Tire dealers expect strong parts sales, gross margins in 2014
The vast majority of tire dealers said they expect to order about the same number of auto parts or more in 2014 as they did in 2013. They also expect their gross margins to hold steady or increase in 2014, according to the Aftermarket Business World Tire Dealer Product Study.
Exactly half of the respondents said they expect their orders to be about the same in 2014, while 47 percent said they expect to order more auto parts. Of the 47 percent, 20 percent said they expect to order an additional 1 percent to 5 percent; and 15 percent said they expect to order an additional 6 percent to 10 percent.
When it comes to expected 2014 gross margins, 49 percent said they expect them to be about the same, while another 49 percent said they expect their 2014 gross margins to exceed their 2013 gross margins. Of those expecting to increase, 21 percent said they expect their margins to grow from 1 percent to 5 percent; while 12 percent said they expect them to increase from 6 percent to 10 percent.
When ordering auto parts, 39 percent of tire dealers prefer to buy from auto parts retailers, 30 percent from a warehouse distributor and 22 percent from a jobber.
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. Click on Aftermarket Business World to see the September issue or click on Tire Dealer Product Study to see the study.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
