As usual, this year’s SEMA Show was an ideal place to see the latest trends, catch up with old friends, network with business associates and, above all else, look for ways to improve your dealership.
Along those lines, the Tire Industry Association’s International Roundtable featured a new segment dedicated to helping dealers gather ideas to take back to their shops.
“Best Practices in the Tire Industry,” moderated by Tire Retread & Repair Information Bureau Managing Director Harvey Brodsky, drew a crowd of roughly 150 attendees and sparked discussion among many tire dealers. Shop owners and their staffs gathered and exchanged concrete examples of what contributes to their businesses’ success.
For those who were unable to attend the event, Tire Review was on hand to gather all the highlights. Read on to find out what your fellow dealers are doing to make their shops run as efficiently and profitably as possible.
Understanding Financials
Although a balance sheet is one of the most important documents of any business, many people don’t thoroughly understand it. No matter what your background – and even if you hire an accountant or financial expert for bookkeeping – consider brushing up on your skills in this area. Look for basic accounting courses at nearby colleges or adult education programs.
Also, don’t be afraid to share your financials with your staff, since your shop’s bottom line directly affects them, too.
“If you think it’s something they’re not interested in, think again,” Brodsky said. “They are intimately involved in your business, and they understand the company must be profitable in order for them to keep their job. The more you involve them, the more passionate they can become about helping.”
Training Outside the Box
Sure, you may train your sales staff when it comes to interacting with customers and your technicians when it comes to earning the most up-to-date certifications, but have you ever thought about training your entire staff on in-depth tire knowledge? All employees – from techs to customer service reps – should know the ins and outs of every tire your shop stocks.
Every single person needs to know the specific applications and performance characteristics of a given tire, as well as the features emphasized by the tire manufacturer. Customers who are trying to make a decision could approach any employee with a question about a set of tires. Imagine how much more impressed they’ll be if the person they ask can thoroughly answer their question, instead of telling them to wait for someone else.
Institute a policy in which your employees share all tools – anything from a screwdriver to a computer – as well as knowledge about how best to use those tools. If one person is particularly adept at using computer software, encourage them to share their skills with others. Because everyone has different strengths, this will help level the playing field and boost efficiency in all areas of your business.
Satisfy Your Staff
“The most important group of people to your organization aren’t customers, it’s your staff,” Brodsky said. “Because without your people being trained, enthusiastic and having a passion for what they do, your customers will move on quickly.”
One dealer related how he altered his shop’s hours of operation to give his staff a four-day workweek. Not only did this change increase productivity, it boosted employee satisfaction.
Brosdky said the TRIB budget includes a line item titled “employee perks,” which provides for free refreshments that stock the staff break room. “I want them to be comfortable knowing those things are available and they don’t have to worry about paying for them,” he said.
Keeping your staff satisfied goes beyond employee perks; you must also keep them motivated in order for them to reach their full potential. Many dealers at the roundtable recommended holding weekly staff meetings to keep everyone in the company on the same page.
“Get the attention of the people who work for you,” Brodsky said. “If you have meetings with your people, make them interesting. Make them fun. Make everyone want to be there.”
To empower your employees, allow them to make decisions without checking with you first. Especially for small expenses or decisions, letting them know you have confidence in them will build trust among your staff and show each individual is an important part of your organization.
Let your staff know their positions aren’t just jobs, they are careers. Encourage them to work hard with the goal of one day moving up within the ranks of the company. To assist, lead by example, recommended TIA board member Bob Hendry, vice president of sales and marketing for Newsomerstown, Ohio-based 31 Inc.
“Don’t be in a hurry to clock out,” he said. “Finish the job well in order to satisfy customers. Be there after your staff leaves to show them that it’s not necessary to exactly observe the minute.”
Brodsky’s closing statement summed up why a dynamic staff is so important: “In the eyes of most people, a tire is a commodity; it’s a negative purchase. Most people don’t like buying tires. And because of that, they’re going to listen to the salesperson who has a lot of passion for what he’s trying to sell to them.”
Whether at a formal event like TIA’s International Roundtable, a meeting between a few shop owners or a phone conversation with a fellow dealer, comparing business practices is always a solid way to strengthen your shop’s operations. Consider bouncing ideas off of one other at least once a year to begin the process, then increase the sessions if they are a success.
