Stocked AV Dealers Thriving in a Pandemic Economy?

[gene]

Remember how hard it was to get a pack of Quilted Northern toilet paper or a jar of Clorox wipes back in March of last year? Fast forward to 2021 and the same goes for that killer AV receiver that you might need to buy yourself, or those headphones that you might need to create your own personal private space. Are you having a hard time buying AV gear right now? The AV dealers that stock up on inventory are in a far better position to sell without discount and fulfill orders that their competitors cannot.

Read: Are Stocked AV Dealers Thriving in a Pandemic Economy?

 

[TankTop5]

The auto industry is about to experience the same problem, inventories have been scarce throughout COVID due to labor shortages but that will be nothing compared to the microchip shortages that will hit the A/V and auto industry next. We’re heading for a recession along with inflation, how much is anyone’s guess but it’s already started in the housing market.

I’ve been in sales my whole life, I think it’s time to get out of retail (auto for me) and get into insurance. The pie is shrinking and owners and corporations will protect their profits ahead of their employees. With inflation everyone will need to protect their property and I think the insurance market will grow. If you want to know where to invest over the next decade insurance and healthcare will most likely be your best bet in my opinion.

 

[slipperybidness]

The auto industry is about to experience the same problem, inventories have been scarce throughout COVID due to labor shortages but that will be nothing compared to the microchip shortages that will hit the A/V and auto industry next. We’re heading for a recession along with inflation, how much is anyone’s guess but it’s already started in the housing market.

I’ve been in sales my whole life, I think it’s time to get out of retail (auto for me) and get into insurance. The pie is shrinking and owners and corporations will protect their profits ahead of their employees. With inflation everyone will need to protect their property and I think the insurance market will grow. If you want to know where to invest over the next decade insurance and healthcare will most likely be your best bet in my opinion.

I've got news for you!

Those same AV chip shortages are also killing the Automotive market right now.

There’s A Worldwide Shortage Of Semiconductors Hurting Car And Smartphone Companies, Here’s How Investors Can Benefit

The global semiconductor shortage has wreaked havoc upon a wide swathe of industries including automakers which have announced planned reductions in output this year.

www.forbes.com

Semiconductor fabs can't keep up with demand. And, many people likely don't realize how many fabs are in Texas, and you know the problems Tx just had last week with the historic winter storms.

Buckle up!

 

[Audiosaur]

The auto industry is about to experience the same problem, inventories have been scarce throughout COVID due to labor shortages but that will be nothing compared to the microchip shortages that will hit the A/V and auto industry next. We’re heading for a recession along with inflation, how much is anyone’s guess but it’s already started in the housing market.

I’ve been in sales my whole life, I think it’s time to get out of retail (auto for me) and get into insurance. The pie is shrinking and owners and corporations will protect their profits ahead of their employees. With inflation everyone will need to protect their property and I think the insurance market will grow. If you want to know where to invest over the next decade insurance and healthcare will most likely be your best bet in my opinion.

What auto brands do you sell, Tank?

 

[TankTop5]

What auto brands do you sell, Tank?

I’m currently gainfully unemployed as a matter of fact. Just about to put my house on the market and figured I’d take a break. If you have any questions feel free to ask, I’ve done just about everything in sales and sold many brands over a 20 year career.

 

[lovinthehd]

Had to delete the other link, not the one I wanted. This is Joe Graney at Santa Cruz Bicycles talking about challenges meeting demand, a situation where bike shops that did some additional ordering will be in better position no doubt.

 

[Audiosaur]

I’m currently gainfully unemployed as a matter of fact. Just about to put my house on the market and figured I’d take a break. If you have any questions feel free to ask, I’ve done just about everything in sales and sold many brands over a 20 year career.

Good time to sell a house. I'm currently in the market for an Accord hybrid for my wife. She drives a lot up and down the front range for work. The fuel economy is appealing.

 

[TankTop5]

Good time to sell a house. I'm currently in the market for an Accord hybrid for my wife. She drives a lot up and down the front range for work. The fuel economy is appealing.

Hybrids are great if they are used in their proper application, commuting on a freeway is not it however. A hybrid is most efficient and cost effective in stop and go inner city driving, the engine shuts off at stops and frequent braking is regenerative and recharges the battery via the brakes. A small displacement diesel or turbo engine will net the most gains for her driving style. An older VW Tdi would be ideal but many manufacturers are building very efficient turbo engines. Since you live in the front range like me I would suggest an AWD RAV4 that gets the same highway MPG and the Accord hybrid but is AWD. I know I25 gets shut down whenever there’s much snow but still the RAV4 vs the Accord Hybrid is cheaper than divorce.

Also hybrids get low rolling resistance tires that suck in the snow. Thats 2-3 MPG vs an all weather rated tire required for here.

 

[Kvn_Walker]

Good time to sell a house. I'm currently in the market for an Accord hybrid for my wife. She drives a lot up and down the front range for work. The fuel economy is appealing.

we got stupid lucky with buying our house. If the sellers had waited 3 more days instead of taking our full-price offer, they would have had a bidding war (and we would still be renting). Our realtor's internal system alerted her to the house 3 days before it hit Zillow, Trulia, etc.

One of my wife's coworkers put in a bid for $30,000 above list on a house she loved and didn't get it. I can't express how glad I am to not be shopping anymore.

 

[TankTop5]

we got stupid lucky with buying our house. If the sellers had waited 3 more days instead of taking our full-price offer, they would have had a bidding war (and we would still be renting). Our realtor's internal system alerted her to the house 3 days before it hit Zillow, Trulia, etc.

One of my wife's coworkers put in a bid for $30,000 above list on a house she loved and didn't get it. I can't express how glad I am to not be shopping anymore.

Three houses in my neighborhood sold within the last month, two for 50 over and one for 30 over.

 

[slipperybidness]

we got stupid lucky with buying our house. If the sellers had waited 3 more days instead of taking our full-price offer, they would have had a bidding war (and we would still be renting). Our realtor's internal system alerted her to the house 3 days before it hit Zillow, Trulia, etc.

One of my wife's coworkers put in a bid for $30,000 above list on a house she loved and didn't get it. I can't express how glad I am to not be shopping anymore.

Yup, if you see a house you like, you better leave the viewing and go straight to the office and work up your offer!

2 years ago, I had to offer $5k over the asking price to get the house we wanted. Once we worked through the inspections and details, I was able to get the $5k worked back into the deal, so I ended up paying the asking price.

 

[panteragstk]

A house down the street from me just sold in 5 days. This house was built in 2016 and TWO PEOPLE HAVE DIED IN IT SINCE THEN. They weren't old. Crazy stuff. Even with that, $25k over and gone in less than a week.

Crazy stuff.

 

[Cos]

When I had my house built in 2017, I listed my old house too soon, I expected a long sale process, I had a full asking price cash offer that I had to turn down because we needed to be out. I relisted 2 months before closing on the new construction home and my old property sold again in 1 week (at a higher price) time I was able to make the dates work. It has been a sellers market in my area for a long time

 

[panteragstk]

When I had my house built in 2017, I listed my old house too soon, I expected a long sale process, I had a full asking price cash offer that I had to turn down because we needed to be out. I relisted 2 months before closing on the new construction home and my old property sold again in 1 week (at a higher price) time I was able to make the dates work. It has been a sellers market in my area for a long time

I hear ya on that. We are Comal county on the list below. Hays county is the adjacent county. As you can see, we are growing quite quickly. This is two year old data.

https://www.statista.com/statistics/241711/fastest-growing-counties-in-the-us/

More info in this one.

https://www.census.gov/newsroom/press-releases/2020/pop-estimates-county-metro.html

 

[KenM10759]

My favorite dealer had built-up stock to levels they never had before, and are busting at the seams. OTOH, sales are better that in their entire history. A little 6-person shop is moving over $7m worth of product per year the last 2 years.

 

[Teetertotter?]

Yes, retail stock selection on AVR's, are pretty scarce. Right now is the time to buy a new car with all the nice incentives that are going on with some mfgs. There is a Jeep line an hours drive, and they just announced a layoff, but forgot the number of people. Perhaps there is an industry wide shortage of memory chips? What memory chips are more important to mfg, making other chips on allocation, if the case?

 

[cpp]

Businesses that are thriving as far as profits go during this "pandemic" is lumber. We have 3 homes under construction and each "owner" is being hit with lumber price increases and some up to $50k above the original quote, due to lumber shortages., Softwood lumber prices are now about 112% higher than they were a year ago and the housing market in my state is off the charts,. Not enough homes on the market to sale. And new homes under construction is crazy.

 

[highfigh]

Businesses that are thriving as far as profits go during this "pandemic" is lumber. We have 3 homes under construction and each "owner" is being hit with lumber price increases and some up to $50k above the original quote, due to lumber shortages., Softwood lumber prices are now about 112% higher than they were a year ago and the housing market in my state is off the charts,. Not enough homes on the market to sale. And new homes under construction is crazy.

Are people using alternate materials to replace stick framing?

 

[cpp]

Are people using alternate materials to replace stick framing?

No they are just paying the price for the lumber and continuing on, at least on our street they are. Now a home in another area, went with galvanized steel as their internal framing material.

 

[Teetertotter?]

Buy an existing home or negotiate on a Prefab home, which might be even better. Read the fine print for any esculations???? Anything that is not firm pricing, I wouldn't sign to build a new home and would have to be with city sewer and water. Also, a state that has utility non freezing conditions........lol