Z Tyre launches flat-rate tyre subscription model in Germany

Thursday 21st April 2016 | 0 Comments

The Z Tyre Flat Rate is available through Alzura Z’s 600 partner stores in Germany
The Z Tyre Flat Rate is available through Alzura Z’s 600 partner stores in Germany

Z Tyre has launched a new concept in car tyre retail, which it believes “could represent an exciting and substantial commercial shift for the tyre trade.” The Z Tyre Flat Rate subscription, available from 4.99 euros per month, is designed to cover all new tyre related costs, allowing the customer to fit or upgrade tyres using a small monthly subscription. The initiative aims to answer common complaints of motorists purchasing tyres – a high initial one-off cost for a distress purchase, which can often mean reduced opportunities to sell based on aesthetics, performance or expert recommendation – and the unpredictability of cash-flow for the retailer.

Z Tyre argues that there are a number of advantages to the contract method. The short-term, cost-based decision-making of many drivers can be eliminated, helping the driver to consider tyre performance in coming to a decision about the most suitable tyre option. The distributor adds that the tyre dealer can gain a better relationship by offering this approach, since they have a better opportunity to guide purchases. Finally, the monthly contract method could assist retailers in becoming a one-stop shop, from professional consultation to fitting and other tyre-related services.

Z Tyre also envisages the creation of predictable long-term repeat buyers who regard the retailer more as a professional adviser on tyres rather than a place of last-minute, low cost infrequent distress purchases.

Z Tyre states that its flat rate subscription model emerged from the combined experiences of the tyre and IT industries. Such models are common in technology – the provision of a ‘free’ handset within a mobile phone contract, for example – while in the commercial or business-to-business fleet tyre markets, tyre management contracts are highly common. However, a flat rate subscription model for consumer tyres is a novelty that Z Tyre appears to be pioneering.

The company says the “clever use of tyres” is at the core of its new idea; while we all need tyres for our cars, Z Tyre asks why we should also have to own them. Within the Z Tyre Flat Rate subscription, tyres are replaced when they approach their wear limit, meaning the customer always has tyres with sufficient tread. This means the customer will ensure the safety and legality of their tyres, but also, Z Tyre argues, they will have access to the most current tyre replacement product specifications; the model makes the ‘cutting edge’ of tyre technology affordable, in Z Tyre’s words.

1 more euro for 1 more inch

Z Tyre adds that its subscription model has been structured to cater to the larger tyre sizes available – and increasingly popular – in European markets. German Z Tyre customers who want to drive on larger and higher performance tyres will be able to acquire one inch more of rubber for one euro more per month; for example, the difference between a 17 inch and a 19 inch tyre is 2 euros more per month, meaning the sportier and larger tyres are available at a comparably lower premium than would be the case, were the customer to buy the tyres outright.

Z Tyre points out that its range of Z performance tyres has attained high EU label values, such as class B in both wet grip and rolling resistance.

Z Tyre Flat Rate available at Alzura Z

The Z Tyre Flat Rate subscription model is currently being offered in Germany through Alzura Z and its 600 partner stores nationwide. Should a customer experience a problem with their tyres, they can be instantly identified as a Z tyre subscriber with their Alzura Z Tyre membership. This entitles them to receive reliable, fast and efficient support with their Z tyres – as well as being the first point of contact for tyre inspection, refitting and storage.

These local Alzura retail partners will become full-service centres for the Z Tyre tyres subscription model. This service includes the support of a local consignment stock warehouse to ensure rapid and constant availability of Z tyres. After booking an appointment with the customer, the retailer has the tyre size and specification details – even before the driver arrives.

Z Tyre adds that its subscription model can therefor “eliminate the financial headache of having to purchase and stock tyres.” The Z Tyre central warehouse in Germany will be able to supply the selected tyre within 24 hours.

The ongoing revenue from the subscription method will allow these retail outlets a regular income in times of fluctuating work, which, in turn, will help them to cover any monthly fixed costs and relieve any unwanted financial cash flow pressure, Z Tyre concludes.

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