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COMMENT: So… where’s The Business?
Take a look at who’s doing tire sales, repair, and maintenance in Canada.
Tire Replacement
Tire sales is a service category that has become increasingly complex, with the growing proportion of vehicles in operation being equipped with tire pressure monitoring systems, larger wheel sizes, and the growing recognition in some regions of the need for winter tires.
As the second most frequently sought-after service, this competitive market sees dealerships leading with a 38% share –
although that’s down eight
points from last year. Branded aftermarket shops have gained three points, climbing to 26% in 2015. Independent repair shops are closing in on the dealerships with an increase of six points to 36% in 2015.
Clearly, there is a lot of tough competition for market share in this category.
With an overall share of 47% in 2015, dealership market share for tire replacement in the four- to seven-year-old vehicle category 
decreased a whopping seven points from 54% in 2014. In the eight- to 12-year-old vehicle category, dealerships remained steady at 28. Branded aftermarket shops saw a decrease in the eight- to 12-year-old vehicle category (going to 26% in 2015 from 29% in 2014), but saw an increase in the four- to seven-year-old vehicle category, 
going to 25% in 2015 from 21% in 2014.
Quick lube shops hold steady at 1%.
Tire Repair
Dealerships have the lion’s share of the tire repair market with 41%, followed by the branded aftermarket with 29%. Independent repair shops have 27% market share and quick lube shops have about 2% market share.
In the four-to-seven-year-old vehicle category, 
dealerships have 47% of the market, and the branded aftermarket has 30% of the market. Independent repair shops hold just 21% market share, and quick lube shops hold 2% of this category. In the eight-to-12-year-old vehicle category, the gap is much smaller between independent repair shops and dealerships: Independent shops hold 33% market share and dealerships hold 36%.
Tire Maintenance
Dealerships come out on top in this categor
y with 49% of the market. Independent repair shops come in second with 29%, and the branded aftermarket has 19% market share. Quick lube shops hold only 2% of this market.
In the eight- to 12-year-old vehicle category, independent repair shops come out on top with 38% of the market, while dealerships hold 34% of the market, and branded aftermarket has 25% of this category. Quick lube shops have just 2%.
Data and analysis supplied by J.D. Power & Associates.
Allan
The importance of training for shop owners and technicians to be able to compete in this market is extremely important. Knowledge of what you are selling is the number one reason why consumers purchase. Not only do you have to train your technicians to look for problems, you have to train them how to educate the consumer about what they need. Shops who have addressed this will sell more products and services plain and simple. Consumers are looking for a knowledgeable shops to do business with. They can’t become a Google tire expert. If you deal with them properly you will gain good loyal customers. Remember, we are in the service industry not the commodity industry.