For all of you commercial truck tire dealers and manufacturers, remember the first quarter of 2017? No? I’m guessing that is the result of selective memory. It was pretty slow, and that is an understatement.
Tire manufacturers continue to see high-value-added (HVA) tires as the way to increased profitability. Need proof? According to the Tire & Rim Association, there are 65 18-inch sizes, more than any other rim diameter.
Selling tires online is a growing trend, with more online-only players making names for themselves each year. The relative newcomers compete against not only brick-and-mortar retailers, but also each other, and cannibalize sales from leading online tire companies like the Tire Rack Inc. and Discount Tire Direct.
What spurred Michelin North America Inc. to buy 50% of TBC Corp. from Sumitomo Corporation of Americas (SCOA)? Michelin Chairman and President Scott Clark says the resulting joint venture “is about increasing our service capabilities and increasing our scale so that we can be a better supplier to both independent dealers and to provide secondary supply to our direct customers.”
Would you consider your business model average? Probably not. But you can learn a lot about your business when you benchmark your profile against the average dealer.