ITDG grows amid rough conditions

NASHVILLE, Tenn. — The sound of hearing the magic number of 1,000 locations across the U.S. is music to the ears of the Independent Tire Dealers Group (ITDG).

And that seems quite appropriate in Nashville, the Music City.

More than 315 ITDG members, spouses, vendors and staffers attended the group's annual meeting and trade show, held April 20-24 at the Sheraton Grand Nashville Downtown. It was the first live event the group has hosted since it gathered in early May 2019 in Punta Cana, Dominican Republic, as it celebrated its 25th anniversary.

"It's great to be back and see everyone again," CEO and President Dave Marks said.

The better news for the group, however, is that it's been able to navigate the last two years of uncertainty — not only all the pandemic-related challenges, but also the dizzying merger and acquisition activity over the last six months — and grow in every important area.

Among the areas of growth over the last five years (2021 versus 2016) are:

• Number of shareholders, which jumped to 122 from 106;
• Number of locations, which increased to 843 from 609; and
• Number of members, increasing to 158 from 143.

Four months into 2022, ITDG has 163 member companies operating 987 locations in 44 states. The group expects to eclipse that magical number of 1,000 within months, if not weeks.

"There are multitudes of headwinds. What is going to happen today? What is going to happen to tomorrow? Nobody knows," Marks told the group during the general session.

"The message I want to make clear to everybody is ... the tailwinds behind us that are pushing us forward are much stronger than the headwinds that are up against us. I can't say that for a lot of other people in these markets."

Since the last convention, ITDG lost 12 shareholders due to mergers and acquisitions but added 15 to take their place. In 2022 alone, it added eight members representing 66 locations.

What industry turbulence?

"Look at this way: Difficulty does breed opportunity," Marks said. "We all have difficult things that hit us, but what it's all about is what we do with it."

Marks credited the group's vendors for a huge part of the group's success.

In 2016, the group bought $211 million from vendors. By 2021, that sales number increased to $344.7 million.

And, he said, ITDG did it with a less-is-more mentality, reducing its corporate vendors from 89 in 2016 to 75 at year-end 2021.

"Our unit growth was 12%, which outpaced inflation," Marks said. "All of our vendors asked for better engagement, that they need more business from our members. We asked that our members buy more from us, and they delivered."

And members are getting more back, too. In 2016, Marks said the average payout per ITDG shareholder was $78,020. In 2021, that number stood at $120,934. The biggest dividend check he signed was more than $500,000.

"Our job is to deliver programs, pricing and opportunities that add profitability to your business and bottom line dollars," Marks said. "We will continue on that path and do more of that in the future."

ITDG began in 1994 with a handful of independent dealers based only in California. Today, many of the members are shareholders — members who reach a certain level of sales volume in a given year and elect to buy a share of ITDG stock.

"Everything we have followed from Day 1 is to follow the three C's (competitive, consistent, compelling)," Marks said. "The support from our vendors is unwavering. We will keep rolling. We will keep moving forward."

The conference wrapped up on April 23 with its Farewell Dinner — after which attendees were taught how to line dance.

The group finally got to recognize its ITDG Dealers of the Year from 2019 and 2020, as well as name this year's recipient. The dealerships and the dealers honored were:

• 2019: Begg's Tire & Wheel of Philomath, Ore., Brian and Jennifer Beggs;
• 2020: Montana Tire Distributors Inc. of Billings, Mont., Ryan and Leslie Anderson; and
• 2021: Jack's Tire & Oil Management Co., North Logan, Utah, Bob Feldbauer.

The group also announced its next conference will be held April 27-30, 2023, at the Hyatt Regency Hill Country Resort and Spa in San Antonio.