Dealer Strategic Planning Inc. (DSP) has added a new tire retailer 20 group that will hold its first meeting in this month. This dealer group will be composed of 20 tire retailers from non-competing markets in the U.S. and Canada.
“I am looking forward to welcoming my new peer group to my business,” says meeting host Ed Mitchem, a Springfield, Mo. dealer with four retail locations. “As independent tire dealers and business owners, we all face the same challenges and opportunities, so it will be very helpful to learn from the experience of other successful dealers.”
The goal of DSP 20 groups is to help dealers increase bottom line profits. This is accomplished by peer learning, sharing best practices, financial benchmarking and having access to industry experts. Each month the dealers receive a detailed financial analysis which helps them track their performance against the group and industry benchmarks.
The 20 groups meet three times a year for two and one-half days of intense business discussions. The financial analysis and guidance is provided by Norman Gaither, a consultant in the automotive aftermarket. DSP says Gaither has been successfully improving dealers’ financial strength for 25 years.
“In today’s distressed economy, dealers need every edge they can get to help with their bottom line,” says Gaither. “We have many dealers reaching our goal of greater than 10% net profit and most outpace the industry norm of 3% net profit.”
Subsequent meetings for this group will be held with date and place determined by the dealers. The meeting agendas and topics are decided by the dealers. The meetings conclude with a “best idea” award and specific action plans which will then be reviewed at the next meeting. Dealers commit to actions and are then, held accountable by their peers to put those actions into practice.
“There are many ways to improve profitability in the retail tire and auto service business today,” says Paul Chizeck, former Bridgestone executive, who assists Gaither in the business. “By comparing and sharing experiences, our members give each other encouragement to make those changes which will add dollars to the bottom line.”
For more information visit www.dsp-20group.com.