Bob Ulrich

Editor

Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He has won numerous awards for editorial and feature writing, including five gold medals from the International Automotive Media Association. Bob earned a B.A. in English literature from Ohio Northern University and has a law degree from the University of Akron.

» More

The supplier-dealer relationship hits a snag

By: Bob Ulrich

I received a call the other day from a tire dealer who was upset about the way he was being treated by a supplier. His dealership is a community institution, a well-respected place of business known for the way it treats its customers.

"I just need to vent," he told me.

The gist of his story is this: A major manufacturer wanted to sign him up for a program. My friend told the sales representative that a two-year construction project would limit his numbers until it was completed. The rep said no problem, that the dealer just wouldn't get his rubber bonus. My friend understood, and signed on.

That's the last he heard from him for two years.

Recently, a customer wanted to buy tires, and asked my friend if she would be able to take advantage of a promotion by the tire manufacturer in question. "I don't see why not," he said. Admittedly, he hadn't heard about the promotion, so he called the rep. He was denied.

"You aren't part of the program anymore," he said.

"Why not?" asked my friend.

"Because you didn't hit your numbers," said the rep, with a touch of arrogance.

My friend reminded the rep of the construction project. No go.

"I guess they want to cater to the big dogs," the dealer told me.

At the very least, the rep should have contacted the dealer to let him know that he had been dropped. Maybe he had already spent his commission, I don't know.

Ironically, the construction is over, and business is picking up for the dealer, who sells other brands.

"The advantage of being an independent tire dealer is that I can sway people to the tire I want them to buy," he said. Once he finds out what the customer needs, the rest is in his hands.

"I foresee that in 10 years, the modern tire dealer will not be like me," he said. "Small dealers like me will be squeezed out."

I don't agree. "Mom and pop" tire dealers still make up the majority of the 29,000 dealers in the United States. In 10 years, they may account for fewer stores, but they will still be a significant force in the marketplace.

l'll bet that rep is gone well before my friend's dealership is.

Related Topics: Brand loyalty, Independent tire dealer

comments

1. Rick | December 11, 2009 at 12:53PM
   This case sounds like a mutual communication problem between the rep and the tire dealer. Most tire manufacturers business is broken down like this...85% of the business is done by 15% of their dealer distribution. Small dealers that do small business with a supplier can't expect much attention. This tire dealer admits he is "small dealer" and carries numerous tire lines...how can he expect any loyalty from a single manufacturer. The rep is just plain rude and like most tire sales reps that I have encountered needs to attend a customer, territory, communication self development program or go work at Walmart or Dollar Store. www.leadershipmanagementgroup.com

2. Mike | December 22, 2009 at 08:19AM
   In response to Ricks figure of 85% of business is done by 15% of dealer distribution...That only reinforces the fact of the unfair playing field created to give special pricing to Tire Rack,Walmart,BJ's,etc. We "small dealers" have to carry more than 1 tire line to survive! Big fish eat the little fish everday.. As I see it--The Modern Tire Dealer in 10 years will be the big hitters, no different than all the Mom & Pops who use to sell gas or little C-stores squeezed out by PROGRESS..