Management Tips From Past Tire Dealer of the Year Award Winners

Ownership mentality

“Entrepreneurship is a tough road,” said Jim Duff, who along with his brother, Tommy Duff, own Columbia, Miss.-based Southern Tire Mart LLC. They were the recipients of MTD’s Tire Dealer of the Year Award in 2021.

“Some people naturally have” an entrepreneurial spirit, Tommy told MTD. “It’s innate to them. Some people learn it. And we find there can be a great mixture of both.”

The Duffs encourage their store managers to think like business owners, according to Tommy. “Our store managers are entrepreneurs. They know their pricing. They know their programs. They know their support structure.

“The big thing is they have backing, so they won’t fail financially,” Tommy explained. “They can concentrate on their people and customers. And as they progress, they make more money. We have store managers who make seven figures and I don’t know of other tire companies that can walk around saying that.”

“When we interview people, we’ll tell them, ‘This is what we expect of you and this is what you can expect of us,’” said Jim. “And I’ll ask, 'Do you agree with this?’

“If we’re having a problem with someone, we’ll explain what the problem is and will ask, ‘Do you agree with us?’ And 99% of the time, they will say, ‘You’re right.’”

Southern Tire Mart does not offer employment contracts. “When a company has to make an employee sign an employment agreement, that’s not a good way to operate,” said Tommy.

“Is that the correct philosophy?” said Jim. “I don’t know if it is or not. That’s just what we’ve always done. It’s worked for us.

“We’ve also been smart enough to say, ‘If something is not working well, we need to address it.’ People say, ‘If you have good judgement and common sense, you’ll be successful.’ But I also think if you can’t self-analyze and realize that the problem might be me, then you’re in trouble.”

Risk and rewards

“Our employees are the heartbeat of Wonderland Tire,” Jon Langerak, the company's CEO and president and 2023 recipient of MTD’s Tire Dealer of the Year Award, told MTD last year. “They’re on the front lines every day, doing the work with a smile on their faces.”

Jon learned early in his career that it’s important to recognize employees and highlight their contributions.

Wonderland Tire has paid for employees who have hit their 20-year mark with the company to go on a vacation of their choosing, with their spouse or partner — anywhere in the world, with all expenses picked up by the dealership.

The idea, according to Jon, came from Rebecca Reed, Wonderland Tire’s marketing manager.

“She came from a family business, Reed’s Tire, and saw that we have many long-term employees. She went into David’s office and said, ‘Wouldn’t it be nice to do something for people who’ve been with us for more than 20 years? Why not send them on a nice trip?’"

Dave Langerak, Jon's brother and Wonderland Tire's chief operating officer, agreed.

Jon and Dave show their appreciation in other ways. When fuel prices spiked a few years ago, each Wonderland Tire employee received a $50 prepaid gas card.

“That was Jim DeVries’ idea,” said Jon. (DeVries is Wonderland Tire's chief financial officer.)

“Every Thanksgiving, (employees) get a $50 card to one of the supermarkets in the area. 

“We also take a portion of our profits each year and distribute that to our employees,” Jon told MTD.

“The vast majority of our employees also are on an incentive program. The tire business can be slow in January, February and March. The rest of the year, it ramps up. Summer can be a stressful time. It’s busy. It’s hot. With the incentive, during the summer months our employees can make double or triple what they can make in the winter months.”

Jon and Dave also make personal appearances at Wonderland Tire stores. “When we had our first million-dollar month 12 years ago, we went to each location and grilled steaks for employees,” said Dave.

When Wonderland Tire achieved its first $3 million month, "we ended up going to ever store and grilled steaks."

“Employees recognize it when you do things for them that you don’t have to do,” said Jon.

‘It’s theirs, too’

Bob Dunlap, chairman and CEO of Batesville, Miss.-based Dunlap & Kyle Co. Inc. and MTD’s 2022 Tire Dealer of the Year, told MTD he doesn’t understand all the stress involved with keeping good employees.

“We take care of them. We’ve got a Cadillac plan for hospitalization and insurance, a retirement plan and then they’re paid a lot of money on top of that.”

Dunlap told MTD that a competitor once tried to hire one of his salespeople. The salesman laughed at the other company’s offer.

Dunlap said he will not get in the way of a driven salesperson. And he doesn’t believe in carving up a successful salesperson’s territory.

If a salesperson builds it up, he gets to keep it — even if realistically there’s enough business to split the area in two.

“I respect it and protect it. I’m sitting here drinking coffee and they’re out there working. I’m not going to mess with it. I’d be stupid to do that.”

Over the years, Dunlap has rewarded some employees with a share of the business — often 5% of a specific warehouse. When a successful salesman said he wanted to retire, Dunlap didn’t want to lose him. He rewarded the salesman with a share. The man has said he’ll work as long as he lives. This generous spirit applies to more than the company’s sales team.

“As long as I’ve got money, it’s theirs, too,” said Dunlap. “If they work hard, they’re entitled to compensation. I think to not do that you only hurt yourself.”

Who drives the bus?

Chip Wood, chairman of Cincinnati, Ohio-based Tire Discounters Inc. and the 2020 Tire Dealer of the Year Award recipient, told MTD he believes that all companies share a common denominator: engaged, motivated employees who are focused on customer service.

“Our store managers drive the bus,” he said. “Being able to do everything we can for our staff will always be the most important task at hand.”

Tire Discounters’ management team maintains an open-door policy. “I try my best to always pick up the phone,” Wood explained. “I think it’s important for everybody to know we’re paying attention.”

He also is a firm believer in employee development.

“We have so much talent,” he said. “Every tire technician is a potential service technician, a potential general manager, a potential regional manager and a potential CEO. All one has to do is have the desire and the drive. That’s it.”

Coaching the team

John McCarthy Jr., when named MTD’s Tire Dealer of the Year in 2019, said employees are the most valuable asset of his dealership, Wilkes-Barre, Pa.-based McCarthy Tire Service Co. Inc.

“I can’t stress enough the importance of the team that we’ve built here — right down to the service techs and the people in the warehouse,” he told MTD.

“The way that I look at it, the people we work with make us different from anywhere else. They care. The hours they put in, the quality of work they put in — they’re just great people. They make my job a lot easier.”

When interviewed by MTD in 2019, McCarthy never once referred to people as working for him. He said that he works with them. “I’d love to not say (the word) 'employees' anymore. I just think it’s not the right characterization.”

An avid college sports fan, he relates his job to that of a coach. “I read something that said the average millennial has 12 jobs before the age of 35. 

“We need to find ways to motivate people (and) offer them job clarity. Do they have a job description that they feel is important? They ask, ‘How do I fit in?’ They demand ongoing feedback.

“Before you were the principal and you had to crack the whip. Now you’re the coach and you give them enthusiasm and positive reinforcement for them to keep going. If you’re not keeping them engaged, you’re going to have issues.”