Navigating Strategies for 2026: Aligning Programs, Maximizing Rebates, and Simple Budgeting
As we head into 2026, tire dealers are actively meeting with suppliers to review the latest program updates and decide on alignments that can maximize profitability.
Major brands like Goodyear, Michelin, Yokohama, and Pirelli have all made changes. Some are refreshing their programs, while others, like Goodyear, have introduced entirely new ones. Yokohama is aggressively expanding its market share with new programs, and Pirelli has made strategic changes to its distribution strategy. All of these changes are aimed at enhancing and supporting dealer growth and margins, as well as taking market share from competitors.
These updates reflect ongoing efforts to adapt to market dynamics, improve supply chain efficiencies, and boost rewards for committed partners. Now is the ideal time to evaluate your options.
Use your experience from the past year and current sales run rate to forecast volumes and potential rebates. Focus on selecting a few key programs to maximize benefits, including combined manufacturer and distributor incentives, plus any available marketing support to help reach goals.
The “sign up for everything” approach (which I was guilty of) often scatters focus and leaves significant dollars on the table. Instead, align strategically with a limited number of brands; diversify distributors to mitigate risk, but consolidate where possible for stronger synergies and a real impact on your bottom line.
Building a Rebate Tracking Matrix
Create a simple matrix to track purchases and forecast rebates on a monthly, quarterly, and annual basis. I’ve found several trackers, and I’d be happy to share one with you.
Base projections on last year’s performance with modest some assumptions like modest growth or replacing one brand with another. Add columns for marketing co-op funds or bonuses, and distributor incentives and update quarterly with actuals. This keeps things clear and helps track progress toward goals.
Budgeting For 2026: Key Considerations For Your Shop
Most small business owners don’t create a monthly budget and compare their actual performance to the budget or expected performance. It doesn’t have to be overly complicated; you can outline targets for your shop(s) focusing on sales, gross profit, and payroll. You can expand to a full P&L as needed or if preferred.
Payroll and OT Control
Track overtime closely (daily/weekly). Avoid uniform shifts; stagger starts/ends to match demand peaks. Use cameras or quick checks to offer early departures or send idle staff home. Consider seasonal tweaks, like shorter winter hours to cut unnecessary OT costs. A favorite metric of mine was overtime hours as a percentage of sales and gross profit; you’ll track if the OT was actual worth the squeeze.
Hourly Rates and Parts Markups
If you decide to raise labor rates by 5%, adjust your budget accordingly by creating a simple report. To calculate your new budget, add the percentage increase (5%) to your labor sales or profit from the previous month or year. You can apply the same logic to parts markups; these small increases can compound quickly as volume increases.
Pulling it all Together
Combine rebates, rate/markup adjustments, and OT controls into a straightforward monthly budget. I’m a proponent of sharing with your team; it helps build accountability and the team understands what they are working towards.
By staying on top of these supplier changes, tracking rebates effectively, and budgeting proactively, you’ll set your shop up for a strong, profitable year. If you’ve got details from your recent meetings or want help customizing the trackers or budget templates, I’m happy to support fellow dealers.
