A gross profit benchmark of 60% for a tire store is not a myth. Dennis McCarron explains how to reach it, from setting your shop’s labor rates to getting 50% margins on your parts sales.
To 2019, Dennis McCarron says: Bring it. Low unemployment is likely to continue, and while that makes staffing harder, it means more people are driving to work and putting miles on their cars.
Tire dealers are feeling the heat. The big guys are growing bigger. Finding and keeping reliable technicians is getting more expensive. And technology is requiring more expensive shop upgrades. Doom and gloom? Dennis McCarron says no. "It’s not doom and gloom because this is awesome."
Often, as is the case, a tire and automotive shop will employ a store manager. That is what we call the job, a store manager. But is your store manager really a store manager? Or is he or she a sales manager? Let’s look at the differences.
Remember this: No matter what, in every instance, it is always up to the business to make sure that work sold is legitimate and performed.
What really separates you from the competitor down the street is the people in your building. And it’s not what they know. It’s the things you can’t teach. Do they care? Do they listen? Do they act like they want to make things right?
In the spring and summer of 2018, the federal government disciplined the tire and automotive industry by nearly $1 million for wage and hour violations. The government feels our industry is an easy place to generate revenue. And, sadly, they are right.
Employees may come to you with problems they can readily solve on their own, customers may want to speak “just to you” about getting their oil changed, and vendors always want face time to sell you the latest gadgets. Let’s talk about spending your time like the precious commodity it is.
A small business is much, much, much better off as an S corp for many reasons. For starters, if your store or stores made less than $50,000 in profit last year as a C corp, your tax rate is about to go up.
As owners, there’s a certain psychology that tells you change is risking everything you have, and what you have right now isn’t so bad. So the risk outweighs the benefits and we stay the same.
It’s always good to reflect on what we made happen last year, to assess how things went.
Gordon Ramsay of TV kitchen fame might be 'colorful,' but he speaks his mind. And it's clear we can learn from him in between the bleeps and blurred out middle fingers; he's a man who believes in consistency through standards.
Asking if an employee is "bad" is the wrong question. It’s judgmental and doesn’t help along to the best solution for the employee and the business. Let’s take a step back and look at the bigger picture.