jhamrick

12 hours ago, Truett said:

I don’t see their current move with TireHub as causing any problems for me. As for distribution they only are looking at the large city’s like Chicago, New York , LA, Indy and such. They are using the old wharehousing systems they still have in place. Smaller markets will still be supplied by regional distributers.

ATD is one of the largest distributors in these large cities and therefore were in direct completion with TireHub.

This is just a continuation of what Goodyear started 3 years ago when they moved to sell Tires online, ship them to us, and have us install them. We only get aa minimal delivery fee (about $5) and have to install at the price Goodyear sets. We have to buy the tires, do the work and we get a credit back from Goodyear. Any problems the customer has they have to back to goodyear as they have charged their credit card. But the ustomer blames us for wrong size to type that they ordered. They have stolen all our profits on the sale and do not even pay the spiffs they do if we sell them.

This is just a continuation of their greed. Now they are cutting out their distributors so they can take their profit also. 

All of the upper management of goodyear are ex PepsiCo or Hewlett-Packard and are only concerned about getting their 10% per year increase for the stock holders. They even have the nerve to ask us to warranty Walmart tires as walmart will not warranty a tire unless customer buys roadhazard.

As for purchase price Goodyear sets that on thei web site with what they call MAP pricing. If we sell for higher than MAP, we look like crooks gouging the customer. So we have to sell for MAP which is about an 8% profit.

I have been in the tire business for almost 35 years and as I have told Goodyear several times we have been a Tire shop selling full service and wil some day become a full service shop selling a few tires.

Based on the information I have been gathering it sounds like this might be more than Goodyear's greed. Some of the financial rumblings I have read and heard point to ATD being on the brink of bankruptcy and both Bridgestone and Michelin are also considering no longer supplying them with products. Of course Michelin and TBC have now merged to create a new wholesale supplier and Tirehub being a joint venture with Bridgestone makes it sound like there is some possible truth to that. I guess we will have to wait and see how ATD's future unfolds.

12 hours ago, Truett said:

At one time they did. They had tires made to their specs by major tire company’s. Usually retired molds. Now they just sell the same tires. Walmart still has a few of their own such as the Goodyear Viva 3. As a goodyear dealer I can not even order that tire.

I've got a question for you Truett....As a Goodyear dealer how do you anticipate Goodyear's distribution changes to affect your business? Is the withdrawal from ATD and creation of Tirehub seen as a positive move for Goodyear dealers? Are there any concerns that as Goodyear gains greater influence over distribution channels that they will increase purchase prices? 

You are correct 3Putt....Bridgestone and the other major manufacturers will not dilute the product they sell to us for the big box stores and Truett is also correct in that they may make a separate product line such as the Goodyear Viva specifically for Sam's/Wal-Mart. Which manufacturers are willing to build the "club" tires specifically for the big box stores has varied over the years. Currently Goodyear and Cooper are the primary offenders, but Yokohama, Pirelli, Continental, General, and others are guilty of it as well. 

To each their own 3Putt. The tire sales industry and the automotive repair industry are really two different types of business and they each require different approaches. 

I have been in the retail tire business my entire adult life and have seen/tried different methods for purchasing, marketing, pricing, and warehousing tires. This method has been far superior to any other. It is definitely more difficult and requires large amounts of time, effort, and capital. This strategy is the best way to grow tire sales for those owners/managers out there that wish to do so and are willing to invest the required time and effort to educate themselves about the products themselves and the consumer psychology that drives tire purchasing decisions. Yes, we do have marketing campaigns in place, but I never have to hope someone is going to come in needing the tires I have.

We've found that making money on tire sales requires a unique approach. Volume definitely helps, but it is not a requirement to become more competitive and increase margins at the same time. 

In order to compete with the clubs, chains, and internet retailers you have to be in a position to buy tires when terms are favorable instead of waiting until a customer walks in the door and asks for them.  

For example: A customer walks in and requests a set of P215/55R17 H-rated Michelin Defenders. You check with your local distributors (probably ATD, Carroll, and TCI) and find that your purchase price today is $130 +/- at each one of them. You add 20% and come to a price of $156.00 per tire before installation. But what if you had them in stock with a cost basis of $90.00 per tire? You could now add 50% and sell them at $135.00. Now all the other shops in town are wondering how in the hell are you selling these tires that close to cost. 

First - By being enrolled in manufacturer programs you can make money when you buy the tires and not just when you sell them (so far this year we are averaging $23.76 per tire cash back on Michelin and BFG tire purchases). 

Second - Developing a good relationship with one distributor over the others will get you the best pricing they can possibly offer as well as access to any partner programs they have to accompany the manufacturer programs. Plus, if they know that you have their products on your shelves and that your are willing to purchase in quantity from time to time they will call you when a good deal comes along.

Third - This is the culmination of the work put into step one and two. There will be times when a manufacturer decides to offer an extra 3% to their normal payout for the month or quarter and that distributor you have developed a good relationship with is going to chip in an extra $5.00 per tire if you buy 50 during the same time frame. This is just a hypothetical example, but there are good purchasing opportunities similar to this several times every year. This is the time to buy as many as you can expect to sell for the next 90 days. This is how you get a cost basis of $90.00 on that Michelin tire I mentioned above.

Of course not every shop has the space or capital to dedicate to tire inventory or the time to research all the associate dealer programs available, but if you can there is actually a lot of money to be made out there.

On 3/25/2017 at 5:21 PM, mspecperformance said:

I have heard decent things about the Rav stuff BUT it is a camera system. Hunter is by far the fastest to set up and break down. If you are looking to maximize profit from alignments then go Hunter. You can quickcheck cars very fast too. If you have the proper system in place you'll sell a lot of alignments. I have experience with camera based aligners and unless are only doing a handful of alignments a week, go hunter. 

I should have specified that we perform 5-10 alignments per day and are currently using an older Hunter Hawkeye, which is a camera system as well, and it is not giving us any problems. I am looking at the Rav and Hoffman equipment because they offer systems that are tower free and simplify camera placement by mounting the cameras on the rack itself. 

https://ravamerica.com/automotive-alignment-equipment/vistar-td3000hp-tower-free-3d-alignment-system/

36 minutes ago, xrac said:

I do not know how common the Hamrick name is but we have Hamrick Towing here. 

It is not terribly common as far as I know, but oddly enough there is a Hamrick Tire & Automotive about 100 miles away from my place as well.

Yes xrac, the Hofmann and the John Bean are the same machine. And now that Rotary has acquired Ravaglioli they also have a machine that is identical to the Rav.

Anybody out there have experience with the new generation of Hofmann or Ravaglioli aligners such as the ones in the links below? We've been using Hunter forever, but feel like it is time to ask ourselves if Hunter really is the best option or is it time to give something else a try. Any feedback on performance and service after the sale would be greatly appreciated. 

https://ravamerica.com/automotive-alignment-equipment/vistar-td3000hp-tower-free-3d-alignment-system/

http://www.hofmann-usa.com/wa-geoliner-770.asp

Good day everybody.

Do any of the tire dealers here, particularly the higher volume shops, have any experience with Bosch equipment?

We deal with passenger and light truck tires up to 30" in diameter and currently have one Hunter and three Coats tire changers. Our oldest Coats changer is due for replacement and as I am highly disappointed with the Coats 70X EH3 I purchased last year I will probably purchase another Hunter this time, but I would love to hear some opinions on Bosch equipment before I make my purchase.

We install an average of 42 tires per day so speed is important, but the changers ability to protect the tire and wheel assembly from any sort of damage when working with the more difficult run-flat tires, reversed wheels, etc is the number one priority.

Thank you in advance for anyone that has any feedback to offer.

It looks like I am the odd ball here. In my shop stocking tires is an absolute necessity. I stock roughly 2,000 units and it works very well for me. Tires can be quite lucrative if you can do them in volume and having the ability to stock them allows you to take advantage of good buying opportunities when they come along. The goal in warehousing tires is to make as much money as possible when you buy them to keep investment costs to a minimum. For example, I am currently averaging $23.57 cash back on every Michelin and BFGoodrich I purchase. $13.83 on every Toyo, $11.03 on each Yokohama, and $14.05 on every Continental and General. That is cash back from the manufacturer and the supplier combined, some of which is paid to me monthly and some of which is paid quarterly. The dollar figures are smaller for other brands such as Cooper, Mastercraft, Pirelli, Hankook, Kumho, Nitto, and Sumitomo, but I earn cash back every time I purchase one of them as well.

Whether or not stocking tires can and will work for you will take some time to figure out and there are many variables that come into play. If you feel that you are only able to sell a few sets a week then it is almost certainly not beneficial to stock any, but if you believe you have the potential demand to move three or four sets a day then it is definitely worth taking a good long look into growing that area of your business. Some questions you will have to ask yourself.

How much demand are you experiencing from your customers?

Do you have the required space to warehouse them?

Do you have enough cash to invest in them?

Do you participate in any manufacturer incentive programs?

Do you have a good working relationship with a large supplier?

Do you have the right equipment to begin doing more?

If you have the demand, space, and cash then you should almost certainly investigate further. If you can develop a good working relationship with a supplier like Carroll, TCI, or ATD and move enough units to participate in a manufacturer program such as Michelin MAST, Continental Gold, Yokohama Advantage, or Toyo Driven you can get a better buying price and earn money when you buy them. One potential drawback that comes with doing more volume in the tire business is the associated equipment and supplies....more capable tire changers and wheel balancers, TPMS diagnostic/reprogramming devices and sensors, wheel weights, etc.

On the positive side, the more I stock the more I sell. I have found that the more options I give customers the more likely I am to have something on the shelf that appeals to them on some level. This is simple consumer psychology. Many consumers make impulse buys and most consumers love to have options and the "perceived" value of a rebate or sale available to them. If a customer walks into a shop and asks for price and availability on a set of P215/55R17 you are much more likely to make a sale if you can provide estimates on three or more products, which provides the consumer with choices. One of those choices is eligible for a manufacturer rebate or is on sale, which provides perceived value. And you can have any one of them installed in about 45-90 minutes, which provides the opportunity to buy on impulse.