Tire market sales revenue in Canada is estimated at $4.3 Billion annually, of which 45.9% is from consumers; that’s a $1.97 Billion consumer market in Canada. With BC’s population making up just 1.35% of Canada’s, that means there’s $26 Million in revenue annually for tire businesses in BC who focus on selling to consumers.
This is a huge market that most independently owned retailers could only hope for. Congratulations for picking a winning industry with loads of potential for you to capitalize on!
So now that you know you’re in the right business, how do you maximize your bottom-line profits from this killer opportunity?
It’s startlingly simple.
According to Modern Tire Dealer, 70% of consumers will buy the tire recommended to them by sales staff.
So not only have you set up shop in the right industry, you have a consumer base that buys exactly what you tell them to.
Therefore, the best strategy is simple. Push inventory with the best possible margins, even if slightly higher cost to the end consumer.
Consumers are very receptive to being persuaded by you, their trusted adviser, on the benefits and advantages of a tire choice. Prepare all your staff to state the case that the recommended tires, with a higher price point, may have a longer usable life, increased driving safety, or other benefits consumers are looking for. Don’t be shy, with these positive economic conditions there is a high likelihood you’ll be successful. If you read my last post on Canada’s economy and its impact on the tire industry, then you already know that Canadians have more disposable income and are more likely to replace their tires sooner and with better quality performance tires.
So give the people what they want while improving your margins! In this way, for every sales success your counter staff have, it’s contributing to the best possible success for you; the best bottom-line margin!