Why you should be offering tire and wheel accessories

When Carl Moyer of Karl Chevrolet decided to take on the tire store across the street, he and his team planned for success. But, they could have never predicted they would have made GM history by being the first dealership to sell $ 1 million dollars worth of tires in one year. Their success continued in the following years as they increased their tire sales from $1 million in 2009 to $3 million in 2011.  Not only does Karl Chevrolet present their customers with tire options, but they also offer tire and wheel accessories.  The dealership displays about 50 ready-to-sell accessorized vehicles and uses Insignia’s accessories system for selling accessories. 

Although profit margins on new car sales continue to narrow, Karl Chevrolet has found a way to continually grow revenue and satisfy customers by offering tires and accessories. Here are four reasons you should get into the tire and accessories business

1.    Revenue potential:  “It just came to me one day. If you go up here on the corner and watch, every car and truck that goes by and try to find one that doesn’t have something bolted on it, your work cut out for you because almost every one of them does.” That’s why Carl Moyer says he decided to sell accessories. In 2010 Karl Chevrolet averaged more than $170 per car in additional revenue selling accessories. Tires are a vehicle necessity and according to Steve True, VP of Sales for Car Dealer Channel, 10-15% of tires in your service lane need to be replaced.

2.    Customer loyalty: Less than 20% of service customers are loyal. But, presenting them with the option to replace their tires in your service lane increases their loyalty, as 75% of customers choose to get all their service done at the place that can also replace their tires. Another great option to improve retention is via text programs offered through companies such as Auto Service Alert.

3.    Demand: True says of the 10-15% of customers that need tire replacement only about 3% actually do it.  At the same time, 78% of maintenance customers will buy from the first person that suggests a tire replacement.

4.    Customer convenience: Statistics show that customers that personalize before leaving the dealership are more satisfied with their vehicle. Personalizing at the time they purchase their car is a major convenience.  Tires and accessories are purchase decisions they will make. Why shouldn’t they get them at the place that sold them the car?