Mark-Up vs. Margin: Knowing the Difference Makes a Difference in Profits
Mark-Up vs. Margin Knowing the Difference Makes a Difference in Profits Independent dealers often buy service parts from auto dealerships because, for some applications, they feel the quality may be superior to aftermarket parts, or because certain parts are available only through OE sources. Unfortunately, auto dealers typically discount hard replacement parts about 20% to
Industry Report
Another Recall, Chairman Quits and Lawsuits Stack UpNew problems and some unexpected after-effects of the Bridgestone/Firestone (BFS) recall continue to plague the Nashville-based firm:
Retail Marketing: Treat Them Smartly
Barnum may have said “There’s a sucker born every minute,” but even he discovered that it doesn’t pay to underestimate the intelligence and buying savvy of the American public. Successful businesses don’t underestimate the American consumer, especially when it comes to high-ticket items. Most retail salespeople agree that their best customers are adept at seeing
Profitability: 5 + 5 = 50
Don’t think that 5% you just gave away to the customer makes a difference? Think again. If your dealership works on a narrow profit margin, raising prices just 5% will have a tremendous impact on your bottom line. Say your annual gross revenues are $1 million. With a 15% margin, profits are $150,000. Not bad.
No Typical Dealer: College Plan Leads Dayton’s Schardt to Success
No Typical Dealer Diary ProfileDave Schardt, OwnerThe Wheel SourceLocation: Dayton, OhioYears in Operations: 10No. of Bays: 3No. of Techs: 2 mechanics and 2-4 tire changersTire Brands Carried: Yokohama, Toyo, VogueAverage Jobs/Week: 40-50 wheel/tire jobs,10-20 service jobsRetail/Wholesale: 40-50%Other: Non-Tire Services: Springs, shocks, brakes, performance exhaust, superchargers, bolt-on horsepower items, NOS installation and refills, alignments, oil changes,
The “Big” Approach: Treating Smaller Fleets Like the Big Guys Can Help Win Them Over
When it comes to proper, dollar-saving tire maintenance, small and medium sized fleets – especially owner-operators with a handful of tractors – are probably the toughest customers. On their tires, and on their dealers. While they know they need tires, often times cost issues, the lack of a formal controlled vehicle maintenance program, and/or the
Marketing & Promotion: Creative Approaches Give You a Competitive Edge
Profit Handbook, Marketing & Promotion: Creative Approaches Give You a Competitive Edge Newspaper ads. Yellow Pages. Radio spots. Flyers. Direct mail. And if you can afford it, the occasional cable TV commercial. These are the basic marketing and promotion tools available to every tire dealer. All come with varying price tags, and all afford varying
Programs Offer Options
Profit Handbook Programs Offer Options There’s a quiet confidence about Dave Crawford. He can get animated, mind you, especially when it comes to discussing "the program." When you ask him why a tire dealer wouldn’t want to join American Car Care Centers (ACCC), the group’s marketing director answers bluntly, "I don’t think they understand the
Customers Getting Tagged
Profit Handbook Customers Getting Tagged There are problems, and there are opportunities. And for most people, the two are totally separate. But for Griffin Brothers Tire Sales in Charlotte, N.C., persistent computer problems opened the door to vast new opportunities to attract and keep retail customers. The five-store independent leveraged computer problems, a borrowed idea
Taking the Long View: Today’s Dealers See the Long Term Benefits of Private Brands
nal exposure that would make them more well-known among consumers. And today, they enjoy much the same level of technology as the majors, but dealers often face an uphill battle convincing consumers of their quality and performance. Most importantly for dealers, however, is that unlike the major brands, private brand lines deliver the territory exclusivity