3 Tips To Help Tire Centers Buy Tires In Bulk That Will Sell Quickly
Tire centers can decrease their costs of goods sold -- and, therefore, increase their profit margin -- by purchasing tires in bulk. Tire centers can't just buy any tires in bulk, though. They need to buy tires that will be quickly purchased by drivers, or else their financial investment will be tied up in inventory for a prolonged time. If you're thinking about opening a tire center and want to buy tires in bulk so you can increase your center's profit margin, here are three tips to help you select tires that will likely sell quickly.
Purchase Tires That Are Compatible with Multiple Vehicles
Purchasing tires that are compatible with multiple makes and models has two benefits. First, you can sell the tires to more drivers, and you won't have to wait for a driver of a particular vehicle to come in before you can sell the tire. Second, you don't have to carry as many different kinds of tires, because you can use the same types of tires for different customer's vehicles. Reducing your inventory makes managing it easier and minimizes the amount of storage space you need.
Watch Whether People Are Buying Cars or Trucks
While many tires can be used on multiple types of vehicles, tires usually can't be used on cars and trucks. Car tires are made for cars, and truck tires for trucks.
In order to sell as many tires as possible, purchase tires that are made for the types of vehicles people are buying. If more people in your area are getting cars, focus on car tires. If trucks are more popular, consider placing bulk orders for truck tires.
Purchase Tires a Season Ahead
Different tires are appropriate for different seasons of the year. For instance, winter tires are helpful whenever there's snow and ice. According to Andrew Clark, however, it can be dangerous to drive on them in warmer weather. They can form bubbles once it's hot out, which reduces their ability to maintain proper contact with the road.
For these reasons, many drivers have the tires on their vehicles changed when the seasons change. In fall and early winter, they purchase winter tires. In spring, they get tires made for warmer weather.
Thus, you only have a few months to sell each type of tire that you purchase in bulk. In order to sell it to as many customers as possible, you'll want to have the appropriate tires in stock as soon as drivers begin asking for them. The easiest way to do this is to buy tires in bulk a season ahead of time. In late summer, place an order for winter tires. In late winter, put in an order for warm-weather tires.