How to sell more tyres and boost your profits

The growth of electric cars may threaten some areas of aftersales revenue, but they also represent a lucrative money-making opportunity in one area currently underserved by auto retailers – tyre sales.

It’s all down to simple physics. Electric cars are heavy, frequently weighing two tonnes or more. They are also powerful, delivering considerable amounts of instant surge that, as drivers are only human, is frequently enjoyed, particularly when accelerating away from the lights.

Tyre giant Continental is quite clear about what this all means: “Increased weight and instant torque means high tyre wear.”

This presents auto retailers with a significant aftersales opportunity. Instead of giving away business to tyre retailers, why not make sure you capture this business yourself? Because getting into good habits with tyres sales now will pay dividends in the future. 

The contribution tyres will make to aftersales profits is undoubtedly set to grow in the future. “Tyres will be very important,” said Vertu CEO Robert Forrester in a recent Auto Retail Live webinar. “If a retailer decides not to sell them, they have missed the ball, as electric cars use a lot of tyres.”

Electric car tyre sales may be particularly lucrative at the moment, given how two in three new EVs are currently sold to high0mileage fleet car drivers. According to ecommerce firm epyx, their annual mileage is, far from being less than a comparable ICE vehicle, slightly higher – almost 17,800 miles a year. With tyres commonly lasting for between 20,000-30,000 miles, the opportunity is obvious.

There is be a barrier to overcome, though. Electric car drivers may well be unaware of how different EV tyres are to regular tyres. Specialist rubber is needed, with higher load ratings, and bespoke construction that gives better range and lower noise levels. Often, this means a higher purchase price.

Motorists (and leasing companies) must not skimp, though. Fitting the wrong type of tyre could lead to extra wear, more noise and even the risk of tyre failure while driving: it is essential to fit the correct rubber to an electric vehicle. Auto retailers are best placed to deliver this guidance and advice – and this should be stressed to customers who may otherwise be included to visit generalist tyre retailers.

“Drivers of electric vehicles must be aware of how significantly different their tyres are to those on other cars,” stresses TyreSafe chair Stuart Jackson. “Motorists need to ensure they are buying the right specification. Choosing a like-for-like tyre will allow EV owners to enjoy the full benefit of the electric car revolution, and reduce the risks of an incident.”

Smart tyres

The value of tyres as a profit centre is only set to grow in the future. Stuart Cresswell, Trust Ford aftersales director, believes the importance of tyres to auto retailers – and their customers – will be enhanced yet further thanks to tech. “New connected technology, with tyre wear monitoring and both in-car and app-based customer notifications, will bring to light the remaining life of a tyre.

“This will change the way a customer views a tyre – and will also change price of replacement, particularly when you consider the aftersales work involved in coding back to a vehicle’s controls.”

Far from being tiring, tyres are an area of untapped potential that could significantly boost your aftersales performance in the future. Time to get your strategic plan rolling!

Seven top tips to sell more tyres

Stuart has seven top tips that may help auto retailers sell more tyres in the future.

Clearly explain the impact of EVs on tyre life

Make sure you explain why heavy electric vehicles may use more tyres, and why any replacement tyres need to be carefully selected and may be more expensive than an ICE vehicle. You should also explain the consequences if a customer doesn’t replace with appropriate tyres. Most EV drivers are almost certainly unaware of all this.

Be honest and transparent with customers

Share video and technician commentary to demonstrate to a customer why they should consider changing tyres. Remember, it’s inconvenient for motorists to fully check their tyres, so clearly demonstrate wear across the full width of the tyre with measuring device. Also point out any bulges in the sidewalls, both outside and inside.

Keep records of all your tyre check findings

Retailers should keep robust records and accurate CRM data. This will enable them to project forwards and gently remind customers when they believe they should be considering a check or upgrade. Being proactive in this way can be surprisingly effective.

Explain why quality tyres are so important

Tyres can frequently be a ‘lowest price, lowest quality’ purchase. Electric cars, however, are expensive machines; help your customers understand why they should fit complementary rubber. Using tyre labelling to compare and contrast can be effective here.

Start using marketing to support tyre sales activities

Be supportive in your marketing – such as explaining the importance of tyres to safe driving in different conditions. Sharing updates on social media can be particularly effective in driving home the message. Why not promote a free tyre check?

Be fair and transparent in tyre pricing

Use fair pricing. At Trust Ford, we have a price promise on tyres, as we know customers consider them an expensive distress purchase. Take away the worry that people may be able to find them cheaper elsewhere. 

Don’t try to sell tyres when they’re not needed

Respect your customer: don’t sell when new tyres are not needed. Instead, talk them through the anticipated life span, given the factors you can understand when carrying out a service, MOT or vehicle health check. And again, be sure to record this data in your CRM database.