Facts section: tire dealer profile
Tire dealer profile Want to compare your dealership to the other 30,000 independents? Here are some benchmarks
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ingle-store owners make up two-thirds Survey respondents purchased tires from Chart 14 of the 30,000 independent retail, an average of five wholesale distributors 2010 BRANDS LISTED wholesale and commercial tire dealer each. BY OUTLETS locations in the U.S. The vast majority of The average age of the vehicles serviced (Total outlets: 5,018) locations offer consumer tires; close to 60% by tire dealers is 10.2 years. According to Rank by number Dealers/ of the locations sell truck tires. the latest applicable research data from of dealers outlets Wholesale distributors represent 13% of R.L. Polk & Co. (which takes into account 1. Michelin 83/4,200 the 30,000 dealers. scrappage rates, including the 2009 “Cash 71/3,877 Retail tire dealers dominate the automo- 2. Goodyear for Clunkers” program), the average age of tive aftermarket. They account for 60% of 3. BFGoodrich passenger cars is 10.6 years. For light trucks 70/3,733 retail consumer tire sales (see page 36), (Class 1-3), the average is 9.6 years. 4. Bridgestone 62/2,928 which totaled $15.6 billion in 2010. DealOn average, automotive service accounts 55/3,293 ers also perform more than $20 million a 5. Continental for 47% of an independent tire dealer’s sales, year in automotive services. based on MTD’s 2009 Automotive Service 6. Dunlop 52/3,301 Tire dealers specifically influence the tire 6. Firestone Survey. Average earnings are 44%. 44/1,862 brand purchase 70% of the time. Customers The average number of service bays per 48/2,786 ask for a brand and buy that brand 30% of 8. General location is six; the average number of tech47/2,811 the time; however, the dealer still influences 9. Uniroyal nicians is five. the type of tire purchased in half of those 10. Yokohama The most popular service among inde46/3,130 cases. When it’s all said and done, tire dealers pendent dealers is mounting and balancing 11. Cooper 40/1,823 directly influence the purchase of the tire (91%), followed by brake service (82%). 12. Kelly 36/1,399 by consumers 85% of the time. Tire pressure monitoring service and oil/ That, in a nutshell, is what the overall 13. Toyo lube service work are performed by 80% 35/1,547 independent tire dealer distribution chan- 14. Pirelli of the dealers. 34/3,007 nel looks like. Here’s a profile of the average Oil and lube service remains one of the 15. Hankook 32/3,023 tire dealer. most competitive automotive services in Independent retailers average between 16. Falken the aftermarket. Whether it is promoted by 20/1,531 $1.9 million and $2 million per outlet. A 17. Kumho time saved (“quick lube”), cost (the most 18/1,407 typical tire dealer handles 11.4 different advertised retail price for an oil change is 17/367 brands, which is in line with what dealers 18. Dayton $19.99) or value (it often includes a “free” Source: The Modern Tire Dealer on the Modern Tire Dealer 100 list offer. tire rotation and safety inspection), an oil 100, 2010 (For a look at brand popularity among the change is used to bring people into a repair MTD 100, see Chart 14.) shop. The advertised cost of a standard oil (synthetic blend), lube The average tire dealer has owned his or her company for 22 years, according to the latest MTD dealer profile survey. Thirty- and filter remained steady over the course of the year (see Chart seven percent of the dealers have children in the business; of 15). The average advertised cost for an oil change was $20.16, those who do, 81% say they plan to keep the business in the compared to $19.83 in 2009 and $18.99 in 2008. family. Thirty-five percent have spouses working with them. The average annual sales from oil and lube service per dealer Among retailers, half of the dealers say they get some of their is $55,621. The average annual profit is $17,799 (32%). product directly from tire manufacturers. Of those who say they The geographic breakdown of independent tire dealers in the do, the average is 3.8 manufacturers per dealer. U.S. favors the eastern and midwestern states: South Atlantic, 20.9%; East North Central, 14.9%; West South Central, 13.6%; Pacific, 13.0%; West North Central, 10.1%; Middle Atlantic, Chart 15 8.6%; East South Central, 8.2%; Mountain, 7.3%; and New AVERAGE ADVERTISED OIL CHANGE PRICING England, 3.4%. Full The state with the most independent dealers is California. Texas 1Q ‘10 2Q ‘10 3Q ‘10 4Q ‘10 year has the second highest number of dealers, followed by Florida, $19.61 $19.74 $19.75 $20.97 $20.16 Ohio, Georgia, North Carolina and Pennsylvania. ■
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MTD January 2011 4/26/11 11:05:38 AM
