July 14, 2015 at 5:22 pm #12817
I would just add that after reading this thread, I bumped my tire margins to 25% without any consumer pushback. One customer was amazed that I was able to offer a replacement tire for less than Walmart charged her for a comparable tire. So much for the myth that the big boys are cheaperDecember 8, 2016 at 4:31 pm #14780
Where are you in the tire market ? Take a day and call other shops.. A margin of 20% is great and you can make as much as 35% by knowing a few key elements.
1: knowing customer base and how to expand it. Proper phone skills are so important here. The worst thing that happens in independant shops is the im the boss complex, loose it !! The customer is the boss because they sign the paycheck. Treat them all with high levels of integrity especially when talking to women ( women are a huge portion and growing as part of the tire consumer )
2: cleanliness. Huge on the consumer list.
3 : product knowledge. Cant sell something you dont know about, in the tire market people want benifets over price more often then not and if your customer has a high level of respect ( see 1 and 2 ) then their confidence in you trumps price.
4: up sale . remember that mounting and balancing are great supplements to the sale as well as tpms kits. As well as brakes, flushes, and other related sales to this.
Always ask your self and staff if they are taking every oppertunity to assist in making your cistomer happy and most of all remember its not your car so what you think does not apply… You must present manufactorer recommendations and all problems and let the guest make disicions with the strong knowledge you supply.
If you would like a plan of action i can certainly assist. Text me at 785-504-5211December 14, 2016 at 9:24 pm #14787
I’m trying to get a idea of what the average mark-up would be on tires. do most shop go by a percentage mark-up or stright amount market. I usually try to make at least $30 on a tire but sometimes I price myself out of the market. I have 2 tire shops in my area that I compete with. Anyone have any ideas
been tire store and auto repair should always try to make 20% mark up on rubber but always charge for stems and mount/balance that labor over a year adds up we charge $7.50 a wheel on balance whenDecember 14, 2016 at 10:52 pm #14788
We mark up 32%, for a margin of about 24%. and about $21.5 for installation, balance, & disposal per tire.
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