By Mr Retail
For almost two years now, we have been dealing with tighter and tighter inventory levels from our vendors. It had gotten to the point that a lot of us were checking our storeroom daily to see what we could sell, because if a radio was out, who knows when we would see it again. So, I have a question for you; is it me, or is inventory improving?
Let me start by saying things are NOT normal. But, I have been seeing shorter lead times for products I need to order, larger fill rate percentages, and larger quantities of allocations. I remember in late 2020 ordering a certain 5-channel amp from a major vendor and it taking over four months to get it. In February, I ordered the same model and got the order instantly.
Certain head unit brands will call or email every once in awhile and offer me certain models. For at least 18 months now, I typically get offered two of a given model, and on rare occasions I get three or four. This year I have sometimes been offered six of something and one time I got allocated a dozen of a popular CarPlay deck.
Let me go on record as NOT saying that the floodgates have opened. But I saw a vendor recently run a promo with discounts on certain models. When did we last see that one? So while I am not ready to starting dancing on the showroom floor, I am encouraged. And yes, I know that something like 50 percent of the neon gas the world uses in the production of microchips is sourced from Ukraine, so who knows what snags that may create for all of us.
In this day and age of being tired emotionally and working a lot harder for every dollar, I will take the small increase in allocations as good news. I encourage you to comment on this article with what you are experiencing in your store. Let’s hope this is the beginning of something positive that will only get better. And finally, I believe in you. Keep moving forward as our industry needs you.
Vendors have inventory now, because the market has slowed due to other market factors, like concerns of war, inflation & high gas prices. We still have supply chain issues. Some are getting worse. If you’re a retailer, you might be tempted to hold off on buying inventory. Don’t. Make your best deals now and stock up. There will come a time again where you try to order “just in time” and what you need with be months out.
Happy to have what we can get, the biggest improvement the shortages have caused is consumer patience and the stuff is actually holding good retail pricing (profit) for the first time in a long time.
i’ve forgot how to sell head units. there are many other profit ops out there with out enslaving to audio companies
The good thing Gary is that for every retailer with your attitude toward manufacturers and wholesalers, many other retailers with a degree of empathy and situational realism are the beneficiary’s due to the stock shortages. If I was one of your suppliers and read your “ enslaving” comment you’d go to the bottom of the list. Permanently.
you are too sensitive. i still buy other 12v products from them. just smart enough to diversify
The latest lockdown in China is far from over. Lead time for most production cycles has been 6-7 months recently from 2-3 mo regular cycles. And will be around 8-9 months going forward. If your supplier has some stock, get it now for an extra 2-3 months.