hoova63 on 07/10/2007 11:39:13
Man, lets not start with the friend lost. haha
I got a separate column in my ledger titled "Lost friends fees"
hahaha
SQLThump on 07/10/2007 12:33:22
Thats when you hire Mr. Loius V. Slugger as head of your business' credit, loan and collection department. He is alss great with Profit and Losses.......
LOL GRIN LOL
swez on 07/11/2007 08:54:44
Life is just too short to sweat the small stuff. We sometimes get burned and can learn something in the process. This is probably one lesson that will pay off in education more than $$$ in the pocket.
It's a bit like schooling... we pay our tuitions, learn what we can and then press on. In some markets, it just does not pay well enough to stay in this game for long. At least you know the game, see the options are not profitable and if that cannot be changed, move on. We all pay our dues in one way or another. BTDT... reboot and try something else. ;-)
Swez
cplkittle on 07/11/2007 23:51:27
Interesting....
The mobile installer should be making money hand over fist.
DO NOT UNDERCUT YOUR COMPETITION, you have everything they have PLUS you come to the customer. The customer dosen't have to worry about scheduling a time and date to drop off his car, pick it up or sit and wait on it.
Your money maker is going to be new car dealerships. They will be interested in:
Keyless entry ($99)
Remote start ($299)
Flip down monitors with built in DVD players ($1199)
Navigation systems (AVIC Z2 $2699)
vizualogic headrest monitors w/built in DVD players
The price in parenthesis is what we charge, and it is generally 20-50% less than the factory option.
They actually save money by having you install and warranty these products (since you warranty them, be sure to use reliable brands), and you get the added benefits of working on the same vehicles over and over again...and possibly knocking out 2 or 3 a day in the same location.
jamesp on 07/12/2007 09:23:39
Dont forget satellite radio tuners (Sirrius and XM) The local Ford dealership charges $399.00 to install the tuner in Sat. ready factory H/U's.
I found the tuner for $49.99 on sale at Crutchfield no less. These tuners are usually $99.00 at most places. There is really no comparison of the sound quality of a hard wired tuner vs an FM transmitted satellite signal around here, anyway. I put the tuner under the seat and had it activated in less than 2 hours. The plug on the cord was large and I had to "Dremel" out an opening into my already crowded dash pocket. I also ran dedicated power from the battery.
The Ford dealership uses the local car audio shop that is located a block away. I dont know what they charge the dealership.
I was just wondering about the basic pricing of different aspects of doing car audio installs. The reason I'm asking is because I just funded a car audio buisness in my town and I want to be able to beat out all the other brick and mortar bizs
around this area. Everything is done mobile so I don't have any overhead cost except buying my tools and products.
I know a few things about doing this work but I was never licenses to do car audio and what work I have done in the past I have never really charged a whole lot to do it. One because they were friends or family and two because I like doing it and learning things. I figured someone in the forum has either owned their own shop or is very familiar with the prices and could help me alot.
Help greatly appreciated
P.S. Got some help from swez and cpkittle on my last system and everything is still working great box specs were to the T. Thanks guys!
Replies (17)
Hoova63 on 07/8/2007 13:52:57
Also if it matters any I live in South Carolina because I know in certain cases with some things regions definitely play a difference in prices.
kirchatndftbl on 07/8/2007 13:55:48
what products and brands are you selling
prices vary upon state taxes, brands, etc.....
SQLThump on 07/8/2007 14:06:15
You will probably have take into consideration complexities of some installations in terms of OEM stereo design. Ever try putting anything in a BMW, or with any form of factory navigation?
Also, another thing to take into consideration in terms of overhead, is parts used in an installation, including connectors, power, groung, and RCA cables, speaker wire, fuses, fuse blocks, d-blocks, and probably the biggest killer, wiring harness adapters.
Be carefull doing this, because if you make a major error on a customers vehcile, its coming out of your pocket to fix it, possibly at the cost of being sued. Make sure you never bite off a project you truly can't chew, and have some money set aside in case of FUBAR on a customer car.
Generally, shops carry insurance to avoid having to worry about this so much. I have seen professional shops screw up their fair share of times too.
Just watch yourself, what you sink your money into, and have a backup plan. And a really good broom, because nobody likes a bunch of stripped off wire ends, botched connectors plactic shavings and the like in their driveway.
Hoova63 on 07/8/2007 14:11:06
It's funny u mention the bmw because I have actually put one of those installs on the backburner to learn a little more about them. I have been told by a pro installer friend of mine that the bmw is a carnival even for a HU
Hoova63 on 07/8/2007 14:13:54
As far as the products are concerned I have distributors spread out across the U.S. so I don't carry just one specific brand. I pretty much don't have to much of a problem with prices on the equipment though because I just do some product research at certain stores and just beat out there prices(cheating). I was leaning more towards installs with question.
swez on 07/8/2007 14:25:13
Yes, pricing for install work is very regional and based on the competition in the immediate area. For the most part, Big Box stores have fixed fees for basic install needs and sometimes toss in the labor for free or part of a package.
Smaller brick and motar shops have lower overhead and if hungry for biz, they can go low on install fees too. However, a custom, quality install salon is often very pricey. Each thing they fabricate from scratch is often labor intensive and if using fiberglass, the looks and performance are superb, but some are so exotic, they command a high price.
Since you are working mobile and perhaps out of a work van or SUV, expenses are ideally low after you have the tools and plenty of everyday hardware on hand. But it often boils down to what the customer is willing to pay in a given market/region for a given service.
Here, the trick is effciency, good quality parts, hardware at bulk prices and how much is your time/skills really worth in a given area. We have a few choices too:
1. What level of service can we offer? (Skills & experience)
2. Can we set a price and get enough biz to make it pay well?
3. Can we buy gear at wholesale and sell at a good profit margin? (25% margin or more)
4. What is the market willing to pay?
Once you have determined these parameters, then test the market and see what customers are willing to pay or will pay your fixed fees. One can go low ball and get lots of work and experience or limit your customer base to less price pressures and make more per install.
Other then that, shop the competition and see if you can carve out a niche market that makes sense and enough $$$ to meet your needs.
Comments?
Swez
Hoova63 on 07/8/2007 14:37:35
Yeah that's pretty much how I have been working so far to create a reputation and build up clients. My first question to my customers( it might sound a little far out there), is usually what there looking to spend for the work they want done. Then I make the decision of can it be done at that price and is it profitable for me. But it seems like I'm coming up very short when the whole thing is over. Also I', not sure why but my state seems to be very lowkey I guess u could say as far as car audio is concerned. For some reason ppl here would rather buy from a pawnshop then from a person with pawnshop prices and warranties on products and work. Weird stuff here in SC. But thanks swez,sql, and kirch I will sit and think of another plan of attack.
swez on 07/8/2007 16:44:24
I feel your dilemma Hoova... but this is part of the learning curve in this type of work and figuring out what the market will bare is part of the equation too.
As you have probably figured out by now, some cars are a snap to work on and the install process goes pretty smoothly. There are also some vehicles that give even the most experienced installers fits. (Most GM cars huh?) Knowing the ones that are way more labor intensive is half the battle. The other half is what is the least you would consider doing the job for? If the customer likes your price and you make a few bucks or just need the extra experience, take it and go.
After a while, you'll get a feel for how much time a given vehicle needs for said services. If you can't manage $10.00/hr or more, is this worth your while? If this is your choosen profession, probably not enough pay unless you get lots of customers and referrals.
But, if this is just side monies and you're looking to pick up some extra cash for other interests, only you can say how much your time and skills are worth. The goal is to please customers and make money doing so.
The "What's it worth to you" strategy is not a good place to be. Yes, we can do this... but will end up on the short end of the stick many times. (Figured that out yet huh?)
A better strategy is to set a minimum amount you are willing to take for a given job, add some cushion and negotiate for the best possible deal between you and the customer. If they low-balling your work, walk away. If you can do the job at their price and make a little money and gain some extra experience, that's a judgment call only you can make.
Hey, we all face this challenge in the beginning of a venture. I have done too many jobs that netted out to about $5.00/hr + parts and materials. Those really suck too. But, it was good experience that did help later. Yeah, loosing our butts on a job is the pits, but it is part of the learning curve too. In the meantime, don't quit your day job just yet... SMILE
I feel your pain bro,
Swez
SQLThump on 07/9/2007 11:21:24
I have tried this in the past, and ended up getting burned one too many times. The expeirence was priceless as always, but nonetheless, I lost money just as much as I made money, and endedup barely breaking even.
Just trying to prevent another car audio buff from getting burned.
Hoova63 on 07/9/2007 17:07:52
Yeah sql that's about where it's putting me too but I don't even see breaking even. (sucks). I think I'm going to focus more on just selling the products at good prices right now. I go to my local swap meet every weekend and its a pretty good place to start out. Only downfall with that is when ppl come there most only want to spend like 50 to 100 dollars at a time. But being there every weekend is the key to that, plus it comes out to a few calls during the week so.
I guess like u said swez its a learning curve and a deep one. haha
swez on 07/10/2007 01:05:57
This is one thing to do for a hobby and making money is not an issue. We often DIY to save money. Helping friends is a good thing to gain more experience and perhaps make a few bucks if your friend sees the work involved and values your help.
However, if we do work for a friend or client and get minimal return for it, either they are not true friends or we are in the wrong business.
Swez
SQLThump on 07/10/2007 04:11:48
Well said Swez! I have lost a couple of "freinds" who couldn't put their money where their bass was.
Now it's pretty much to the point where I make them go out and buy all the neccassary parts, and depending on how good the freind is, I base the price. Free is a usual price nowadays. Those are the good freinds. The type that pays you with a 6 pack, and consumes 3.
Hoova63 on 07/10/2007 11:39:13
Man, lets not start with the friend lost. haha
I got a separate column in my ledger titled "Lost friends fees"
hahaha
SQLThump on 07/10/2007 12:33:22
Thats when you hire Mr. Loius V. Slugger as head of your business' credit, loan and collection department. He is alss great with Profit and Losses.......
LOL GRIN LOL
swez on 07/11/2007 08:54:44
Life is just too short to sweat the small stuff. We sometimes get burned and can learn something in the process. This is probably one lesson that will pay off in education more than $$$ in the pocket.
It's a bit like schooling... we pay our tuitions, learn what we can and then press on. In some markets, it just does not pay well enough to stay in this game for long. At least you know the game, see the options are not profitable and if that cannot be changed, move on. We all pay our dues in one way or another. BTDT... reboot and try something else. ;-)
Swez
cplkittle on 07/11/2007 23:51:27
Interesting....
The mobile installer should be making money hand over fist.
DO NOT UNDERCUT YOUR COMPETITION, you have everything they have PLUS you come to the customer. The customer dosen't have to worry about scheduling a time and date to drop off his car, pick it up or sit and wait on it.
Your money maker is going to be new car dealerships. They will be interested in:
Keyless entry ($99)
Remote start ($299)
Flip down monitors with built in DVD players ($1199)
Navigation systems (AVIC Z2 $2699)
vizualogic headrest monitors w/built in DVD players
The price in parenthesis is what we charge, and it is generally 20-50% less than the factory option.
They actually save money by having you install and warranty these products (since you warranty them, be sure to use reliable brands), and you get the added benefits of working on the same vehicles over and over again...and possibly knocking out 2 or 3 a day in the same location.
jamesp on 07/12/2007 09:23:39
Dont forget satellite radio tuners (Sirrius and XM) The local Ford dealership charges $399.00 to install the tuner in Sat. ready factory H/U's.
I found the tuner for $49.99 on sale at Crutchfield no less. These tuners are usually $99.00 at most places. There is really no comparison of the sound quality of a hard wired tuner vs an FM transmitted satellite signal around here, anyway. I put the tuner under the seat and had it activated in less than 2 hours. The plug on the cord was large and I had to "Dremel" out an opening into my already crowded dash pocket. I also ran dedicated power from the battery.
The Ford dealership uses the local car audio shop that is located a block away. I dont know what they charge the dealership.
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