Lori L. Mavrigian

Managing Editor

Since joining Modern Tire Dealer in 1979, Lori Mavrigian has held several key positions leading to her current title as managing editor. In addition to handling the day-to-day operations of magazine production, Lori writes features, contributes photography and is in charge of several of the magazines departments. She also works with the magazine's National Advisory Council for the exclusive Ludwig Report surveys. She earned a B.A. in Mass Media-Communications from the University of Akron.

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Rebates are running rampant!

By: Lori L. Mavrigian

When a dealer says something to me like, "I hope rebate mania ends," I, of course, have to check it out. And in so doing, my respect for independent tire dealers just got hitched up a notch, again.

How do you do everything you do to try to sell tires at a profit, keep up on the latest service technology, work to keep customers happy -- and keep track of all the rebates being offered?

The dealer I spoke with told me some of the rebates are from the tire manufactures. So "if you are a dealer/distributor of their tires, then you are able to offer the rebate or promotion that the manufacturer provides," he said. "Others are created and marketed by the retailers such as Sears, Discount Tire or Costco.

"None the less, if a consumer obtains a price from Sears and they are offering a $70 rebate, the consumer would then expect us to match that offer. This action drives down the margins on tire sales."

I asked him if customers are aware of the rebates before they come to his store. He said, "Many consumers are aware of these rebates and offers because they shop on the Web or it is promoted on the phone at the retailer.

"We constantly update this information so our sales staff knows the competitive market."

I wanted to know if he felt the rebates helped draw in customers to his dealership. "The rebates do not draw in extra customers. It is a way to reduce the price on a tire in the hopes that the retail salesperson will use it to sell the tire," he told me.

He sent me a list of rebates being offered by his suppliers and his competition. There had to be at least 100 tires involved in some type of rebate.

Independent tire dealers must have to dedicate hours of research to make sure you are on top of all the offers. How do you do it?

Are you overwhelmed by rebates? Do you think they're good or bad for business? Please let me hear from you!

Related Topics: Rebates