https://www.autosphere.ca/tirenews/tires-articles/2019/12/06/sound-the-alarm/
Quote
...Richard Bender, President of the Tire Dealers Association of Canada (TDAC) is sounding the alarm about online tire vendors and how they threaten the well- being of bricks-and-mortar tire retailers.
...The problem, as Bender describes it, is the fact that consumers buy tires from online vendors, and then they expect the local tire retailer to install them at a cost that doesn't allow that retailer to cover all the overhead, make a profit, and stay in business.
...He knows of a tire dealer who has a very simple solution to this problem. "I spoke with a very successful dealer who only does wheels and tires," Bender says.
"I asked him what he does when a customer walks through the door with a set of tires he bought online and wants the tires installed. His solution—he hits the customer with a sticker shot, and tells them it will cost $225 to get them installed and balanced. He's only had about eight or ten customers get really upset and accuse him of trying to rip them off. His answer: ‘No, I'm just trying to protect my business.'"
And perhaps that's a stand all traditional tire retailers need to make in order to discourage that kind of clientele, and the subsequent race to the bottom. "Tire dealers, from my experience, will always have their customers," Bender explains. "But there's also a segment of the population that's very price conscious and they'll go out of their way to save themselves $20. Those aren't the customers you want."
Quote
...Richard Bender, President of the Tire Dealers Association of Canada (TDAC) is sounding the alarm about online tire vendors and how they threaten the well- being of bricks-and-mortar tire retailers.
...The problem, as Bender describes it, is the fact that consumers buy tires from online vendors, and then they expect the local tire retailer to install them at a cost that doesn't allow that retailer to cover all the overhead, make a profit, and stay in business.
...He knows of a tire dealer who has a very simple solution to this problem. "I spoke with a very successful dealer who only does wheels and tires," Bender says.
"I asked him what he does when a customer walks through the door with a set of tires he bought online and wants the tires installed. His solution—he hits the customer with a sticker shot, and tells them it will cost $225 to get them installed and balanced. He's only had about eight or ten customers get really upset and accuse him of trying to rip them off. His answer: ‘No, I'm just trying to protect my business.'"
And perhaps that's a stand all traditional tire retailers need to make in order to discourage that kind of clientele, and the subsequent race to the bottom. "Tire dealers, from my experience, will always have their customers," Bender explains. "But there's also a segment of the population that's very price conscious and they'll go out of their way to save themselves $20. Those aren't the customers you want."