CAVE CREEK, Ariz. — Dan and Katie Marsh saw how their customers were struggling to stay safe on the road.
The couple, who own wheel and tire e-commerce venture Dan The Tire Man L.L.C., have long offered customers who couldn't afford a new set of tires access to no-credit, lease-to-own tire-purchasing programs.
In recent years, though, the rising cost of living combined with the higher costs of those programs, left some customers in a lurch.
"Many of our customers were saying that they could not afford the monthly payments on the lease and that the back-end of the lease was too costly for them at the end of a year," Katie Marsh told Tire Business.
They conceived of an alternative and reached out to the business' loyal customers pitching the concept: TireSet, a tire subscription service where the customer pays a monthly fee and when a new set of tires is needed, the cost is covered.
The response was overwhelmingly positive, Katie Marsh said, and it encouraged Dan Marsh to take the concept a step further.
"Instead of just being another for-profit tire venture, he wanted to really help those in need and make the payments as affordable as possible by setting it up as a 501(c)(3) non-profit," she said. "Everyone will be approved as long as they can be verified as having some type of an income and a traditional checking account for auto debiting payments."
TireSet's two-year subscriptions would have five tiers starting at $19.99 per month and increasing in price depending on the size, brand and type of tires; a subscription for name-brand light truck/SUV tires would cost more than the lowest-tier economy size tires, for example. Each tier would have a curated list of brands. The service is limited to passenger and light truck tires.
TireSet anticipates on average drivers need to replace their tires every 24 months. Heavy drivers, who need to replace tires more often, would pay more monthly. After the 24-month period, customers can opt out or allow the subscription to auto-renew.
"We are also setting aside up to 5% of our subscriptions for people who have undergone a tremendous hardship such as losing a job, losing a loved one or having a health crisis — things that would affect someone's income," Katie Marsh said.
Those folks would pay only the first installment to get started and receive new tires. Their next six payments would be waived to help them get back on their feet.
"Many of these folks who can't afford to pay out of pocket for tires will just go buy used tires or wait until they can afford them," she said. "As a society at large, this doesn't benefit any of us.
"Everyone deserves the right to secure, safe travel and not be forced to make the heartbreaking choice between paying rent, putting food on the table and safe transportation."
Down the line, the organization hopes to help subscribers strengthen or rebuild their credit, through financial education and possibly positive credit reporting, she said.
They'd also like to offer TireSet through various social-service agencies, she said.
TireSet, which is based in Arizona, isn't off the ground yet, though Katie Marsh predicts that they could get running in three to six months once they've secured funding partners.
They're working to cultivate direct relationships with tire manufacturers to get the best prices for subscribers — they also have relationships with second-tier suppliers through their current retail business — and have spoken with at least one major manufacturer, Katie Marsh said, although no deals are in place.
"Our vision is to have a member from each of the major tire manufacturers on our board of directors," she said.
The organization also is seeking federal and private foundation grant funds to get started.
Dan Marsh has 40 years of experience in the tire business and the couple, who have been married 18 years, have worked together on Maine-based Dan The Tire Man for the last 10.
Companies looking to partner with TireSet can email [email protected] or visit tireset.net.
