– R-compound (racing) tires, to be exact – could be the key to attracting new customers, bringing in added sales opportunities and boosting a dealership’s brand recognition.

R-compound tires – AKA street-legal, DOT-compliant tires – are used primarily by weekend racers for autocross, racetrack or rally performance. Because they were never intended to be driven in snow, ice or even on the street, these special-use tires feature purposeful tread designs and internal construction, in addition to high-grip tread compounds.

So how is all this relevant to tire dealers? Though the R-compound tire market may be somewhat limited in scope as far as the areas mentioned above are concerned, it brings with it a loyal, extremely knowledgeable customer base. And if a dealer can deliver prompt service and keep these weekend racers supplied with the right tires, there’s money – and added customers – to be made.

Back to Basics
Because more tiremakers offer more racing products than ever before, consumers have many choices when it comes to R-compound tires. Sales in this segment have remained steady over the past several years, a trend that is expected to continue, according to Stephen Leu, marketing research and events specialist for Nitto Tire U.S.A.

“Track driving schools have become very popular,” says Mark Richter, senior manager of dealer marketing for Falken Tire Corp., noting that enthusiasts have come to realize racing tires truly help their vehicle perform at a higher level.

“DOT racing tires usually have a special rubber compound that provides lots of grip when the tires get warm, at about 160-200F,” Richter says. “They have a lower void ratio in the tread design to provide more contact with the ground, and the tread blocks are typically bigger to provide less tread squirm under the weight of the vehicle in hard cornering.”

Nitto’s Leu says DOT race tires have stiffer internal construction designed to support the tire in aggressive maneuvering. “The construction is optimized for specific performance,” he notes. “Nitto’s NT01, for example, has higher lateral stiffness and improved cornering response for road racing.”

Other than the NT01, which is a dedicated road race tire, Nitto also offers the NT555R, a street/competition drag radial. Nitto will introduce its latest offering in this market, the NT05R drag radial tire, at this year’s SEMA Show, according to Leu.

“The NT05R will be more dedicated for competition use in comparison to our current drag radial NT555R, which is developed more toward street driving,” he says.

Tire manufacturers in this segment continuously update these compounds, tread patterns and constructions to keep up with evolving racing vehicles.

“Starting from the automobile manufacturers, we have been experiencing what we call the ‘horsepower wars’ for the past few years,” Leu says. “Many of these high performance cars have been optimized by the factory to have incredible performance. There are more readily available aftermarket performance parts than ever before for these vehicles. With modest investments, these cars can become competition-ready race vehicles. As a manufacturer of DOT race tires, we need to offer products that meet the needs of today’s enthusiasts – more specifically, their vehicle’s performance.”

Falken’s Richter says that many years ago, these tires were very soft to provide more grip. However, modern versions of R-compound tires “are very grippy. They’re not necessarily super soft, but are very sticky, which means modern tires provide big grip with better durability.”

He notes Falken’s Azenis RT 615 is “suitable for track days, drift competition and autocross, yet durable enough to drive every day on the street.”

At the Dealer Level
The basic rule of thumb for what customers in this segment want is the ultimate in acceleration, cornering and braking traction for short lap times. But, as with any tire segment, keeping these customers coming back involves a more in-depth look.

One benefit to this niche market is there isn’t a large up-front investment required. Standard mounting and balancing equipment can be used, and other than perhaps having to add an advanced alignment machine or specialized mounting machines to prevent damage to wheels, dealers already own most of it. The largest investment will come in the form of time.

“The store will have to invest significant time in educating its personnel to understand the needs and product information that is relevant to the market,” says Nitto’s Leu. “As with any new product, employees must be properly educated about these specialty tires.”

“Having experience and going to track events helps the dealer salesperson understand the racing culture, as well as the rules of the track event,” says Falken’s Richter. “Listening to the customer is very important since the DOT tire customer usually does his or her homework before making a purchase.”

Savvy dealers in this segment also use track events as a way to promote their shop, often sponsoring events or bringing tires, as well as mounting and balancing equipment, to the track to service drivers on the spot.

As with other tire segments, it’s also important to keep in mind the budgetary constraints of these consumers. The key is to recommend a product that offers a favorable price, in addition to longevity, Leu says.

“Consumers buying these products tend to be aggressive drivers who wear out tires more quickly,” says Richter. “This means they buy more tires than regular customers.”

Also, these drivers usually require multiple sets of wheels, which means more mount/dismounts – and more business – for tire dealers, he notes.

A large part of dealers’ profit-boosting potential in the R-compound market comes in the form of added sales in other segments, too.

“The customer base of this segment is a well-educated group of automotive enthusiasts,” Leu says. “If a retailer is able to provide satisfactory service and products for their ‘race’ vehicle, they will likely buy into other products. This includes regular passenger and light truck tires, especially given this market uses many LT tires for towing motorsports vehicles and equipment.”