Auto business tune up

[Aliceshine]

Lakewood-based Quality Auto Sound flourishes because of timely, opportunistic marketing and sales strategies designed to bring the mountain to Mohammed, not vice versa.

Company president Hugh Whiteman points out that many area businesses have attempted to expand their markets into healthier economies, a "sometimes back-asswards approach." He chose to gather valuable information and trends from a variety of markets and make it work right here.

The result is a thriving car speakers, car stereo speakers after-market business with seven stores along the Front Range, including four in Denver. The firm sells, installs and services auto sound systems, anti-theft equipment, cellular telephone and ancillary products.

"Business is a series of challenges, and Denver's economy is just another one," says Whiteman, also president of his mobile electronics after-market trade group, Washington, D.C.-based Car Audio Specialists Association (CASA). "We chose to meet the challenge by forging ahead with strategies designed to make our business boom, even though the economy isn't. We didn't look back, and our business is thriving."

A primary example of strategies that have worked is CASA's consumer petition drive aimed at educating auto sound customers about car maker infringement on the right of free choice when selecting a sound system.



The Washington, D.C.-originated program was formed to put pressure on car makers to allow buyers to delete factory sound systems for full credit. The petition drive has proven a superb sales tool for Quality Auto Sound. Explains Whiteman, "We've gathered 27,000-plus signatures to date - 38% of the entire national total. Each time we talk with a prospective customer about underlying issues in this industry, ones affecting right of free choice, our ability to gain their confidence and interest is enhanced. We attribute a 15% sales increase the first year we participated in large measure to the petition drive."

Another instance of bringing ideas home to roost involves a series of auto sound challenges planned this summer. Whiteman borrowed the concept from Phoenix. "I was appalled to discover that Phoenix, with essentially the same demographics and population as Denver, ranks eighth nationally in per capita auto sound sales, while Denver is 34th," notes Whiteman.

"While some of that is attributable to larger competition for the discretionary dollar here with such attractions as skiing, another major factor is Phoenix's ability to generate widespread enthusiasm and interest in car stereo through sound challenge events. As a result, we're working with all the other major players in Colorado to organize our own program. It's a classic case of fierce competitors leaving their guns at the door to enhance their businesses."

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That enhancement, Whiteman points out, results from retailer exposure at the events, as well as the promotion surrounding the program. "We all agreed that it was smarter to expand the size of the pie, with all of us getting more, than to continue exclusively beating each other's brains out competing for the existing market.

Whiteman's ascendancy to prominence in the trade organization has enabled him to get "the latest scoops" from key industry manufacturers, distributors and out-of-state retailers. As a result, Quality Auto has been a trendsetter in the Front Range marketplace, instead of a follower.

In another bringing the mountain to Mohammed move, Whiteman jumped on cellular phone sales and installation a year ago; and has built a profitable niche among Denver retailers. "And that's just the tip of the iceberg. Now we're seeing car faxes, computers, anti-theft homing systems. Our cars are becoming microcosms of our offices and homes," says Whiteman. "We thrive in this environment, you've got to become a mobile electronics specialist - in addition to knowing auto sound. The sophistication is unbelievable."

Whiteman's ultimate success has been fueled by this long-standing believe that Denverites will find discretionary funds when properly motivated. "You've got to get people intrigued, then be able to deliver state-of-the-art products and service, especially installation. If you do that, you can thrive even in a down economy," he points out.

Whiteman and Weingardt have achieved prominence literally because of the school of "hard knocks." In Whiteman's case, it was a life-threatening head injury years ago that forced him to step-up the timetable for making his mark, not knowing his longevity prospects.

Weingardt has virtually no eyesight as a result of a degenerative disease. To compensate, he's honed his "earsight" and has gained national distinction as a premier sound equipment tester and trouble-shooter.

While the pair office in nondescript surroundings, their accomplishments are anything but ho-hum.

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Ensconced in unpretentious quarters in Lakewood are the corporate offices of one of the national powerhouses in car stereos, Quality Auto Sound.

Led by braintrusts Hugh Whiteman, president, and Larry Weingardt, vice president, Quality Auto Sound is a leader in the after-market's fight to survive against factory-install-minded car makers.



Among the achievements Whiteman and Weingardt have spearheaded from their headquarters perch are:

* An integral role in a major antitrust lawsuit filed by four Eastern U.S. retailers against Chrysler Corporation. The lawsuit is supported heavily by Car Audio Specialists Association (CASA), the national trade organization of which Whiteman is president. The lawsuit alleges that Chrysler has unfairly "tied" purchase of factory car stereo to other auto components, by making it virtually impossible for a buyer to remove the unit or later install an after-market system.

* Persuasion of the industry's heaviest manufacturing hitters to both join CASA and contribute to the lawsuit war chest.

* Single-handed success of CASA's national petition drive canvassing support for car audio free choice. More than 38% of the total of national signature tally of 27,000 names has been generated through Quality Auto Sound's direct efforts. These petitions have proven persuasive arguments in the ongoing lawsuit against Chrysler.

* Establishment of Quality Auto Sound as a bellwether" auto retailer nationally. They are regularly canvassed by manufacturers and other retailers on research and development issues.

* Development of the first auto sound challenge program in the nation to feature full cooperation of all major state best coaxial speakers, coaxial speakers reviews retailers - in an industry known for bitter competitive fights. In conjunction with Denver-based SoundTrack, Quality Auto Sound has succeeded in generating consensus from the state's retailers to pursue a series of sound challenges. under rules established by the International Auto Sound Challenge Association (IASCA).

* Lobbying with Colorado Congressman Dan Schaefer, who in turn is encouraging Congressional moves to require car makers to give buyers "right of free choice" in their sound systems and other mobile electronics. Under this arrangement, consumers could request deletion of unwanted mobile electronics and receive fair monetary credit. As it now stands, prevailing car maker philosophy is take it the car with all factory-installed electronics) or leave it."