Many tire centres offer tire storage services for their clients. Is it still advantageous for businesses to offer this service in 2024?

Tire storage services offered by tire centres and mechanics’ workshops continue to be in high demand every change of season.

In fact, storing tires at home is a complicated task for many people. First, you need a vehicle spacious enough to store the four tires, often mounted on rims. Then, you have to transport them to the workshop on the day of the change, a difficult task, especially for those with back problems! And, finally, it’s logical; few people have the space at home to store them.

Thus, it is not surprising that at OK Pneus André Ouellet Montmagny, nearly half of the clients use the storage service. Notably, many businesses with fleets of vehicles that do not have space to store their tires between seasons choose to use the storage service.

In the region, it is a rather varied clientele that uses tire storage services, as explained by the Co-owner of OK Pneus André Ouellet, Frédéric Ouellet: “OK Pneus La Malbaie is mainly a heavy-duty tire wholesaler, with 70% of sales coming from this sector, while in Montmagny, 70% of sales are automobile tires. The clientele and types of services vary depending on the branch.”

Tire storage is therefore a service that, in 2024, is still in demand. However, with inflation and the rapid evolution of the market, operating costs for storage have increased significantly. Thus, is it still as advantageous for automotive businesses to offer this type of service?

Storing clients’ tires: Good for business?

One can imagine that businesses offering tire storage do not do it just to be nice! It is a strategy that allows them to retain customers and boost sales figures.

For example, tire retailers can increase their sales by measuring tire wear during storage. If they are too worn, they can then suggest the client purchase new tires.

Complementary Services

It is rare today to find tire centres that do not offer mechanical maintenance services.

For example, at Fredette Tires and Mechanics, they have been doing tire work and general mechanics since the 1980s. According to Cynthia Fredette, Co-owner, businesses can no longer survive solely on tire sales and storage, as it is a very seasonal industry: “With tires bought on the Internet and those provided by dealerships, we would need to do a lot of volume,” explains Ms. Fredette. “Tires are seasonal, about four to five months a year. Mechanics help compensate for this seasonality and keep our staff employed year-round.”

In a similar vein, at OK Pneus Saint-Anselme, they also do general mechanics. According to Co-owner Jonathan Lacasse, this increases the number of visits from their clients: “My client who comes for storage, in theory, does all their maintenance here. So, it’s three, four, five visits a year, rather than just one or two. The more visits, the more it pays off for us.”

In short, storage ensures two annual visits, and the workshop can multiply this number by presenting clients with a structured vehicle maintenance program.

Storage 2.0

There was a time when tire labelling was done by hand. Tires were identified with a pencil and then entered on a paper list. Naturally, errors were more common, and the time spent searching for certain tires could be high if an error occurred during data entry.

Today, many software programs optimize the labelling process. Generally, CRM (Customer Relationship Management) software dedicated to the automotive industry—central software that manages all facets of a business (sales, staff schedules, customer contact information, etc.)—can include a tire labelling module.

As explained by Mr. Lacasse of OK Pneus Saint-Anselme, using software is now essential for tire storage: “Since implementing the computerized system in 2015, there has been no tire loss here. Each tire entering our warehouse is labelled using a Zebra printer (barcode), which allows them to be found easily and accurately.” Indeed, this software groups customer contact information, tire dimensions, models, etc. All data is recorded in one place.

Despite the effectiveness of CRM software for storage, there is still room for improvement, particularly in automation. For example, customer reminders to install their tires are still done one by one, via phone. Thus, a system that automates customer reminders could speed up the process, which can be long and complex with some clients.

With the advent of artificial intelligence, the automation aspect of tire storage could greatly develop in the coming years. But for now, the storage process still requires significant human intervention.

Rising operating costs for storage

Inflation spares no one, not even businesses that store tires! In fact, storage spaces are very large and expensive to maintain.

At OK Pneus André Ouellet, their warehouse can store 13,000 tires, and in recent years, their operating costs have increased significantly, as explained by Frédéric Ouellet: “In the last three or four years, insurance costs have really increased. Add to that the rising labour costs, the increasing price of shelves… but it’s a necessary evil, as it allows us to retain a good part of our clientele.”

Warehouses of such scale must also be well protected against fires and accidents, as the monetary value of all the tires and rims stored is very high. Therefore, insurance companies require the installation of a good sprinkler system and limit the number of tires that can be stored in a given space. All these constraints also weigh on storage costs.

Tire warehouses also have the option to install tire carousels to save space. However, in many cases, the purchase cost of such machinery is very high compared to the return on investment.

In conclusion, although tire storage seems like a relatively simple operation at first glance, there are many constraints and parameters governing this practice. However, in 2024, it still allows retaining a good part of the clientele, increasing the number of client visits, and consequently, boosting sales figures. Although storage costs have increased, the returns it offers are still sufficient for workshops to continue offering this service.