Focus on Dealers Point S plans to nearly double store total in five years

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Focus on Dealers

CO-OP WANTS 500 STORES ACROSS 50 STATES

Joy Kopcha By

Point S tire dealers in the United States closed the 2022 books with a 10% increase in sales and a multi-faceted plan to keep those increases coming.

That plan includes rolling out the welcome mat for new dealers who are looking for extra buying power, but aren’t necessarily ready to rebrand and commit to the blue and green way of life.

Clint Young, chief operating officer for Tire Factory Inc., the cooperative that manages the Point S brand in the U.S., says the group has adopted four growth initiatives. Two are defensive moves to retain the dealers and stores already in the cooperative. Two more are designed to bring more dealers into the fold.

On the defensive end, Point S is offering $10,000 to existing owners who are ready to exit if they sell their store to another Point S dealer. Current dealers also can earn a $10,000 referral bonus if they recruit and refer another tire dealer to join the cooperative.

Brandon and Diana Haltiwanger are among the newest Point S tire dealers. They joined the group this fall and will rebrand Forrest’s Tire Service into Forrest’s Point S in Johnston, S.C. They joined in the retro-’80s party during the recent Point S meeting as the group looked back on the decade when the co-op’s predecessor, Northwest Tire Factory, began.

In addition, Point S is offering assistance to existing dealers who open another location.

“Some are very brave about taking that leap,” says Young, while others have held themselves back because of some steps in the process, whether that be site selection or Small Business Administration paperwork.

But the biggest move for Point S USA — and the one that signals an about face from recent efforts — is the creation of an associated dealer program, which would allow tire dealers to join the Point S network of dealers without rebranding.

Young says the new program gives Point S some flexibility in welcoming new members. More dealers and locations means the group can continue to bulk up its purchases and secure competitive agreements with suppliers.

Tire dealers also can use the program as a test toward gradual full membership in the group.

Chris Cornelius, current chairman of the Point S board of dealers, expects the program to result in more stores joining the Point S network.

“We’ve created such a powerful branding and back-up (system),” says Cornelius. “It’s a baby step.

“My view is they get in and if in three or four years they don’t want to rebrand, it’s not on them — it’s on us. What are we missing?

“We’ve got independent dealers out there struggling and they don’t need to be,” he notes.

Often times, Young says, dealers struggle with back-end tasks, such as IT and marketing. They are attracted to Point S “if we can lift a lot of that burden.”

The program, which was rolled out to members in August, is already working. Of the record 28 new stores the cooperative opened in 2022, 12 are associated dealer locations, says Young.

There are now 275 Point S locations across 29 states, including two states where the group hasn’t operated previously — Alabama and South Carolina.

Those new markets represent the group’s continued efforts to grow eastward. And at the annual dealer meeting at the end of January, where the cooperative celebrated its 40th anniversary, Tire Factory Inc. CEO Walter Lybeck announced the group’s bold goal for the

As next five years — 500 stores throughout 50 states.

Chip and Patti Preston have 20 years of history with Tire Factory and Point S. Even though Sterling Quality Point S in Clinton, Utah, is an automotive service-heavy location, with tires only accounting for 30% of overall sales, Chip says the buying power of Point S is critical to his daily business.

Brandon and Diana Haltiwanger are among the newest Point S dealers. Brandon’s father started the couple’s business, Forrest’s Tire Service, 46 years ago and the second generation took over ownership of the Johnson, S.C., dealership eight years ago.

The company is a single-store operation that sells tires in all sizes, from passenger and light truck to ag, OTR and small tires.

Brandon Haltiwanger says his top need was “to buy better.” But he’s already discovered there’s more to Point S.

“We’ve always been alone. We’re not alone anymore.”

The Haltiwangers are currently the only Point S members in the state of South Carolina. They’ll begin rebranding their store soon.

Chip and Patti Preston have a few more years of Point S experience behind them.

He is the operations manager for Sterling Quality Point S in Clinton, Utah, and also part-owner of another store, Woodruff Point S, which is based in Ogden, Utah.

He’s been a part of the cooperative for two decades and says in recent years, as more Point S stores have opened in Utah, consumers have begun to recognize and become familiar with the Point S brand.

“Point S gives us national recognition,” says Preston, but he acknowledges it has taken time. “It’s been quite a switch to get to this point.”

He appreciates the Point S brand’s high standards. Sterling Quality Point S was among the group’s “top shops” in 2022 — meaning it met branding and appearance standards during a comprehensive site review.

“Point S holds us to a standard. It’s a brotherhood. For us to buy (tires) with the big guys, that’s something we couldn’t do on our own.”