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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

comments

  1. scott | June 05, 2009 at 07:40PM
    if ever in nc stop by taylor's discount tire in greensboro, nc....would love to show you around our little store...we sell the same 265/70r17 michelin ltx for $164.00 plus tax...includeing lifetime everything...if you price your tires correctly the tire sales will come...atleast 2 times a week we retail over 200 tires a day...the phones ring all day long with people wanting tire prices...buy the tires right/price them right...and the sales will follow....stop by and say hello...thanks, scott

  2. Dick | June 10, 2009 at 04:46PM
    Bob, You should have been with us at the Continental Tire "Untamed Innovation" tours in St. Louis, Mo., Morton, IL, and Jacksonville, IL locations of Brahler's Truckers Supply. Close to 1,000 visitors saw how Conti's new line of fuel efficient tires could save significant dollars in total operating costs. Brahler's TOP 50 retread plant in Jacksonville was an impressive sight to the fleet operators who took that tour as well. I attended all three events and was heartened by the positive attitudes I heard, not only from Conti's management, and Brahler's staff, but also from the fleet operators who were obviously interested in seeing the latest in tire and maintenance innovations. As an aside, I was impressed by Bee Line's new product that can quickly assess a truck's actual alignment, helping service personnel identify those tractors that need immediate attention, thus freeing up the alignment bay from testing in-alignment vehicles. Let me know if you want additional thoughts. It was a week well-spent!

  3. Charlie Cohen | June 11, 2009 at 05:50PM
    Our industrial tire business in the Chicago Area is holding our own in spite of the economy. Our customers have become more demanding, however, with this downturn, it has forced us to work smarter, more efficient, and we have cut back on needless expenses. Our customers, both wholesale and end user have stayed with us and many more people today say "thank you" for the good service. When things recover, all that hard work will not be forgotten!!!

    Good luck to you, Bob!!!!

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