Tire business: Inventory strategy determines success or failure

Inventory is an important issue that all tire dealers must face. The May Day holiday is coming soon, and tire dealers must keep inventory in case of emergency. It is even more important for tire dealers to constantly buy and sell inventory; for tire stores, sometimes they want to minimize inventory, and sometimes dealers want to get some bargains for promotions. All kinds of feelings are complicated and important! In fact, dealers are the ones who value inventory the most.

Now many tire companies produce according to orders, and the proportion of tire store inventory is getting smaller and smaller due to convenient logistics. But dealers are different. Dealers do not produce tires or sell tires directly, but resell them, which means making money from inventory.

Inventory is a tire product, and warehouses are simply money and cash flow. If dealers can arrange inventory reasonably, they can make a lot of money, otherwise it will be the opposite. This requires dealers to have keen market insight, and they will lose everything if they are not careful.

Inventory is extremely important for tire dealers, so tire dealers are most afraid of tire price fluctuations. It is okay if the price rises, but if the price drops a little, all tire products will be in their hands and there will be no way to ship. If prices fluctuate frequently, it is easy to reduce market purchasing power, which is a test for dealer inventory. So how does inventory respond to market changes? Two years ago, there was a tire second-hand dealer who specialized in reselling because he was well-informed. His business was not big, but he made a lot of money by shipping quickly.

Once he bought a batch of tires and encountered a manufacturer's promotion. What should he do if he bought them at a high price? He wanted to lose some money and sell the goods quickly, but he didn't expect that the manufacturer's discount was so great that he couldn't afford it. In a fit of anger, he decided not to sell them and put them in the warehouse. Everyone knows that tires also have a shelf life, and long-term storage is not a solution. But after half a year, the price really went up, and in the end he made a lot of money.

Reasonable inventory is the key to whether tire dealers make money or not, and dealers must consider it carefully. Tire dealers face inventory problems, and so do tire stores. Should they prepare stocks in advance before holidays? How to arrange inventory reasonably? These issues must be carefully considered by tire people.