Recently, an Authorized Montel Distributor partnered with a local Acura dealership to solve its tire storage troubles. Installing this storage system in particular drew our attention to tire storage issues impacting many different businesses, apart from tire retailers.
Spotlight on Acura dealership’s tire storage solution
We can all understand the tangible benefits of expanding storage capabilities for any business, but how will this storage change-up affect revenue related to tire sales? Before installing mobile racking, the dealership kept its limited excesses off-site, including off-season tires. SmartSpace mobile racking effectively doubled the dealership’s storage capacity. After installing its brand-new storage system for its inventory of tires, this dealer can now store between 1,900 to 2,200 tires on site, depending on the sizes it has in stock.
Additionally, customers pay roughly $30 per tire for six months of seasonal storage at the dealership, $60 for annual storage fees. For dealerships, more tire storage doesn’t only mean more space for inventory, but also another potential revenue stream. Doubling a dealership’s tire storage capacity doubles its selling power. With the space-efficient design of mobile racking, the dealership can service more customers looking for a place to keep their summer or winter tires off season. After all, not every homeowner has room in their garage for an extra set of tires, let alone multiple sets if they own more than one vehicle.
All things considered, the dealership’s new SmartSpace mobile racking system will pay for itself in under two years. More importantly, snow tire sales can take off now that the dealership has the capability to house and sell a more diverse product line, as well as serve customers buying multiple sets of tires with their eventual storage needs.
“The audience looking for effective tire storage has grown significantly.”
The bigger picture: Weatherproofing business with mobile racking for tire storage
Tire storage might seem like a pretty esoteric market, exclusive only to retail businesses that sell tires. However, thanks to U.S. and Canadian lawmakers, the audience looking for effective tire storage has grown significantly.
Certain states in the U.S. like Colorado, California and Utah mandate drivers use snow tires in certain inclement weather conditions according to FindLaw, and snow tire laws are quite common in Quebec and other Canadian provinces. As such, any business relying on its own fleet of ground transportation would be wise to consider the advantages of incorporating mobile tire storage into its operations.
Let’s say you’re a business owner with a small, but powerful fleet of trucks operating in one of the aforementioned snow tire states or provinces. As one supply delivery is about to return, a blizzard hits. What do you do? Although many of the places with snow tire laws allow loopholes for commercial vehicles without snow tires, that doesn’t change the safety considerations all fleet managers must weigh. Is a business better off asking truckers to risk the storm and push through without snow tires to meet a deadline? Or should they wait it out and cause delays? Neither decision feels 100 percent right.
With on-site mobile racking technology supporting off-season tire storage, no logistics division in any business has to grapple with this dilemma. As the seasons change, logistics teams can replace all the tires on their trucks and store the second set out of the way. Fleet managers will rest easy knowing their trucks have the right tires to brave the elements safely and keep business moving without sacrificing space in warehouses, docks or wherever else they might store tires without the proper technology.