Does it ever feel like you’re “all alone” — that nobody else understands what you’re going through? It’s easy to feel that way when times are tough.
And let’s be honest. Despite what the mainstream media keeps telling us, life — for both business owners and consumers — isn’t exactly a cakewalk at the moment.
If it’s any consolation, you aren’t on an island.
Regardless of size, scope and vocation, independent tire dealerships throughout the country are grappling with many of the same challenges.
We found that out when surveying dealers for the 2024 edition of the MTD 100, which begins on page 40 of the July issue of MTD.
When we contacted the country’s largest tire dealerships as part of the MTD 100 research process, we asked, “What are the biggest challenges facing your business right now and why?”
Here are some verbatim responses. While reading them, keep in mind that we contacted both consumer and commercial tire dealers. I’ve also removed the respondents' names to preserve anonymity.
“One of the biggest challenges ... is the recruitment of qualified employees. As we continue to grow, finding and retaining talented individuals becomes increasingly critical, particularly in an industry already facing a shortage of qualified workers.”
“For the first time in several years, sales is the biggest challenge. We have many customers who don’t have work themselves and are running through fewer tires than in previous years.”
“Tire margins versus national online competitors. Cost of cash flow (while) carrying inventory. Cost of trucks, etc.”
“Car count and economic challenges.”
“Human capital.”
“Hiring employees and employee retention.”
“Supply chain disruptions continue to cause delays and interrupt accurate forecasting.”
“Shortage of experienced technicians.”
“The increasing number of tire variations available to consumers can make the process of determining the correct tire for an individual driver daunting.”
“Keeping our inventory in line with demand. We’re not where we want to be, but have worked closely to get there.”
“Sales volume is down due to a softer-than-normal market. Commercial trucking customers have started to nix down in their tier (preference.) Commercial retread demand has softened.”
“Finding opportunities for location expansion.”
“Our biggest challenge is the slow start to fleet purchases.”
“Our inability to attract, develop and retain the best and most capable employees has led to safety concerns, quality control issues and overall customer satisfaction and acquisition challenges.”
“As longtime employees leave, retire or begin to slow down, there isn’t a strong group behind them to step in.”
“High interest rates are costing us more money to operate and (are) slowing our investments in some assets and acquisitions.
“Current political climate is affecting the overall economy, which is slowing consumer spending.”
“With the rise of technologies like autonomous driving, connected vehicles and advanced driver assistance systems, technicians need specialized training and resources to work on certain vehicles.”
“Technician recruitment and investment. Our ability to scale is largely contingent on our ability to find qualified technicians.”
“Inflationary environment and staffing.”
“Finding good people. This continues to be the number one challenge in our business, by far.”
“The current economic environment, characterized by inflation and high interest rates, continues to exert pressure on consumers’ disposable income.”
“We are observing a shift in tiers among tire brands, if not a delay in purchasing entirely.”
“We continue to battle rising costs. What it costs to open our doors each day is significantly up compared to previous years.”
Do any of the above remarks sound familiar? I bet they do. These problems aren’t going away anytime soon. So how do you cope in the meantime?
There certainly is strength — and support — in numbers.
Organizations like 20-groups provide the opportunity to swap best practices and benchmark against your peers. (MTD columnist Randy O’Connor’s D2D Development Group immediately comes to mind.)
Though not as many in number as they once were, state and regional tire dealer associations offer a wide range of resources, as well as the ability to discuss mutual challenges and solutions with other dealers.
Supplier meetings present another avenue where you can discuss issues and answers.
Many of your peers have found assistance through program groups.
And of course, MTD will continue to serve as a forum for the exchange of ideas, concepts, best practices, recommendations and hard-won advice.
“You cannot tell from appearances how things will go,” Winston Churchill said in 1941. “Sometimes imagination makes things out far worse than they are. Yet without imagination, not much can be done.”
Independent tire dealers are nothing if not imaginative and resourceful.
I have no doubt that your business will continue to grow and thrive, despite the challenges of today and whatever comes your way next.
Click here to view the 2024 MTD 100, starting on page 40.
Questions? Comments? Contact me at [email protected].
