“Cadillac” Tax Reduced

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The “Cadillac tax” that is part of Obamacare might not cost employers nearly as much as initially estimated. The Congressional Budget Office projects in a new report that taxes on employers' high-premium insurance plans will generate roughly $80 billion over the next 10 years. That figure represents a decline of almost 42 percent from the $137 billion in excise tax revenue in the CBO’s February forecast. Starting in 2018, the IRS will impose a 40 percent excise tax on employer-sponsored health benefits totaling more than $10,200 for individual coverage and $27,500 for family coverage as part of the Patient Protection and Affordable Care Act. The 40 percent non-deductible tax takes is designed to discourage plans from including features that promote over- or unnecessary use of medical care, such as low or non-existent deductibles and co-pays. The CBO’s latest report says that it lowered the forecasted excise tax revenue figure because of new trends in employer-sponsored … [Read more...]

Are you kidding me?

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Are you kidding me?  That was my response to Steve, a good friend of mine, when he told me that some of his Independent Tire & Service clients sell oil club programs in hopes that the customer DOES NOT redeem them. Yes - You heard that right! I told Steve that strategy made no sense.   Especially when you take into consideration that it takes approximately $350 to gain a new customer.   The main reason to sell club programs is to encourage loyalty and repeat business. To make sure we are all on the same page, an oil club program is a program that sells multiple oil changes at a significant discount,  trading future gross for loyalty and repeat business.  I also like idea of selling alignment policies and "super coupon" programs. You should probably know by now ... I am a Big fan of just about anything that encourages customer growth! Key Point - it's not how MUCH its How MANY - How much a customer spends every time they service their vehicle with you is less … [Read more...]

Exiting My Business – Why Should I Plan?

Rainbow pipelines with valves

I talk to many business owners and I always ask the question, “How and when do you plan to exit this business?” It never ceases to amaze me how many people tell me, “I am never going to leave my business; this is my life.” Let me put that myth to rest immediately. Every business owner WILL leave their business. They may leave it vertically or they may leave it horizontally, but they will leave it. That being said, it is obvious that exit planning is very critical to business owners, but especially small business owners. Why? Let’s look at some statistics from the Small Business Administration. There are approximately 23 million businesses in theUS. Of these businesses, 99.7% have fewer than 500 employees. In other words, small business! Over 65% of these businesses are family owned or closely held businesses. Over 50% of small businesses are owned by individuals over 50 years of age. What does this say? There will be more businesses hitting the market for sale in the next … [Read more...]

When it’s Time to Hang it Up

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What does Mick Jagger, Rickey Henderson, Jerry Rice, Brett Favre and Chris Chelios have in common?  Give up? - YES!  All were (are) legends in their respective professions and - YES - neither appeared to have a well thought out  exit strategy.   One could even argue, all stayed in the "game" a bit too long. What is a Exit Strategy? Wikipedia has a pretty good definition:  "An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure.[1][2][3] An organisation or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement." Why you should have an Exit Strategy? As much as you would not like to admit it, you can't keep doing what you are doing forever.  No one in the history of man has been able to pull that off … [Read more...]

RTS is looking for Contributors

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I started Retail Tires Solutions a few years ago as a place to post solutions and best practices for Independent Tire Dealers that I supported in the Western States.  I felt then (and still do) - that there really wasn't many good resources for tire dealers to get practical information and support. Shout Out! I am looking for new contributors to share best practices, insights, inspiration, new products or anything that would provide the RTS Community with some "Good Stuff" to help Independent Tire and Service Dealers. What does "Good Stuff" look like? Best Practices Business Philosophy Customer Success Stories Grass Root Marketing Ideas Why you do what you do ... How you built you business Or anything else that would provide guidance to fellow Independent Tire and Service Dealers. What's in it for YOU? On an average month, this blog site gets a few thousand page reads.  You could become famous ;-) or more likely, your contribution could provide the inspiration for … [Read more...]

Tool Day – Free Payroll Productivity Worksheet

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Starting today, and every Friday (fingers crossed), I will work on posting another retail tire and service tool.  Today I am posting a Daily Payroll Productivity Worksheet that I put together and it seems to work really well.  The Worksheet is pretty straight forward, enter your Total Sales, Service Sales, Technician & Sales Associate payroll information daily and in turn the Worksheet will produce: Vehicle Service Associate Payroll percent to Sales Customer Service Associate Payroll percent to Sales Total Payroll percent to Sales Effective hourly rate of pay for Flat Rate Technicians and your Sales Team There is even an area to adjust for Fringe (taxes, benefits, etc) and spiffs for your sales team. Benchmarks are listed at the top of the page.  Most Retail Tire Stores shoot for: 20% Vehicle Service Payroll/Service Sales   10% Customer Service Payroll/Total Sales 30% Total Payroll/Total Sales You can find further posts covering additional tools that … [Read more...]

A Day in the Life of Retail Tire & Service

Roles - Chart

  It all starts with a Plan - Here is Mine - What's yours? ;-)     … [Read more...]

Employee Wage Update:

Compass On Woods Path

January will see a number of state minimum wage increases across the nation.  Arizona ($7.35), Montana ($7.35), Ohio ($7.40), Oregon ($8.50), Vermont ($8.15), and Washington ($8.67) will all increase. Owners are encouraged to check for state and local variances for certain occupations or situations. The Wage and Hour Division of the U.S. Department of Labor has a helpful Web page for state minimum wage requirements.  However, this Web site posts changed rates once they become effective; it does not post future or expected changes. … [Read more...]

3 Bootstrapping Customer Driving Techniques

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One of the most stressful times in any retail environment is when you are staffed to the hilt but no customers are walking through the door.  You look to your left and to your right and you have hourly employees that you are paying to just stand around.  I have been there.  Not Fun!  While there in no sure-fire way to instantly acquire customers, there are some techniques that many dealers use that seem to be pretty effective. #1 Alway have a box of oil change coupons on hand like these.  If there are no customers in your location, then its a safe bet that your sales and technicians are probably not too busy.  With the oil change coupons in hand, point your staff to the nearest traffic intersection to hand out the coupons.  You will be pleasantly  surprised how may coupons are redeemed in the coming weeks. #2 Have an "A" Frame board on hand with an "unbeatable" oil change offer like this.  Put the "A" Frame out in front of your location when you have empty bays. #3  Have Free … [Read more...]

Alignment Strategy – What’s a Good Job?

Can you hear me?

A good way to gauge whether or not you are maximize your Alignment Opportunities is to base you Alignments sold verses PAT. PAT = Potential Alignment Ticket Potential Alignment Tickets are work orders (invoices) that you have sold two or more retail tires on. I would focus on a goal of 70% Alignments Sold to Work Orders that you have sold two or more tires. Track it Daily for best results! If you need a tracking sheet, check these out. Good Selling, Pat … [Read more...]