The straight dollar markup strategy again makes the best sense. Like I stated in an earlier article, with this segment, you should apply a strategy in advance in which you feel comfortable with your margins so you can move the units.
Lastly, gross profit dollars follow tire unit sales. Always remember:. He can be reached at exsellmkting gmail. Raw Material Prices Continue to Increase. No Comments. Order Reprints. Report Abusive Comment Thank you for helping us to improve our forums. Websites like Tire Rack will ship the tires directly to the mechanic of your choice who will mount the tires.
It is possible to save money shopping online, especially on high performance tires or less popular tire brands. Step 5: Avoid the extras. Tire shops will often perform other services such as replacing brake pads, oil changes , and even wheel alignments. In most cases it is best to politely decline these extras and have the vehicle checked out by your mechanic if you feel there could be an actual issue. Tire stores make a big margin on these services so there can be pressure to upsell services that are not always necessary.
You are now ready to get out there and strike a deal on some brand new tires. This article originally appeared on YourMechanic. Autoblog is partnering with YourMechanic to bring many of the repair and maintenance services you need right to you.
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Part 1 of 4: Research the tires Go online and research the various brands of tires that are available for your specific vehicle. Here are a few considerations when researching tires: Step 1: Decide on your tread life. Part 2 of 4: Get quotes Call around for quotes before heading out to a tire store.
Tip : A salesperson that keeps pushing a different tire than the one you have in mind probably has their own interests at heart a bigger commission , move on to the next store. Part 3 of 4: Shop at a tire store In most cases it pays to shop at a dedicated tire store.
Part 4 of 4: Negotiate the price Here are a couple of tips on how to negotiate the best price on your new tires. Car Buying Ownership tires deals. View More. Thank You Thanks for subscribing. Check your in-box to get started. Sign Up More Info. We notice you're using an ad blocker. Please consider allowing Autoblog. Allow Us! Here's how to disable adblocking on our site. Click on the icon for your Adblocker in your browser.
A drop down menu will appear. What else could we need? First, consider that there are about as many ways of pricing a tire as there are tire shops. Some shops offer minimal markups in the range of five to 10 per cent and include lifetime rotations at no extra cost. Again, this is a cheap and effective way to achieve your loyalty so the shop can suggest other maintenance and repairs.
The normal markup on auto parts is in the 30 to 40 per cent range, but tire sales are so competitive, very few garages ever attempt to earn this type of profit. Generally, regional and national chains usually operate with a fixed profit margin on their tires. Yes, it can be higher than what certain smaller, independent shops apply, but shoppers in these larger centres often benefit from their lower acquisition costs due to their massive volume purchases.
Finally, ask about road-hazard warranty. This used to be a mainstay of tire retailers, but has pretty much disappeared.
It can provide some financial relief if a tire is rendered useless due to a severe puncture or blow-out; some still offer such warranties, and others will provide it at a modest cost. Sign up to receive Driving.
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