Cheapest Doesn’t Pay
Pricing is perhaps the toughest issue facing independent tire dealers today. Nearly every tire manufacturer has raised prices to cope with increasing raw materials costs and higher logistics and fuel costs. Meanwhile, consumer living costs continue their relentless rise, while big retailers leverage their size to keep prices down. These factors are making it difficult
What’s a Dealer to Do?: Dealers Can Still Win Even if the Economy is a Big Loser
All one has to do is look at the prices – in large, doomsday-sized letters – that hang outside most establishments selling gasoline or diesel fuel. Then the calculator in the left side of the brain begins to register. The results are usually the same: Holy Refinery! Everywhere you look gasoline hovers around $4 a
Are Wider Margins in Sight?
Even a small price increase can make a big difference in your overall profitability. Margins in the tire sales business are razor thin. Increasing prices just 5% can widen those margins a bit and have a profound impact on your bottom line. Hypothetically, if a company’s gross revenues from sales are $1 million, a 15%
Cheapest Doesn’t Always Win
Pricing is based on three components: your costs to produce, market and sell tires and service plus all related business expenses; the profit you hope to produce; and the price customers are willing to pay. Assessing that final component can be daunting, but you can gather clues about how customers perceive your products and services
Loss-Leader Technique
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
Racing Ahead: Local Event Sponsorship Can Boost Your Brand Awareness
Local Event Sponsorship Can Boost Your Brand Awareness Last month we discussed a number of new technologies that are evolving in the tire industry. Goodyear has made huge leaps with its products over the last several years and has been the recipient of a number of awards in this year alone. It is very fitting
Five Sales Lifters
Following are five ways to leverage your sales staff to rev up your tire and service sales: 1. Hire salespeople on the basis of their sales ability, not on their knowledge of the tire industry. Sales ability, in general, is more important; a good salesperson can almost always learn about the tires and services you
Dealing with Slow Times
The tire business can be seasonal, geographical or both. Depending on where you’re located and the time of year, you may experience heavy sales periods followed by dry spells. Fortunately, there are several things you can do to avoid a total drought: • Have a “limited-time only” sale on certain tires and accompanying service. During
Dealing With Diversity: Reaching Out to All Demographic Groups is Vital to Success
Reaching Out to All Demographic Groups is Vital to Success in Today’s Diverse Marketplace Everywhere you turn today you hear and read about diversity – and its importance to and impact on our nation’s economy and harmony. Large corporations have gone so far as to install diversity officers, managers in charge of making sure people
Developing Trust
Customers respond positively to businesses they trust and will establish long-term relationships based on the confidence they have in a dealer. The best way to establish trust with customers is to work closely and honestly with them when determining what they need and find ways to meet their needs quickly and cost effectively. This may
How to Develop Loyal Patrons
One of the easiest ways to find out if customers are satisfied is also one of the simplest: Ask them. When customers are on the phone or in your store, ask them if all of their needs have been met. To get a better response, ask open-ended questions like: "How else can we best meet
Ten Service Quality Essentials
Texas A&M University conducted a study to determine the key components involved in service quality. Researchers polled service managers and consumers from various service businesses, and the results highlighted 10 components integral to a successful service business. This research is applicable to many businesses, including independent tire dealerships. For best results, print out a copy