Car dealers. When you ask a tire dealer face-to-face who their toughest competitor might be, “car dealers” is the popular answer. Oddly, when posed the same question in national surveys, car dealers rank at the bottom – below other independents, company-owned stores, even online services.

Whatever.

Car dealers are far more formidable competition than you might think. Some of you help nurture the beast, after all, selling to them from your stock and pocketing a pittance while they collected customer data and started soliciting your customers directly.

Never mind.

Steve Finlay of WardsAuto recently wrote an interesting piece titled “Dealer Group Protects Backend Turf,” which you can read here: http://bit.ly/17j68Fq

Finlay’s point to car dealers was this: There is a lot – A LOT – of money to be made on vehicle service. ESPECIALLY SELLING TIRES. And he talked to a number of car dealers who are reaping the rewards of actively pushing the back ends of their businesses over the front.

Some bits and pieces:

“Dealers who run great car-selling departments sometimes falter at back end operations.”

“Follow the money, and it beelines to the service department. Margins are as high as 70% on service, and you are lucky to get 7% on the vehicle-sales side. Yet, most dealers focus on selling cars, not servicing them.”

“Typically, independent shops and service-center chains do a better job than dealers in drumming up backend business.”

“Midas and Meineke auto-repair chains use Twitter to provide regular service-special updates. For its auto centers, Sears has a website that is easy to navigate, contains relevant content and features a strong call to action.”

“‘Independents are trying to take our customers from us,’ said one dealer, citing the brazenness of such conquest efforts. ‘We’re the ones who sold them a car and put them on the road.’”

“Custom landing pages with one-click service-appointment scheduling are online marketing essentials these days…and provide the ability to print special coupons. In a test case, one car dealership that included those things had high coupon print rates: 23% for a brake-work offer and 33% for battery specials.”

“None of this works without the right pricing. Prices quoted in advertising must stand firm. The $17.95 oil change can’t be $29.99 when the customer shows up.”

“For dealerships, key defection points are tires, brakes, batteries and oil changes,” one dealer said. ‘If we spent as much time on these as on selling cars, we’d be in better shape.’”

The story offers car dealer readers many more helpful ways to do battle against you evil tire dealers and repair shops.

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Great idea this.

Want to get the attention of drivers about tire maintenance? Go to a local school and examine the tires on parents’ cars as they come by to pick up their precious cargo.

That’s what Falken in the U.K. did recently. Staked out at Moorfield Primary School in Shropshire, England, the Falken team “uncovered a high number of illegal tires – eight out of the 25 parents’ cars checked were fitted with tires that didn’t make the grade,” according to a news report.

A check of the “school parking lot check also identified one tire with a nail in it and a further two had tires more than 10 years old.”

The first five parents with illegally worn (in the U.K., it is illegal to drive on tires with less than 2/32nds of tread, unlike here where we practically encourage the practice) or damaged tires received certificates for free Falken tires.

Nice.

But did it work?

“‘We were surprised at the results,’ said Su Plant, headmistress at Moorfield Primary School. ‘We regularly address road safety with the children, but it would seem that parents need more information about the importance of tire safety. We thank Falken for its proactive attitude and for providing this service to the parents.’”

“Paula Holloway was one of the five to receive replacement tires for her car. ‘I am extremely grateful to receive two tires for my Fiat,’ commented Paula. ‘Tires are not something I think about, but today made me realize how important they are.’”

Falken said it plans to take the program to other schools in the U.K.

So what do you U.S. and Canadian dealers have to say?

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I have grown so accustomed to disliking local TV news – “Next on ActionRealClose News, a Squirrel Catches Fire in Denver and a Cute Baby Drives a Car in Canada” – that I basically disregard whatever they do.

But every once in a while…

From Fox affiliate WXIN in Indianapolis comes this report by Eric Levy, titled “Hoosiers Wait Longer to Replace Tires as Prices Rise.” It’s an interesting mix of a misleading lead, some actually beneficial advice, and insight as to what consumers think about tires.

“Good tires on your vehicle help you keep you and your family protected on the road. But, as the price of tires becomes more inflated, more drivers are waiting longer to replace them.

“Any expert will tell you that tires are one of the most important things on your car. They determine your gas mileage, wear and tear, and keep you on the road. But, with the huge spike in prices over the past few years, Fox 59 found some drivers who say they have no choice but to wait until the bitter end.

“Nobody knows how much new tires cost these days more than Jasmin Pettiford.

“‘I’m on VA disability, so I only get $1,600 a month, so a fourth of that has gone for tires, and then I still have to pay rent and everything else. Basically it’s eat or ride safely,’ said Pettiford.

“She was in desperate need because one of the tires that came off her car was down to the threading—the ultimate danger.
“‘And, I’d been riding on it for at least three weeks, waiting for a paycheck,’ she said.

“According to AAA, in 2011, there was a nearly 16% increase in prices. In 2012, prices jumped a little more than 4%. This year, they’re unchanged, but still expensive. The reason for the spike? The price of oil and other resources that go in to manufacturing tires has gone up.

“Kent Hoffman at Discount Tire on Michigan Road in Indianapolis showed us an example of how long many drivers are waiting before replacing their tires.

“‘You’ve got cords exposed on the inside edge. All it takes is a good pothole to blow the tire out,’ he said.
“According to Hoffman, that’s dangerous enough on dry roads. But if the streets get wet, you could be in even more trouble.

“’Your ability to evacuate water, the tread (up there) is gone. So, if you hit any standing water, you’re just gliding right through it,’ he said.

“Even though Pettiford’s new tires are on her car, she says her safety is a bittersweet feeling because of the expense.

“‘I feel safer driving it, but, now it is a matter of making a payment to keep the truck and the tires,’ she said.
“Recently, a tire expert told Fox 59 that a way to save money is to buy a brand of tire that may not be from the big names. The less expensive brands are just as safe – as long as they are the same size. The best advice is to check with your favorite tire retailer.”