LAS VEGAS—Nexen Tire America Inc. has developed an associate dealer program, called Nexen Next Level, that it will launch Jan. 1 for U.S. dealers.
Announced at the 2014 Specialty Equipment Market Association (SEMA) Show in Las Vegas, the program will include cash-back incentives for all passenger, light truck/SUV, high performance and winter tires Nexen sells. Dealers will receive $5 for each high-performance unit and $3 on all other qualifying products.
“There are about a dozen other programs out there, so we've had some people to benchmark and take the best of all those programs,” said Kyle Roberts, director of marketing for Nexen.
“And ultimately what we wanted to do was make a program that was easy, simple and, most importantly, lucrative for the dealers while also maintaining loyalty between our distributors and their dealers.”
In order to be eligible for cash back rewards, dealers must meet a sales volume average of 100 units per quarter and sell at least 400 units per year. According to Mr. Roberts, the program features one tier and one cash-back policy, but dealers can earn volume bonuses for payouts of up to $10 per high performance tire and $8 for other tires.
Volume bonus levels are as follows:
c 400-799 units ($1 extra);
c 800-1,399 units ($2);
c 1,400-1,999 ($3);
c 2,000-2,999 ($4); and
c 3,000-plus ($5).
“These are some pretty generous payouts for a brand that's supposed to be playing in the value/value-plus segment, so it's actually a very attractive program,” Mr. Roberts said. “We're excited to introduce it.”
In addition, Mr. Roberts said dealers are able to combine all of their locations to reach the highest volume bonus.
In order to distinguish itself from other available associate programs, Mr. Roberts said Nexen Next Level will feature a quarterly sweepstakes program for participating dealers. Each tire a dealer purchases will earn him or her one entry into a drawing for a chance to win a grand prize of $1 million or one of several other prizes, including a truck and gift cards.
“We wanted to do something fun and add a little excitement to the program, besides just the cash-back (rewards),” Mr. Roberts said.
Other aspects of the program include a no-switching policy locking dealers into a primary distributor “unless there's an event that would allow Nexen to go ahead and step into that situation,” Mr. Roberts said. The primary distributor must account for 80 percent of a dealer's purchases.
The firm has begun signing up dealers for the new program. More information on the program will be available soon on Nexen's website at nexentireusa.com.
To reach this reporter: [email protected]; 330-865-6148; Twitter: @Will_Schertz