As Canada’s economy continues to do well, the per capita disposable income for Canadians has been improving over the past five years.
What does this mean for tire dealers? A lot! We can see a link between economic conditions improving and growth in industry revenue from tire sales. Revenue is estimated to grow $8.6 Million in 2019 alone and predicted to increase another $60 Million between 2019 through 2024. Why is that?
When Canadians have more disposable income they change their spending decisions, and replacing worn tires is one of the things that they elect to spend their money on. Also, they are likely to replace their tires sooner and are more likely to replace them with expensive high-performance tires.
You can capture some of this growth; if you are in a position to do so.
What do I mean by a position to do so?
I mean do you have the capacity (enough staff, good processes in place to ensure your bays are being used efficiently), can customers find you easily (marketing), and do you have the right amount and type of inventory.
As they enjoy a colourful fall, people start thinking about new tires to take on the coming inclement weather, be it snow or rain. Either way they are all about to start googling to find a shop conveniently located and easy to do business with so they can get it done! Make sure you are ready to serve them and capture that sale.