TirePros looks to nurture dealer network

SAN DIEGO — For the dealers of Tire Pros, the retail marketing arm of American Tire Distributors (ATD), the annual National Business Conference and trade show is more like a family reunion.

The show, held Feb. 21-24 in San Diego, drew dealers from across the country for connection, education and collaboration, as well as an opportunity to hear about new Tire Pros programs and initiatives.

"So many great relationships get formed over the years at this conference here," Tire Pros President Greg Bell said, taking a breather after the close of the trade show.

The conference offers "the opportunity for a dealer in the Pacific Northwest to interact with somebody in Florida, and anywhere in between," he said, adding that those relationships are a benefit of being part of Tire Pros which has dealers in 44 states.

"I think one of the biggest value propositions that we have is that you're united under this common brand, and the camaraderie and the relationships and the family environment that gets built on that," he said.

Tire Pros had 623 locations, operated by 445 owners, at the start of 2023, giving the company net year-over-year growth.

"We're extremely excited for that and we're looking forward to another successful (year)," Bell said.

About 60% of location growth in 2022 came from new owner-operators and the remaining 40% from existing dealers expanding, he said.

In mid-2022, Bell told Tire Business ATD hoped to reach 700 franchise tire retail locations by year-end, and in 2021 ATD sated it hoped to triple the number of Tire Pros locations to about 2,000 in five years.

"It's a process," Bell said, noting that several dealers have ambitious growth plans that Tire Pros supports.

It's a competitive market right now, he said. "We're grateful to each and every one (of Tire Pros' dealers.)"

While the past year saw industry-impacting rising inflation, that didn't prevent dealers from having "tremendous" years in both 2022 and 2021, Bell said.

The potential for a recession won't necessarily impact dealers' ability or willingness to grow, with dealers "cautiously optimistic that their business will continue to thrive."

Tire Pros isn't interested in growth just for the sake of growth.

"Yes, aspirationally, I have a goal, but we're not going to just add store account locations just to say we reached a certain threshold," Bell said.

"We want to do it the right way, we want to do it with the right owners that have a like mindset and outlook, common goals, and that want to be part of something bigger."

Tire Pros is here to provide support for its dealers under the Tire Pros umbrella, he said.

"You're in business for yourself but not by yourself. At the end of the day, if that's attractive and you want to be part of that, we're going to sit down and have a conversation," he said.

In discussions with potential dealers, the first thing Bell looks to do is understand that dealer's goals and objectives. Then, the conversation can turn to how Tire Pros can help support that mission.

Some dealers are looking for marketing help, others want a cohesive point-of-sale system, or assistance with financing or support in running an efficient business.

"We've really built the franchise around three pillars. That's to drive traffic, help increase profitability, and to run a more efficient operation," he said.

"And there's different ways we can about providing that support. But at the end of the day, if any of those three things are of interest, and we have mutual goals and objectives in align, then we continue those conversations."

Tire Pros continues to contend with acquisitions within the industry — not just from private equity but also from larger companies looking to expand — while also looks at acquisition as an opportunity.

Last year, 22 Tire Pros dealers sold their business to another Tire Pros franchisee. The company works to connect dealers looking to expand their footprint with those looking for an exit strategy, Bell said.

Tire Pros offers dealers tools and resources for succession planning and estate planning, a vital tool for a business owner, he said.

Some of the new offerings from Tire Pros include:

• A mobile tire installation program, which launched as a successful pilot program in 2022 and continues to grow. Tire Pros showcased a mobile tire van at the show. Close to 40 dealers have signed up to participate in the program, Bell said.
• A continually developing POS system. New innovations include a costumer portal that allows dealers to connect with customers on a personal level, and gives the ability for seamless and flexible drop-off and pick-up through a kiosk, he said. The sales process is digitized, giving access to information a more nimble way, Bell said. For example, customers can walk into a shop, scan a QR code and watch a video to get information on demand about a particular tire.
• An ATD tire recycling pilot program. "It's a bit of a pain point for our dealers. At the end of the day, we want to do the right thing for the environment and their communities," Bell said.
• The rebranded Tire Pros University, which will expand training for dealers and staff members.
• A partnership with WyoTech, a technical institute in Laramie, Wyo., that will connect dealers with graduates to create a "pipeline of talent," Bell said.