Whilst selling tyres online is now cost-efficient and easily accessible for all local garages, you’re still competing with all the large national players who offer nationwide fitting. Your pricing strategy may need to reflect this.
That said, you can do very well in your area if you build up a strong local online presence with a lot of potential customers looking to use a local business that they trust.
Related article: 7 Tips For Selling Tyres Online For Local Garages
So, how do you set about creating a pricing strategy to sell more tyres online?
Here we’re going to explore a few approaches that you could take depending on your business set up and how you operate.
It’s vital to balance pricing competitively and profitability. Keep that in mind.
First, you need insight. You can’t ensure you’re competitive if you don’t know what others are charging and understand profit margins.
Do your research against key competitors locally, regionally and nationally.
Look at their pricing, their products, and any promotions they’re offering.
Determine how you compare and what unique value you can offer to stand out.
Finally, conduct a cost analysis to make sure you’re taking all your costs into account before you create/change your pricing. Remember to include any procurement, storage, shipping, travel and other operational expenses, not just your buy price per unit.
Understand your target customers – all types individually.
Segment them based on factors like customer type (private and trade/fleet), preferences, buying behaviour, and geographic location.
You could opt to tailor a different pricing strategy for each type of customer.
What can you offer to get ahead of your competition? That could be any combination of the following in addition to competitive pricing:
Do you also want to consider dynamic pricing based on current demand, seasonal trends, or your own situation – such as stock levels of particular tyres?
You may have a fairly comprehensive pricing strategy behind the scenes but the actual shopping experience needs to be incredibly simple for customers, both in terms of website functionality and how you present your pricing.
When you’re developing your pricing strategy, always factor in how you’re going to present it at the end so that it will be simple for customers to understand.
Once you’ve finalised your strategy, you need to keep it under constant review. The market can move fast, monitor how it changes to make sure you’re retaining your profit margins, stocking what customers want, and spotting new opportunities to add new products and services to your repertoire.
Use analytics tools to track sales, conversion rates, and customer behaviour to make data-driven decisions.
Be adaptable with your thought processes too. Data is great but it can’t see into the future. Consider what your own local knowledge of the market and intuition tells you and try new ways of doing things from time to time to truly understand what works best for your business and your customers.
What good is a great pricing strategy if you don’t back it up?
Collect and showcase positive reviews and testimonials on your website. This builds up trust and increases your credibility to secure more sales. This can be especially helpful if you’re offering premium products.
Make sure you're providing exceptional customer service too. Both by providing a seamless online customer buying process, and on the ground when you’re carrying out the fitting.
With the right tyre e-commerce solution you can create a dynamic, highly functional website, run promotions, run reports, up-sell additional products and services, and showcase all your great work.
If you need something more capable to support your new pricing strategy and get you driving forward at speed, we’re here to help.
At SellMoreTyres we provide tyre e-commerce solutions so you can add a tyre shop to your existing website, or we can create a whole new website for you to sell tyres online more effectively.
Email email@example.com or call us on 01625 433388 and find out how we can help you.