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WE OFFER FREE TIRE ROTATION ON ALL NEW TIRE SALES. WE INTERNAL THIS AND CHARGE IT AGAINST THE SERVICE DEPT AS A POLICY EXPENSE. APPROXIMATELY $150 - $200 EVERY MONTH!!! THIS DOESNT SEEM RIGHT?? ANY OTHER WAYS TO ACCOUNT FOR THIS? MAYBE A SPLIT WITH THE PARTS DEPT??

If you are going to propose splitting this with the parts dept, you first need to look at who made what percentage of the total gross profit on the installed tires. The labor gross is usually higher than the parts gross and a 50/50 split would not be equitable. Make your percentage split equal to what the average split of parts gross to labor gross is. If it results in more tire sales, then no one should object.

Scot Strong

Are these just ending up as one line repair orders with a free rotate? The point of the free rotate isn't as an added service to the tire sale, it is to generate future sales of maintenance, brakes, etc. Do you think Goodyear rotates tires for $7.50 without recommending work? I'd take the $150 write-off if it results in the $3,000 worth of work it should generate.

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I don't think the cost of your program should go against policy but against cost of sale. After all policy should be reserved for actual screw ups or goodwill gestures.
Also are you charging yourself retail prices or your actual cost ?

I agree completely.

It's not policy, it's marketing.

The idea is to get the wheels off, spot worn pads, weak shocks, leaking wheel seals, torn CV boots, selling alignments etc...

I heard a Goodyear rep once say that Goodyear stores don't make money selling tires.

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When in doubt, charge it out !
I'll be right back with it = Bill it to the Shop Ticket
(Enter any name) will bring you the RO = Charge it to my Personal AR

It is well known that over 75% of all tire shops revenues come from other than Tire sales.
They want them customer coming in for the rest of the work on thier vehicle.
So the Free rotation is a marketing expense only.
Splitting the expense should be fair providing we are not discounting the tires when we sell them.
90 % of csutomers will purchase thier tires from the first one who recomends them.
So ask first , get the sale and give them a reason to come back and we may have a lifer.

[This message has been edited by CMG (edited 10-04-2005).]

let the hourly lube techs do the free rotations.
After all they get paid the same regardless.
just my .02

[This message has been edited by partsman103 (edited 10-04-2005).]

I just pay my techs to do the rotation and absorb the cost in cost of sale internal by just zeroing out the labor sale amount.