Increasing the Value of a Tire Dealership through Customer Loyalty
There are several advantages and opportunities for tire dealerships right now to add value to their customers. Because the price and demand for cars are currently extremely high, the demand for tires and tire services is increasing. Additionally, over the next five years, revenue is expected to grow significantly for tire dealerships. Now is a great time to be involved in the tire dealer industry!
One of the ways Peak Business Valuation, business appraiser South Carolina, helps tire dealerships is through providing education about ways to increase the value of a tire dealership. This article discusses ideas for driving customer loyalty which in turn increases the value of a tire dealership. If you are looking to grow, sell, or buy a tire dealership knowing how to increase the value of your business can help.
For more information on tire dealerships, see Value Drivers for a Tire Dealership.
Increasing the Customer Loyalty of a Tire Dealership
Focusing on increasing customer loyalty can help grow and maximize the value of a tire dealership. Peak Business Valuation, business appraiser South Carolina, loves to help companies grow and increase their value! One of Peak’s main goals is to help companies thrive! Obtaining a business valuation from Peak Business Valuation is the best way to understand the value of a tire dealership. Schedule your free consultation today to get started. Below are factors that impact customer loyalty and create added value for a tire dealership. For more tips see, Growing your Customer Base.
First, it is common for tire dealers to offer complimentary value-adding services to their customers. For example, tire rotations for the life of the tire have become a popular value-adding service. Tire rotations can bring a customer into a tire shop as often as every 5,000 miles. Other value-adding services could include air pressure checks, tire inspections, and flat repair.
Offering value-adding services gives the tire dealership an opportunity to review vehicles on a more regular basis. Offering these services can be more effective in speaking with the customer rather than sending reminder cards or making phone calls.
Aside from this, offering value-adding services builds trust and rapport with the customers. As the tire shop builds trust with its customers and speaks with them more regularly there is more opportunity to sell other products and services. Value-adding services create opportunities to increase the revenue of a tire dealership.
Offering a Variety of Tire Brands
The average tire dealership offers between 6-12 brands of tires. Big brand tires tend to attract brand-loyal customers. Offering a good mix of top brand name products can result in higher valuation multiples. By offering a variety of tire brands you can also attract a wider range of customers.
Providing Customer Service and Education
Oftentimes, individuals lack understanding and knowledge about tire wear and tear. A lack of knowledge about tires leads many people to believe that they don’t actually need new tires. One tactic that adds value to a tire dealership and to the tire dealership’s customers is to train staff to educate the customer about tire wear and tear. Creating informational videos about tire wear and tear is a great learning tool for customers. Additionally, the videos can explain how often tires need to be replaced to maintain safety.
Offering Deals and Promotions
Most customers only visit a tire shop a few times a year. Offering deals and promotions can draw customers in. More customers = more revenue. Here are several examples of deals and promotions:
- Tire Discounts
- Buy Three Get One Free
- $ amount of a set of 4 tires
Creating a unique value proposition for the customer is key to differentiating your tire dealership. Because of the high competition in the tire dealership industry, differentiating your tire dealership is key to increasing the value.
Creating an Online Presence
Customers are often more likely to notice a store’s content through a digital format. This includes digital signage, multimedia, videos, and animations. The best tire dealerships don’t rely solely rely on print materials and static signs. Many tire dealerships use digital screens around their location to share information and educate customers and visitors. This also enables customers to research tires and products on their own. More and more customers want autonomy when they shop. Occasionally, they want to research and find information on their own before they talk to a salesperson. Going digital is another option to add value to a tire dealership’s customer base.
Advertising and Signage
Advertising and signage can help increase the exposure of your tire dealership. This can include displaying tires in the parking lot, lounge area, windows, and showrooms. It should be apparent that the company is a tire dealership. Banners and signs can also include messages such as “We Sell Tires”, “All the Best Brands”, “Factory Approved Tires”, “Price Match Guarantee”, etc… You want people passing by to know that the company sells tires and offers good deals. Having advertising and signage can help draw more attention to the tire shop, which in turn brings in more customers.
Understanding how to increase the customer loyalty of a tire dealership can increase the value of a tire dealership. If you are buying or selling a tire dealership, it is essential to know the value of the business. Determining the value of a tire dealership can be complex. As such, a business appraiser, such as Peak Business Valuation, can be helpful in the business transaction.
The first step to finding out what your business is worth is obtaining a business valuation. A business appraisal determines what is considered the fair market value of the tire shop. It also identifies areas to increase the value of a tire dealership. Peak Business Valuation, business appraiser South Carolina, frequently values tire dealerships. We have the expertise to answer any questions you may have. Get started today by scheduling your free consultation!
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