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TIRE SALES


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  • 2 weeks later...









We don't sell a lot of tires. We sold $24,000 plus last year. Just wondering how everybody else is handling wheel weights and the tape ones. We charge a mount and balance additional.

 

 

We use an all-in pricing model. We market this as every tire sale gets a free mount, balance and valve stem(where applicable). We price in the cost of that when we determine mark-up. I have had better success with this method over an itemized breakdown, it is easier for the customer to understand and they seem to respond well to the upfront delivery of the pitch. There is no shock when it is check-out time. When I quote a tire, the price I give is total installation and tax included: "Out the door price". Works for us, about 90% of our business is tire sales

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  • 4 weeks later...

We cover the price of the wieght and stem in the mark-up which is six bucks. We also charge a mount and balance of 7.50 per tire or 30 for the set. There is no way I am not going to charge that... I think that its acutally worth at least ten bucks a wheel but in my market that would be crazy. So we are basically selling our tires at cost and theres really nothing I can do about it. The good is that we don't stock any tires. I pull from six suppliers and the longest I have a set of tires is usually 2-3 days. I like it this way because I don't have a ton of money sitting on the floor. I really just don't have the room to stock a bunch of tires but my sales were in high teens using this method.

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Oh and because prices vary almost every week with tires I made myself an excel cheat sheet. All I need is the price of the tire at cost and then I can tell the customer what the final cost will be. I have found that telling someone what the price will be "out the door" is probably one of my best sales tools. I work with my father in law and brother in law and they have priced it per tire for years but now they like my method better. I think that it saves time and bs when the customer hears the final number. I'm not real sugary when it comes to my customers and thier vehicles. I usually put it them in a manner such as, this is the price and now you decide. If not then I'll roll it out and continue with whats in the parking lot.

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  • Have you checked out Joe's Latest Blog?

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      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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