"Paying $3 a gallon for gasoline is now commonplace and most dealers report very soft tire sales," says industry analyst Saul Ludwig in the June installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"A hoped for pick-up this spring/summer may be wishful thinking in that the average consumer's pocketbook isn't necessarily going to improve with the weather," Ludwig notes.
In this tough environment, Ludwig feels tire dealers' strategy should be to emphasize top quality tires and the need for keeping the customer's car in top-notch service condition.
"You may be surprised at the positive results."
Ludwig is a managing director with KeyBanc Capital Markets, a division of McDonald Investments Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in the June issue of Modern Tire Dealer magazine.
