The tire business can be seasonal, geographical or both. Depending on where you’re located and the time of year, you may experience heavy sales periods followed by dry spells. Fortunately, there are several things you can do to avoid a total drought:
• Have a “limited-time only” sale on certain tires and accompanying service. During a slow period, it may be more economical to sell merchandise at a discount rather than just let it sit on the shelf for several months. Use special mailings, newspaper ads, radio and TV ads and signage in front of your dealership to announce the sale. Experts say it usually takes a discount of 25% or more to motivate customers.
• Profitability-boosting tip: Give a significant price reduction on winter tires in the summer and on summer and tires in the winter to attract value-minded customers.
• Offer flexible financing. Promotions such as “90 days same as cash” or “No payments until fall” can bring in customers who otherwise might wait to buy their new tires or wheels. In some instances, “Buy a set of tires and get a free alignment” or “Buy one set of tires and receive wheels at half price” can be attractive to customers, but it is a more appropriate strategy for lower-priced items.
• If you have some slow-moving rack items, having a clearance sale (50% to 70% off retail) is a way to get customers into your dealership during slow periods.
• Make your off-season sales part of your regular yearly plans and schedule them well in advance. You should have a sense of your peak and off-peak periods. If you wait until the middle of your off-season to start planning sales and special offers, you might be reluctant to part with money for advertising because cash flow is already down. It’s always smart to budget in advance for the off-season and arrange advertising ahead of time. In addition, you might be able to negotiate a price reduction by paying for advertising several months in advance.
Click here for more ways to strengthen your sales efforts.
– Source: Tire Review Business Toolbox
