Get Back to Basics to Increase Sales
There are few options available to dealers when it comes to increasing profits from retail tire sales passenger, performance and light truck/SUV.
After all, your suppliers aren’t likely to suddenly give you better pricing, and you can be somewhat limited in how high you set your pricing.
But there are two easy ways to improve your profit picture:
1) If you don’t already carry them, consider taking on a private brand. While not as well-known as major brands, private brands are generally as good as and sometimes considerably better ®“ than their major cousins.
Tire for tire, most private brand marketers offer extensive line, size, application and price point coverage from the value all-season radial to the V-rated ultra-high performance tire to the aggressive on- and off-road light truck/SUV product.
And private brand tires provide two things that promise dealers greater revenue success: protected sales territories and lower acquisition costs.
Most private brand marketers let you set your own price levels obviously within reason ®“ and territory exclusivity means you won’t be competing with every other tire retailer in town.
2) Even though most overlook it, the first thing any tire salesperson needs to do is make a connection with the customer.
Go out and look at the customers vehicle. Inspect the vehicle for wear and tear, tire condition and age, odometer mileage, and the age, make and model of the vehicle.
While doing your survey, engage the customer in conversation to determine their driving habits, miles traveled, how they felt about their current tires, and what they’re looking for in new tires. This information will help you determine what obstacles to sale you may face.
You can’t possibly make a logical tire recommendation without proper information. And don’t always just assume cost is the issue; you won’t know unless you ask!
Take the time to carefully educate your customer as you walk them through your recommended products. Don’t pressure them, simply outline their best options whether it is based on price, mileage, traction or brand.
Answer their questions confidently and completely something you won’t be able to do unless you know the products inside and out. And steer them away from choices that could cause problems.
Finally, after they have made their decision, walk them through any extended warranty or road hazard protection programs you may offer. Explain any warranty options you offer in simple, easy-to-understand terms, and gently deflect any concerns the customer may have about the added cost by reminding them that these warranties not only protect their investment, they offer peace of mind.®′