TBC rolls out inventory reduction program

Feb. 4, 2003

TBC Corp.'s new Power Line program is designed to help dealers reduce their inventories, according to Gary Paulson, TBC's vice president of sales.

The program ecompasses TBC's Sigma, Multi-Mile, Cordovan and Vanderbilt brands with 41 14- to 17-inch sizes in S, T, H and V speed ratings, he says.

It will cover more than 85% of the passenger/performance replacement market, according to TBC officials, who say Power Line pricing will be "very competitive."

The Memphis, Tenn.-based private brand marketer already has introduced several Power Line tires, including the Multi-Mile Grand Tour TR/HR/VR, the Cordovan Tour Plus TR/HR/VR and the Vanderbilt Touring HR and VR.

The program will help TBC streamline its stock as well, Paulson says.

"What we're trying to do is basically rationalize our inventories.

"We've been very famous for selling tons of tires in tons of different lines; the inventory burden that creates is a hefty penalty to pay."

The Power Line will eventually replace up to three existing TBC lines, Paulson adds -- if that's what dealers want.

"We're going to let (them) vote with their order pads. If they think there's enough demand, we'll keep those older lines. But we think once they see the new Power Line, they'll gravitate towards that."

TBC products, combined, enjoy 8% of the domestic replacement passenger tire market, according to Modern Tire Dealer data.