by lostgopher » Tue Jul 28, 2009 1:38 pm
A few years ago, we were having some tire selling issues, because the customer wanted to know the bottom line price. Tires, mount and balance, disposal. We were losing sales because first we would price the tires, then add the labor, and other things on the top. Mainly because our service dept was taking a "A" tech to do this tire work, and charging the full flat rate charge. So then I came up with a percentage formula, which was a cost plus so much for everything except the state sales tax. Then these tickets were broken down to be 75% for the tires and 25% for the labor, disposal,and shop supplies. Which is broken down into percentages again to cover things. I also pointed out, that if the initial cost plus of the tire percentage could be worked to include some free rotations, road hazard, and repairs if they wanted to work it that way.Basically it was a way that the customer could have these services, but they actually were prepaying for them. Another suggestion that I came up, was to give each tire sale a coupon book, which would have free/discounted tire rotation, as well as discounts on alignment, shocks, brakes, tune up, fluid changes, even another set of tires. Another suggestion was to make sure that it was tied to shop work, like free tire rotation with oil change. Also put a time limit on the coupons to be used up in a 2 to 3 year period. We use the cost plus to sell tires, but have never used the rest of the ideas.