About the Company

World Wide Stereo, established in 1979, is a consumer electronics company offering a range of products and services, including audio, video, home theater, media rooms, and smart home products. Located in Philadelphia, the company operates two main locations: a signature store and a Technology Design Gallery. Renowned for its high-quality service and installations, the company employs a dedicated team of salespeople, designers, engineers, and technicians. Their custom installation department has gained national recognition, contributing significantly to the company's success.

The company's primary mission is to enhance customers' quality of life through electronics, providing an enjoyable and seamless experience. With minimal staff turnover, many employees have been with the company for over two decades, showcasing a stable and supportive work environment. The business, generating between $56 to $62 million annually, is managed by a team of five highly effective C-suite professionals. Their story and ethos are well-documented on their website, emphasizing the company's growth and values over the years.

Idea Behind Company

Bob Cole's vision for World Wide Stereo began with a focus on hi-fi systems, expanding to TV and video, and recognizing a growing demand for in-home installations. The company's philosophy centers on demystifying technology, ensuring it enhances life without causing stress. This user-friendly approach extends to various smart home technologies, allowing customers to control their environment effortlessly through voice commands.

The company's evolution over the past 45 years includes continuous improvement in product offerings, design, engineering, and installation techniques. Embracing e-commerce in 2008 was a pivotal moment, significantly boosting their revenue and customer reach. Their in-house development of an e-commerce website, supported by a custom ERP system, enabled them to create a tailored online shopping experience. Collaborating with external partners for specialized areas has allowed the company to scale efficiently while maintaining high standards.

E-commerce diversification played a crucial role during the pandemic, providing stability and enhancing industry connections. This strategic move has expanded their market reach beyond regional brick-and-mortar operations, solidifying their position in the consumer electronics industry.

Creating the Company

World Wide Stereo started as a small operation, with Bob Cole and his pregnant wife building the initial 1,500 sqft store. Rapid community support propelled the business, leading to the hiring of Ron Rumer, who has been with the company since its inception. Despite being undercapitalized initially, the company utilized simple classified ads and later, humorous radio spots, to attract customers. This grassroots marketing approach cultivated a loyal customer base and expanded their advertising capabilities.

Staff retention has been a hallmark of the company's success, with a significant number of employees having long tenures. The focus on personal engagement, whether in-store, at customers' homes, or online, has been integral to their business model. This personalized approach has been key to building trust and ensuring customer satisfaction.

Their marketing evolved with the times, shifting from radio and print ads to leveraging the internet for thought-provoking and humorous campaigns. Establishing a referral network and adopting evolving digital tools from platforms like Google and Amazon has further strengthened their market presence.

Launching the Business

From the outset, World Wide Stereo emphasized customer satisfaction and quality service, fostering a strong word-of-mouth reputation. Their humorous radio ads and memorable billboards created a unique brand identity that resonated with customers. Events that went beyond technology and savings added a personal touch, further ingraining the company in the community.

The transition to the internet allowed them to maintain their engaging and personal approach online. They established a robust referral network and utilized digital marketing tools to enhance their reach. Selling on Amazon and other third-party sites not only increased their product visibility but also boosted sales across all channels.

Continued growth, even through economic challenges, highlights their resilience and adaptability. By rebuilding their website and forging new relationships, they aim to sustain growth and profitability while staying true to their core values and adapting to industry trends.

Earnings

World Wide Stereo's revenue doubled in the first year of their transactional website launch in 2008 and continued to grow by an average of 20% over the next five years. Excluding the exceptional sales spike during the COVID-19 pandemic in 2020, the company maintains a steady annual growth rate of 5%. Their commitment to core values and staying ahead of trends ensures a positive outlook for the future.

The company's business model, focusing on personal connections and quality service, has set them apart from competitors. While big box stores refer dissatisfied customers to them, their approach to in-home custom integration and automation positions them as leaders in their niche. Online, their primary competitor is Amazon, yet they leverage multiple third-party sites for better market control.

World Wide Stereo's internal ERP system, integrated with commercial applications, supports efficient business management. This blend of custom and commercial tools allows them to operate smoothly and adapt quickly. Their success is also attributed to ongoing staff training and engagement, fostering a knowledgeable and committed team.