Used Tire Dealer Tips
Used Tire Dealer Tips
Every minute, of every hour, there is approximately 700 used tires being changed somewhere in the USA. Add in the rest of the growing world vehicle populace with countries like China and India’s escalated car growth recently and that’s a lot of rubber rolling around. The United States currently has the largest amount of tires on the ground and this number is growing every year which increases the used tire market and customer awareness of the benefits of good quality used tires.
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For more information, please visit used tire recycling equipment for sale.
“The Tire Team” here at ATM Tire Recycling are committed to the success of our clients after the sale and will work with them on specific goals and be there to answer their questions, to insure that commitment is real day after day, tire after tire. The “Tire Tipster’s” goal is to share common sense knowledge and good ideas that will help our tire dealers build their bottom line with operational control, efficient time management, profit and loss awareness and reasonable risk management.
Our mission statement is simple: “If Your Selling A lot of tires, Were Selling A lot of Tires”GOT A TIP FOR THE TIPSTER, PLEASE SEND IT TO: tipster@atmtirerecycling.com
Note: If The Tipster Does Use One of Your Tips, He Will Send You A $50 Check For Helping Out
Used Tire IDing If your selling used tires, you should be tire IDing every tire out the door. This simple, quick process gives You! the used tire dealer, real control over your operation. Whether you’re selling 100 used tires a month or thousands of used tires, this technique allows the tire dealer to know exactly when their tire went out the door. The entire process of writing your shop initials and the date inside the tire takes less then three seconds but that tire ID is there for the duration of the used tire life. Think of it as a manually inserted UPC lable inside the tire.
The Benefits of Used Tire IDing:
Used Tire Warranty One of the best tools in your arsenal for growing your tire business has to be the used tire warranty. The used tire warranty shows your customer your confidence in the product that you are selling and your professional responsibility to stand behind your tire service for a reasonable period of time.
The used tire warranty is “piece of mind” for your customer and clearly a value added bonus to the deal but the final decision to give a warranty and/or the extent you are willing to cover in a warranty is a decision that should be based on your customer base and the retail demographics you are working with along with the monthly volume of tires you sell now and hope to sell in the future.
Many dealers will at first stay away from a used tire warranty thinking they will have to endure continuous repair service from road hazards and/or dealing with a dishonest customer. Selling used tires in a questionable condition is another reason some dealers won’t give a used tire warranty which puts both the tire dealer and the customer at risk.
The good news is that ATM Tire Recycling sells as it leader item the Quality Control Re-Sell used tire Learn More which will help you sell more tires and be able to offer your customer a trouble free warranty. Regular SP (scrap percentage) used tires sold by reputable wholesalers should also be considered in offering a used tire warranty to your customers after an initial tire inspection.The extent of the used tire warranty coverage can be simple or overdone but doesn’t need to be and should only be about the used tire itself. See this warranty example Learn More to get an idea what the tire warranty should cover to be effective. The used tire warranty does not need to be presented to every customer but should be posted in a conspicuous place in your tire shop so that your customers can read it at will.
Many dealers in an effort to build business will cover anything that happens to the tire during the warranty period. The existent the tire dealer is willing to cover the warranty can be a per incident situation or across the board deciding for all their customers to do road hazard tire repair for a limited time after the sale. The used tire warranty we recommend covers the used tire in a fair and responsible way to both the used tire customer and the used tire dealer. The used tire warranty should always be used in conjunction with the used tire ID process and a verifiable sales receipt.
The used tire warranty is a potential customer selling point for not only the tire you’re selling that day but for future tire business down the road. Used tire volume dealers will tell you that it’s a great new and old customer incentive and that they wouldn’t be where they are today without it. The feed back we receive from our dealers on warranty returns is less then one tire out of 500 where there was actually some type of verifiable tire failure.
Used Tire Inventory The key to used tire inventory management is not only about keeping track of what tires you have in stock and learning how to keep your tire inventory rotated but concentrating on the quantities of certain size tires that seem to sell at a slower pace then other sizes. The key is to focus on your entire inventory but make customers aware of certain tire and rim sizes you have the most of, with used tire specials or cross referencing tire sizes. Also offer specials when your customer needs two or four tires to move that inventory out the door. Remember that when a two or four tire sale is possible, staggering and/or changing the tire to a compatible size is sometimes possible and will help you move inventory as well.
Dealers will often tell us that they can only sell 14 or 15 inch tires and can’t sell the other tire sizes. The reality is that all tires sell, some sizes faster then others depending on the demographics you’re working in and the effort you make as a dealer to move out your entire inventory. Volume dealers will stay in the mid 90% flow of moving their inventory in and out the door week after week.
The used tire business market has changed dramatically over the years to where now all income classes will search out and find deals on good used tires from reputable used tire dealers to save money and keep budgets on track. This is especially true in a recession or a slow grow economy.
Keep in mind that the reusable thousands upon thousands of used tires in the recycle flow are mainly coming from a tire change off a rim from somewhere. That tire ex-change is coming from multiple rim sizes that everyday utilize more 16, 17 and 18 inch used tires in correlation to more and more late model cars and trucks on the road replacing the older vehicles with 14 and 15 inch rims. Part of this process is better understood by realizing that 16 inch and 17 inch tire rims have been on the road for over 16 years and 13 years consecutively while 13, 14 and 15 inch tire rim sizes have already or are in the process of phasing out all together. The used tire recycle flow is a direct reflection on what is actually moving in the used tire business and the current vast majority recycle market is 16 and 17 inch used tires.
Another inventory winner is to separate your used tires mix loads by the A and B grades, Low Profile and LT’s from the majority C grade where applicable. Also pulling sets and pairs out of the mix used tire load when applicable is another great way to diversify your inventory out the door.
Used Tire Signage Letting customers know your in the used tire business can be a fine line between over done and not enough. The used tire dealer that portrays and maintains his business as a professional operation will out sell his competitors every time. Remember your over all tire competition includes new and used tire retailers and building customer confidence in used tires is a main business priority for growth. Many used tire dealer sell new tires also and this same business mentality applies as well. The key is to make your business stand out to potential customers without losing your professional character.
One of the best ways to let the public know you’re the tire guy is to take advantage of signage opportunities around you.
Existing stationary lighted pole marquee signs or wall signs next to the road do great at bringing in tire traffic but if you have to install one first, the initial cost, zoning and permits may be a financial investment factor to think about.
Take in consideration windows if your tire store has them, they make quick inexpensive signs to let people know what you sell and for how much. Store windows are generally out of the control of zoning departments and are great eye catchers.
Using tire storage semi-trailers or trucks for double duty is another great way to display your business name and/or used tire products. When the tire storage trailers are positioned towards your road traffic they become custom giant bill boards that shout your used tire message 24/7.
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Road side signage is a lesson in grabbing your customers attention for a moment while they are driving by your place of business.
This type of signage is formulated by things like the size, color and font style of your sign text along with the speed limit allowed for traffic that passes your tire store.
The formula success of your sign displays are measured by the retention of information the driver understands as they pass by your tire store.
To make your signage effective, keep the message short and direct. One of the most effective signs for used tire sales will display the following three statements.
If your city or county zoning departments don’t have any objections to board type painted A frame signs that you can place next to or at the front of your used tire business, Go For It! Remember two tips, have the signs created by a professional (cost is minimal) because that sign is a direct reflection of your everyday business standards and keep the sales message short and sweet. Trying to cram a lot of text on the sign board becomes a blur of words, can confuse your customer and is a waste of time and money. Banners, Flags, Flashing Lights, tire sleeve’s all have there place and can be a positive attractant for business, but remember that too much can be the difference between looking like a professional used tire business or a road side circus / flea market.
Used Tire Pricing Here is where the debate continues with the way used tires used to be sold and how there are sold today. The used tire business has grown into a multi-billion dollar industry world wide and is a domineering staple in many countries far out selling new tires on a yearly basis.
Used tires used to be sold twenty years ago in the past with a pound per pound mentality that big tires should sell for more money then smaller tires. Keep in mind that 20 years ago in the USA almost all cars and trucks rolled on mainly two rim sizes 14’s and 15’s with some 13’s in the mix. Any other rim sizes during that time were considered custom rims for specific purposes.
That was then and this is now. Today car and truck manufacturers around the world produce vehicles with standard rim sizes of 13, 14, 15, 16, 17, 18, 19 and 20. In the USA the main manufacturer rim sizes accompanying new cars and truck over the last 10 years have been 16, 17 and 18 inch rims in the millions. This does not include millimeter sizes or the popular low profile sizes from 22 inch up to 36 inch rims. Because of the tire rim size diversity taking place over the last two decades, the way used tires are now sold has changed as well.
The ability to purchase set tire sizes in volume is not possible in today’s wholesale markets with any dependable consistency. A real used tire wholesaler knows that even if the considered popular used tire sizes were available to sell individually it would not be with any reliance because the popular used tire sizes change constantly day by day in the recycle flow. Today’s hot seller could be next week’s dud! If this happens regularly, it is a clear indication that you are not marketing correctly your business location or your entire used tire inventory because the variable market for all different tire sizes is there but you’re not reaching it and getting your market share.
Here some tips on how to price and grow your used tire market share.
Used Tire Marketing Since there are now over haft a dozen active tire rim sizes a standard used tire dealer must inventory and sell, it’s very important the used tire dealer understand the demographics and the available used tire market they are operating in.
All those thousands of different cars and trucks with different tire and rim sizes passing your tire business all have three things in common.
- (1) There rolling on a vast variety of different tire and rim sizes (that’s why all used tires sell)
- (2) New tire and used tires are terminal rubber products that will eventually wear down and need to be replaced. Add in road hazards, driving habits, road conditions, vehicle mechanical conditions, state inspections and the elements from Mother Nature and that may be sooner before later.
- (3) They are all riding on “Used Tires” even the new one’s they just installed which are just as vulnerable to all the conditions mentioned above.
Used Tire Marketing Tips
Used Tire Service Customer confidence in your tire service and used tire inventory is a day to day challenge. Educating your customers about used tires, especially to customers that are new to the idea of buying used tires is key to driving your used tire business forward.
Your over all appearance goes back to the standard business rule of first impressions. If your used tire business looks run down, with dirty walls, floors, over flowing trash cans, illegible hand painted signs, disorganized tires, scrap tire piles and scattered equipment during a slow time, your potential customers may think that this is what they can expect from you as a product and service provider.
Even the busiest used tire volume dealers will make sure their tire shop is in order during operations and after a busy day, to be ready for tomorrow.
Running a standard used tire store or building into a high volume used tire store require several key elements including operational efficiency, tire equipment maintenance, used tire inventory management, dependable used tire resources, reliable retail check and balance system for transaction, on-going training for tire installation and balancing procedures and a “Tire Team” dedicated to your company goals.
Used Tire Service Tips
Used Tire Display Depending on your local zoning ordinances with concerns to used tires, a tire display may or may not work for you. Stacking used tires outside your tire store will help let customers know your in the business but this should be done on a controlled and limited scale with scrap tires only unless you can bring the good tires in at night.
Never keep used tire inventory out in the open so you wont invite UV damage, hold rain water, attract rodents and insects and open yourself up to theft and vandalism.
Any tires use in a stack attractions should be anchored or secured so under severe weather they cant be knocked down and/or roll into traffic.
Some used tire dealers will actually display different type of tire damage from customers tires that were changed out to help educate awareness to other customers about the different things that can happen to their tires.
Scrap tires for disposal should be collected daily and stored in an a specific area, truck or trailer and disposed of on a regular bases.
Starting a Scrap Tire Business 101
What are the most viable markets in the local geographic area? Which markets can be developed quickly? (Typically, it is tire-derived fuel and civil engineering). Does the local/state/federal government have a grant program for market development? A critical element in examining potential markets is determining the obstacles to these markets? Below is a quick view of possible obstacles (by market) for consideration.
Obstacles to Tire Derived Fuel
Fuel Types/Supply
What other supplemental fuels are currently used in the target market? What type of fuels is the target industry currently using? If pulverized coal is the dominant fuel then TDF may not be a good fit. How many tires are available in the local market area? For example in the case of TDF, the target client may require one to three million scrap tires per year. Will the proposed business be capable of providing this amount of tires to the target client?
Acceptance of TDF
Who will be the sole responsible party for convincing management (end user) to begin using TDF? If so, how much is the target client paying for their main fuel supply? TDF will always have to be lower. Is the facility being paid to take any materials for fuel? If so, TDF typically cannot compete. Will the target client have to make substantial modifications to their existing operations to incorporate TDF? If so, who will pay for this modification (industry, government subsidy)? The acceptance of TDF can be a function of the feeding/monitoring system required. Most facilities do not have capital expenses calculated into their budget. Waiting for this expense to be budgeted can take two years. How long will it take for you and the target industry to obtain permits?
Opposition to TDF
Will opposition come from public concerns or competition? Is the facility in a nonattainment area for any regulated air pollutants? If so, what are the main emission criteria considerations? Compare those to the benefits of TDF, which has been found to lower nitrogen oxides.
Obstacles to Rubber Modified Asphalt
Is there a mix of roadway pavements in target market area (construction material, road surface material/style)? Have you determined the receptivity of the local department of transportation, public works departments and contractors for utilizing alternative pavements? The history of alternative pavements in the target market, the region and state will be a critical issue. The time lag between the initial contact with a potential user and sale of a pavement product could be as long as three to four years.
What about the supply of quality ground rubber? Can you provide this material? What other types of modifiers are the local roadway contractors using? What about the cost competitiveness of ground rubber versus other modifiers? Remember, quality and consistency of the ground rubber will be of paramount importance.
Obstacles to Civil Engineering Applications
Check with local regulations to determine the classification of a processed tire. Is it considered a solid waste or a beneficial use commodity? Do the present rules make it conducive for a smooth entry into the market? Have you determined the receptivity of the local departments of solid waste, water quality and health to the proposed civil engineering applications? What about state agencies? Have these applications been tested in the local target market area? If used previously, what were the results?
Standard Practice for the Use of Scrap Tires in Civil Engineering Applications:
This American Society for Testing and Materials (ASTM) publication provides guidance for testing the physical properties and data for assessment of the leachate generation potential of processed or whole scrap tires in lieu of conventional civil engineering materials, such as stone, gravel, soil, sand or other fill materials. In addition, typical construction practices are outlined. This ASTM document (D-6270-98) is available from the Rubber Manufacturers Association please see https://www.ustires.org/
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