A Lesson That Stuck with Me
In 2012, I was working with David Lewis and Associates, an automotive sales training firm known for its comprehensive programs across every dealership department; from greenpea training to F&I, fixed ops, and leadership development. Part of my job was to build relationships with franchise dealerships, learn what made them thrive, and help strengthen their processes from the showroom to the service drive.
During that time, I had the opportunity to interview Chris Saraceno, Vice President and Partner at the Kelly Automotive Group in Emmaus, Pennsylvania. Chris is the kind of operator whose insights stick with you long after the conversation ends. In a 2014 discussion about their dealership’s growth, he shared a quote that has never left my mind:
“If you own the tires, you own the service – own the customer.”
It was true then and it’s even more critical today.
The Three-Year Tire Leak
Franchise dealerships are bleeding billions of dollars to big-box tire centers, independents, and national chains. According to Modern Tire Dealer and AutoRemarketing, franchised dealers capture barely nine percent of replacement tire sales, leaving more than $5.3 million per store, per year on the table. That means over a three-year stretch, a dealership could forfeit upwards of $16 million in revenue. Not only from the tires themselves, but from the alignments, the related maintenance, and the future vehicle sales that come with keeping customers in your orbit.
The One-Way Door
When tire buyers walk out the door, they rarely come back. Drivesure data suggests that 72 percent of customers who buy their tires elsewhere never return to the dealer again. That is an entire relationship lost – not just a one-time sale.
Ready Techs, Ready Business
What makes this loss even more frustrating is that dealers have every tool to fix it. Tire mounting, balancing, and wheel alignments are among the first skills automotive students learn in their programs. Whether you look at UTI, Lincoln Tech, or other accredited programs, these fundamentals are taught during the earliest stages of certification.
Entry-level technicians are absolutely capable of handling this work – freeing senior techs to focus on more complex repairs. In a market where qualified techs are scarce, letting fresh recruits cut their teeth on tires and alignments is a practical win.
The Bundle Magic
As a former business owner and marketing manager, I’ll be the first to tell you there’s a lot of magic in a good bundle. Tires and alignments naturally open the door to brakes, shocks, struts, and TPMS sensor replacements. When a vehicle is on the rack, a trained technician can spot all sorts of safety or wear-related concerns that the customer will appreciate knowing about.
Bundling these services creates a higher-value ticket while building loyalty at the same time and dealers are uniquely positioned to offer that. They have the manufacturer’s parts, factory specs, and a deep history of each vehicle’s past visits.
Convenience Sells Loyalty
Convenience is another advantage that’s hiding in plain sight. In this age of same-day delivery and one-click ordering, people will trade loyalty for convenience without a second thought. Customers want to handle routine maintenance, including tires, in a single visit, preferably with easy scheduling, a loaner, or a shuttle. Dealerships often underestimate just how much that convenience factor influences where people spend their money. Offering one-stop tire and alignment service makes the consumer’s life easier, and in return, keeps them coming back.
A Fragile Safety Net
Ignoring the tire and alignment opportunity puts a dealership’s financial health at risk. NADA suggests a service absorption benchmark of at least 75 percent, yet many stores still hover between 57 percent and 70 percent (based on WardsAuto, SC Lubricants, and BG Products referencing 20-group data). Dropping below that threshold forces the business to rely on increasingly volatile new-car sales to survive. Strong absorption acts as a shield against market swings. Without reclaiming tire and alignment business, many dealerships are left exposed to fluctuations in new-car margins, inventory shortages, and broader economic shocks.
Tires Drive Vehicle Sales
Beyond profitability, there is a powerful link to future sales. Industry studies, including Drivesure and the Cox Automotive Service Industry Study, show that customers who buy their tires at the dealership are up to twice as likely to return when it’s time for their next vehicle. It’s not just about selling a set of tires it’s about keeping the relationship intact. In the long run, that recurring touchpoint translates directly to increased vehicle sales and deeper brand loyalty.
The Path Forward
As a former business owner and marketing manager, I can tell you from experience: smart bundling, predictable pricing, and convenience aren’t just retail buzzwords – they are the cornerstones of retention. If franchise dealers lean into this mindset, tires and alignments will become far more than a line item. They will become the anchor that steadies their entire operation.
If you own the tires, you own the service – and you own the future.
In today’s environment, that mindset isn’t optional. It is the strategy that will help dealerships weather any storm and thrive well into the future.
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