Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/567620
MTD September 2015 Note to tire manufacturers: 'You can't have your cake and eat it, too' Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Tis month we asked, "Goodyear was the frst tire manufacturer to begin selling tires directly to consumers online. Now Michelin has a pilot program that includes tire installation. What are your thoughts on this development? How do you feel it will afect your business?" Here are some of their responses. 1. Competition in this industry is already overwhelming without manufacturers going directly to consumers via an online portal for tire sales. Tires sell service, service sells tires — anybody in this business knows that. Our concern is that with more ways to close that tire sale transaction — more ways for consumers to source tires in other ways — the fewer vehicles we'll see in our shop and on our lifs. All this equals fewer opportunities to sell ser- vice, which really pays the bills, since proft margins on tires continue to erode every year. We're being told the exact opposite — that this online sales program will capture new consumers, roughly 60% of customers we haven't had before. We are extremely hopeful that this holds true. 2. Bridgestone will be next tire manufacturer to sell tires online. It all depends on where you are in the food chain. As a distributor you need to continue to focus on your larger accounts. Te small ones are sinking into the sunset. Tey do not know how to compete with this change in distribution as well as the growth of retail chains such as Monro Mufer Brake Inc., Mavis Discount Tire , etc. 3. Typical greedy manufacturers. For reasons like this we are losing our respect and loyalty for the tire manufacturers. Tis is bound to have a negative efect on all tire dealers. 4. Just as Amazon and other e-tailors have taken market share, anticipate more of this from other tire manufacturers. All tire manufacturers want to move more units, and this would be a growth sector. 5. Tirty years ago, your suppliers were your allies. Now, it seems your suppliers are your competition. You can't have your cake and eat it, too! It's a sad state for business. Local businesses must compete by being strong within their com- munities. It boils down to "Business 101." We also asked our NAC what was on their mind. Some of their responses included: Now that the computer has taken over wholesale sales, distributors must fgure out how to sell the right tires to their customers. An uninformed customer base usually resorts to selling the least expensive tire, not always the best option. Jef Cohen, Co-owner Traction Wholesale Center Bensalem, Pa. Asian imports of medium commercial over- the-road truck tires are afecting the retreaded truck tire market. Very aggressively priced (cheap) Asian truck tires can be bought, in some cases, for less money than a retreaded tire and its associated casing. Retreading volume continues to erode. Combined with consolidation, this may be the "death knell" for the independent retreader in North America. Tripp Lee, General Manager Frasier Tire Service Inc. Sumter, S.C. Are the stock market corrections likely to afect consumer behavior? We've seen some downward corrections which could develop into bigger corrections by fall. Jon Shields, Branch Manager Carroll Tire North Atlanta – C33 Marieta, Ga. Your turn Join Modern Tire Dealer's National Advisory Council Each month, Modern Tire Dealer is guided and infuenced by a select group of readers — members of our National Advisory Council. Tese members' opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you'd like to join this prestigious group, please let us know. We'd love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 11. h h l l l l d We love feedback! The editors of MTD want to know what you are thinking. We rely on members of our National Advisory Council each month to track sales data (see Your marketplace on page 21), and to keep in touch with the hot topics that are affecting tire dealers. Our monthly survey gives you the chance to sound off. If you'd like to join this group, email bob.ulrich@bobit.com. You also can let us know your thoughts on subjects we write about online. See the "Post a Comment" box following each news item and article on www.moderntiredealer.com. Simply fll in the blanks, write your comment and hit "Submit." We want to hear from you! 100