At your ServiceBAY: ATD marketing concept may change the way you do business

May 1, 2006

ServiceBAY from American Tire Distributors Inc. is not a program, per se. Ron Sinclair, vice president of marketing, refers to it as a "strategy targeted toward independent tire dealers."

No matter what you call it, ServiceBay is designed to bring added value to tire dealerships.

"We really wanted an umbrella strategy that offers our dealers a number of services, tools and programs that really help them more effectively compete against any other channels, mass merchandisers, national chains, big box stores, etc.," says Sinclair.

ServiceBAY is made up of a series of components that cover broad and specific business-related topics. Participating dealers can choose to take advantage of the components separately or together.

To qualify for ServiceBAY, dealers must meet minimum purchase requirements based on dollar sales. The products and services they receive per component are based on both sales volume and each dealer's level of growth with ATD.

The components include the following.

* WarrantyBAY is made up of two ProtectionPlus plans. One is a national service warranty, backed by more than 10,000 locations; the other is a tire protection plan, which covers tread wear and road hazard damage.

* CreditBAY is a private label credit card program from GE Capital Corp. "with lots of benefits that allow dealers to help up-sell customers."

* MarketingBAY enhances the program groups associated with ATD: MAST Alliance, Bridgestone/Firestone TireStarz, Continental Gold, and ATD's exclusive Goodyear Advantage program. "We'll support the dealer with funds," says Sinclair. ATD also will match, on a one-to-one basis, various showroom and dealership upgrades.


* TechnologyBAY relies on ATD Online, an existing tool that allows dealers to check available inventory and create out-the-door pricing at the point of sale. It also gives them access to a fitment guide.

* BusinessBAY will allow ATD to utilize its size to get national account pricing from a number of third-party tire and equipment suppliers.

* TrainingBAY offers dealers exclusive training programs and ride-and-drive events. "Training is a challenge for the industry," says Sinclair. Regional and training on different topics, including tire pressure monitoring systems and employee retention, is available.

Service BAY is designed to help build loyalty not only between ATD and its dealers, but also the dealers and their customers.

Down the road, ATD also will have the ability to benchmark performance. Under the direction of Jack Phillips, vice president of financial services, BenchmarkBAY will lead to operation efficiencies. "Eligible ATD customers can choose to participate in this program to quantitatively measure their performance versus similar dealers in the BenchmarkBAY network," says Sinclair.

How it works

"More purchases are really what drives eligibility," says Johnson. Here's how it works.

Each component, such as WarrantyBAY or MarketingBAY offers nine levels of benefits based on a dealer's sales volume and growth. There are three levels based on the amount of sales through ATD:

1. $25,000-$60,000.

2. $60,000-$120,000.

3. Greater than $120,000.


There also are three levels of a dealer's sales growth with ATD:

1. Less than 100% unit sales.

2. 100%-105% sales growth.

3. Greater than 105% sales growth.

For example, if you purchased more than $125,000 in products from ATD, and your purchases grew by more than 5%, you would receive the maximum services from each component bay in which you chose to participate. Your qualifications determine what you pay a month, if anything, and what you get.

"ServiceBAY is a work in progress," says Sinclair. "And there's room to grow."

About the Author

Bob Ulrich

Bob Ulrich was named Modern Tire Dealer editor in August 2000 and retired in January 2020. He joined the magazine in 1985 as assistant editor, and had been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He 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.