Most tire dealers tell us sales were up in 2022, and those dealers have even higher expectations for 2023. On this week’s show, we’re taking a look at our latest round of tire dealer sales data, to get an idea of how profitable shops were in 2022 and expectations for 2023.
Plenty of tire dealers saw their money grow in 2022, as 31% of our respondents reported a 1-10% increase in sales over 2021, while 23% said sales were up more than 10%. In today’s unpredictable economy, the fact that 54% of respondents reported an increase in sales at all is impressive. Only 15% had a decline in sales in 2022 compared to ‘21.
What about 2023, though? We’re halfway through the year, and 48% of respondents say they expect dollar sales to be higher this year, while 41% think they will be about the same. Among the respondents who experienced sales growth of over 10% in 2022, 18% of them anticipate this year’s growth to be 10% over last year’s growth.
As expected based on sales growth, most tire dealers tell us they’ve observed a significant increase in unit sales as well. A majority of our respondents, over half, reported a rise in unit sales in 2022 compared to 2021. Among them, 40% witnessed an increase of 1-10%, while an impressive 19% have experienced a substantial increase of more than 10% in unit sales.
As for unit sales growth in 2023 compared to last year, 42% of respondents expect unit sales to be even higher. While 37% expect unit sales to be about the same, a substantial 21% of respondents anticipate lower unit sales in 2023, which could be a direct result of supply chain or economic impacts.
Overall, it looks like the tire industry is rolling in the right direction, as growth remains steady in 2023. Despite facing supply chain and economic challenges over the last few years, the tire industry is thriving because dealers are constantly adapting and evolving to meet the changing demands of customers in this dynamic industry. How are your sales looking this year and in the future? Let us know!
So, that’s today’s show, but for more business intelligence data to help boost tire dealer profitability, be sure to watch out for our next episode.
