New Future Tire owner makes mark in community

SHOW LOW, Ariz. — What some would consider rotten luck — buying your first business right before the pandemic hit — turned into a good-will marketing opportunity for the new owner of Future Tire and Automotive.

Dave Schonaerts, 47, purchased Young's Future Tire and its four locations in Arizona's White Mountains region in December 2019, a few months before many businesses across the country shut down temporarily to counter the spread of COVID-19.

"Luckily, I didn't know what I didn't know," he told Tire Business. "Having been just brand new to ownership, everything was new. So I think I was lucky to go into that pandemic stupid as I was. So I benefited from really not having a lot to base my expectations on."

Amid the ensuing financial uncertainty many families faced and the desire to introduce the new ownership to local customers, the rebranded Future Tire and Automotive retail/commercial tire dealership started extending credit to its customers — with essentially only a handshake.

"It was me trying to introduce myself to the community because I'm the new guy on the mountain," Schonaerts said. "I just wanted the community to know that if they are in a tight spot, we are in a position to help. And we didn't get burned. Anyone we extended credit to has been able to settle up.

"I think it took a lot of that fear out. We didn't want anybody stranded, putting things off on what they needed to keep their vehicles up and going, especially when everything was as unknown as it was.

"So I think that was a really nice introduction of the new ownership to the community. It helped with the pandemic in the initial scare. But I think the long-term effects of treating the community that way has really served us well."

The community as a whole wasn't as affected by the pandemic as cities with larger populations, he noted, as the White Mountains towns "are a bit removed."

"We were able to watch other markets and see how they responded. Show Low and our surrounding stores in their communities really took a back seat to some of it and it didn't affect us adversely much at all," he said.

Schonaerts also noted that in lieu of spending a lot of money on advertising, he has been marketing his business through support and sponsorships of local charities and community groups.

"I prefer to put back into the community and, quite frankly, it does tend to come back anyways as you support the community."

Future Tire operates four stores but five profit centers, Schonaerts said.

In addition to retail tire and auto services at locations in Holebrook, Lakeside, Pinetop and Show Low, the dealership operates a commercial division at the Lakeside location.

The commercial division, which accounts for about 20% of sales, services government fleets and commercial businesses in the area, as well as the nearby White Mountain Apache tribe. The dealership also has five commercial service trucks.

Schonaerts said his background is in commercial tire service, so the retail business was new for him, but he has strong retail and commercial teams.

"It's been seamless," he said. "My job is easy. I just get out of everybody's way and give them the little bit of support that they need. They are pretty self-sufficient."

The dealership, which generates about $9 million in annual sales, sells passenger, light truck, industrial, farm, OTR and commercial truck tires and offers vehicle services ranging from oil changes to complete engine replacement.

Schonaerts named Discount Tire, Big O Tires and another commercial tire dealership as his main competitors.

"I'd like to think that what we offer is unique and just a little bit better. And that's why we've seen the market share we're taking advantage of. I think part of it is having that whole combo, that we can be commercial and retail. That we can be more than just tires. That we're automotive. That we're family-owned and local. I think all that really bodes well for us and sets us apart from the competition," he said.

Schonaerts knows a lot about family-run businesses, having essentially grown up in his father's tire business, Phoenix Tire Inc. in Phoenix.

When his father decided to retire a few years ago, Schonaerts said he opted out of buying the family business, noting the dynamics would have been a challenge. His father instead accepted a cash offer buyout from Southern Tire Mart.

"It was definitely in everyone's best interest that he was able to retire the way he deserved to retire and everything seems to have worked out just fine going this path," Schonaerts said.

After the sale, Schonaerts continued to work at the dealership for awhile, but he said working for a large company wasn't a good fit for him.

When the owners of Young's Future Tire were looking for a buyer, Schonaerts jumped at the opportunity to own his own business. He said at the time it was a "leap of faith," but it has turned out to be "an amazing opportunity."

The biggest challenge was on the personal side, since he hadn't owned a business before.

"There's a difference between being a GM and being an owner. So that was quite a transition for me to make that big leap," Schonaerts said. He also had to make a lifestyle transition — spending weekdays at the dealership and commuting to his family's home in Phoenix, about three hours away, on the weekends.

As the new owner, he said he tried not to disrupt the operations too much for the 35 employees, but he did make one major change — closing the business on Saturdays.

"It's one of the better shifts that we made. I did try to leave well-enough alone. It was a solid business when I bought it and I try to do as few changes as possible. Mostly just transition for the team. ...," he said. "We looked at it real hard and decided it was best to scale it down."

The dealership still offers 24-hour commercial roadside assistance with Schonaerts manning his phone after hours and on Saturdays for those who were used to the dealership being open on Saturdays.

"Most of the customers realize the importance of having a full weekend off. Really all I'm doing (with weekend calls) is scheduling stuff for Monday morning. It seems to be working out great for us. And I know my staff really appreciates it."

He said he used to have to work seven days a week "and it just wears you down and takes a lot of the fun away, too."

"I think one of the biggest things I've done is changed a little bit of the culture and it's been really well-received by my team and really well-received by the community," he added.

He said the company was due for a culture change and he worked with the management team, putting key personnel where they needed to be and promoting from within.

He restructured the compensation packages for the managers by paying them based on the profitability of their stores.

"They've taken a lot of ownership of their operations. It's allowed me to slide into a real supportive role. There's a lot of trust there and they know what's needed for their operation to be better. And if they're making good decisions, they're paid well.

"I have the broad overview perspective where I can show them certain things other stores are doing that have bred success and make my subtle suggestions. That working relationship based on respect and trust has been the foundation that's really not just helped for now but for as long as we do this together," he said.

Schonaerts said he does not have any immediate plans to expand his business.

"There's a lot of opportunity. I'm young and ambitious, just don't get me wrong. But I feel like we got some work to do yet to continue to dial in to what we got and protect our market here before expanding," he said.

Schonaerts described his plans as being in "fortress mode."

"This year is dedicated to getting really good at what we do. So just sharpening the sword, not necessarily trying to make any big jumps or changes, ... really trying to be introspective and seeing what it is we're doing well and what we could do better and then recognizing what our weaknesses are and seeing what we can do to eliminate those."

He said his dealership faces the same major challenge as fellow businesses — finding qualified employees to fill open positions.

"I think the way around that is really recognizing the good hands that you got and hanging on to them. I think when you're on to something good, especially in a small community like we are here, word travels fast. We've been able to grow our business one solid hire at a time, ..." he said.

"I feel like with each hire, we've been making a step in the right direction for the past three years. I'm really excited about the team we've assembled."

He said he has job openings, but he likes to run lean and admits he has asked his managers to work with less.

"But without the extra burden on payroll, they reap the benefits of putting in the extra work," he said.

His advice to other new owners: "I'm definitely grateful that I invested in people first. And whether it's people within our organization or reaching out to people in the community, from a business standpoint, I think it was one of the smartest things that I've done.

"At the end of the day when you have to assess what kind of influence you've made on this world, I think that's going to be the only part that matters is the lives that you've positively touched before it's all over."