Service charges benefit all
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• by Peter Lawton Michelin says independent tyre dealers should increase their profits by charging operators more for their services—even if it means they sell less rubber The tyre manufacturer says a shift away from simply selling as many tyres as possible should benefit everyone.
It claims that charging more for services like re-treading and re-grooving will help soften tight margins on tyre sales for dealers, while operators will benefit from reduced costs thanks to longer tyre life.
Michelin adds that it is willing to take a drop in sales on the chin from a dealer who is helping to extend the life of tyres with proper servicing. However, it seems likely that Michelin must be looking for increased volumes overall.
To encourage change the company is investing capital in selected independent dealers in the Michelin Business Advantage scheme.
Eighteen dealers have been involved in a pilot programme since last October, but Michelin says it will consider a partner
ship with any of the 2,000 or so remaining independents.
Investment is dependent on targets being met, in line with an agreed Progressive Business Plan, but the manufacturer says independent dealers will not be required to stock only Michelin tyres, or meet sales targets.
Changes have also been made to Michelin Euro Assist, which covers 17 European countries. Standardised and guaranteed tariffs in Euros have been set for call out charges, assistance and tyres, so users know what they're getting. Tyre prices are based on site and are not affected by tread pattern.
Michelin believes registered operators, from one-man bands to major fleets, will welcome the set prices, although there will be some variation in costs thanks to the Euro's volatile exchange rate.
A full-time call centre can be reached on a toll-free number and will be able to deal with calls in English, while a new central Invoicing system should mean operators get billed for work efficiently.
Although time targets for reaching stranded vehicles are notoriously hard to give, most operators say around two hours is a good response time. While Michelin tyres will be fitted when available it will not be a requirement for dealers, with rivals' tyres costing 90% of an equivalent Michelin when used.