The finishing touch. (on-the-truck wheel balancing can contribute to commercial dealers' profits) (Profitably Speaking, part 7)

On-the-truck wheel balancing could be the icing on dealers' cake

With no end it sight to the fierce price competition in the truck tire market, many commercial dealers have turned to vehicle maintenance as a prime source of profit.

Some have discovered that even the relatively inexpensive service of mounting and balancing truck tire/wheel assemblies can make a significant contribution to their bottom lines.

The "average" price dealers charge for this service is $15, according to Modern Tire Dealer's Spring 1993 Dealer Attitude Survey Concerning Commercial Business.

And at a margin near 60%, this results in a $9 profit per wheel for a mere 15 minutes of labor per wheel.

This is why commercial dealers, unlike their retail counterparts, rarely throw in free mounting and balancing with a tire purchase.

In fact, many dealers would like to charge even more for this service, but they're afraid this would cause them to lose their competitive edge on pricing.

One way dealers could charge more would be to …