It’s one of the hottest days Toronto (and much of the rest of the country) has ever measured. Still, I can’t get a skiing image out of my head. All thanks to Best Buy.
If we were starting down a slippery slope with the deal Ford put together with Best Buy, which we have commented on a number of times in this magazine and at dealer events around the country, we are now further down that slope, and we’re picking up speed. And for dealers, that’s not a good thing.
The latest development is the launch of OnStar FMV at Best Buy stores on July 24th. OnStar FMV is the out-of-the-box version of the applications suite that has been available in select GM vehicles for a number of years. Consumers of non-GM vehicles can now put OnStar technology in their cars.
More importantly, at least in my eyes, is that they don’t have to go anywhere near a dealership of any stripe to do it. Consider the following statistics, as stated in the OnStar press release:
Best Buy offers on-site installation through its network of more than 1,000 auto bays nationwide staffed by more than 1,400 Mobile Electronics Certified Professionals at Best Buy, including nearly half of the 194 MECP Master installers in the world. More than 90 percent of surveyed Best Buy customers said their auto installation was “done right the first time.”
Did you know what an MECP Master installer is? I didn’t. Turns out MECP stands for Mobile Electronics Certified Professional. MECP is the only nationally–recognized program that certifies mobile electronics installation technicians and sales people on the installation techniques and capabilities of automotive information technology, entertainment, navigation and safety/security systems.
As we continue moving into a world where young consumers are more interested in their consumer electronics than in horsepower and automotive technology, the MECP certification sounds like a must-have skill set in your stores. But they don’t work in your stores. I know that because the website for the certification (www.mecp.com) lists the geographic location of their certified Master Professionals. The site only lists two in Canada: one in Quebec; and one in Alberta.
This all matters because Best Buy has taken another step down the path of competing with your stores. And they are arming themselves to compete in the area that is increasingly the things that gets consumers excited — their in-car electronics. They also clearly believe in attaching credibility to their offering, or they wouldn’t be hiring (or developing) all these MECPs.
Remember when the tire stores started doing everything else on the car. Once they took the tires off, the brakes, exhaust and maintenance schedules were simply a business opportunity staring them in the face. I believe the same may be true of Best Buy. If they are already working on a car, it’s not that hard to offer an oil change or other service (particularly if they go out and partner or acquire a retail chain like Jiffy Lube, which hasn’t happened yet, but I’ll bet you it’s coming). Perhaps they’ll offer the oil change as a loss leader to sell higher margin electronics.
Maybe it won’t be service they offer. Is it that hard to imagine Best Buy partnering with Zip Car or a rental company, to offer consumers alternatives to traditional vehicle sales and leasing?
Let Best Buy or another electronics retailer become the expert in the eyes of the consumer, rather than the dealer, and Canada’s dealers may be paying a very high price for years to come. Don’t let this happen. Claim this space. Get together and talk about it. Work with your OEM. Hire or develop your own MECPs.
As I think it through, I’m not sure the slippery slope is the best cold weather analogy. Maybe it’s an iceberg.
