From running lemonade stands on the street corner to selling artwork to neighbors, operating a business has always been in 28-year-old Nathaniel Victor’s blood. Victor is now CEO and founder of Sonic Electronix Inc., a Valencia-based company that sells primarily car electronics, a business he started at age 17. Since the company was founded in 2000, it has grown from a one-man shop to a company that has 103 employees. Sonic Electronix reported revenues of $40.6 million last year, compared to $30.7 million in 2009. In addition to the company’s estimated 50,000-square-foot Valencia warehouse, it has a warehouse in Kentucky. Each is manned by about 14 employees. Offering strong customer service is one of the reasons Sonic has performed so well, Victor said. “It’s a niche business that requires such a coddling by the merchant to really take care of the customer,” Victor said. His motto for success: “Treat your customer like your grandma.” Ryan Rough, a manufacturer’s representative for Z Marketing Specialists, Inc. in Mission Viejo, said Victor’s dedication has paid off in the seven years they have been working together. “His growth has been staggering in just the few amount of years he has been around,” he said. Victor’s desire to find new ways to develop his company has helped lead Sonic in the right direction, Rough said. “He’s always trying to be one more step ahead,” he added. Growing up with a business Victor, who hails from a family of eight children, practiced his sales skills on his siblings. “I bought a SEGA Genesis and Super Nintendo and talked them into buying a quarter-session because it was cheaper than going to an arcade,” he laughed. Victor’s passion to sell didn’t stop there. “In junior high, I sold candy, and I got into trouble because I was competing too much with the school candy shop,” he said. Victor said it wasn’t long before he realized it was time to find a legitimate way to fulfill his entrepreneurial addiction. Soon after he started driving, he purchased car stereo equipment, and one bad shopping experience sparked the idea for his business. “There was a glaring void that there was no business that serves my entire group of 16-year-old to 25-year-old males who want to save money and have a good experience,” buying stereo equipment, he said. In 2000, Victor bought the Internet domain name Sonic Electronix, and a year later, he recorded his first sale. He was a high school senior. Victor said he had plans for college, but passed them up because he knew there was a promise with his business. He worked out of a small Northridge apartment in 2003 and rented a small storage facility in Los Angeles. As one-man shop, he had to handle everything from customer service to packaging. “Sometimes I’d fake my identity if the customer was frustrated,” he laughed. “They would ask to speak with the manager, I’d put them on hold, and then I would deepen my voice and talk.” In 2003, Victor employed a Web site programmer. A year later, he enlisted the services of a childhood friend to become his director of purchasing. By the time he turned 21, inventory was exploding out of his apartment, so he decided to lease a 2,000-square-foot facility. “That was a very interesting turning point,” Victor said. “The bills just kept coming.” As the business grew, Victor had to move to accommodate the influx. In 2006, he moved to a 4,000-square-foot facility. He upgraded to an 8,000-square-foot-facility in 2007. Diversifying for the future Customer service has been one key driver for the company’s success, Victor says. He said he has attracted customers by selling at a low price and adding a freebie or an extra to the purchase. In the very beginning, he said gave away free music with the purchase of a CD player. Victor said he’s also been careful to not lock himself into selling just one type of product. “I understand that in the long term it’s dangerous to place yourself into anything you do into one area,” he said. “We are always trying to diversify, and now we have the right team in place to do that.” Sonic now sells audio equipment for DJs, musical instruments, home electronics, portable electronics and auto accessories. “We are just kind of giving companies like Guitar Center a run for their money.” Product manufacturers say they have reaped the benefits of Sonic’s growth. FOUNDED: 2000 HEADQUARTERS: Valencia CORE OF BUSINESS: Sales of audio equipment for DJs, musical instruments, and home electronics. NUmber of Employees 2009: 130 NUmber of Employees 2010: 105 Revenues in 2009: $30.7 million Revenues in 2010: $40.6 million Ibraheim Aboabdo, president of Anaba Group, Inc. in Brea, has been supplying electronics to Sonic since 2004. Throughout the seven-year relationship, Victor has proven to be a good client, Aboabdo said. “Every time he grows, we grow, and we want to continue to help him in any way we can,” he said. Within the next few years, the audio equipment business can potentially be a $15 million business unit for Sonic, Victor said. “I think it’s still reasonable to think that we can get to $100 million in just car electronics,” Victor said. Victor’s aspirations don’t end there. He hopes to begin selling auto parts – a move he says will help make Sonic become a destination for vehicle owners. “We are still in the planning phases and focusing on the marketing effort, but within six to 12 months, we should be prepared to handle that,” Victor said. In order to accomplish that timeline, Victor said he must fix inefficiencies on the information technologies front. As an e-commerce business, it’s important to be able to respond quickly to customers and its look fresh in the digital space, Victor said. “We are successful even with our IT constraints, and now we see that if we can manage to get our IT in line and marketing as well, the sky is the limit,” he said. Speeding up the product delivery process is another item on Victor’s to-do list. Currently, Sonic is able to deliver to most locations within two to three days. In order to keep up with competitors, that delivery window will have to shorten, he said. “To compete with Walmart or Amazon as the years go by, we’ll have to be able to offer one- or two-day shipping at the most,” Victor said. As Victor eyes the future, he said he’s considering opening another facility in Massachusetts or Connecticut and adding employees to accommodate the company’s booming business. “If we grow our business to $100 million, then yes, a third warehouse is very likely,” Victor said
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