Costco, BJ’s Wal-Mart ,etc. a Factor in tire sales?

[Joe Marconi]

Years back when Costco and BJ’s opened in my area, many people flocked to these places and I had a noticeably drop in tire sales. However, thru the years, those big box stores have not had any impact on sales. In fact, people have told me horror stories about the experience, plus they cannot perform the alignment, they cannot do a complete inspection and to go back to them for their free rotation is not worth the time and effort. It’s not to say the Costco, BJ’s and Wal-Mart does not sell tons of tires, but their customers are not mine, thankfully.

[xrac]

Years back when Costco and BJ’s opened in my area, many people flocked to these places and I had a noticeably drop in tire sales. However, thru the years, those big box stores have not had any impact on sales. In fact, people have told me horror stories about the experience, plus they cannot perform the alignment, they cannot do a complete inspection and to go back to them for their free rotation is not worth the time and effort. It’s not to say the Costco, BJ’s and Wal-Mart does not sell tons of tires, but their customers are not mine, thankfully.

 

If a customer has something like a broken wheel stud those places put the customer through hell because they can't deal with that sort of stuff where you and I replace the stud.

[Joe Marconi]

If a customer has something like a broken wheel stud those places put the customer through hell because they can't deal with that sort of stuff where you and I replace the stud.

 

I agree, I also question the ability for these places to properly inspect a vehicle; brakes, steering, suspension. Are safety issues being overlooked?

[CARMandP]

We have a superwalmart in our town and I have gotten several repairs from things they messed up We have gone over and talked to the manager about sending us more work but they are technically not allowed to refer anyone

[xrac]

We have a superwalmart in our town and I have gotten several repairs from things they messed up We have gone over and talked to the manager about sending us more work but they are technically not allowed to refer anyone

 

Our Wal-Mart refers a lot of stuff to us and we do repairs for them.

[FROGFINDER]

Become so good at solving peoples car problems or alway's taking the time to point them in the right direction in a manner they never forget is the key to the door of referrals.

 

[milesauto]

I’d like to say they don't sell to my customers but they do. Let’s face it they are there selling convenience and a perceived cheaper price. most are open all hours when we are closed. To most customers a tire is a tire and a battery is a battery... they have no idea what TPMS is and why we torque a wheel. All the major brands have all their signage and promotional material plastered up so you see it as you walk in their doors. Heck I felt like I wanted to put a set of tires on my truck the last time I was there with my wife shopping. This business is much different than when I started and we must adapt or lose. I never believed in coupons or sending direct mail or advertising because I did not need too but all of that has changed.

[Joe Marconi]

I’d like to say they don't sell to my customers but they do. Let’s face it they are there selling convenience and a perceived cheaper price. most are open all hours when we are closed. To most customers a tire is a tire and a battery is a battery... they have no idea what TPMS is and why we torque a wheel. All the major brands have all their signage and promotional material plastered up so you see it as you walk in their doors. Heck I felt like I wanted to put a set of tires on my truck the last time I was there with my wife shopping. This business is much different than when I started and we must adapt or lose. I never believed in coupons or sending direct mail or advertising because I did not need too but all of that has changed.

 

Great comments, I understand your frustration and agree that business today has changed. What are some of your ideas to compete with these changes?

[tyrguy]

My family actually sold the land my tire store of 28 years was located on to Walmart to build a superstore. We ended up building a new store right behind the Walmart. I can throw a baseball from my bays to their bays. Before the Walmart, my unit sales had stagnated at about 3800-3900 units per year. The first year with Walmart next door [2008] we sold 4500 units, a near 20% increase. Believe me, having the traffic that a superstore generates next door far overshadows any competition they bring. Plus, we've developed a good relationship with them and they send us alignments, brake work, etc, as well as the stuff they break and need repaired. Additionally, when they run into complicated tires issues, they send them our way. Their tire prices initially seem low until you add in lifetime balancing, flat repair and road hazard, all services we include in the cost of the tire.To be frank about it, I don't know how they sell anything anyway. I usually buy stuff in the store and check out at the tire and lube service counter. What I observe just causes me to chuckle. They never answer the phone. People sometimes wait at the counter for 5 or more minutes before anyone even comes back to the counter from the service area. And recently, they quit taking appointments for anything which means they are constantly backed up several hours because they are so slow in the bays. And to be totally honest, even as slow as my business has been for the last year and a half, I probably don't want most of those customers anyway.

[xrac]

In some of the markets Valvoline is taking over operating the Tire and Lube business inside Walmart. If they run them like a regular quick lube the whole format will change and they could become serious competition.

[milesauto]

Great comments, I understand your frustration and agree that business today has changed. What are some of your ideas to compete with these changes?

Mainly we need to show how we are different from big box stores by the way we take care of our customers. Honesty still goes a long way along with personal service with a "thank you" and follow up call a day or so after we work on their car. We have remodeled our waiting room and have comfortable chairs with a gourmet coffee maker, wide screen cable TV, and Wi-Fi signal. We carefully schedule waiting appointments so they are convenient with their schedules. Have a loner car for those situations when a customer has a unexpected break down or when parts availability delay a repair. The list goes on but you will notice I never said cut price…..but try and make it a good value.