Another big issue with the internet is sales tax, as out of state retailers aren't required to collect it, and I doubt anyone pays it voluntarily, even though it is the law*. This puts the local guy in a 7-11% hole, depending on the tax rate. And there often isn't much more than 7-11% margin available, if they try to match the internet pricing. Not all bad, if you can at least score the install, but many of these customers will either do it themselves, or 'have a friend who does this all the time'.

That brings us to the nightmare of installing stuff you didn't sell. Its big fun trying to get paid when you've spent 4 hours putting in crap gear, and big surprise, it doesn't work right.

Personally, I see a lot of value in dealing with local shops, particularly the independents, even if the price is a little higher. For one, they are there when you need them, either for after sales service, advice, or that Saturday morning parts run. And most of the smaller shops still know what they are doing, and still care. Not to mention, it keeps the money local, which helps us all, etc. Unfortunately, price is king with so many people, that the local guy loses out.

Even in the high end performance business, where I am now, we still battle the internet and 'globalization'. You still get guys wanting to save $400 on a $30k build by getting the latest super Chinese headers from ebay, and then wondering why they don't fit right, don't make power, and eventually crack.

Like I said, more power to you guys sticking this out. You can likely be successful, and make a 'living' at it, but I still question the total opportunity. I don't see much on the horizon that will grow the car audio / video aftermarket, so while you can pick up share, I don't see much organic growth.



*Florida sales tax is actually sales and use tax. So, even if you bought it out of state, if you use it in Florida, you owe tax on it. There is even a form on the department of revenue site, where you can voluntarily report these purchases, and pay the tax. I wonder if that form has ever been used? Seriously though, I wouldn't at all be surprised if this law gets some more teeth in it, especially as states grapple for revenue. Florida retailers are already required to report out of state sales, as a dollar amount. I could see the state making agreements with other states, saying 'we'll give you our data, if you give us yours', and then making retailers submit actual sales records.