Michelin North America Inc. is promoting improvements in its 2010 Alliance Associate Dealer program through a series of 41 regional dealer meetings. Some 90 dealers attended the first meeting, held in Greenville, S.C., on Sept. 21.
"Thanks to dealer feedback, we have found significant ways to make the 2010 program easier and more profitable for the AADs," says Bob Schaffner, sales program development manager.
"In fact, their input has directed our work as we change the e-Statement to make it more useful and informative. They'll see a number of improvements in January."
That includes a reduction in the multi-brand program's "service loyalty" requirement. The 2009 program required independent Michelin dealers to purchase 85% of their MAST (Michelin Americas Small Tires) products through their "Primary Servicing Distributor."
Michelin dealers said this was not realistic in today's market, says Schaffner. So for 2010, that requirement has been reduced to "a less stringent 75% level."
In 2008, Michelin paid out nearly $70 million to its AAD members based on their sales. Through August, AAD member sales are very close to what they were last year.
"We're confident that 2010 will be a growth year, and we'll offer financial incentives to AADs who increase their program level so they can earn even more next year," he says. "They'll also have the opportunity to earn higher bonuses for our associate brands. This will make the program simpler and more profitable."
The AAD program was created in 2008 to help Michelin dealers improve their profitability and "competitive position in the market," according to Schaffner. It is executed entirely online; e-Statements allow dealers continuous visibility of purchases, goals and program earnings.
