Business Toolbox: Setting a Price | Tire Review Magazine

Establishing price is based on three things:

1) Your costs

2) The profit you hope to make

3) The price your customers are willing to pay

Assessing that final component can be daunting, but you should try to gather clues about how customers perceive your products and services – and your dealership as a whole. Do they believe you have something unique to offer? Are they aware of the features that set your products and services apart from other tire retailers or distributors? Do your customers feel you understand their specific needs?

Pricing is extremely important when it comes to selling tires as consumers continually look for the “cheapest tire in town.” However, offering top-notch service and telling customers that paying just a little more for their tires will help ensure quality and durability can go a long way.

As a small, independent tire dealer, you may be able to justify slightly higher prices because of the highly valuable knowledge, expertise and personalized service on your side.

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Business Toolbox: Setting a Price – Tire Review Magazine.