Point S looks to grow with new initiatives, dealer program

PORTLAND, Ore. — The music may be a bit louder, the salsa a tad spicier, and the mood even cheerier when the Point S marketing group gathers in Puerto Rico in late January to celebrate its 40th anniversary.

And the list of attendees at the event could be even larger — if not the largest — than ever before.

While part of that can be attributed to the venue — who wouldn't want to spend four days in the sun and sand of the Caribbean — a lion's share of that is the direct result of four initiatives the group recently adopted.

The four pillars of the plan — referral, expansion, retention and a unique associated dealer program — support and enhance the group's main objectives: The viability and sustainability of the independent tire dealer as well as the growth and protection of the group.

"Our mission is the success of independent tire dealers," Point S CEO Walter Lybeck told Tire Business. "We take that really seriously. We believe if we can't succeed long-term, independents will have a hard time in the long run. They need an avenue working together in the market, and we provide a great option for them in that mission."

The initiatives, approved and put into practice early in the fourth quarter of 2022, already have paid dividends. The Point S network grew by 28 points of sale in that timespan, bringing to 273 the number of Point S locations in the U.S.

Among the new locations are stores in Alabama and South Carolina, bumping the group's footprint to 29 states.

One initiative, perhaps the most innovative of all, has accounted for 12 of those new locations alone:

Dealerships now may join Point S' associated dealer program without having to brand themselves with Point S signage.

The program expands on the group's affiliate program, allowing dealers to become a B share Point S owner, with two stipulations:

• The owner has no voting rights;
• They receive no patronage from Point S, such as signage, website support or marketing.

In addition, such dealers must display an 8x8-inch sign in their shop windows that identifies them as an associated dealer for the purpose of serving as a "promise plus" store, meaning the location will perform warranty service for any customer who had the original work performed at another Point S location.

"The target wasn't to water down the program," Lybeck said. "The target was to remove the objections to those trying to join the group."

The program was designed especially for larger dealerships, who have balked previously at joining Point S because of the difficulty and cost of rebranding several locations.

Now, Lybeck said, a dealership can join the group as an associated dealer without facing that hurdle of rebranding, while each party explores a fully branded relationship.

"We have found that it allows that conversation to continue at a faster pace," he said.

This marks quite a change for the group — founded and still known corporately as Tire Factory — which encouraged its owners to rebrand after aligning with the global Point S network in 2015.

Point S reshaped its thinking over time, allowing members to retain the Tire Factory name and remain part of the marketing group. Today, 13 Tire Factory locations (and 10 owners) remain.

With this new program, any dealership may join the group and retain its name, with no commitment to change signage.

Lybeck said the change in thinking hasn't watered down the group's branded-member program.

"It's allowed us to break open doors to folks who either can't rebrand for some reason, or there's a transition going on, and they're not in position to rebrand yet," he said.

"They're thinking about it, but maybe not sure yet. Instead of putting them on the back burner and waiting for someone to come buy them, let's get in the group and start talking and build brotherhood and sisterhood."

Clint Young, Point S chief operating officer, said the financial commitment for B share members is the same, but with less hurdles.

"This program is still our DNA," Young said, "but it's less hoops than (joining as) fully branded."

Lybeck said the program was built in fairness to fully branded members.

"In the end, non-branded (members) don't vote, and they don't control the company. If you want to control the company, brand up and come on board."

Fully branded members support the move, Young said.

"Our members are smart," he said. "They know times have changed, that we've got to get more nimble in how we go to market, that growth is critically important and growth in units is even more important."

Among the dozen dealerships that have joined the group as associated members are Worley Tire, with locations in Harrison and Berryville, Ark.; and Miller Tire, with two locations in Grand Island, Neb.

Two locations came on board through the referral program.

Two of the initiatives had existed in some form previously but were refined and formalized. They are:

Point S formalized its referral program. Now, current owners can earn up to $10,000 if a dealer decides to join and is approved for Point S membership.

"The bounty is intentional," Young said. "It's pretty simple, and we've seen some success with it."

This new plan, dubbed "No Trouble to Double," provides a plethora of resources to Point S dealers who want to expand their dealerships.

While the marketing group helped its owners secure Small Business Administration loans in the past, this new initiative takes it a step further, providing additional tools such as property acquisition help, research support and financial support for equipment and branding that wasn't available previously.

The initiative is geared more to single stores, Lybeck said, incentivizing owners with one or two stores to add another. Five stores already are in the program.

"In all these programs, one of the things that we're really gifted at is making things complicated," Young said.

"So we've worked hard to strip away all the complication from it and be flexible. If it was growth-related, let's try to make it easier for the owner."

The fourth initiative addresses a challenge for independents looking for an exit strategy:

Point S is offering a retention bonus to owners who sell their shop to another Point S member, thus retaining the shop for the group.

If the existing owner helps his Point S store remain with the group through a sale, they would earn a financial reward.

Young said the group, like many others, has lost a handful of members who have sold to a competitor or other entity.

If an existing store owner helps Point S retain that store when he or she retires, Young said, "we give them money when they leave, in addition to their capital. You can never give enough money for that. …

"It's more about the awareness of everything. So we put enough of a bounty on it to get attention so people were aware we wanted to help them transition their store to another Point S owner, if they don't have a second or third generation to pass it down to."

Lybeck added: "We want them to feel like they have a little skin in the game to try and keep the store (within Point S). We wanted to have an extra salesperson that's inside that deal who says, 'Did you think about the Point S program? This is the cool stuff it did for me.'"

Point S executives hammered out the initiatives during a three-day leadership retreat held in San Diego last spring. The initiatives were approved in late July and implemented in September.

The group, including the new members, will gather for the Point S 40th Anniversary Owner's Meeting on Jan. 25-29 at the Hyatt Regency Grand Reserve Puerto Rico. It is shaping up as the largest owners' meeting in history.

One lucky owner will leave with a restored 1983 Jeep CZ7. The winner must be present to claim the prize.

Meanwhile, the group not only will celebrate its anniversary, but also its growth, boosted by the four initiatives.

"We can sit and watch the market change fast, or we can figure out a way that we not only can compete but thrive within the market," Lybeck said. "We take it really seriously."

Young called two of the initiatives defensive in nature, while the other two, particularly the associated dealer program, are initiatives designed to seek growth proactively.

"We tried to hit everybody in the sweet spot," he said, "and I think we did a pretty good job with this."