Remote Auto Starter Sales Are Cranking
By Amy Gilroy -- TWICE, 7/26/1999
Remote starters remain a shining star of aftermarket security, with sales expected to gain by an estimated 20% this year, while the mainstream auto alarm market remains flat.
Many suppliers expect sales to continue to climb, with similar gains of 20% predicted for next year as consumer awareness rises and prices for remote starters fall.
In addition, sales of remote starters are beginning to pick up beyond the winter selling season, as more consumers opt to purchase a combination remote starter with built-in security rather than a traditional auto alarm, according to some retailers.
On the downside, both Best Buy and Circuit City have promoted basic remote starters at $149 including installation, which has cut into margins. But other retailers say they can boost margins by pushing the higher-end combination starter/security models.
Bulldog Security general manager Don Snyder claims, "We're up over 500% year to date in remote starters. Car starters are no longer a seasonal thing. It's nice to go out to a car that's cool in the summer. For this fall, it looks like we already have orders far exceeding our total sales last year."
Directed Electronics Inc. (DEI), which claims to be the leader in remote starters, said that consumers quickly grow accustomed to the convenience of remote control and the market will follow in the footsteps of remotes for TVs and other products.
"The best way to explain it," said Darrell Issa, DEI president/CEO, "is originally the first remotes for color TVs tended to be on the very large TVs, but very quickly people wanted a remote, even if they were watching a small TV that was right in front of them. Is that want, or need? In Alaska there's a need for remote starters, but here, once people see their neighbors have one, people want it."
Crimestopper said remote starter sales are up 15% over last year. Clifford said remote starter sales are expected to climb by 20% to 30% this year, and Delta Vehicle Security is expecting 20% growth. DEI agreed that industry growth in remote starters would hover in the 20% range.
Some retailers attribute the extended selling season to the fact that consumers are opting to buy combination remote starter/security products instead of traditional alarms.
"People are still buying after the winter," said Steve Sugarman president of The Sound Company, Orange, Conn. "They didn't go back to buying simple alarms but are buying the combos instead."
"We had a mild winter in Connecticut, and we sold plenty," he continued. "What people are buying now is the combos because now they've become educated about the product, and it's not that much more money to buy an all-in-one starter with security. So instead of $250 alarms, we're selling $450 combos -- and it has been a big surprise."
Sugarman claimed that the company's dollar sales for the product have improved over last year by 22% for the first six months.
Car Toys senior buyer Doug White said the dealer is also selling more remote starters with built-in security.
But chains in warmer climates such as Sound Advice, Dania, Fla., have yet to promote the products.
"We have stores in Atlanta and Texas, and we acquired Dow Stereo in San Diego, and once you own a remote starter you love it in the summer, but the word is not out yet," said Marc Spatz, mobile electronics buyer for Tweeter etc.
Among the new security products just reaching the market are the Super 600 from Bulldog Securities. In August, Bulldog will ship what it claims is the first unit to offer a built-in alarm with an onboard shock sensor.
The Super 600 has a current sensor, door pan sensor and shock sensor built into one module for easy installation, Bulldog said. Estimated street price for the system is $299 including installation.
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