Two percent net profit. Is that your net profit? It’s the industry average. Norm Gaither says you can do better.
“Most tire dealers focus on their sales numbers and not their net profit, which is why they get into financial trouble,” says Gaither, who is president of Dealer Strategic Planning Inc.
“Tire and service shop owners are busy folks. And, even if they had the time, our industry is not known for having dealers take the time to review their monthly financial statements on a regular basis. I believe this holds dealers back from achieving their true potential of improving their bottom line profits.”
Gaither says dealers can improve gross profit and net profit by achieving an even mix between tires, labor and parts
“In working with tire dealers for the last 30 years, my focus has always been on trying to help retail tire dealers achieve 10% net profit.”
Where should you focus your attention to boost your bottom line? To find out, see our exclusive Financial Analysis 101.
