Modern Tire Dealer

Handbook 2019

Magazine for the professional tire industry

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P e r f o r m a n c e H a n d b o o k 2 0 1 9 22 A l i g n m e n t for every four retail tires sold. When the Santa Cruz store expansion was completed, a second technician was hired. "We have two dedicated alignment techs. at's all they do. ey're very specialized," says Johnson. Alignments generate additional mechani- cal work as the technicians inspect the brakes and front end of vehicles. "We're getting a lot of upsells from alignments," says Johnson. Upsells on suspension for light trucks in particular can generate up to 15 times more revenue than the alignment alone. Issues flagged by the alignment techs are inspected by a front end or brake technician, who also performs any repairs in a separate service bay. "A lot of places don't value their alignment techs," says Johnson. "Our guys have been fully trained, and they're not rookies. ey do a very thorough inspection of each vehicle." ALIGNMENTS ARE A LINE ITEM Lloyd's Tire is following a DSP recommenda- tion to use alignment bays for alignment service only. "e challenge dealers have is that the easiest rack to li a car on is the alignment rack," says Kingman. e moment a car goes on an alignment rack for an oil change, for example, is the moment a service advisor is unable to sell an alignment because the alignment bay is occupied and the customer cannot wait. Dealers also need daily reports on the number of alignments performed versus tires sold. "If you are not looking at reports, you have to guess where you stand, and you always overestimate your success," says Kingman. Alignments are a line item on the reports tracking the sale of tires and mechanical work daily, year-to-date and year-over-year at Lloyd's Tire. Johnson and Schwartz use the reports to keep their sales team focused on the one-alignment-to-four-tires-sold benchmark. Says Kingman, "What is monitored is what changes. If you don't talk about it, nothing will change." 'ALL PURE PROFIT' DSP's recommended benchmark is important to tire stores of all sizes and sales volumes because alignments are "all pure profit," says Johnson. e Santa Cruz store performs 15 to 20 alignments a day at $99 to $149 per alignment, depending on the vehicle. "If you're competing with the big box stores for tires, you might only make $10 a tire. But if you can make $129 on your alignment, that brings the profit up," says Johnson. "e main thing is to make sure your sales people ask for the alignment because a lot of customers think tires and alignments go hand in hand." Owners Dean Schwartz (left) and Larry Johnson treat the alignment racks at Lloyd's Tire and Auto Care as profit centers. The Santa Cruz, Calif., store has goals and processes in place to align 15 to 20 vehicles a day in four dedicated alignment bays. Two aligment techs are on duty at all times to support the store's goal of one aligment for every four tires sold. Lloyd's Tire and Auto Care sends new alignment techs off-site for three 3-day-long train- ing classes presented by Hunter Engineering. In addition, a retired alignment tech pres- ents a half-day of training once a week at the store.

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