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I get customers ask all the time during snow tires season, if they buy a set of snow tires would we store the summer tires. We have never done it here but another local tire shop does. I have just acquired new warehouse space for vehicle storage and to build a shop to perform specialty work in (we do a lot of classic European, specifically Mercedes work). There is lots of extra space and in the build out I'm wondering if I should put some racks in to store wheels and tires. So far I'm not so sure it would be worth the effort. The storage fee (yet undetermined) would likely barely be worth the effort, but what is the value of offering other services to your customers that most shops do not and guaranteeing repeat business?

 

If you offer this service, how does it work? What do you charge?

 

Thoughts?

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If you have a lot of unused storage/warehouse space, I would definitely consider something like you are suggesting.

You are paying for every square foot of space, so you might as well use it to make money, even if it's only $5-10/month for a set of tires to sit there.

 

You can also think of it this way, you now are in possession of your customers tires, so you are GUARANTEED that he's going to come back to you at some point in time.

When you change his tires over (maybe for free, included in the storage fee), feel free to give your customer's car a courtesy inspection and make some recommendations.

What would that kind of customer retention be worth? I'd say a lot more then the hassle of having a stack of tires in a corner.

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If you have a lot of unused storage/warehouse space, I would definitely consider something like you are suggesting.

You are paying for every square foot of space, so you might as well use it to make money, even if it's only $5-10/month for a set of tires to sit there.

 

You can also think of it this way, you now are in possession of your customers tires, so you are GUARANTEED that he's going to come back to you at some point in time.

When you change his tires over (maybe for free, included in the storage fee), feel free to give your customer's car a courtesy inspection and make some recommendations.

What would that kind of customer retention be worth? I'd say a lot more then the hassle of having a stack of tires in a corner.

 

This is kind of the thought process. We do a lot to get the customers in the door and keep the relationship going, make sure service is up to date and give customers recommendations on work. This would be one more way to do that while offering a relitively unique service to our customers.

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I think if you have the space then it may be viable. But be sure to make it worth your while. $10/month isnt quite worth the effort in my opinion. If tires sit n dry rot, now customer blames you. Unforeseen fire/damage now youre paying for those $1000 tires. Maybe charge monthly with additional for insurance. Its a thought. But extra storage space should be able to yield you more than a happy meal...unless your rent is dirt cheap.

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we store customers summer/winter tires for free, it takes up space but we have extra space so it's not an issue. I like it because if we store 500 tires for customers that's a pretty much guaranteed $15000 in the bank ($15/tire mount and balance spring and fall) and a repeat customer. They aren't going to Walmart when their old tires are at my place. If you plan on storing more than a few hundred tires you will need a good system - we are at the limit (or beyond) of crudely stacking them in the corner with a name tag on duct tape stuck to their stack of tires.

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  • Have you checked out Joe's Latest Blog?

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
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