ITDG members kept on truckin' in otherwise uncertain year

RIVIERA MAYA, Mexico — If it ain't broke, don't fix it.

That sums up fairly tidily the way the new executive team at Independent Tire Dealers Group (ITDG) is approaching business as the buying group rolls into its 31st year of existence.

With three new staffers on duty — including President/CEO Jason Rook — since the group's membership meeting in 2023, one might expect a modicum of change in the group's approach to business, but the executive team has focused on making sure the things that ITDG members value the most continue while evaluating potential changes/improvements to be phased in over time.

The ITDG — which was founded 30 years ago by a relatively small group of southern California dealers looking for ways to pool their buying power — continued growing last year during the transition from Dave Marks to Rook, as well as through a U.S. marketplace that suffered double-digit declines in certain sectors.

In a conversation with Tire Business during the group's 30th anniversary meeting — held at Secrets Akumal in Tolum, Mexico — Rook stressed that the ITDG model of having a tight-knit collective of engaged vendors helped the group's members navigate through a year of supply uncertainty and ultimately outperform the market in terms of growth.

While growth was modest — about 8% over 2022 to nearly $360 million — it was above all growth in a flat to down market, Rook noted. ITDG is on pace to crack the $400 million mark in collective purchases this year, he added.

Last year tires made up 72% of purchases — down a couple of points versus 2022 — with auto parts at 21% (up a few points), followed by wheels (3%), supplies (2%) and equipment (1%).

At the same time, the ITDG added 18 members in 2023 representing 61 points of sale and 10 more so far in 2024 with 24 points of sale among them.

The group now stands at 178 members representing 1,137 points of sale in 46 states.

"One might see our growing membership and assume that's where our sales growth is," Rook said, "but the biggest growth comes from existing members who keep expanding into more ITDG programs."

That metric is borne out in the average purchase by a member, a value that rose by almost a third to $2.9 million.

At the same time the average year-end payout to shareholders jumped 28% to nearly $14 million.

Rook stressed that all new members are vetted, some for a number of years, before being put forward for membership.

Up to a third of those considered are not accepted, either because their market presence overlaps too much with an existing member, or their business model doesn't fit the ITDG model, for example.

The ITDG membership lost nine members, representing 22 locations, last year, primarily due to being acquired or retirement by their owners.

To help with recruitment and day-to-day issues that crop up, ITDG hired Chelsea Harris to handle members calls and allow Chris Barry and Mike Burns more free time to visit more potential members and start the vetting process.

The ITDG sees above-average growth potential in west Texas, Michigan and the Northeast for new members. The executive team anticipates bringing on board up to 10 more new members this year.

In addition, Francisco Rivero was hired to replace the retiring Sherry Bily as program director.

Among the initiatives the ITDG staff are pursuing is developing a data portal that will allow members to see their ordering and shipment numbers faster.

"We're trying to automate these processes," Rook said, "to make them as close to real time as possible.

"With the kind of volume bonuses available through our vendors, you can leave a fair amount of money on the table if you don't have the latest numbers. We want to help the members claim all they're eligible for."

The goal is to be able to provide ordering data down to the SKU level, Rook said. Once that's achieved, it will allow the ITDG staff to work more closely with the vendors to hone their programs to address potential pinch points in specific model ranges.

During the meeting, ITDG held roundtable discussions for the first time at a membership gathering. Similar in nature to 20 Group meetings, the roundtable discussions allowed members to discuss their issues with peers who aren't their direct competitors.

The discussions by and large centered on hiring and retaining good personnel, Rook said. That was a universal theme regardless of geographic position or relative business size.

Because of that, ITDG likely will begin looking at various recruiting organizations to see how they might help the group's members. Most of these are regional, Rook said, and therefore don't fit the vendor profile, but the group might look into vetting some for members to try.

ITDG also holds regional meetings throughout the year to help address issues of a more regional nature.

New members that joined in 2023 include:

• Big O Tires, Snyder, Texas, one store;
• Blue Sky Tire & Auto, Ga./Ill., six stores;
• Delaware Tire Centers, Dover, Del., three stores;
• Friermood Tires, Peru, Ind., four stores;
• Hank's Tire, Woodland Hills, Calif., one store;
• Lucas Tire & Autocare, Chicago, one store;
• Mark's Tire Service, Paso Robles, Calif., three stores;
• Nealey Tire & Auto Service, Rockville, Md., five stores;
• P&W Quick & Easy Lube, Hawkinsville, Ga., two stores;
• Pueblo Tires Ltd., Alice, Texas, 16 stores;
• Salinas Tires and Wheels, Calif., four stores;
• Star Tire Co. Inc., Dallas, one store;
• T&T Pasadena Tire Pros, Pasadena, Calif., three stores;
• Tire Stack L.L.C., LittleFalls, N.Y., one store;
• Total Tire Solutions L.L.C., Baton Rouge, La., two stores;
• Traction Tire L.L.C., Bensalem, Pa., two stores;
• Tri Valley Tire, San Leandro, Calif., one store; and
• Williams Tire & Auto, Slidell, La., five stores.

New members thus far in 2024 include:

• A&A Tire, Redwood, Calif., 11 stores;
• Concorde Warehouse, Columbus, Ga., two stores;
• Norwich Tire Co., Norwich, N.Y., two stores;
• Moe's Tires Inc., San Francisco, two stores;
• Texas Commercial Tire, Hutchins, Texas, three stores;
• Tire Center of Burlington, N.C., one store;
• Tire House, Redonda Beach, Calif., one store;
• Trotta Tire, Miami, one store;
• Southern Tire & Wheel, Montgomery, Ala., two stores; and
• USA Tire & Wheel, Humble, Texas, three stores.