Why You Should Offer Seasonal Tire Storage
Updated: Feb 12
Two words, customer retention. Your dealership wants to develop life-long relationships with your customers. Simply put, it is the best way to get their recurring business. Industry experts know, tire storage is the way to do this, “and it pays off in service visits, sales opportunities and enhanced customer loyalty.” Jim Philips, the director of education, OEM and allied industry, at the National Automobile Dealers Association's (NADA) Dealer Academy says, "The people who really embrace this are the ones who understand retention." The reason storing winter tires is so valuable to your dealership is clear. It gets your customers to come back two times every year. When customers store their tires at your dealership, they will come to your dealership in the early spring to change their winter tires to summer tires, and in the late fall, to change summer tires to winter tires.
It is also important to consider how flexible this service is. Your dealership can charge customers to store their tires, or instead make it a free benefit for your customers (or both). Both business models have been utilized to great success. “Mary Pacifico-Valley, dealer principal of the Denver-based Rickenbaugh Automotive Group, said the group's Infiniti dealership in Dacono, Colorado, offers free storage for new-vehicle customers who buy tires there. Meanwhile, Keith Smerchek, the fixed operations director of Wellington Motors in Guelph, Ontario, said their store charges a $60 fee for tire mounting and installation.” Winter tire storage is an immensely flexible service, and it will set your dealership apart from the competition. Furthermore, your customers will appreciate the convenience offered by your dealership, and the safety provided by their new winter tires.
Lastly, tire storage gives your dealership the ability to compete with shops offering drive-in services, and that have lower labor rates. Big O tires, Midas, Meineke, are all places that have the cost edge over dealerships. Fortunately, tire storage levels the playing field. Mr. Kem Chowbay, retail fleet manager, Performance Acura in St. Catherine's, Ontario said, "Statistically, the first opportunity for loss of a customer is tire sales." This is true especially after the customer’s initial warranty expires, which has been an especially weak spot for dealerships.
If your dealership is thinking about implementing this flexible and innovative service, check out InvenTire.
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