TBC Corp.'s agreement with Midas Inc. to eventually supply the chain with its own line of Midas brand tires is a new twist on the normal private brand supply relationship.
Usually, such deals are made directly between a tire maker and the retailer or wholesaler wanting its own unique brand.
But TBC is doing things a little differently these days, and the approach seems to be working. This past year, the company posted record sales and earnings, including topping $1 billion in revenues for the first time.
What made the Midas deal possible was TBC's creation of a national, central-account billing system allowing the company's distributors to invoice and collect via the Internet. Without that ability, servicing the mostly small purchase orders of the Midas locations would have been cost prohibitive.
With the industry shipping fewer tires than a year ago, doing things differently is a good way to get ahead.