Where Does the Profit of Tyre Distributors Go?

Where Does the Profit of Tyre Distributors Go?

1. Tyre distributors have no concept of profit


Some tyre distributors only have the concept of the price difference between buying and selling tyre products, which results in a weak concept of cost and expense. Many times, profits have been cut by uncontrolled costs and rising expenses.


Profit is the sum of operating income minus various costs and expenses, but after deducting costs and expenses, tyre distributors find that they are operating at a loss.


As a tyre distributor, it is necessary to have a little financial knowledge, at least to understand the profits and expenses. Otherwise, how can they earn tens of thousands or even hundreds of thousands of daily income?


2. Tyre distributors attach importance to grabbing the market rather than profit


Due to their position in the market, tyre distributors are always excluded by tyre companies (upstream), peers (peers are enemies), downstream (second batches or terminals are no longer loyal to one company), and e-commerce.


At the same time, some tyre manufacturing companies are small in scale and have limited ability to resist risks, so they often have to reinvest their profits into the competition.


Few tyre distributors take a step forward, turn enemies into friends, and integrate resources from all aspects for resource complementarity or alliance. Vicious competition to mess up the tyre market with each other cannot lead to win-win results but lose-lose situations.


3. There are not many benefits that tyre distributors can obtain from management


It is said that "seek benefits from management", but many tyre distributors miss it. If the payment management is not ideal, the collection will not be collected; if the price management is not good, the lower the price, the lower the profit;


Personnel management is not good, income and expenditure are not proportional; expense management is not good, tyre distributors spend arbitrarily, and do not keep accounts; all kinds of poor management will lead to less and fewer profits! Learn some management knowledge, and hire professional managers, which are all required.


4. There are too many frictions and losses in all aspects of the tyre manufacturing company


The interior is not a harmonious system. The tyres that should not be bought for stock now are bought, which accounts for a large amount of money. And it is also very likely to cause the out of stock of another best-selling tyre product;


Transport vehicles are often repaired, and a large number of maintenance costs have to be paid. If there is a major accident such as a vehicle hitting a person, it will be even more serious. Sometimes the tyre is often lost without knowing it, and there is no way to calculate it; the tyre is unsalable and will lead to the loss of a lot of money;


Some people don't pay attention to fire prevention and theft in the warehouse. A big fire can destroy the accumulated results of tyre manufacturing companies for many years, which can be a whopping loss! Look at one more step and think more. Pay attention to the coordination and thoroughness of internal operations.


5. The marketing level of tyre manufacturing companies is limited, and they do not know how to do promotions


Originally, they could only invest one yuan at most, but they end up paying three yuan impulsively; when they should not have promoting activities, there is a big price cut; do not know how to develop a new tyre market, but would rather be trapped in the most competitive market.


Although tyre distributors are flexible in management, they often lack smart tricks. Problem-solving ability is more about "making a decision by brainstorming". Even considering the problem, it is rather one-sided. It is important to learn and comprehend some advanced experiences from tyre manufacturing companies, or receive more relevant marketing training.


6. The tyre manufacturing company does not have a reasonable product system


Without a reasonable tyre product system, there will be no profit structure system. Distributors look for new tyre products every year, and even if they find a good product, it may not match the original tyre.


So a good tyre product system can make the money. The tyre brand is important, and the tyre product structure is more important. Find a product system with a golden match.


7. Tyre manufacturing companies cannot make profits from soft service providers


This is the biggest reason why tyre distributors cannot earn heavy benefits! The current tyre distributors' service awareness is not strong, that is, the understanding of consumers and the service of offline tyre retail stores are still seriously insufficient.


In some cases, goods delivery is not available and it can only be picked up by the second batch or terminal; or there is no after-sale service, causing economic losses to offline retail stores.


As a middleman, service is the minimum business idea of tyre distributors. Service is also a magic weapon for tyre distributors to quickly gain differentiated advantages.

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