Mounting and balancing: 4 tips for more profits
Are you tracking tire-related labor separately from mechanical labor? It’s one way to increase the profit potential of mounting and balancing services.
Modern Tire Dealer asked dealers, business coaches and manufacturers for ways to build profitability into mounting and balancing services.
Treating tire technicians as the cost of goods sold on the profit/loss statement gives dealers the ability to control the cost of sale, according to according to Jim Murphy, business coach for Top Flight, the peer group for members of the Tire Factory cooperative.
John Roemer, owner of Roemer’s Tire Factory in Missoula, Mont., says tracking tire labor separately from mechanical labor provides a way to measure the efficiency and profitability of sales in both areas. Payroll costs for tire and mechanical labor are shown as cost of goods sold on Roemer’s profit and loss statements.
In addition to tracking tire labor, other tips include:
* rethinking the value of free services
* offering dealer-specific tire warranties; and
* getting more out of balancing and mounting equipment.