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tyrguy last won the day on October 20

tyrguy had the most liked content!

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About tyrguy

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    955 Singletary Drive, Streetsboro, Ohio, 44241
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  1. And one more thing as long as I'm on my rant. Consider this..... At an average of 38.94/unit versus $20/unit, I can sell half the units and make the same amount of profit. Lastly, Whenever I think that just maybe I'd sell more tires by lowering my price I do this calculation. Lets say I lower my retail price 10%. JUST 10%. In this case that's about $16. That means my profit per unit is now $22.94, a 41% decrease. That means my friends that I now have to sell 226 units instead of 133 units to make the same profit. That's 70% more units with just a 10% retail price decrease.
  2. It always amazes me why guys use a parts matrix and get a hefty GP on parts but are willing to sell tires at cost or a few dollars above. If you are marking them up $20 as you say, which is indeed the price of a mount and balance, then you are selling them at cost. Why in the world would you do that? Hell. at least mark them up $30 so you are making $10 on the tire plus a mount and balance. As for putting internet tires on, you would make the same amount of money and not have to stand behind the product. Sounds great to me. Thru yesterday, we have sold 133 units this month, at an average profit of 38.94/unit. That's $155.76/set. That's a whole lot better than $80/set. And don't tell me it's because I don't have competition. I can throw a baseball from my bays into a Super Walmart's bays. Okay I'm exaggerating, it's probably 150 yards. And I also have an NTB 1/2 mile down the street. Lastly there is another strong independent 1.5 miles up town. Using my matrix that I have outlined on this forum, we can compete with anybody. I just tell the customer that we will meet anyone's price if the total package [lifetime tire services] is comparable, and we do. Sometimes we have to knock a few bucks off to compete but it's not much. The only thing that still grips my ass is that they won't level the sales tax field when competing on the internet. It's coming though and that will hit the Tire Racks of the world hard. Lastly, I never consider the back end manufacturer's money into my markup. That's mine, period.
  3. credit card machine fees

    That's not what he was referring to as "scam". He said " Everyone pays the same % for the bank /service charges and each card has different processing fees. What you pay over that is the scam ." So what he's really saying is every service passes the same bank costs along and what you pay over that is their profit. Actually, not even net profit, just gross profit. He said nothing about contracts or fee creep. My comment was just that you always hear people refer to some industry's charges as a scam or ripoff when they have no idea of the costs of doing business in that industry. As we all know, it happens to us all the time.
  4. credit card machine fees

    Kind of funny how whenever someone talks about a industry they are not part of profit is referred to as a "scam".
  5. Tire Road hazard

    Who says tires have to be a flat markup. Although we use a few tire matrixes for our program brands, they only vary by a few points. But here is a generic tire matrix we use. Cost 0-49.99 /63, 50-74.99 /66, 75-99.99 /69, 100-124.99 /73, 125-149.99 /74, 150-174.99 /76 and so on. Resulting retail prices include valves, mount, balance, alignment check, taxes, lifetime rotation, balancing, flat repair and road hazard. Obviously when quoting tires it's important to point out everything that's included. So, last week the average tire that went out of here had an average invoice cost of 97.89. We'd retail that tire for 141.95. Profit on a set of 4 would be 176.24. Now, we run sales every month where we give "instant counter rebates" of 40-60 off a set which might bring the profit per set down to 136.00-116.00.
  6. Taking checks

    We take checks all the time. If I hadn't looked, I would have said we take 3 or 4 NSF checks a year. But I just checked and we have taken only 1 in the last 4 years!! It seems like people just don't bounce checks as much as they used to. We do have a few restrictions though. Unless it's a customer we know, we don't take checks that are written on a bank out of our county. Secondly, we limit 1st time customers to $500. Thirdly, we don't take "starter" checks. Lastly, if it is a first time customer, we make a copy of the check and driver's license together and keep it until the check clears.
  7. Tire Road hazard

    We include a RH with every tire we sell. It's included in our price. It's a straight proration from day 1 and continues until the tire is down to the last 2/32s. Besides the prorated price the customer pays for mounting and balancing. We also offer an optional Tire Pros warranty for $4.95 a tire that is nationwide and no proration for the first year.
  8. Credit cards

    Been with retriever just a little over a year. First few months were great, with a net after all fees at 1.43 to 1.65. However starting this summer we have started to see fee creep. Last 4 months were 1.59, 1.65, 1.74, 1.96. I called Jason last week and he said that I'm probably doing more AMEX. I told him no, we haven't been processing any AMEX. He seemed puzzled and said he'd check it out and have an answer by the 17th. We'll see but apparently other Tire Pros dealers have noticed the same thing.
  9. The $19.95 Oil Change Offer

    The problem with the free alignment check is that more and more we are finding that fewer vehicles need any adjustment. We have always offered a free alignment check with the purchase of tires. And as little as 10 years ago it was rare that the vehicle didn't need at least some adjustment. However, my latest audit showed that upwards of 1 out of 3 cars need nothing adjusted. So 33% of the time I'm paying my tech a half hour to do the free check. I suppose if you have one of those Hunter drive over alignment checking devices it might make sense to include the check with the LOF. However, I have my doubts about the accuracy of those units. We have sold tires and through the free check found vehicles needing aligned that the customer states was just checked by one of those systems and declared to be okay.
  10. Except for oil change parts, we stick with the same parts matrix on ALL parts. On tires we use a matrix specifically design for tires. Parts matrix: 0-10 70%, 10.01-20 65%, 20.01-75 57%, 75.01-150 51%, 150.01-750 47%, 750-up 36%. Tire matrix: 0-49.99 39%, 50-74.99 36%, 75-99.99 33%, 100-124.99 29%, 125-149.99 28%, 150-174.99 26%, 175-199.99 25%, 200-224.99 23%, 225-249.99 22%, 250-274.99 21%, 275-299.99 20%, 300-up 19%. This markup includes installation and all future tire tire services.
  11. Opening on Saturdays

    Although I laid out my history of Saturday hours, I failed to give a conclusion stating my opinion on what is best. Would being open on Sat result in more sales? Absolutely. But there is a trade off. As I have stated in other forum topics, I haven't had to hire a tech in 23 years. Besides a generous pay and benefits plan I truly believe the reason for the longevity of employment I'm experiencing is due to giving the lads a full weekend away from the shop. Lastly, I dusted of the archives and looked back at our numbers from 1994 to 1995 when we made the switch. Our numbers went down 1.3%.
  12. Opening on Saturdays

    We used to be opened on Saturday 8-5 for all services. We rotated our 3 techs and 2 service advisers so that 1 of each was always off on Sat. I didn't care which tech or adviser it was, I left that up to them. Eventually we cut it back to 8-2, then 8 to noon. Finally 20 years are so ago I made my techs/advisers a deal. We would not do service on Sat, only tires. The techs and service advisers would get Sat off, but they would all stay 4 hours later one night a week. So on Wed night we would have a full crew till 9. It stayed that way until last year when we split the extra 4 hours into 2 hours extra each on Tues and Wed. Back to Sat. So since 1994 we are open 8-noon for tire work only and it's usually just myself and a tire tech unless I have something going on and then 1 of my 2 advisers fills in. We sell a few tires and do some rotations and tire repairs. Obviously we also have customers make appointments, pickup and drop off vehicles. There are some Sats when we don't pull a vehicle in the bays. However that all changes in late October thru the end of the year during tire season. Then we have both tire techs work as well as myself and 1 of the advisers. Most of the independents in our town are closed on Sat.
  13. The $19.95 Oil Change Offer

    Obviously you did the right thing by making the customer aware of everything you found upfront rather than sell the wheel bearing and tell him about the rest after the fact. My question is, if after being informed of all the issues he had asked you to do only the wheel bearing would you have done that? I believe we would have.
  14. Any shop owners in the Cleveland,Ohio area?

    I'm in Streetsboro, about 20 minutes south of where he works.
  15. Employees

    For God's sake, raise your rates man. A lot, like 10 or 20 an hour. 3 things will happen. #1 You'll lose some customers. Not necessarily a bad thing as the one's you lose will be the bottom feeders #2 Losing those customers means you'll have less of a backlog which will make the remaining customers happy. I'd love to be back to a week or two backlog. #3 You're going to make a lot more money. BTW, I haven't hired a tech in 23 years. He's still here as well as one I hired in 1983. Had one retire last year that was with me since 1979. I pay a base for 44 hours of $966 whether a customer walks in the door or not, or $35/ hour per billed hour whichever is higher. Also uniforms, 3 weeks paid vacation and 10k a year to offset their health insurance costs. The only problem on the horizon is that they will probably retire in the next 10 years.