How OCR Can Help You Retain the Value of Tire Stock
The time between tire manufacturing and out-the-door sales can be quite long in some cases. The general public believes tires sitting in storage for a few years lose their quality and performance over time. As a result, many feel that more recently produced tires are the better choice. While this isn’t true in every circumstance, incorrect tire storage can indeed damage tires over time. This – along with the abiding customer perception – can badly affect the retail value of tires as they age, which will decreases the value of your stored tires.
2. How does this affect its retail value?
Many manufacturers believe “sleeping tires” (those that have been in storage 2 to 5 years) should not lose value. They believe these tires match the same quality as fresh-from-the-factory tires. Yet, as we’ve seen, this is only the case if tire storage procedures are carefully followed. At local dealerships, tires are often left in areas which are open to the elements, sometimes without even coverage from the rain.
Whatever the situation, consumers generally believe new is better and sleeping tires have reduced performance. To consumers, this perceived lower quality means they’re not worth as much. Most experts recommend limiting the age or storage lifespan of the tire to alleviate this concern.
Equally, most manufacturers recommend the replacement of tires 10 or more years old. This means that if a consumer purchases a tire that has been sitting for 4 to 5 years, they will only getting 5 years of use out of that tire before they are advised to replace them, even if they were purchased “new” from the retailer.
The bottom line: there is no reason why tires that are properly stored should lose performance, but a drop in value is inevitable when factoring in public perception. This is why it’s harder for retailers to sell older tires at full price – and that decreases their value, no matter what manufacturers state.
3. How can you limit the time tires spend in storage?
There’s no doubt that managing a large inventory of tires is challenging, especially when you cannot calculate factors such as the amount of time stock sits in cargo or at the manufacturer. However, once those tires hit retailer stock, it’s essential to monitor their storage time to minimize the previously mentioned risks associated with ‘sleeping tires.’
To do this, retailers need to know the tire’s age and type. Then, they need to sell tires that arrive in stock first rather than those that just come in – First In/First Out Flow – otherwise known as FIFO.
So how can retailers tell the age of the tires efficiently? It’s easier than you might think. In fact, this information is already written on the side of every tire in the tire identification number or TIN, also known as the tire DOT code.
The following codes can be registered to keep track of the tires as they come in.
- DOT Code – a series of up to 13 characters including the week and year of production.
- Tire dimension code – a series of numbers and letters that indicate the dimensions and characteristics of the tire.