If you’re not doing tire sales in your shop I encourage you to do so. If you are doing tires in your shop and are not doing what I recommend below then I challenge you to renew your energy/efforts in this area. I also want you to know that tire sales feed parts and labor sales and profits and it also works in reverse. Why would you ever let one of your customers go somewhere else for any type of service relating to their vehicle?
“For every dollar of tire sales in any given shop in the United States, the consumer spends $1.50 in additional sales,” Kearney said in an interview. “You need to be in the tire business.” Automotive News
1. Follow the 100% rule which states 100% of the customers receive a presentation 100% of the time. For tires, that simply means that 100% of the cars in your shop are inspected 100% of the time. As the old adage goes,” 75% of customers buy tires from the first person who tells them they need them.” Be the first person.
2. Stock “good-better-best” options to provide customers multiple choices to match any budget. To sift through the enormous array of tire brands and models, talk to your local distributor for advice on the most popular choices. Most also offer local market data on the most popular tire selections based on that locale’s vehicles in operation.
3. Offer Financing Options (Good Ones that your customers can get approved for.) You know better than most that good tires are something no car owner can live without. But what about the people who can’t afford them? You can still sell to customers who are down on their luck by starting your very own no-credit financing program. Basically you partner with another company that can guarantee your sales and take care of any lease-to-own or payment plan solutions for your customers. You’ll instantly expand your potential customer base, and setting up a program like this won’t cost you a dime. It’s a great way to expand your revenue and also help out more customer than ever before.
4. Alignments According to www.autoservicecosts.com , the average cost of an alignment across the United States is $115, with a range of prices spanning from $75 on the low end to $159 on the high end. An alignment service begins and ends with a test drive and used to take about an hour to complete. With advances in alignment technology a good alignment tech can reduce that significantly. Many shops subcontract or refer this work out. Adding this service line to your tire repair business has several benefits: customers and revenues stay with your business. The additional revenues and service expertise increase the value of your business. Adding this service line requires a sizable capital investment. However once the investment is paid off, other than what you pay your mechanic, the rest is high margin revenue. The suspension work you will get on ball joints, etc, as a by-product of alignment inspections is also highly profitable work.
5. Road Hazard Sales I personally only recommend coming up with your own road hazard program and backing it yourself so you can keep all the profits for your company. There are many different ways to do this. I encourage you to look out there at your surrounding competitors and making a program that goes above and beyond for your customers. In my shop we charged 15 % of the tire price for the road hazard. It included free flat repairs and free replacement of the tire, no proration, no charge for mounting and balancing. The only cost associated was the road hazard on the new tire if you wanted to purchase it again. Doing it this way made it so much easier for the customer to understand and salespeople to keep track of. This consistently provided 60k to 80K in revenue per year at a cost of only 5% of road hazard sales.
Chris Cotton is a former Auto Repair and Tire Shop Owner/Operator that now owns his own consulting business: AutoFix and has helped generate over 10 million dollars in ROI for his clients. If you have any questions or would like a FREE CONSULTATION feel free to contact him.