by BRIAN8474 » Mon Jan 11, 2021 10:53 pm
I have never run a B1G1 for $1 in my GM store, but in my Toyota store is s a 2 month twice a year event. I can tell you that the GM reimbursement rate that Toyota gives would not even get me back to my cost on the GM tires. All said and done, I make about 4.5% In the Toyota store during the months of the tire sale.....That is including tires that are sold at full price because they fall outside the rules of the program (up-sized, off program, and tires that are sold to non-Toyota vehicles) so best guess is a profit margin between 1-2 percent. On top of the low reimbursement rate, the program is run during months that I would be selling tires like crazy even with out the sale (March-April and October-November).... My advice: don't rely on the manufacturer to help you sell tires is to figure out a margin that you're comfortable with, the cost and stock you'll need to be successful, and adjust as necessary. Just a point of reference; my Chevy store beats my Toyota store in yearly gross by about 15% after the reimbursements are posted, and the Chevy store only sells 3/4 the number of tires that Toyota does.