First deal done.

Really excited to have signed a sweet deal today that will hopefully lead to good things for us in the OEM in car entertainment market. As you may know I was looking for a supplier of quality aftermarket car GPS, DVD and CD units. I didn’t want to go to the bottom end as i know there are a lot of quality issues in this area.

20120225-033659.jpg

I was excited to come across a great little factory that is actually producing these units for a well known German brand. David the owner was keen to expand into the UK Market and was happy for us to modify some of his units to our specifications making them suitable for our customers.

Sure there are a lot of car stereo systems on the market in the UK but ones that are designed to factory fit into existing car dashboards of modern cars are very rare. You can usually only get them direct from main car dealers at a premium. In-fact there even pretty hard to find in china.

20120225-033922.jpg

This unit will fit the VW Golf and includes touch screen European GPS, DVD, TV, CD, mp3 and iPod connectivity, really nice piece of kit.

20120225-034421.jpg

20120225-034556.jpg

As you can see we had a look round his set up and our translator asked him every question under the sun. His company makes a great range of products and most importantly they take quality control very seriously. Even though they are a relatively small operation they take better care than some of the larger factories I have seen, I guess because our business is important to them as they don’t have a que of large customers to fall back on if one leaves due to a quality issue. We spent a great deal of time with him going over specifications and warranty details and came to a deal at 10pm, i was shattered after a 16 hour day as you can tell from my weary face.

20120225-035920.jpg

Im really pleased with both the product and the margin, it is exactly what I was looking for within this market. I have ordered 70 samples to air freight back to the UK and hope to retail them at around £250-300 per unit. We will be the UK supplier for all in one GPS, DVD and CD units with touch screen for the following models; VW golf, VW passat, Ford Focus and Ford Mondeo – other models to follow. We are also bringing in a universal model which will be priced cheaper and fit all car models. The customised units will be branded as our own brand with 1 years warranty and technical support. Spares will be carried in the uk. We will also be working with David to develop other factory fitted style units for cars we feel to be suited to the UK market.

Stock should be in the UK towards the end of next week so I will update you guys on how they are received by our customers. Time for a victory beer.

6 thoughts on “First deal done.

  1. Do you have to provide warranty when you import these kind of complex products in to the market. As far as I know you have to sign agreement with local repair centre in case one of your electronic product malfunctions. How did you handle warranty process ?

    • As the importer you really need to offer a warranty and repair service on an item like this. You are best negotiating a deal with your supplying factory to ensure you can offer your end user some after care service to maintain the business long term.

    • Hi Jason,

      I think true old school entrepreneurs like Alan Sugar are what inspired a generation of people like me to work for ourselves, i have a lot of time for the way he works.

      Would have loved to have seen him here in action a couple of decades ago.

      Thanks

      Daniel

  2. Hi Martin, thanks for stopping by.

    The unit itself is actually Circa 850 direct from a main dealer but it is not the same as this unit shown as i will be using this factory as our oem (original equipment manufacturer) supplier and the specification i want will be different.

    I had A new VW tourag in 2008 and the upgrade cost for the gps dvd unit was 960.

    This unit is an easy DIY fit or a local Indy will charge around 2 hours labour so perhaps 80-100 depending on your bartering.

    Many factories in china produce oem for lots of big companies and you can’t buy the product they produce for a different customer, you can however specify your own product and get them to be oem for you on that specific product – there is no issue with this but that obviously has its good and bad sides.

    Thanks

  3. HI, followed the link from UK business forums. enjoyed the read. will keep an eye on your head units particularly if they are going to included digital TV. doe the £850 you quote for dealer units include fitting? what do you imagine your local car stereo shop will charge to fit your unit?

    just one thought, you said they supply a German manufacturer and then show s VW unit, if VW come across this they will contact the supplier and jepordise his contract and your supply.

Any comments or questions? I'd love to hear them.