June 05, 2009
MTD editor encounters good news on the road
By: Bob Ulrich
My eight-day drive to Florida and back is over, and I'm happy to say that the independent tire dealers I visited are doing fine. There wasn't a single doom-and-gloom attitude among them.
That's not to say they haven't made changes during the recession. One dealer closed a store. Others found creative ways to promote their wares.
Sure, all of them are watching their expenditures more closely. But adapting to the ebb and flow of the business environment is a necessary part of, well, being in business.
Many in the industry (including myself) predicted that retail service outlets would prosper if fewer cars were sold. The reasoning was that people would have to spend on maintaining the cars they own. After a rocky start in the first quarter, that seems to be happening.
I also visited a number of BJ's Wholesale outlets along the East Coast. Interestingly, each store had the exact same pricing on tires, despite the fact that their markets -- and the independent tire dealer pricing in those markets -- were different.
BJ's only stocks Michelin, BFGoodrich and Uniroyal tires. For example, a Michelin LTX M/S tire, size P265/70R17 113S, costs $214.99; that includes lifetime tire balancing, lifetime flat repair, lifetime tire rotation, a road hazard warranty, mounting and valve stems. Disposal fees and state and local taxes also are included.
A sign near the tire store part of BJ's says, "If we don't have your tire, we can order it. Fast delivery." The independents with whom I talked also sell pretty much any brand. No wonder wholesalers are doing better than retailers.
One other observation from my trip: While new car dealerships are suffering, used car dealers appear to be thriving.
It was a worthwhile adventure that allowed me to see first-hand how our readers are coping with the recession. Look for the blockbuster story in an upcoming issue of Modern Tire Dealer.
And let me know how your business is doing by posting your comments below!
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Author: Bob Ulrich | Posted @ Friday, June 5, 2009 1:32 PM
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