Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/328077
MTD June 2014 By Bob Bissler S am Batanian took advantage of a golden opportunity in 1987, and the CEO of King's Tire & Wheel has done nothing but grow ever since. "I was working in a tire store and I had a falling-out with the owner — he didn't really know very much. I ended up buying the place and that's how it began." Batanian started the one-store retail operation, located in El Monte, Calif., with a partner who he stayed with until 2000. Ten another opportunity presented itself. "I got into wholesale in 2002 when Winston Tire Co. went bankrupt. I was doing really well in retail and there was a Winston Tire up the street from me and the manag- ers knew me. Since nobody was supplying them they kept coming to me and asking, 'Can you give me four tires? I'll pay you at the end of the week.'" Even though Batanian was taking a risk since Winston Tire was in bankruptcy, he supplied the store from his retail business. It would come back to help him in the future. "Tey started buying quite a bit and every week they sent me a check. And then they closed. Te managers who knew me went to work in other tire stores, and they kept calling me because they knew I helped them. It started creating a wholesale business in my retail." As the wholesale business continued to grow, Batanian acquired a small warehouse in 2002. But it wasn't enough. Ten he jumped on another opportunity. "Eight years ago my son said, 'I want to run the retail store.' Once he did that I decided to go into wholesale and open up a bigger warehouse. It just took of from there." Tat year Batanian's retail business brought in $600,000 in annual sales. In 2013 sales totaled $24 million for retail and wholesale combined. "It's been growing and growing and we went from one retail store to three in the last two years. We're planning on opening more retail stores in the future and also more wholesale dis- tribution centers." In addition to the frst retail store in El Monte, Batanian opened a sec- ond in Palmdale in 2011 and another in Camarillo in 2012. Tey were both existing t ire stores. He also has a wholesale warehouse in El Monte up the street from the retail store, another in Rancho Cucamonga and a small warehouse in Palmdale. All three retail locations ofer complete automotive service and Batanian says his stores specialize in tires, brakes and suspensions. Major brands carried at King's are Continental, Pirelli, Focus on dealers Growth through service Tis dealer took advantage of opportunities and grew his retail business by becoming his own wholesaler By the numbers • Name: King's Tire & Wheel • Annual sales volume: $24 million • Monthly parts purchases: $10,000 - $15,000 • Number of technicians: 12 total between three stores • Number of bays and lifts: 20 lifts total; four bays in El Monte, fve in Camarillo and four in Palmdale • Tire inventory in stock: 40-50,000 units total in three wholesale fa- cilities King's Tire & Wheel CEO Sam Batanian stocks be- tween 40,000 and 50,000 tires in his 54,000-square- foot warehouse in Rancho Cucamonga, Calif. King's retail stores purchase tires in a consignment-type ar- rangement. 62