Want to boost sales? Try the “loss-leader” approach. This sales technique involves significantly reducing the price of one item and using that as the “lead” to get customers into your dealership. Once a customer walks in your door, it’s likely they will see other items of interest or need other services.
This is not to be confused with the infamous $29.99 price for some obscure tire size no one uses anymore.
In general, the loss-leader technique works best on items that are widely used – motor oil, windshield wipers or engineer coolant, for instance. Stock up on extra quantities of one or two of your best-selling items, and feature them in your advertising materials.
If you’re overstocked on a particular item – even a tire – that product can work as a loss leader. Instead of shipping some back to the supplier or being stuck with it, reduce the price and use that item as your lead in all of your advertising.
This concept is not limited to tires and accessories. A tire dealer can bring in extra traffic by offering deeply discounted services, as well. Inexpensive yet quality oil changes, tire rotations, alignments and more can be great loss leaders for a small tire dealership. In theory, once customers have seen the quality of your work, it’s likely they will purchase services from you again in the future.
Click here for more ways to strengthen your sales efforts.
– Source: Tire Review Business Toolbox
