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TIRES Purchasing Guide 58 TPMS Winter Tires and TPMS 64 N SERVICE 64 Vehicle Service Loaded Calipers 72 N FEATURES 72 Proud to Be an Independent Tire Dealer

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TIRES Purchasing Guide 58 TPMS Winter Tires and TPMS 64 N SERVICE 64 Vehicle Service Loaded Calipers 72 N FEATURES 72 Proud to Be an Independent Tire Dealer NOVEMBER 2016 TireReview.com To Do: • Purchase equipment • Employee reviews • Shop for health insurance • Explore Mobile payments BUSINESS PLANNER & PURCHASING GUIDE NOVEMBER 2016 VOLUME 116 NUMBER 11 04 n NEWS & COMMENTARY 04 In Perspective Exploring Your Options 08 Newsmakers Goodyear Christens New Blimp 12 SEMA/GTE News 16 First Look Continental ExtremeContact Sport 20 On-Site Hankook Technodome 22 n BUSINESS 22 Market Pricing 24 Ensanity Eavesdropping Strategy 12 16 30 In the Shop Dealer Success 72 34 n THE PURCHASING GUIDE / BUSINESS PLANNER 34 Mobile Payments 36 Purchasing Equipment 40 Incentivizing Your Team 44 Shopping for Health Insurance 46 Conducting Performance Reviews 58 52 New Products 34 58 n TIRES Purchasing Guide 58 TPMS Winter Tires and TPMS 64 n SERVICE 64 Vehicle Service Loaded Calipers 72 n FEATURES 72 Proud to Be an Independent Tire Dealer 68 Commerce Connect 2 TIREREVIEW.COM • NOVEMBER 2016 CONTENTS IN PERSPECTIVE Exploring Your Options Independent vs. independently owned OME SAY THE PROVERBIAL DARK CLOUDS are forming on the horizon, heading this way fast. Consolidation within the industry, manufacturers selling direct and/or online, shrinking profit margins, rising employment costs, a shift toward digital, competition from big box stores and car dealers – I could go on. The combined perfect Sstorm of pressure upon the existing small business model for independent tire shops is forcing an evolution within the marketplace. All of this begs the question: Is it even possible for an independent tire dealer to remain “independent” and thrive in this environment? And more importantly, how can you position your business to best compete and prosper? Last month we honored Lex Brodie’s Tire, Brake & Service Co. as our Tire Review Top Shop Winner. The Hawaiian-based business is literally an island unto itself, building its business without the support of warehouses, dealer groups and marketing partnerships. They focus their resources, prioritize and make it happen – from their service philosophy (turning away or referring out work that isn’t in their sweet spot much like a medical doctor would) to marketing within their communities and online – the team remains open to its own evolution to best manage the changes within the marketplace. But many shops may not be willing to (or have the resources to) commit to the shift necessary to manage the trends within their own organization – especially when there are other options open to them, such as joining a franchise, dealer marketing network, co-op or other form of partnership. For some it makes sense to take an easier path, to hunker down during the storm, seeking protection in the strength of a larger network. Sure it sounds great, but is it worth the price? And is it worth trading off some of your independence? I recently spent some time with the good team at Big O Tires, part of TBC. The franchise group currently has 387 franchisee-owned locations in 20 states as it continues to grow its North American footprint. For about the price of what it costs for an experienced full-time marketing staffer, you get yourself a bevy of resources to help grow your location, from digital marketing and SEO to coupons and in-store promotions. They also provide updated product pricing and promotions on your/their website, continuing education, regional dealer groups, buying power, recognition within the marketplace and more. But all of this comes at a price. Taking your family name (or existing business name) off the side of the building and replacing it with a Big O Tires sign can be gut wrenching for some. And it’s never easy to release control, having to accept the practices and policies made by people in a corporate office somewhere. Even though you “own” it, the internal struggle remains between pure independence vs. strength in numbers. Even so, auto service franchises including tire stores are an attractive option to people just getting started in the business, taking years off the learning curve, and for investors looking to diversify by owning a stable, profitable business model. Even as some shop owners struggle 4 TIREREVIEW.COM • NOVEMBER 2016 with the perceived negative market • Will your business be able to stand part of a collective, without the support of pressures, outsiders coming into the out in your area or do you become outside affiliation? business see opportunities – especially one of many who are part of the My answer is Yes. But regardless as consumers are keeping their vehicles same program (like when someone of the path you choose – to go it alone longer, requiring tire replacement as searches “tire stores” on Yelp or on or to join a franchise, partnership, well as ongoing vehicle maintenance their mobile phone)? network, etc. – all require you to and service. Compared to other make an increased investment, focus industries, it’s not a bad place to be. • Do the benefits of consistent and commitment to your operation’s Shops run by numbers people with marketing, time-tested processes, success. After all, you should do more limited in-bay experience can be very buying power and support services than survive the storm – the real goal successful, which makes a turn-key outweigh giving up control of should be to have the winds of change business model even more appealing. certain aspects of your operations? propel your business toward real If you’re considering buying in (or prosperity and sunny skies ahead. selling out, depending on who you talk • Are you comfortable with a to), some questions to ask yourself: shift from “independent” to To your success, “independently owned”? • Are the brand requirements and expectations in line with the way Of course, in addition to franchises you prefer to operate? there are other partner models that could make sense, depending on your • Will you miss having your historic business needs and goals. PATTI RENNER business name on the sign? This takes me back to my initial Editor question: Can you survive without being Publisher Associate Editor Contributing Editors Sr. Circulation Specialist Randy Loeser, ext. 285 Carley Hull, ext. 270 Steve Ferrante, Rich Star Mackey, ext. 242 [email protected] [email protected] Ashley, Tim Good, Jeff [email protected] Editor Senior Contributing Editor Wallick, Susan Bassford Advertising Services Wilson, Roger McManus, tirereview.com Patti Renner, ext. 247 Denise Koeth Christine Perry, ext. 245 3550 Embassy Parkway [email protected] [email protected] Andrew Markel [email protected] Akron, OH 44333-8318 330-670-1234 Managing Editor Art Director Kristen Criswell, ext. 273 RJ Pooch, ext. 246 [email protected] [email protected] Members of: BPINTERNATIONALA Proud Supporters of: Statement of Ownership, Management and Circulation (Act of August 12, 1970; Section 3685. Title 39. United States Code.) TIRE REVIEW is published monthly at 3550 Embassy Parkway, Akron, Ohio 44333. Headquarters and general business offices are also at 3550 Embassy Parkway, Akron, Ohio 44333. The publisher of TIRE REVIEW is Randy Loeser, the editor is Patti Renner and the managing editor is Kristen Criswell. The staff is located at 3550 Embassy Parkway, Akron, Ohio 44333. TIRE REVIEW is owned by William E. Babcox, located at 3550 Embassy Pkwy., Akron, Ohio 44333. Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: none. Issue date for circulation below: August 2016 Extent and nature of circulation is: Average no. copies each issue Actual no. copies of single issue during preceding 12 months nearest to filing date A. Total Number of Copies 33,802 33,754 B. Paid and/or Requested Circulation 1. Paid/Requested Outside-County Mail Subscriptions Stated on Form 3541 28,271 28,138 3. Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution 0 0 C. Total Paid and/or Requested Circulation 28,271 28,138 D. Non Requested Distribution 1. Outside County Nonrequested Copies 4,979 5,005 4. Nonrequested Copies Distributed Outside the Mail 176 261 E. Total Free Distribution 5,155 5,266 F. Total Distribution 33,426 33,404 G. Copies not Distributed 376 350 H. Total 33,802 33,754 I. Percent Paid and/or Requested Circulation 84.6% 84.2% I certify that the statements made by me above are correct and complete. Pat Robinson, Circulation Manager October 15, 2016 6 TIREREVIEW.COM • NOVEMBER 2016 N NEWS:NEWSMAKERS Goodyear Christens Wingfoot Two A little bit of cold and rain couldn’t stop the festivities at the Goodyear Tire & Rubber Co.’s Suffield, Ohio, blimp hangar on Oct. 21, as the tiremaker christened the latest member of its blimp family – Wingfoot Two. Christening Wingfoot Two, and getting drenched with Champagne at the same time, was Akron-native and philanthropist Savannah James. “I feel absolutely honored to be a part of this christening,” said James. “With Goodyear being so much a part of Akron and our (LeBron James Family) Foundation always wanting to better our community, I feel like it is a perfect match. Goodyear means so much to our community, and we feel a sense of gratitude to be part of this amazing event.” James, who is married to Cleveland Cavaliers star LeBron James, was chosen to christen the blimp based on her ties to the Also at attendance at the ceremony was Robin Roberts, co- Akron community. anchor of ABC’s “Good Morning America.” Roberts, who christened “Savannah’s Akron-born roots and passion for improving the Wingfoot One, passed the christening duties to James, bringing the local community made her a natural choice to christen Wingfoot Champagne bottle with her. Two,” said Richard J. Kramer, Goodyear chairman, CEO and Over the years several different women have christened the fleet president.
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