Private Exchanges Gaining Momentum

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Private health insurance exchanges may be gaining traction. According to research from Mercer, 56 percent of employers are considering moving to this model for active or retired employees, tripling in number over the last year. That's good news for RTS, which will help employers and employees by offering them a one-stop-shop for their benefits from multiple insurance providers. Open enrollment will begin this fall with the first policies going into effect on Jan. 1, 2014. Patrick Murphy believes that private exchanges will help employers better manage their costs and reduce their administrative burden while ensuring that employees have easy access to the coverage they need. Because of these advantages, RTS plans to introduce a private exchange for 2014 and beyond. With a private exchange, the model turns to a defined contribution benefits approach, allowing the employer to provide a set amount for employees to spend on benefits. This leads to more stable, predictable costs. … [Read more...]

What is the Best Kind of Advertising?

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Answer? A program that insures your bays are filled every day with customers that will purchase Tires and Service from you, at reasonable gross margins. There shouldn't be any mystery about that. The question is - what does that program look like? Well if you are a Big Retail Chain or New Car dealership, the program looks a lot different then if you are a small or midsize Independent. Big Retail and New Car Dealers have the resources and budgets for sophisticated database programs, amazing websites and over the top digital campaigns, while still spending big bucks on traditional advertising. To assess ROI on each campaign, Big Retail and New Car Dealers have really cool tools that can analyse every metric under the sun. If you are an Independent (if you advertise at all), you probably have a web site, FaceBook page and Twitter Account (or at least I hope so). You may do some ADVO or Money Mailer type advertising monthly and a declined service/reminder program. For big events, … [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

theory into practice

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...]

Compensation for Tech/Assistant Manager

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Frequently, I run into situations where Tire Dealers require a lead technician to run their store to cover days off.  This arrangement usually doesn't create a problem, that is unless your technician is on a flat rate pay plan and flags over 100 hours a week.  Then in most cases, your technician is losing money while minding your store. Ideally, you want your technicians working on vehicles full time and your sales management - managing and selling full time.  I liken the Tech/Asst Manager position to one of a utility player in baseball.  It's tough to be the really good at two positions; however, it can happen! If you must employ a utility player, I suggest using a modified compensation program.  One that pays flat rate for all days that your technician is turning wrenches in addition to a hybrid comp-plan, that includes a small salary plus a percentage of store's total monthly Net Service Gross Profit. It may look something like this: Flat Rate Hourly Rate: $15.00 Monthly … [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...]