Intro

Question 0

Our goal
Create extraordinary value through programs that make it easy and profitable for car dealers to replace bald tires and retain customers.

What we should take away from our meeting today:
The knowledge skills materials and confidence needed to successfully sell more tires and related services to your service customers.

Slide2

Answer 0

My name is Brittney Ferrigno and I work for dealer tire. Toyota has partnered with dealer tire to create the Toyota tire program.
Our goal at dealer tire is simple we want to make it easy and profitable for car dealers to be in the tire business. The two keywords here are easy and profitable. easy because we know if it’s not easy it won’t be successful, and we know that you have many things to be concerned about in your job and tires are just a part of it. so we make sure to give you all the tools training and support you need to easily sell tires to your customers.
The second keyword is profitable that’s the reason this dealership is in the business right? and we know tires are profitable not just from the sales of tires themselves but from brakes struts shocks and alignment sales generated from tire sales.
Our immediate goal today is to give you additional knowledge skills materials and confidence to do the best job you can and selling tires and other work to your service customers

Question 1

Tires 101

Slide1

Answer 1

Good morning first I want to thank each of you for taking time out of your busy schedules to learn more about the Toyota tire program and how we can have happier repeat customers and increase tire sales. this training is called tires 101.
You should all have a work book in front of you this is yours to keep, so please take notes and use it for ongoing reference. I’ll be using the workbook throughout the training and if you ever lose your place the page of the workbook will be on each side of my presentation

Question 4

Agenda

Why sell tires

Answer 4

This will include a short discussion on why it’s good business for you and the dealership to merchandise tires

Question 5

Agenda

Ties basics

Answer 5

To the average person tires seem all the same they are around black and hold. So we’ll spend some time on tires anatomy construction sizing and various types of tires so that you can help your customer understand the differences in tires and why it’s important

Question 6

Agenda

Care and maintenance/troubleshooting

Answer 6

We’ll discuss proper care and maintenance and transition into what warrantable and non-warrantable on a tire and the procedure for handling adjustments

Question 7

Agenda

Retail selling

Answer 7

We will cover the importance of tire inspection and presenting a solution to customers that need tires as well how to overcome some common objections

Question 8

Agenda

Training review

Answer 8

We’ll have time at the end to recap what we learned and answer any final questions

Question 9

Agenda

Evaluations

Answer 9

You will have a chance to give us your evaluation of the training but before we start I’d like to get to know each of you a little better let’s go around the room please give your name current position and how many years you have been in the tire business

Question 10

Why sell tires?

Replacement tires for passenger vehicles and light trucks represent a 26 billion per year retail market

Answer 10

Let’s begin by looking at some important research to help us understand why a dealership should be in the tire business first of all it’s big business replacement tires for passenger vehicles and light trucks represent a 26 billion per year retail market that’s over 240 million replacement tires sold for passenger vehicles and light trucks

Question 11

How much of the replacement business is done by car dealerships in the U.S.?

1. 0-10%
2. 10-20%
3. 20-25%

Answer 11

Considering that $26 billion worth of sales opportunity what do you think is the auto dealerships share of that market? the correct answer is number one roughly 9.2 million passenger tires in 2007 were sold in dealerships totaling less than 10% of the market so we have a huge opportunity for growth

Question 12

Why sell tires.
Tires are profitable
Refer to dynamic retail selling guide

Answer 12

As I said before tires are profitable. The dynamic retail selling Guide gives you market retail price for the tires you sell on the Toyota program. we’ll cover that in more detail later in the training but keep in mind and you will here this more than once, tires are the key to increasing the sales of breaks shocks struts and alignments. these are all the high profit services the tire stores take from our customers when we force them to go to a tire store by not inspecting their tires with every service and presenting a solution whenever necessary

Question 13

Distribution/brands

• distributing from 34 locations nationwide
• original equipment and OE equivalent tires for the last five model years for most vehicles

Bridgestone, Firestone, uniroyal, Goodyear, Dunlop, general tire, Michelin, BFGoodrich, Kelly Tires, continental, Pirelli, Yokohama

Answer 13

Dealer tire has 90 years of experience in the tire business we have 34 distribution centers nationwide and can deliver tires same day or next day to over 95% of our program dealers.
We are direct with nearly all the major tire manufacturers including Goodyear (which includes Dunlop) Michelin (which include uniroyal and BF Goodrich) continental/general Perelli you Yokohama and others. Your tire program offers the tires new car owners prefer; name brand original equipment and OE equivalent tires.

Question 14

why sell tires?

• tires are a customer defection .2 independent and franchised service centers
• tire sales increase ancillary services and parts sales and profit from brakes shocks struts alignment and rotation
• owners satisfied with their dealership experience often recommend and repurchase the same brand

Answer 14

Now that we have provided an introduction to the market as well as some background about dealer tire let’s take a look at how tires can be tied to customer retention and loyalty.

Read bullets

Question 15

Why sell tires?

• 80% of independent tire dealerships offer oil changes
• 75% of customers choose to get all of their service done at the place where they get their tires changed
• The average retail tire dealer expects 47.5% of his total sale to come from automotive service

Answer 15

Did you know (read bullets)

As you can see evidence in the stats on the slide we need to sell tires to keep our dealerships most valuable asset-it’s customers. If tires arent offered, we force our customers to go to our competition. They end up buying tires and other services during that visit. A loss out for us. but worse they tend to return to that tire center for other maintenance and light repair services

Question 16

Why Sell Tires?
Vehicle lifetime service value
Luxury and non luxury graph
No tires vs tires

Answer 16

The graph on the slide represents a six-year study conducted by dealer tire. Here we compared the differences in the average number of lifetime visits and services as well as the average lifetime profit generated by customers who utilized the dealership for their tire needs versus those who did not. Both luxury and non-luxury brands were part of the analysis. We found the customers who purchased tires generated 2 to 3 times visits services and profits then customers who did their tire business elsewhere

Question 17

Why Sell Tires?

• customers who come to the dealership would like a complete service and parts solution including tire replacement
• customers find purchasing tires confusing and intimidating and often prefer to buy from automobile dealerships
• The technician and advisers expertise can help customers find the best tires for their vehicles

Answer 17

I know customer satisfaction and your satisfaction scores are very important. Tires help to maintain and increase customer satisfaction by allowing the customer a one stop shop. Your expertise and experience of other staff members can reduce confusion and worry for your customers.
Research tells us that customers are becoming less and less happy with their purchase experience at tire stores for two main reasons:
1. Although studies show consumers prefer to put original equipment tires on their vehicles many tire stores don’t stock them the customer ends up being sold an alternative tire
2. In the past 20 years many additional types of vehicles have entered the market like minivans SUVs crossovers and trucks. Because of this tire retailer simply can’t stock all of the tires needed for many lower volume vehicles. You have the advantage here. You only need to stock tires for Toyota. In fact you may have a better selection and inventory for your make than the big tire center down the street, because you don’t have to worry about tires for Chevys, Fords or Hondas.
Here’s an interesting statistic that reinforces this:
Since 1991, the number of tire sizes has increased from 113 to 249, up 136 sizes (or 123%)
Optional point: 111 of the new sizes were sizes having rim diameters of 17 inches or larger; 59% of the sizes had rim diameters of 18 inches or larger

Question 18

Why Sell Tires?

Everyday over 10-15% of the tires coming through your service drive need to be replaced

Answer 18

So what’s your dealerships opportunity? We know from our thousands of service lane inspections that 10-15% of all the tires rolling through the service drive across the U.S. Are bald at 3/32” of tread or less
Let’s run the numbers and calculate the opportunity on your service drive.

Question 19

Why sell tires?
So what’s in it for me?
At 5 Ro’s/day: $7920 monthly parts revenue potential x%commission=$
At 10 Ro’s/day: $15840 monthly parts revenue potential x%commission=$
At 20 Ro’s/day: $31680 monthly parts revenue potential x%commission=$

Answer 19

Well, that’s great right? But by now you maybe asking yourself what’s in it for me let’s go through the calculations at the bottom of page 1.
Imagine taking the additional commission off of this dollar amount. also remember these calculations just factor in the really worn tires many tires are replaced in sets of 2 and 4 with less wear. so you can see there are lots of tires that can be sold every day in your dealership generating significant profit potential for you

Question 20

Tire program features and benefits

Dealership benefits vs. customer benefits

Answer 20

The Toyota tire program provides the service customer and dealership many benefits. Customer benefits include items such as road hazard protection, competitive pricing and OE approved replacement tires to maintain that same ride and feel.
Dealer benefits include points plus awards, in person support and training and our Carline experts available via phone or online to assist you