TyreConnect, which started in Perth in 2016 and now has more than 700 dealerships and workshops as clients, will expand into South Australia and Tasmania later this month to complete its coverage of Australian states.
It is capitalising on the passenger and light-commercial vehicle tyre business that is worth about $3.8 billion a year and one that moves 17.8 million tyres annually.
TyreConnect executive chairman Stephen Langsford told GoAutoNews Premium that the goal was to offer the tyre service to the 3000 new-car franchise dealerships and thousands of independent workshops.
“Dealerships are under pressure to make their business profitable and, in these times, that generally comes down to the service department,” he said.
“Adding more services that are profitable to the dealership are important ways to improve profitability.
“There is an emerging trend to improve customer service and adding more options to the servicing of a car is convenient to the customer.
“In the US tyres have generally been outsourced as a replacement item to a local retailer. Now that has swung back and the dealership is understanding that by offering other service items such as tyres, there is greater customer satisfaction that leads to better client retention.”
Mr Langsford said service advisors only need access to the TyreConnect portal to order tyres.
“It’s quick and easy and we offer training to advisors to ensure the process remains efficient,” he said.
Stephen Langsford
“For the dealership, it’s a smarter way to buy tyres. There’s no need to tie up money and resources in buying, storing and managing inventory and no risk of overstocking.
“All the accounting is through a single account so there’s no need to deal with multiple sales representatives and different paperwork.”
Mr Langsford said TyreConnect was working with OEMs for a national cover.
“It’s a B2B operation where we service franchise dealerships and independent workshops,” he said.
“We now have more than 2000-plus service advisors with access to our portal to allow them to get recommendations on tyres and pricing.
“We then use a Just-In-Time delivery process that gets the tyres to the service departments within three hours, in most cases.
“TyreConnect allows the service advisor to have the confidence to make qualified and professional recommendations to the customer wanting new tyres.
“Customers want convenience. For them, needing new tyres can be a hassle and will mean the owner has to find a tyre retailer and make an appointment to get the tyres and have them fitted.
“With TyreConnect, the service advisor already has the car in the workshop for general service or repair, and then can appraise the car.
“If it is noted that the tyres need replacing, the service advisor can contact the owner and get approval for new tyres.
“The service advisor would then contact TyreConnect and the tyres would quickly be sourced and delivered and the job of fitting can be done by the dealership while the car is in the workshop.
“That saves the customer a second trip and extra time finding tyres, and it adds to the service income of the dealership or independent workshop.”
TyreConnect doesn’t have warehouses to stock all tyres but uses existing warehouses and depots of tyre manufacturers to source the size and type needed.
Mr Langsford said tyres can be seen as a grudge purchase and an inconvenience to the motorist.
“But tyres are extremely important to the safety of the family in the car and to the community around that car,” he said.
“They are vital to the performance of the car. The car performs better, is more comfortable, handles predictably and is more confident to drive.
“We see tyres as being an investment in personal motoring and with the current virus pandemic, people are more likely – by choice or design – to select a motoring holiday and will need to ensure their vehicle is safe.”
TyreConnect is staging a series of webinars that are presented by industry experts each week. The More than Tyres video series is designed to be a platform to share insights on how to optimise dealerships and workshops for changing Australian business environments.
Each session will be focused on a particular area of auto business operations, with a live Q&A session for attendees to contribute to discussion with the expert panel.
The latest features Will Ferguson, general manager of Doncaster Hyundai, who shares his 10 tips to keep your service department busy and profitable.
The next webinar will be with John Startari, advisory and assurance partner at Deloitte.
By Neil Dowling
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