Tire dealers are more optimistic about increasing their product sales this year than they were last year, according to the 2016 Aftermarket Business World Tire Dealer study.
While the majority of dealers (59 percent) said that their product ordering habits were steady this year compared to last year, 37 percent said that they are ordering more products this year, compared to 28 percent who said that they ordered more products in last year’s survey. Some 66 percent reported last year that their product ordering was steady.
Tire dealers also feel more confident about their ordering expectations for the rest of this year as 44 percent said they plan to increase their product ordering, compared to 36 percent who answered that way in 2015.
When it comes to gross margins, 38 percent of tire dealers said they have increased in 2016 compared to 34 percent who said that in last year’s survey.
When asked to look ahead to the end of the year, optimism this year once again exceeded last year as 45 percent said they expect increased gross margins this year on their product sales compared to 36 percent who answered that way in last year’s study.
Quality and OEM form, fit and function are the two most important considerations when ordering auto parts, tire dealers reported this year.
Some 33 percent of tire dealers prefer to buy auto parts from auto parts retailers, while 31 percent prefer to buy from warehouse distributors and 21 percent prefer to buy from jobbers. When asked what is the number one reason they do business with a preferred supplier, 31 percent said it was due to a long-standing relationship with the supplier, 24 percent said it was due to availability and 21 percent said it was because they offer quality products. Click here to see the entire study.
Methodology: The Aftermarket Business World Tire Dealer Product Study was fielded to readers of sister publication Motor Age who sell tires in the aftermarket. The study results are intended to show general market trends, not statistical certainties.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.