JL Audio recently announced new programs that eliminate some of its long standing volume discounts. This follows other changes at the company, including, of course, its purchase by Garmin effective September 20 last year and its exit at the end of the month from the Mobile Electronics Specialists of America (MESA) buying group.
Additionally, Garmin just added JL Audio marine audio to its Garmin distributors, so that a broader range of dealers can carry its marine lineup.
Many in the industry are now watching to see the impact of these changes. Frankly, it was difficult to talk to a supplier, rep or dealer last week without them mentioning the changes at the company. Many competing suppliers and reps said they are hoping to win a small percentage of JL Audio’s market share.
JL Audio is one of the most iconic brands in car audio and is known for its quality and attention to its dealer base. We don’t know the company’s exact revenues, but Garmin reported JL Audio sales for November/December last year and 10 days in September at $42 million.
Under the new programs many volume discounts and terms are reduced. The company’s Core, Core Plus and Signature special programs for dealers have been eliminated, said industry members.
As one dealer described, “Everyone’s a little whacked out about it. I think it’s going to be a mixed bag of issues going forward. If you want to keep the line you will have to adapt. This is the way Garmin is doing business. I think a lot of people will keep the line.”
A rep for two competing JL Audio brands said, “Dealers are not going to drop JL. But they may sell less if it’s less profitable. All these other guys [suppliers] are trying to jockey. They are thinking, ‘Hey, can I get 5 percent of what they lost. Can we offer a program that’s better? Or 10 percent?’ It’s already going on.”
Things change. Deal with it, one way or another. Keep your lines, mark up in accordance with your biz protocol. Lose the lines you cannot make your margin. Wining does nothing. There are many quality lines out their, but remember” YOUR SHOP NAME IS THE BRAND. Mind your OWN business.
Ditto Paul…you are spot on!
“You are the Brand!”
If you waited a year to prepare for this-don’t make that make that mistake again. You should have started to find the next JL- if the game changes!
It happens! Old 12v geezers like Paul and I have seen this happen hundreds of times.
Control things you can control! “You are the Brand” to your customer.
Happy Holidays all!
That’s funny, we haven’t released any 2025 programs yet. I think Amy needs to check her sources.