Setting up your own tyre business might be your goal but it’s not as easy as it seems. Almost 90% of all small businesses close in their first year due to cash flow problems and general mismanagement. Of course, it does help if you have business management experience but online businesses are completely different from retail realtime selling and offer unique challenges.
Challenges in an Online Tyre Business
Essentially, when you sell tyres online, you are actually telling a person buy something unseen, pay for it, and trust that you have the best tyres at the most affordable prices.
At a brick and mortar tyre store, buyers can see the product, touch it, discuss it with a salesperson and they often bargain to get a better price.
Online customers will just read the content you have on your website, look at the photos you may have uploaded and then make a snap decision based on content, product, price and of course how user friendly the website is.
It is crucial that you overcome these challenges in order to reap success in your online tyre selling business.
To nudge your customers towards purchase, follow these effective and proven strategies.
1. Evaluate the competition
You are not in this alone. There are other online tyre retailers around you. So evaluating competition should be an essential part of your overall business strategy.
And since your online tyre store ships products across a wide geographical area, your competitors are not just the ones near you, but all those who ship their products to the same places as you do.
If a particular competitor is doing well, it makes sense to check out their website. Find out what they are offering and evaluate whether you can do the same or something even better.
Usually, websites do offer free shipping if customers buy all four tyres from them and or they offer a discounted rate for buyers who buy all four tyres. Are you using these strategies?
2. Buy in bulk from manufacturers
This may not be a financially viable proposition when your business is new. But remember buying in bulk means that you get a good discount from manufacturers. Manufacturers offer a 20% to about 30% discount to dealers when they buy in bulk. You can then transfer this cost difference to your customers, which means you are offering low prices to your customers. Definitely a smart move to lure them towards to your online tyre store.
3. Tie up with local installers
Selling tyres to customers is not enough. Tyres have to be installed and aligned properly on the car. Good online tyre retailers tie up with local mechanics and provide a wide network on fitting centres to customers. When customers order the tyres, these tyres are then shipped directly to the fitting centre. All the customer has to do is take the car to the notified garage and the mechanic will install and align the tyres for the pre-determined price.
4. Always provide a price comparison calculator and a price guarantee
This is essential to prevent customers from clicking away from your website. People will naturally try to bargain and find lower prices for their tyres and in the process move away from your website. To prevent this, set up an automated price calculator that will provide a price comparison on your website. If you combine this with a price guarantee, you can definitely convert a browsing customer into a purchasing customer.
Of course, website design, SEO and good content are necessary and it will take a little time for your website business to pick up in popularity. However, with the right strategies, your online tyre business will become successful.
What are your strategies for your online tyre business?