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Old 02-18-2016, 09:30 AM   #16
XDCX
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Originally Posted by bbdrew View Post
From NADA: 15% of automobiles that come through service Department need tires, of those needing tires 75% will buy from the first that presents prices, of those 75% who buy 78% will have their vehicle maintained in the same place they buy tires. Based on this data, you should be able to calculate the money your losing if you are sending them down to the ford dealer.
That's a very interesting statement - I don't think I've ever heard those statistics before. It certainly makes a compelling argument for dealers to get into the tire business.
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Old 02-19-2016, 04:46 AM   #17
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Originally Posted by InBloom94 View Post
we take them off here and transport them down there which is about a half mile down the road...not to mention the fact that when they did the "remodel" a couple years back we lost about 35% of our storage space....fun times.
A few years ago, I was trying to get my counter people to buy into a greater sense of urgency when pulling parts. I had a young staff, but they had done it awhile and got comfortable. I started by doing an analysis of how much per minute the techs makes for the company, then I took my RO profits analyzed how much parts made per tech per minute. I explained to the guys that the longer the tech waits at our counter for parts the less they make on additional parts sales and I gave them the numbers. It ended up being pretty big. I had my guys from that point running to pull parts and I actually had to calm one counterperson down from yelling at a tech who was "socializing" at the parts counter.
You may want to do something similar and see how much per labor hour tech time and dealership profits you are losing by having to load a truck, drive a half mile, unload the truck. I would imagine that in 6 months to a year, the lost time would more than pay for a tire machine and balancer. In our business time is money and breaking it down by the minute to a dealer principle and telling him he's actually losing money by not buying equipment might get him to act. Additionally, if your dealership is profitable he gets to depreciate and use the equipment as an expense deduction.
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Old 02-19-2016, 08:38 AM   #18
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Good idea, as for parts there are only two of us, me and my assistant and he does not have any experience...my goal is to get it where we do not have to rely on the local wholesale shops...that we are profitable enough through the shop not to have to rely on them.
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Old 02-22-2016, 10:47 AM   #19
bbdrew
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Originally Posted by XDCX View Post
That's a very interesting statement - I don't think I've ever heard those statistics before. It certainly makes a compelling argument for dealers to get into the tire business.
They actual just published the NADA quote in this months Fixed Ops magazine. They have a whole article on missed tire opportunities. It's an interesting read if you get it.
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Old 02-24-2016, 10:22 AM   #20
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They actual just published the NADA quote in this months Fixed Ops magazine. They have a whole article on missed tire opportunities. It's an interesting read if you get it.
Interesting - thanks for the post.
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