Tips & ideas for using the SE mgmt software

Tires - How They Are Sold?

Tires - How They Are Sold?

Postby DelHatt » Wed May 04, 2016 10:41 am

there are several ways to sell tires. in the past we have chosen to make $30 per tire and that includes dismount, mount and balance. this includes a labor item, but is $0. most recently in order to track tech efficiency better, we have changed this so any tire sold is marked up 5%. we then assign a labor cost of $120 to the invoice. however, now our parts profit is affected. either way it is effected. is there a way that the software will break out tires into a whole other category in a business summary report? it would be helpful to view tires separate from parts.

How is everyone else "selling" tires? how are you tracking labor for tire sales? would love for some feedback here.
The Hudson Valleys PREMIER Alignment Shop.
25 Club: Starting Contributor
Posts: 25
Joined: Wed Jun 26, 2013 12:16 pm

Re: Tires - How They Are Sold?

Postby ricmorin » Mon May 16, 2016 9:08 am

. is there a way that the software will break out tires into a whole other category in a business summary report? it would be helpful to view tires separate from parts.

Manager reports do not exclude this, but reports from Bolt-On do.

How is everyone else "selling" tires?

I bill out the labor at my base rate and use the tire matrix to mark up tires.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC

Reality continues to ruin my life.- Calvin
User avatar
5K Holy Smokes Contributor
5K Holy Smokes Contributor
Posts: 5324
Joined: Mon Jul 25, 2005 10:11 am
Location: New Hampshire

Re: Tires - How They Are Sold?

Postby ARS » Tue May 17, 2016 7:41 am

We sell tires differently based on where we buy them from- if from a place that we have to

pay for shipping like Tire Rack- we take the tire cost x 40%- until the cost of the tire is above $110
Above $110 then we take the cost of the tire X 20% plus shipping cost

For some place that does not charge shipping:
Cost of tire x 27% for 0- $125
For $125 on up- cost of tire x 22%

Then for Labor- we subtract the Disposal fee, user tire fee, wheel weights ($1.25 per tire) & the valve stem or TPMS kit from the total listed below:
Vehicle with TPMS reset- $140 for 4 tires
Vehicle with out TPMS reset- $120 for 4 tires

Divide the above in half for 2 tires-- etc.

400 Club: Mega-Star Contributor
400 Club: Mega-Star Contributor
Posts: 420
Joined: Thu Aug 04, 2011 6:24 am

Re: Tires - How They Are Sold?

Postby steven kiser » Sun Jul 10, 2016 2:33 am

I need to make a minimum of 200.00 on a sale of four tires and this is including mounting and balancing. The added cost per tire varies from a minimum of 25 dollars to whatever the market will bear or customer allows. A matrix for tires (for me and my shop) has proven difficult so I try to hold to the outline mentioned before. I can go on and on about the Lost Leader approach many big tire stores use but that's like whizzing on a Forest Fire. Heck of an effort but no real effect. A sale waver comes into my shop for a price and I know I need to go rock bottom to make the sale so I go look at the car. If I can see a few up sells right away like wear patterns I can point out and explain probable causes, valve stem issues ranging from just dry rotted or sensors that need a minimum of resealing or if original with some time under their belt replacing. I will explain to the customer that I need to attach my scanner and check sensor condition. At the same time I'll take a quick look at all the other systems. I'll look at lube sticker, check for wiper streaking, A/C or heater operation, talk to customer about any issues that they have encountered that they want to look at or at a minimum talk about. I look for axle grease because this is the leader of balancing issues as the road dirt makes a home on spattered grease on the outer wheel face. I'll look for Seal Coat peeling near the bead or valve stem. Every and any other thing beyond the base competitive tire sale, basic rubber valve stem and cap, mount and balance using old style steel wheel balancing weights has an attached cost. I will (on occasion) attach a service charge to an invoice if person wants an experienced tech to go with them on a road test, add 15.00 per wheel if they need to be sanded and sealed because of corrosion, place wheels on vehicle by condition or amount of weight needed to balance, any prep or cleaning that needs to be done to remove oxidation avoiding a wheel to settle and loosen and the list goes on and on. There are occasions where an additional charge of 30 dollars per wheel are added to order. Frozen lug nuts, lug nuts missing chrome covering, searching for wheel lock especially if the vehicle is "well used and loaded with all sorts of stuff". I've had pretty big piles of stuff on the bay floor before key is located. The customer expects quick and quality service and I expect to be able to give it to them but need them to supply wheel locks and a clean area around the spare I they want it rotated onto the car. I've lost count on the amount of skin and blood I've left behind on vehicles searching for and digging out things. The more I try to explain my madness on structuring tire prices the more I'll confuse. In ending I'll mention that I have the proper hand tools, electronic software, equipment and tires for your car, truck, or S.U.V. to sell and install. I will not mix rotational with non, speed ratings will be correct, seal kits for sensors (won't use RTV and it seems to be getting more and more) and programming ability, Stock about 80% of the correct lug nuts and studs used and inspect them before we take wheels off and will insist the damaged ones be replaced. Every little extra has or should have a cost attached to it. There are levels of valve stems for trucks including style, length, base design, and how the rear wheels need to be mounted for valve location. Depending on the style and type I could be pocketing another 30 or 40 bucks a wheel. I inspect for cracks and lug nut seat distortion as well as being bent. All truck valve stems must have steel caps. They cost me around .18 cents each and I charge 2.25 per. Stick on weights re an additional charge, balance a mag so weights are hidden behind a spoke is an additional 7.50 per, Any specialty weight (any weight other that the basic steel wheel style) an additional 1.50 per wheel, cleaning road dirt or anything else off of outside of wheel has a 2.00 price attached to it. Probably repeating here but any programming beyond basic could cost an hours labor charge. At my shop there are basic service charges and we stick to them but anything outside them has a price tag on it so it's just not about the price of the tire. I've adapted to this policy because of my years and experience so I can walk around the vehicle with the customer pointing, showing, feeling and making as many customers as I can run their hands over the worn tires surface explaining possible causes and remedies. Alignments aren't just the basic hang a camera and check it please options (customer level) anymore and again there are certain levels and sometimes additional accessories are needed. It's possible that when I create a quote for a customer additional costs above the basic profit of 200 may run anywhere from 100 to 500 and if suspension or steering work needs to be done then more. What I do when I show the customer is while they are looking at the monitor screen is I deduct for any overlapping labor costa, apply possible discounts and much to their sorrow add additional charges for services outside the "tire package" box. My tire distributer has a program available to me that will show my basic cost and profit. This chart includes valve stems, my mount and balance base fee, disposal fee, State and Federal Tax. and obviously the tire. I belong to tire programs that will rebate me for certain tires that remain constant and show reminders on my order screen and others that just pop up from time to time show as well. I can use this as a marketing edge or just pocket it. Years and I mean years ago then I sold Snow Tires either studded (done by me) or not studded, Bias Ply or Radial the options were a wiz hole in the snow compared to today, then as in now, and especially now with all the "Tire Dealers" on line, not all the profit has to be the tire itself. The price of the tire on the add being waved in my face is etched and not moveable but even as the ad states in tiny letters, there may be additional costs incurred, and that is generally where I can make more profit. This is where the talking, showing, feeling, explaining, posting and deducting takes place. Man, I am lost in the White Mountains (in my head) right now and a proof read isn't in the cards so sorry and hope there are answers in the "War And Peace" Novel I just wrote............................................ :lol:
never argue with a fool, they'll drag you down to their level and beat you with experience
User avatar
steven kiser
5K Holy Smokes Contributor
5K Holy Smokes Contributor
Posts: 6296
Joined: Fri Jul 06, 2007 4:58 am
Location: eastern ma.

Re: Tires - How They Are Sold?

Postby sbcauto » Mon Jul 11, 2016 5:47 am

We Charge A 30% Margin On All Tires. Most Tires Are Installed & Balanced At A Cost Of 120.00. This Includes Wheel Weights & Valve Stems. Tpms Sensors Are Extra. Programming Tpms Sensors Are Extra. Most Times Programming Is Not Required As Long As Don't Move Rims Around.
Hope That Helps.
100 Club: Active Contributor
100 Club: Active Contributor
Posts: 141
Joined: Thu Feb 04, 2010 9:08 am

Return to Tips+Ideas

Who is online

Users browsing this forum: No registered users and 1 guest