By Michael Hart
Aftermarket businesspeople should find high profit margins in the automotive electronics segment.
In the coming year, aftermarket businesspeople are liable to find high profit margins in the automotive electronics segment—particularly car audio and connectivity products, such as smartphones, according to Tom Ramsey of the Ramsey Consulting Group, who will lead an automotive electronics conference track at the 2015 SEMA Show.
More and more consumers are interested in high-fidelity audio in their vehicles, and not all of them are happy with the factory-installed equipment they’re getting.
“High-fidelity audio, that’s really making a comeback,” Ramsey said. “A lot of people are embracing it in their cars.”
At the same time, enthusiasts are interested in upgrading the lighting and audio electronics in their powersports vehicles. Research indicates the average ticket for outfitting UTVs with extras is $1,703, and consumers are ready to ensure a lot of that money is spent on the high-margin items that will be highlighted in the automotive electronics track.
“This is not typically a big do-it-yourselfer market,” Ramsey said. “The vast majority of consumers are using professional installation services for anything that’s electronic in their cars.
Three conference sessions in particular will help attendees find their way into this highly lucrative segment of the industry:
- Installing High Fidelity Audio in Cars will help attendees grow their businesses with audiophiles who simply are not happy with the factory-installed equipment that the average car owner might settle for.
- Electronic Enhancements in Powersports Vehicles will provide attendees with the opportunities available to the retailer interested in catering to this fast-growing and lucrative segment.
- Top Five Automotive Electronics Fabrication Trends: industry visionary Bryan Schmitt will show attendees how to take the latest fabrication techniques and specialized tools and turn them into major revenue streams.
“These sessions will unveil where the real opportunities are for anybody in the business of selling and installing aftermarket parts and accessories who is thinking of adding an automotive electronics component,” Ramsey said.
View a complete list of SEMA Show Education sessions available.