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Tire Shop Term

National account work

Definition

Fleet and manufacturer program work billed at set prices a shop does not negotiate.

Why It Matters

It fills bays on slow days at prices somebody else set, which is a real trade: the volume is dependable and the margin is thin, so a shop leaning on it is busier than it is profitable. It also binds the shop to a program with its own service standards and its own payment terms. Ask for revenue and gross margin split between retail and program work, because a shop selling on total revenue is selling the mix as though it were one thing.

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More Terms in Tire Shop