Modern Tire Dealer - September 2017 by EndeavorBusinessMedia-VehicleRepairGroup

THE INDUSTRYâ€™S LEADING PUBLICATION

Servicing run-flat tires Stiffer sidewalls are just one issue of concern

Upgrading shop equipment When and why to consider new purchases

THE INDUSTRYâ€™S LEADING PUBLICATION

Brothers

with a vision Winners of the 2017

TIRE DEALER of the YEAR Award

Mark and Scott Rhodes September 2017 | Vol. 98, No. 9 | $10 | A Bobit Publication | www.moderntiredealer.com

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Features 24 Servicing run-flat tires Stiffer sidewalls are just one issue of concern

28 Upgrading shop equipment When and why to consider new purchases

25th anniversary MTD Tire Dealer of the Year 42 Brothers with a vision Rainy days led Mark and Scott Rhodes’ father into the tire business. The second-generation owners of Plaza Tire are aggressively opening new stores and working to be the best in the Midwest. They are the winners of our 2017 Tire Dealer of the Year Award

The Industry’s Leading Publication September 2017, Volume 98, Number 9

Departments 4 Editorial An industry milestone: MTD ’s 25th Tire Dealer of the Year winners fit the profile

6 moderntiredealer.com News and navigation tools for MTD ’s website

8 News/views Ron’s Tire sells tires, and much more: Diverse product lineup calls for diverse sales staff

18 Your marketplace Higher-than-planned inventory levels are hampering dealer channel

20 On the Rise Kelly Sumner, American Tire Distributors Inc., Huntersville, N.C.

22 Numbers that count Relevant statistics from an industry in constant motion

78 Counter intelligence We are retailers: You must keep an eye on the details in retail

80 European notebook A new ‘groundbreaking’ development in tire tread measurement: TreadReader looks to be adaptable and efficient

82 Business insight How to protect your business from government fines

Focus on industry 84 Tire brand strategy: TBC can compete at ‘every price position’ re Dealer r’s Ti of ale t De

Modern Tir e

r Award Yea he

25 th

ANNIVERSARY 1993 - 2017

85 TIA to celebrate 20th anniversary of its Global Tire Expo

87 TPMS Toyota Highlander 2008-2017

98 Your turn Pre-employment drug testing helps prevent problems, dealers say

On the cover: 2017 Tire Dealer of the Year Award winners Mark (left) and Scott Rhodes commissioned the sculpture on the grounds of their Cape Girardeau, Mo., headquarters. The brothers donated an identical sculpture to Saint Francis Medical Center in Cape Girardeau. Photo by Carrie Perez, Photography by Carrie LLC, Cape Girardeau, Mo.

92 Products 94 Ad index 96 Classified Modern Tire Dealer is a proud member of: TRIB

TIRE RETREAD & REPAIR INFORMATION BUREAU

Member An Industry Association

www.moderntiredealer.com

Editorial

An industry milestone

MTD’s 25th Tire Dealer of the Year winners fit the profile

he elderly gentleman pulled up in front follows, instead of the initial cost involved. And of Direct Tire & Auto Service in the that’s not the only similarity between Steinberg Boston suburb of Watertown, Mass. and the Rhodes brothers. They are also visionarHe stormed into the showroom and blustered, ies, always looking to improve efficiencies. Not “What kind of tires do you sell around here? surprisingly, both not only embrace social media, Come outside and look at mine.” but also attempt to leverage it. (For more on Two tires on the car, a Ford LTD, were, indeed, Mark and Scott Rhodes, check out the story by a mess. So were their wheel covers. Senior Editor Joy Kopcha starting on page 42.) The store personnel suggested they had been When Steinberg won the award, he sold tires damaged when banged against a number of curbs. By Bob Ulrich out of one-half of an existing building. Now he “No way,” said the old man. “I bought these runs five stores, including a 7,350-square-foot tires here three weeks ago and they just went bad. “modern colonial” outlet in upscale Medway, Mass. Plaza “The wheel covers? You did that to them when you put Tire Service, on the other hand, owns 62 similar-looking them on the tires!” stores in four states. Meanwhile, the man’s wife just sat in the car shaking Of our 25 award winners, two have been single-store her bowed head. owners: Steinberg and our 2016 winner, Alpio Barbara, What’s a tire dealer to do when faced with this situation? owner of Redwood General Tire Service Co. in Redwood, At Direct Tire, the answer was simple. Calif. In contrast, Bruce Halle They put on two new tires, straightened was in charge of 887 stores as the wheel covers as best they could, chairman of Discount Tire and apologized for the customer’s in Scottsdale, Ariz., when he inconvenience. won in 2014. That story, featured in our magazine In other words, the owner 24 years ago (as if the Ford LTD refer- of any size dealership can ence wasn’t a clue), exemplified Direct be named Tire Dealer of the Tire owner Barry Steinberg’s business Year as long as he or she or, in philosophy in 1993, the year he was rare cases like this year, they named Modern Tire Dealer’s first Tire know how to exceed customer Dealer of the Year. That philosophy expectations. That is the comstill drives him today. mon denominator among the “It goes beyond ‘the customer is winners. always right,’” he says. “It’s only money. Fifteen of the 25 are still in I learned that from my dad. business, by the way; From Barry Steinberg in 1993 to... “At the end of the day, if you of the remaining 10 ...Mark and Scott Rhodes in 2017. take care of your customers, winners, six sold their they walk away saying, ‘He’s a stand-up guy. That’s a stand- businesses. The other four, Walt Dealtrey, Les Schwab, up company. It’s a place I would send my daughter, my Paul Zurcher and Raynal Pearson, have died, but their wife or even my best friend.’ You can’t put a price on that.” businesses live on. Fast forward to 2017, and listen to what Mark and So do their stories. If you want advice on how to run your Scott Rhodes, owners of Plaza Tire Service Inc. in Cape business more profitably, and how to perform exceptional Girardeau, Mo., and winners of our 25th Tire Dealer of customer service, look no further than our website, www. the Year Award, think is important when doing business. moderntiredealer.com, where the stories on all 25 award “When I get a complaint, and I don’t get many of them winners are archived. because our guys are good, I let the customer say everything Congratulations to Mark and Scott Rhodes of Plaza Tire they want to say, and then I ask, ‘What can I do to make Service, our 2017 Tire Dealer of the Year Award winners. it better? How can I make you happy?’ says Mark. “And And to the other 24 who preceded them. From Watertown then whatever it is, you do it. Ninety to 95% of the time to Cape Girardeau, we’ve created quite a community, sort you can make them happy.” of an all-star 20 Group with depth! ■ Sound familiar? Both dealerships focus on serving each customer to the best of their abilities. They look at what can If you have any questions or comments, please email me be gained from the positive, word-of-mouth publicity that at bob.ulrich@bobit.com.

MTD September 2017

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For what drives you.

moderntiredealer.com DIGITAL RESOURCES FOR THE INDEPENDENT TIRE DEALER

Home office

Readers hone in on tire prices and dealership growth

3515 Massillon Rd., Suite 350 Uniontown, OH 44685

In addition to news items on companies raising tire prices this month (including Yokohama Tire Corp., Carlstar Group LLC and Titan International Inc.), analysis of online tire sales also received a lot of hits on our website, www. moderntiredealer.com. VariIt’s no surprise that news items on increased new tire ous dealership growth also prices are always extremely popular on our website. was of interest, as well as changes in company leadership and the futuristic artificial intelligence. Here are our top 10 (non-tire price) news items. See www.moderntiredealer.com for more!

Greg Smith, ext. 2212 Greg.Smith@bobit.com

(330) 899-2200, fax (330) 899-2209 Website: www.moderntiredealer.com

Publisher

1. Michelin’s Pete Selleck: Online sales are not taking over 2. Online tire sales don’t scare Monro 3. Plaza Tire Service adds second location in Springfield 4. David Marks takes over at ITDG 5. Discount Tire is expanding into Pennsylvania 6. Bridgestone picks Steve Hoeft as COO of GCR Tires & Service 7. Snap Finance uses AI (artificial intelligence) to approve credit 8. Meet Michelin’s newest authorized retailer: Simple Tire 9. Monro is buying 20 more stores 10. Carl Icahn makes an acquisition in Connecticut

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MODERN TIRE DEALER (ISSN 00268496) (CDN IPM #40013413) (USPS #369-170) is published monthly by Bobit Business Media, 3520 Challenger St., Torrance, California 90503-1640. Periodicals postage paid at Torrance, CA 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks for address changes to take effect. Subscriptions in the U.S. and its possessions, $65; Canadian, $99; Int’l surface mail, $99; Int’l airmail, $198. Single copies, $10, except the January Facts Issue, $30. Address all subscription correspondence to MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068. Please allow 6 to 8 weeks to receive your first issue. Please address Editorial and Advertising correspondence to MODERN TIRE DEALER, 3515 Massillon Road, Suite 350, Uniontown, OH 44685-6217. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. For your information: We sometimes make our subscriber information (i.e. fax, e-mail or mailing address) available to carefully screened organizations whose products and services may be of interest to you. If you prefer not to have your information made available, please write MODERN TIRE DEALER, P.O. Box 1068, Skokie, IL 60076-8068.

MTD September 2017

News/views

Ron’s Tire sells tires, and much more Diverse product lineup calls for diverse sales staff Here’s the first hint that the newest tire store Ron dedicated a significant amount of time to our board Baxter and Ross Baxter opened in Idaho Falls, and supporting his fellow Point S members. Idaho, isn’t a typical retail store: the size. It’s “Their employees are well trained in working with 37,000 square feet. their customers, and they’re ‘best of class’ in servicThe Baxter brothers, equal partners in Ron’s Tire ing the rural industry, especially in ag.” Inc., which goes to business as Ron’s Tire & MotorAs for the extensive renovations in Idaho Falls, sports, have upgraded and certainly up-sized their Lybeck considers the new store a greenfield project. business in Idaho Falls. Chris Rogers, Ron Baxter’s “It’s not a makeover; it’s a brand new store.” son-in-law and the business’ general manager, says Rogers says the mixture of products helps the they’ve converted the former Chevrolet dealership into a retail and commercial tire store with seven passenger bays and two commercial truck bays. But that’s not all. The store also has eight small engine bays and an inventory that includes much more than tires: Husqvarna motorcycles and power equipment, Exmark mowers, Breezer bicycles, Cub Cadet mowers and Traeger grills, to name a few. Rogers says, “Our thinking, and it’s worked well, is that you take care of somebody on tires, while they’re in the showroom, we’ve got other things for them to look at and purchase. We sell them tires, The sales staff at Ron’s Tire & Motorsports is cross-trained to sell all products, including tires, bicycles, lawn mowers and grills. but then they end up buying a chain saw, a bicycle or a four-wheeler because you bottom line. In Idaho Falls, the previous store did a treated them right on the tires. They trust you.” lot of lawn mower business, but didn’t sell any pasThis is a business plan that has evolved over the senger tires or offer automotive service. The move years. When Ron Baxter entered the business in to the new building provides the space to offer all of 1975 at the age of 19 in Terreton, Idaho, it was a it under one roof. He wants the store to do 50% of typical tire store. But after about 20 years he started its business in tires, and hit the $3 million mark in expanding the inventory and services. Rogers says, sales in three years. “We’re in a small rural community, and we decided to “This year I bet we hit $2 million. We will make that add other products that the community needed.” ($3 million goal). I’m not concerned about it at all.” That single store has grown to four locations in It’s a model he thinks other tire dealers should Idaho — Terreton, Idaho Falls, Rigby and Hamer. consider. Ross Baxter’s son, Jaxon Baxter, manages the Rigby “Others can do this,” Rogers says. “You’ll see store. more stores doing more automotive. There’s not And though the look of the newest showroom might enough in tires alone; you’ve got to have a mix. be a bit deceiving, Ron’s Tire & Motorsports is still “We’re starting to see a lot of competition from primarily a tire store. “The largest part of the busithe big box stores like Walmart and Discount Tire ness is tires,” says Rogers. The stores especially that are strictly doing tires and their service is where sell a lot of farm tires. they’re lacking, so we focus on service, from alignThe business is a member of Tire Factory Inc. and ments to full car care service.” the Point S network of tire retailers. Tire Factory CEO The store celebrated its grand opening with a Walter Lybeck says Ron’s Tire is one of the group’s two-day extravaganza Aug. 18-19, 2017. It featured largest ag tire dealers. giveaways every two hours of tires, lawn and garden “They’re leaders in our Point S organization and in products and bicycles, plus shows by a group of Nitro their community. One of the owners, Ross Baxter, has Circus freestyle BMX athletes. — Joy Kopcha

MTD September 2017

News/views

bites RNR is recognized RNR Tire Express & Custom Wheels (RNR) has been ranked number 4,553 on the 36th annual Inc. 5000. It is the third time Inc. magazine has ranked the tire and custom wheel franchise among the nation’s fastest-growing private companies. McCarthy Tire’s Doyle honored Colleen Horn Doyle, legal counsel for McCarthy Tire Service Inc., has been named to the “2017 Pennsylvania Rising Stars” list by Super Lawyers, a national rating service of lawyers. Doyle, a fourthgeneration McCarthy, joined the family firm in January 2017. Tolbert joins Kenda Tire industry veteran Chris Tolbert has joined Kenda USA’s North American Automotive Business team as director of business development. Gabriel adds resources Ride Control LLC has expanded its Answerman technical service offering by adding videos, technical bulletins, online catalogs and FAQs for light and heavy-duty vehicles to its Gabriel brand website. Alliance updates website Alliance Tire Group (ATG) has redesigned its website with features it says will help tire dealers and equipment owners find tires based on segment, application, tread pattern or size. Smithers expands center Smithers Rapra Inc. is expanding its winter testing center in Brimley, Mich., with an additional 130 acres of new track surfaces, plus a 5,304-square-foot conference center, cafeteria and two rental buildings. The expansion is expected to be ready by mid-January 2018. Sullivan rewards donors Sullivan Tire Co. Inc. gave a coupon for $20 off any auto service to people who donate at the American Red Cross Blood Drive held at the Sullivan Tire and Auto Service outlet in Stratham, N.H., on Aug. 26, 2017.

Dave Marks’ path to the ITDG Who is Dave Marks? He is the new CEO and president of the Independent Tire Dealers Group LLC (ITDG). He replaced Michael Cox, who retired on Aug. 1, 2017. He also has more than 35 years of experience in the automotive industry. But who is Dave Marks? In 1978, his career path began at a Big Brand Tire & Off-Road store in Ventura, Calif. He then joined the former EMPCO Industries Inc., where he was a regional sales manager. After Falken Tire Corp. purchased EMPCO, he stayed on until an opportunity to run nine independent Goodyear retail stores for Toscalito “I’ve been friends and had close relationships Enterprises Inc. was too good to pass up. From with many of the ITDG there it was on to TDW (Tire Dealer’s Waremembers,” says Marks. house), a division of Hercules Tire and Rubber Co., which was an approved vendor of ITDG. After American Tire Distributors Inc. bought Hercules, he stayed on as western sales director. He joined Tireco Inc. shortly thereafter to run TDX (Tire Distributor Xperts) as sales director. When he left Tireco to preside over the ITDG, he already had dealt with many of the ITDG members through his previous positions. “I’ve been friends and had close relationships with many of the ITDG members,” he says. Before joining ITDG, Marks also had worked closely with both Cox and Ed Long, ITDG’s former executive vice president of sales and marketing. Long says he chose to move on after Cox retired. Chris Barry, western regional manager, will be staying on, says Marks. Cox and Long ran ITDG from their home base in Florida. Will Marks, who lives in northern California, move the offices there? “Nothing has been determined as yet, but it’s full speed ahead in adding value to all of our partners,” says Marks. — Bob Ulrich

Expect less tire shipments in 2017 The U.S. Tire Manufacturers Association (USTMA) is projecting that 2017 U.S. tire shipments will drop slightly to 318.1 million units compared to 318.4 million in 2016. The USTMA expects original equipment (OE) passenger tire shipments to decrease by 1.8 million units and passenger replacement tire shipments to increase by 1.8 million units. OE light truck and truck tire shipments are expected to increase while decreases are projected for replacement tire shipments. The USMTA’s projections are shown below. Figures are in millions and may not add up due to rounding. OE tires Passenger Light truck Truck Replacement tires Passenger Light truck Truck Total shipments

2016 final 49.3 4.9 5.0 2016 final 208.6 31.9 18.6 318.4

2017 forecast 47.5 5.2 5.2 2017 forecast 210.5 31.2 18.5 318.1

% change -3.6 5.6 4.2 % change 0.9 -2.0 -0.5 -0.1

Units +/-1.8 0.3 0.2 Units +/ 1.8 -0.6 -0.1 -0.2

MTD September 2017

News/views

bites

Milestar has a new website Tireco Inc.’s new mobile responsive website for Milestar tires is designed to showcase updated news, features and available tire sizes while serving as a hub for consumers to interact with the Milestar brand. TIA schedules ATS class The Tire Industry Association (TIA) will host Automotive Tire Service (ATS) instructor classes Oct. 10-13, 2017, in Louisville, Ky. ZC Rubber adds store Zhongce Rubber Group Co. Ltd. (ZC Rubber) is opening a Goodride Autospace flagship store in Samut Sakhon, Thailand. It will be the second Autospace store in Thailand opened by ZC Rubber. Autospace is the service brand of ZC Rubber in the automotive aftermarket. Ride funds scholarships The Automotive Aftermarket Riders’ Club (AARC) seeks riders, sponsors and pledges for its annual motorcycle ride to fund industry scholarships and educational initiatives for the University of the Aftermarket Foundation. The 2017 AARC Ride for the Future runs between Las Vegas, Nev., and Death Valley Oct. 26-28. Hunter adds videos Hunter Engineering Co. has released two videos that explain the purpose and function of driver assist systems and the importance of proper mechanical and safety system alignment. One of the Safety System Alignment videos is aimed at consumers and the other is for technicians. ASE has a new test platform The National Institute for Automotive Service Excellence (ASE) has updated the testing platform for earning ASE certification to be more intuitive for technicians. Ford adds Motorcraft struts Ford Motor Co. has introduced Motorcraft loaded struts designed to offer fast, easy installation and a low competitive price to the marketplace.

Missouri group honors Freda Pratt-Boyer The Missouri Tire Industry Association (MTIA) has inducted Freda Pratt-Boyer into its Hall of Fame. She was recognized for her leadership promoting education, training and customer service to all levels of the tire industry at MTIA’s annual TIA President Tom Formanek congratuconference Aug. 4-5, 2017. lates former TIA President Freda PrattPratt-Boyer’s career spans Boyer on her induction into the Missouri Tire Industry Association Hall of Fame. more than four decades. She joined Potosi, Mo.,-based Purcell Tire & Rubber Co. in 1972 as a computer input clerk. She has worked in all aspects of the tire business including retail, commercial, retreading and wholesale operations for Purcell Tire. Along the way to her current role as senior auditor at Purcell Tire, she held many management positions. At her induction ceremony, the MTIA said her years of service are “proof of her determination and serve to highlight her ability to promote and advance the standards of the tire industry.” Pratt-Boyer was elected to the Tire Industry Association (TIA) board in 2008. On Nov. 1, 2012, she began a one-year term as secretary. After that year, she served as vice president, then president, then past president for one-year terms. When she became TIA president in Nov. 2014, Pratt-Boyer told Modern Tire Dealer the best thing about being a tire dealer is the business acquaintances, friendships established and customer goodwill. “I can honestly say that I have the tire industry in my soul. I so enjoy what I do that I have not desired any other profession.”

Cooper’s research proves guayule is viable source of rubber for tires Cooper Tire & Rubber Co.’s scientists have completed a five-year $6.9 million federal grant to produce and road test concept passenger tires made with guayule plant-based polymers. The company says it met all goals outlined in the Biomass Research and Development Initiative (BRDI) grant, “Securing the Future of Natural Rubber-an American Tire and Bioenergy Platform from Guayule.” Cooper was the lead entity in a consortium that included Clemson University, Cornell University, PanAridus LLC and the Agricultural Research Service of the U.S. Department of Agriculture (USDA-ARS). Cooper produced several sets of concept passenger tires in which all the natural and synthetic rubber is replaced by guayule natural rubber. Guayule, a shrub grown primarily in the southwestern United States, contains rubber that can be processed for use in tires. More than 450 tires were built and tested for overall performance, according to Chuck Yurkovich, senior vice president of global research and development.

MTD September 2017

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News/views

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Register for OTR conference The Tire Industry Association (TIA) has opened registration for the 2018 Off-the-Road Tire Conference scheduled for Feb. 21-24. The conference, which focuses on the earthmover tire and retreading industries, will be held in Ponte Vedra Beach, Fla. Simple Tire board grows Michael Welch, the founder of online tire retailer BlackCircles, has joined the board of Simple Tire LLC as a strategic advisor. Welch established BlackCircles in the United Kingdom in 2001 and continues to advise the company’s board. BlackCircles was sold to Group Michelin in May 2015. Camso buys Texas distributor Camso Inc. has acquired Omni Industrial Tire, an independent industrial tire distributor with four locations in Texas. Camso says the purchase helps it grow its material handling distribution and tire service footprint in southern Texas. Dealer breaks ground Atlantic Tire & Service Inc. has broken ground for its fourth location in North Carolina’s Triangle Region. The new outlet is in Wake Forest. Titan gains fitment Titan International Inc.’s Goodyear LSW1000/40R32 fronts and LSW1100/45R46 super single tires are now available direct from the factory on New Holland T8 MFWD (Mechanical Front Wheel Drive) tractors. The super single tires feature Titan’s Low Sidewall Technology (LSW). Yokohama to build playground Yokohama Tire Corp. is partnering with KaBoom!, a national nonprofit agency, to build an eco-friendly playground in West Point, Miss. West Point is the home of the Yokohama Tire Manufacturing Mississippi plant. Hercules has a new website Hercules Tire & Rubber Co. has released a new website designed to be more useful to consumers and mobile responsive.

Georgia dealers choose new officers and directors The Georgia Tire Dealers & Retreaders Association (GTDRA) elected new officers and directors at its annual conference July 14-16 in Atlantic Beach, Fla. Larry Bush is the new president of GTDRA. Other new officers and directors are: first vice president – Sean Plumstead; second vice president – Dana Williams; secretary/treasurer – Morris Moses; immediate past president – Chip Battle; foundation director – Tony Sexton; and suppliers director – Steve Fulton. The GTDRA’s directors are Bill Duckworth, David Polhill, Travis Hicks, Steve Dillingham, Rob Miller, Jonathan Bennett, Lowell Tench, Bubba East, and Nathan Keaton The association also presented scholarship awards to four students. To date, the GTDRA has awarded $237,500 in scholarships to association members and immediate family, their employees and immediate family members of their employees. In addition, Richard Newlon was inducted into the GTDRA’s hall of fame.

Bridgestone names Bridget Neal to lead OTR business Bridgestone Americas Inc. has named Bridget Neal president of its commercial off-the-road tire division. She succeeds Taylor Cole, who recently was named president of Firestone Building Products LLC. As president, Neal will lead all aspects of the Bridgestone OTR tire business in North America, including strategic planning, product and technology introductions, sales and engineering. She will be responsible for aligning the company’s Bridget Neal will lead go-to-market strategies with the broader Bridgestone’s OTR tire commercial portfolio, while also helping drive business in North America. coordination for the Bridgestone OTR business globally. Additionally, Neal will continue to advance the company’s efforts to develop industry-leading technology solutions that track tire performance and help OTR customers improve their productivity and profitability. Neal joined Bridgestone in August 2002 as a supply planning and sourcing engineer.

New Jersey enacts law prohibiting sales of unsafe used tires A new law in New Jersey forbids the sale of unsafe used tires. The legislation, signed by Gov. Chris Christie on Aug. 7, 2017, was supported by the U.S. Tire Manufacturers Association (USTMA), Tire Industry Association and the New Jersey Gas Station-C-Store Automotive Association. The USTMA says its research shows more than 30 million used tires are available for sale nationally. The legislation does not ban all used tire sales. It targets used tires that have specific, well-established, unsafe conditions.

MTD September 2017

News/views

dates

October 1 Tire Dealers Association of Western Pennsylvania Annual Rubber Ball, Meadows Casino & Conference Center, Washington, Pa. (412) 469-6269 www.tdaofwpa.org October 29-31 Automotive Warehouse Distributors Association Annual Business & Education Conference, Venetian Resort & Casino, Las Vegas, Nev. (240) 333-1022 www.awda.org October 31-November 3 Automotive Aftermarket Industry Week including Automotive Aftermarket Products Expo (AAPEX), the Specialty Equipment Market Association (SEMA) Show and the Tire Industry Association’s Global Tire Expo, Las Vegas, Nev. (800) 876-8372 www.tireindustry.org January 22-25, 2018 Auto Care Association Heavy Duty Aftermarket Week, The Mirage, Las Vegas (301) 654-6664 www.autocare.org February 15-16, 2018 North Central Tire Dealers & Suppliers Association Mid-Winter Conference and Trade Show, Treasure Island Resort & Casino, Red Wing, Minn. (952) 544-6805 www.northcentraltiredealers.com February 21-24, 2018 Tire Industry Association’s OTR Tire Conference, Sawgrass Marriott Golf Resort & Spa, Ponte Vedra Beach, Fla. (800) 876-8372 www.tireindustry.org March 5-8, 2018 American Trucking Associations Annual Meeting & Transportation Technical Exhibit, Georgia World Congress Center, Atlanta, Ga. (703) 838-1700 www.trucking.org

Hankook dealers bring mobile service office to veterans Hankook Tire America Corp. tire dealers are partnering with Disabled American Veterans (DAV) to host events that offer free services to veterans in their communities. Black’s Tire Service Inc. kicked off the campaign on Aug. 15 at its store in Fayetteville, N.C. The Veterans wait to meet with DAV representatives at Discount Tire Center Black’s Tire in Fayetteville, N.C. The DAV stop is one in Yucca Valley, Calif. of six scheduled at Hankook tire dealers in 2017. hosted the group on Aug. 18. The DAV’s Mobile Service Office delivers benefits and assistance to veterans free of cost. Tour stops continue through the end of October at these dealerships: Major League Tire in Mentor, Ohio; CJ’s Tire and Automotive Service Inc. in Fairless Hills, Pa.; Gateway Tire and Service Center in Clarksville, Tenn.; and Russo Tires LLC in Doral, Fla.

Monro adds 12 Speedy Auto Service and Tire stores in Michigan The target of one of Monro Inc.’s (formerly Monro Muffler Brake Inc.) latest acquisition deals is Speedy Auto Service and Tire Centers Inc. in Michigan. In a recent filing with the U.S. Securities and Exchange Commission, Monro says it acquired 13 stores from UVR Inc., but has chosen not to open one location. The 12 former Speedy Auto Service stores will operate under the Monro brand name. Monro now has 33 stores in Michigan. Here’s a roundup of the other acquisitions Monro has completed since the start of its 2018 fiscal year on March 26. Monro describes each store as a retail tire and automotive repair store. North Carolina: Acquired one store on July 9 from Norman Young Tires Inc. The store operates under the Treadquarters name. Illinois: Acquired one store on June 25 from D&S Pulaski LLC. The store operates under the Car-X name. Minnesota and Wisconsin: Acquired two stores on June 11 from J&R Diversified Inc. Both stores operate under the Car-X name. Ohio: Acquired one store from Michael N. McGroarty Inc. on June 11. It operates under the Mr. Tire name. Connecticut: Acquired one store on June 2 in Connecticut from Tires Plus LLC. The store operates under the Monro name. Ohio: Acquired one store on May 21 from Bob Sumerel Tire Co. Inc. It operates under the Mr. Tire banner. Florida: Acquired one store on April 23 from Collier Automotive Group Inc. The store operates under The Tire Choice brand. As of the end of its previous fiscal year, on March 25, 2017, Monro had 1,118 company-owned stores. Of that total, more than half – 584 – are tire stores. — Joy Kopcha

MTD September 2017

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Higher-than-planned inventory levels are hampering dealer channel

ccording to the results of our survey, From a pricing perspective, our recent channel demand for passenger and light truck work suggests that the broader pricing environreplacement tires improved slightly in ment continued to firm in July, largely reflecting a July. The latest results mark the third consecustabilization in promotional activity that followed tive month of healthier, albeit far from strong, some minor progress working down channel trends after a very challenging start to the year. inventories. Despite the stabilization in the Anecdotal commentary from the dealers sugpricing environment at retail during June and gested that demand was steady throughout the July, as well as heathier sell-out trends over the month, but many contacts in the Great Lakes, past three months, we believe the channel is still northeast and southeastern regions of the country By Nick Mitchell dealing with higher-than-planned inventory levels. noted elevated precipitation levels and coolerthan-normal temperatures limited traffic in the period. Monthly survey While we are encouraged by the healthier results in recent A number of independent tire dealers were surveyed months, sales trends have not been significant enough to concerning current business trends. Except for tire prices definitively change the narrative that demand trends have and costs, the results of the July 2017 survey are compared not met expectations for 2017. with those of July 2016. See the full report on www. Notwithstanding the healthier results in recent months, moderntiredealer.com. our contacts have offered little explanation as to why sellout trends across the PLT replacement tire market were Replacement tire sales volume trends are healthier so soft during the first six months of 2017. In fact, most of According to our dealer survey, consumer demand for the dealers noted that the weak results run opposite to the passenger and light truck replacement tires increased in favorable trends in many of the key drivers of intermediate- July compared to the prior year’s period. From a volume term demand, including a stronger consumer due to low standpoint, the dealers reported they sold slightly more energy costs and a solid labor market; favorable miles driven tires in July relative to the previous year’s period. trends over the past 24 months (despite softer trends over Dealers reported disappointing demand trends across the past 6 months); and an expanding car parc. the other tire categories in the period, with negative trends appearing in the commercial truck and retread categories. The latter having been negative for most of the first half of 2017. Specifically, the dealers who responded to the survey reported medium truck replacement tire volumes Dealers MAR APR MAY JUN(R) JUL(P) JUL(16) declined 2% versus July 2016 following modest increases Passenger tire in the previous two months. Retread units were down over Will improve 33% 33% 33% 67% 33% 20% 7% versus the prior year’s period, which marks a decline in Will worsen 0% 0% 0% 0% 0% 0% every month of 2017 so far, except for flattish trends in June. Will stay level 67% 67% 67% 33% 67% 80%

How dealers view near-term business

Truck tire Will improve Will worsen Will stay level R-Revised

67% 0% 33%

67% 100% 0% 0% 33% 0%

67% 0% 33%

40% 0% 60%

17% 17% 66%

P-Preliminary

While the sluggish sell-out trends in the first half of 2017 created a difficult operating environment in the short-run, the inability of any of our contacts to point to any structural factors that might be creating secular pressures on demand trends, in addition to the positive results in June and July, lead us to believe that the odds are still high that the weak trends will prove to be transitory. As such, we are cautiously optimistic that sell-out volumes in the second half of the year will closely resemble the results from June and July in light of the fact that the key drivers of intermediate-term replacement demand remain favorable.

Costs increase as volume discounts are reeled in The tire dealers survey noted manufacturer pricing on value products was modestly higher (2%) than it was in the previous year’s period while branded product costs, on a net basis, increased 1.4%.

Repair sales increase year-over-year in July Dealers indicated automotive repair sales trends increased in July, which is in-line with the increases in service revenues in five of the previous eight months. Dealers indicated service sales, which accounted for a net 31% of total revenues, were up 2% on a year-over-year basis in July. ■ Nick Mitchell is managing director, research analyst, for Northcoast Research Holdings LLC based in Cleveland, Ohio. Mitchell covers a variety of subsectors of the automotive industry.

MTD September 2017

Receive up to a $70 VisaÂŽ Prepaid Card, on select Kumho tires, when you purchase a set of four (4). Card is issued by The Bancorp Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

KELLY SUMNER Northeast marketing manager Tire Pros American Tire Distributors Inc. Huntersville, N.C. What was your first job in the industry? I was the marketing and licensing coordinator for the NASCAR giant Roush Racing. I started working in marketing with Roush Racing in 2004. Fresh out of college, I was preparing marketing materials for the track side merchandise program. Back then NASCAR apparel, die cast collectibles, hats and T-shirts were in heavy demand and Roush Racing had some hot names. I worked with top name drivers such as Matt Kenseth, Kurt Busch, Mark Martin, Carl Edwards and Greg Biffle. What attracted you to the industry? My family has worked in NASCAR as long as I can remember... tires, dirt, race tracks, oil, fast and furious. Although Tire Pros and NASCAR are not the exact same industry, there are several similarities. Marketing in this industry is a lot of fun. The personalities seem to overlap, the hours are tough and the business owners are in the business because they have a passion for what they do. Kelly Sumner, 35, shares her love of racing with her husband, David Sumner, who in 2016 was a service tech and tire changer for NASCAR Camping World Truck Series Champion Johnny Sauter.

Do you have a bright leader working in your organization? Modern Tire Dealer wants to get to know the smart young leaders making a difference in the tire industry. Point those who are On the Rise to our nomination form: www.moderntiredealer.com/ontheriseform

What’s the biggest challenge you’ve faced in your career? Starting out as young female in a male-dominated industry. In NASCAR or tires, it has been a challenge to prove my skill sets are just as valuable as a seasoned veteran. I have been fortunate to climb the ranks in the industry. What is your biggest accomplishment in the industry? In 2013, Tire Pros had 23 store locations in the Northeast. Now, I am working with over 70 locations. I can’t take all the credit for the new additions. Between the amazing teammates out in the field and the support team in Huntersville, our dealers are receiving more value with Tire Pros than ever before. I also have to give credit to the regional group advertising efforts we have put in place to elevate the Tire Pros brand. We have brought on partners with the New York Jets, New York Yankees and Madison Square Garden. The brand is growing, the dealers are proud to be partners and there is something to be said for being able to contribute to their success. ■

MTD September 2017

NumbersThatCount

Relevant statistics from an industry in constant motion.

38% Percent of American workers who are most likely to have 10 to 14 days of paid vacation after one year on the job. Source: bis.gov

19.1% Average sales margin on commercial light truck tires in 2016.

Source: MTD January 2017 Facts Issue

Number of scrap tires stockpiled in the U.S. This is down from about a BILLION scrap tires in 1990, a 93% reduction.

<2 12 hours Source: U.S. Tire Manufacturers Association study, 2017

The total number of tire sets allotted to each car for the Monster Energy NASCAR Cup race at Michigan International Speedway; four sets for practice, one set for qualifying and seven sets for the race. Source: Goodyear Racing Public Relations

Amount of time it would take to drive the entire 360.1-mile Pennsylvania Turnpike at the fastest average race speed at Pocono. Juan Pablo Montoya set the record speed of 202.402 mph in 2014. Source: Firestone Racing

61% 263,000

Percentage of respondents who believe a decrease in traffic accidents is a benefit of adopting automated vehicles. Source: Robert Bosch LLC

67 million

Estimated passenger and light truck tires produced per day in North American plants in 2016. Source: MTD January 2017 Facts Issue

MTD September 2017

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feature

Servicing run-flat tires Stiffer sidewalls are just one issue of concern By Bob Ulrich and Ann Neal

hat does a dealer need to know to service a run-flat tire versus a non-run-flat tire? That is the question we asked the experts on your behalf. And who better to ask first than the mounting and balancing equipment manufacturers? Pete Liebetreu, senior product manager for Hunter Engineering Co., had both a short and long answer. “The short answer? A lot!” he said. “Run-flats are much more than ‘just a harder tire.’ Just like non-run-flat tires can vary widely, so can run-flats. As a general rule they have stiffer sidewalls than conventional tires, so they are more difficult to mount and demount. “This is especially true for top bead demounting and mounting. You almost always need, at minimum, a single press arm or, even better, multiple press arms to service them professionally.” Liebetreu said size matters when it comes to servicing run-flat tires. Smaller diameter run-flats (i.e., 17 – and 18-inch sizes) are often more difficult to handle then their larger counterparts. “Tall (high aspect ratio) sidewalls are also usually harder to mount than low profile run-flats because the taller the sidewall, the stiffer the construction.” Tire dealers should also keep in mind that not all run-flats are equally stiff. “It depends on the specific design for the specific application,” said Liebetreu. “The OEM usually determines the stiffness that is acceptable based on the desired ride and handling goals.” The stiffness in a run-flat tire compared to a conventional tire plays an important part in the vehicle’s overall suspension performance. So substituting non-run-flats or run-flats with a different stiffness characteristic can have ride quality implications that a dealer might not see when they are replacing the original run-flats, he said. “Because run-flats are already so stiff, those vehicles also can be more sensitive to road force variations. When balanced, they should also be road force checked and corrected as well.” As part of its Basic Automotive Tire Service Training Series, the Tire Industry Association has a training module detailing how to demount and mount run-flat tires.

What the tire makers say Tire manufacturers say the differences between run-flat tires and conventional tires are minimal yet prominent. “Servicing run-flat product in regards to the normal protocol for inflation checks, rotation and visual inspection is the same as that for a traditional tire,” said Gerardo Andrade, senior manager of market quality for Pirelli Tire North America Inc. “One difference that dealers and service technicians might notice is that vehicles using a run-flat product must be equipped with TPMS or a similar approved monitoring system which should be taken into account when servicing the tire.” Bob Abram, senior manager of product planning for Yokohama

“We have a different bead filler, reinforcement in the sidewall and different bead bundle for the Advan Sport ZPS versus the standard Advan Sport,” says Yokohama’s Bob Abram. “The rayon body plies are also different than many of our other tires.”

Tire Corp., said due to the unique construction of a zero-pressure tire — and the tire pressure monitoring system (TPMS) with which it is associated — more care should be taken when dismounting and/or mounting. According to Yokohama’s ZPS (Zero Pressure System) Technical Service Guidelines, run-flat tires should never be mixed with tires that do not have run-flat technology. In addition, “Never mix run-flat tires of different brands or technology.” Juan Britos, senior technical services specialist for Hankook Tire America Corp., said the only major difference between servicing regular and run-flat tires is the type of mounting equipment needed. “Run-flat tires require multi-armed mounting equipment to support the tire. Other than that, the two styles are serviced in a similar manner.” Goodyear Tire & Rubber Co.’s Goodyear (ROF, or Run On Flat) and Dunlop (SST, or Self-Supporting Technology) run-flat tires feature a patented sidewall construction that allows continued driving on a flat tire for up to 50 miles at 50 mph in normal conditions. However, the tire may have to be replaced if driven to these limits, said Bob Toth, director of industry relations.

MTD September 2017

“Leverless demounting makes run-flat service much easier on technicians, tires, and equipment,” says Hunter’s Liebetreu.

“Goodyear run-flat tires are mounted on wheels using the same technique used to mount non-run-flat designs. Because run-flat tires have heavier, more reinforced sidewalls, they are sometimes more difficult to position on a wheel for mounting. “Many tire equipment manufacturers have developed special machine designs, attachments and training that make mounting and dismounting run-flat tires easier. This equipment and training can reduce the possibility of damaged beads and scratched wheels. “To properly seat the beads on Goodyear run-flat tires, more

than 40 psi may be required, and a safety cage and clip-on extension air hose must be used,” he added. “Dealers should become familiar with the run-flat tire category, as they are likely to encounter customers whose vehicles are equipped with this tire type,” said Robert Saul, director of consumer product strategy for Bridgestone Americas Tire Operations LLC. “Run-flat tires are no longer only reserved for exotic sports cars. Today, there are minivans such as the Toyota Sienna and popular coupes like the Mini that are equipped with run-flat tires from the factory.” In the early days of run-flat technology, dealers had to take special care when mounting and dismounting run-flat tires to avoid damaging the then-rare TPMS because they were not familiar with it. “Since 2008, most cars and light trucks come originally equipped with TPMS, so this isn’t as much of a concern today,” said Saul. “Stiff sidewalls and ultra-low profile tire sizes also were a hallmark of early run-flat applications, and these tires could be difficult to mount and dismount without newer tire changing equipment. “With larger wheel sizes and lower aspect ratios becoming popular across the industry, it’s important for dealers to have the equipment needed to service run-flat tires on today’s vehicles.” Chris Davis, technical product service manager for Continental Tire the Americas LLC said more vehicle manufacturers are turning to run-flat tires as a way to cut the space requirements and weight in the vehicles “in attempts to improve fuel efficiency as well as customer safety air loss occur on the highway. “Tires should be replaced following vehicle manufacturer’s

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Servicing run-flats recommendations,” he said. “Customers may want to go to a standard tire due to improved ride or cost concerns. Advise the customer of the vehicle recommendation utilizing a run-flat tire. “Often these vehicles are recommended to replace with an OEM marked tire, such as a Star for BMW or MO for Mercedes Benz, for example. Deviating from these markings can affect the vehicle perfor-

mance as well as warranties or leasing contracts. “If the consumer chooses to make the switch from run flats to standard tires, replace all tires. The differences in performance characteristics between the two tire constructions can make the vehicle not handle as expected to result in a dissatisfied customer and possible instability of the vehicle.”

See how you can service brakes faster www.hunter.com/mtd

On the flip side, some customers may want to replace standard tires with run-flat tires. “In this case, the dealer should verify the TPMS in the vehicle is fully functional, and the rim is approved for the tire being installed,” said Davis. “Customers may not notice the gradual air pressure drop of a slow leak visually due to the supporting structure of the tire. Run-flat tires should not be installed on vehicles without TPMS.” ■

Now you know why the service needs of run-flat tires are unique. In part two of our two-part series, we will definitively answer the question, “Can run-flat tires be repaired?”

Mounting and demounting Focus on these 3 runflat tire concerns Don Vanderheyden, director of marketing for Hennessy Industries Inc., says there are three primary considerations when servicing run-flat tires:

1. Handling the tire\wheel assembly. “Because run flat tire/wheel assemblies are highly valued, highly priced commodities, service technicians want to take the time to be careful to not damage the rims. If not, damage can easily occur, which means money out of the shop’s pocket.” 2. Clamping the wheel. “We always recommend external clamping, as this not only holds the wheel better, but also avoids any damage that internal clamping can do to the rim.” 3. Removing & installing the tire. “When mounting or demounting, specific cautionary actions need to be taken to ensure every step of the process is protecting the customer’s tires and wheels. From handling TPMS sensors properly, using enough lube, to using the necessary helper devices that make a stiff side wall of a tire that much easier to change, every step counts.”

MTD September 2017

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feature

Upgrading shop equipment When and why to consider new purchases Compiled by Mike Mavrigian

ew equipment acquisition represents both a substantial investment as well as an enjoyable experience. After all, who doesn’t love the look, feel and smell of new equipment? Plus, staying current in terms of features and operating condition makes the shop more efficient and more profitable. Shop equipment represents the lifeblood of any automotive repair facility. Due to factors including age, wear and tear, and taking advantage of new equipment capabilities to increase productivity, you need to routinely consider when it’s time to pony-up and upgrade. In this article, we’ll briefly discuss a number of key upgrades for your shop’s arsenal.

It’s always a happy day when you take delivery of new shop equipment. Just ask Bill Caroniti of Updated Automotive Repair Inc. in North Royalton, Ohio.

Tire changers and balancers Busy shops don’t always have the luxury of time to clean and maintain their tire changing machines as much as they would like to. Shoe sliders wear out, grit and moisture accumulate

Tire changers have evolved to allow servicing larger diameter wheels and lower profile tires, and with features to eliminate chrome-clad wheel damage.

on wear surfaces, and pressure bladders and hydraulic seals eventually wear out. In addition to the obvious wear and tear issues, consider the trend toward larger-diameter alloy wheels and shorter and stiffer tire sidewalls. If your changer isn’t designed to handle these larger sizes and increased requirements for greater rigidity during demounting and mounting, the potential for wheel and/or tire damage increases. When it’s time to upgrade, consider the selection of “notouch” demount/mount designs that both make the job easier and greatly reduce the chance of damage. Granted, the extent of demand for larger-diameter tires and alloy wheels may differ depending on your specific market, but the trend continues to grow. It’s time to review your existing changers and balancers to determine if they’re up to the task, in order to avoid losing this business to other shops in your area. Also consider adding a road force balancer, which allows you to determine stiff spots that can create road force variations in mounted tires. Eliminate noise, vibration and harshness (NVH) issues, and you will go a long way toward achieving customer satisfaction. Larger light trucks like the Ford F-350 or Ram 2500 have 10- or 12-ply 19.5-inch tires, and the stiff sidewalls are really a bear to change. You need to have a tire changer with the proper power and the helper arms to do this job. Not all tire changers can be upgraded, so consult your tire changer manufacturer to see if there are special upgrade adapters available for your machine. Chrome-clad wheels are really gaining popularity with OEMs because they aren’t as susceptible to environmental damage, so they stay looking good longer. But if your tire

MTD September 2017

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Shop equipment

A relatively new innovation is the three-stage lift arm. An example shown here is Rotary’s Trio Arm design which features a proprietary three-stage design in a two-piece package that lets technicians choose from a wide range of easily adjusted adaptors for any application. The arm design keeps the first two telescoping arm sections and replaces the third with a lightweight sliding adapter assembly integrated into the second arm.

In order to provide superior balancing service, consider a “road force” balancing machine. It will allows you to apply simulated road force to the tire as it rotates in an effort to locate potential high spots and/or isolated “stiff” sections of the tire, eliminating any NVH issues.

changer doesn’t have the proper adapter, a chrome-clad wheel can be easily cracked and ruined. Visit www.moderntiredealer. com to search for MTD’s story on how to handle clad wheels, “Clad wheels: Handle with extreme care.”

Lifts Ignoring routine maintenance, inspection and adjustment can lead to uneven lift rates (on twin-post lifts), hydraulic leaks, and potential operational issues that result in down-time. Monthly maintenance is highly recommended, including checking the following:

In addition to in-ground or post lifts, space-saving scissor lifts offer an economical choice for quick service jobs and smaller service bays. Shown here is Rotary’s new RLP77 double-section scissor lift, which features a low-profile drive-over design and a fully mechanical hydraulic system, providing more than 78 inches of ground clearance.

• arm adjusting locks, • cable connections and tension, • column lubrication, • floor anchor bolts/studs/nut for tightness, and • arm pivot pins. And don’t forget to have both the operation of the overhead cut-off switch and the plumb and squareness of the columns checked regularly. Cables need to be replaced due to corrosion, kinking, crushing, heat damage and wire strand failures. Also replace the cables if there is evidence of stretch wear — if the diameter of the wire bundle is found to have diminished by 10% or more of the original diameter. In reality, many of these checks are not performed on a monthly basis. Ignoring these inspections and maintenance risks lift reliability and safety, as well as leads to the need for

If your dealership is currently equipped with one or more twin-post lifts, it may be time to consider adding a four-post lift. This type of lift will allowing service to be performed while keeping the suspension loaded.

MTD September 2017

Continental GOLD Program Creating partnerships with Independent Tire Dealers since 2005! Continental recognizes the importance of independent dealers, which is why we have continued to invest in the GOLD program by adding an extra $4,000,000 in Volume Bonus Payouts for 2017. As a GOLD dealer you will have direct access to marketing support programs that reflect the needs of independent dealers: • RPM program

• National consumer promotions

• Showroom displays

• Engage360

• Total Confidence plan

• Marketing line rewards

• Credit card program

• Elite dealer incentive trip

• Volume bonus

• Dash for GOLD GOLD Dealers who enrolled and participated in the GOLD program prior to January 2016, and have reached their 10% year over year Growth Target by December 31, 2017, will automatically be entered into the drawing for a chance to win the Dash for GOLD! One GOLD Dealer will win a trip for 2 to New York City (airfare and hotel accommodations included)!

PREVIOUS “GOLD MEDAL” WINNERS 2016: Robert Lois - Lois Tire, Burlington, WI 2015: Michael Gabor - W.P. Cooke Tire, Philadelphia, PA 2014: Brent Bonnett - Tower Tire, Pittsburgh, PA 2013: Carl Fifield - Peoria Plaza Tire, Peoria, IL 2012: Peter Gorsky - Stanaford Tire, Beckley, WV Will YOU be the next BIG WINNER?

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Shop equipment lift replacement. That’s why it’s important to have your lift service company visit and perform these checks, at the very least on an annual basis. Opportunities for lift replacement go beyond the wear and tear issue. As lift makers make innovations to lift design, many lift designs offer greater flexibility in terms of the type of repairs and vehicle accommodation. For instance,

the addition of a low-rise lift can offer a solid platform for wheel and brake work without tying up your other lifts. Since a low-rise lift doesn’t need to be anchored to the floor, it can be moved within the shop for greater flexibility as shop layout requirements change. If your shop is already equipped with a twin-post lift, for example, and your market base is shifting to increased demand

for heavy-duty work, you’ll need to invest in a lift that is designed for heavier and larger vehicle applications. Many add-on accessories for various twin-post lifts also make them more flexible. They include drive-on ramps that attach to arms, add-on platforms suitable for small tractors, and more. “Consider the weight ratings of the swing arms,” says Steve Perlstein, sales manager at Mohawk Resources Ltd. “The maximum swing arm capacity of a 12,000-lb. lift might be 3,000 lbs. per arm. Let’s say you’re servicing a loaded Ford F-450. When loaded with tools, the truck may weigh 11,500 lbs. “While you might assume that the total capacity of the lift might not be overloaded, you may have 8,000 lbs. at the rear, which means that the rear swing arms, which are rated at 3,000 lbs. each, now are trying to lift 4,000 lbs. per arm. In this example, you’d need to upgrade to a 16,000-lb. lift.” If you plan to service these heavy loads, it’s critical to add a lift that will safely handle these extreme-weight-distribution applications. Several manufacturers are now offering three-stage arms, which provide more latitude when handling longer wheelbase vehicles. In addition, a greater array of lift pads is available to accommodate specific vehicles such as some Mercedes-Benz models. As technicians age, their backs and knees take a beating when continually adjusting twin-post lift arms. An add-on solution is a speed-lane kit which allows you to drive the vehicle onto the lift rather than lay on the ground to adjust arms. Many twin post lifts feature 2 hp motors. An increasing number of lifts are now equipped with 4 hp motors, which provide a decrease in lift times, saving time and increasing shop efficiency. The following tips to the following questions were provided by Jason Matthews, director of U.S. field sales for the Rotary Lift division of Vehicle Service Group LLC.

Q. When does it make sense to invest in a new lift when you want to expand into express service? Tip: “Maximizing profits in express services like oil changes and tire rotation is all about speed — servicing as many customers as possible per day. We

MTD September 2017

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Shop equipment

When choosing a twin-post lift, opt for the tallest version that will fit your shop’s ceiling height. This provides increased capabilities for servicing SUVs and trucks.

Lift makers continue to add convenience features, such as a “lock” light that illuminates to verify when the lift is secured onto its mechanical locks.

If the shop plans to service heavy-duty trucks, consider the load rating capabilities, as your current lifts may not be able to handle the added weight. Shown here is an example of a twin-post lift rated at up to 30,000 lbs.

recommend investing in our Shockwave technology, available for in-ground, two-post or four-post lifts. This technology doubles the rise and descent times of these lifts, saving valuable time and allowing shops to service more vehicles.” • Expand into a wider variety of vehicles like mediumduty trucks? Tip: “There are many shops with older 7,000 – to 9,000-lb. capacity two-post lifts where the owners find they are turning away a growing volume of business because their lifts don’t have the capacity to handle heavier vehicles. Investing in a 12,000-lb. capacity two-post or 14,000-lb. capacity four-post lift can make a shop more versatile, since they can accommodate everything from small cars to medium-duty trucks. This is an upgrade that, for most shops, won’t break the bank and affords a nice payback through expanded business.” • Keep up with the evolution of OEM changes for new vehicles? Tip: “Cars are becoming lower and wider, trucks are getting bigger, and it’s not always possible to reach the OEM recommended pick-up points with older lifts. (Due to the use of three-stage lift arms) for two-post and in-ground lifts, this makes it possible to reach these pick-up points more easily, and allows technicians to choose from a wide range of adapters. This lets technicians precisely position the arm and chosen adapter. Retrofitting is possible, but especially with two-post lifts, it often makes more sense financially to invest in a new lift that is designed for modern vehicles.” • Make vehicle lifting as simple as possible for new and inexperienced techs? Tips: “Consider a pad lift. Techs can be quickly trained to use them. They simply drive over the lift pads, position blocks under the pick-up points, and raise the vehicle. They don’t have to worry about positioning arms. Another tip is to install a lift spot light laser kit so techs can spot vehicles faster and easier on in-ground, four-post, two-post and scissor lifts. The laser light directs the technician to center the vehicle the first time, every time — no guessing, no re-tries.”

Q. Is there a guideline on when it no longer makes sense to repair a lift due to age, high maintenance costs, or inspection failure? Tip: “It’s not uncommon to see a high-quality lift last over 20 years if well maintained. But as a rule of thumb, if a shop gets a repair estimate for more than half the price of a new lift — especially if the lift is over 15 years old — it makes more sense to replace it with a new lift and to get the benefits of the latest technology and a full warranty. Q. If lift repairs are needed, are aftermarket parts really a good deal? Tip: “It’s important to insist on OE replacement parts to ensure proper fit and function on any brand of lift. If you buy a certified lift (one with a gold label), installing aftermarket parts on that lift can invalidate the lift’s certification. Although many people think that buying imitation parts will save them time or money, they often find that these parts cost more or aren’t in stock when you need them. To ensure that you’re buying genuine OE replacement parts, purchase them only from factory-authorized distributors and installers.” Q. What’s a good and inexpensive way to improve lift safety?

MTD September 2017

Meet Mr. Mud He Plays Dirty

Voyager MT GroundSpeedâ€™s New Mud Tire Debut at SEMA 2017 The GroundSpeed Voyager Lineup:

Quality from the ground up!

sentury.tires

Email info@groundspeed.tires or call 706-668-7070

Shop equipment Tip: “Before a technician walks under a lift, the lift should be lowered to its mechanical load-holding devices, aka locks. But this doesn’t always happen. Rotary Lift has introduced an easy way to protect technicians. LockLight is a patent-pending accessory that illuminates a bright green light when the lift is securely on its mechanical locks.”

On-car brake lathes When your techs need to resurface a brake rotor disc, or when you need to chase down and eliminate annoying brake pulsation issues, an on-car lathe is ideal. Rather than resurfacing a rotor

Smoke machines are simple-to-use but invaluable aids in diagnosing a multitude of leak issues. If you don’t have one yet, get one. Ideally, if rotor disc resurfacing is required, this should be accomplished with an on-car lathe. This eliminates potential stack-up variables such as potential hub runout.

on its own, performing the task while the rotor is secured to the hub addresses multiple potential runout variables of the

MTD September 2017

Shop equipment rotor and hub as a package, since lateral runout issues may be stacked relative to the rotor and the hub. Applicable to any disc brake corner, this is especially useful for front-wheel-drive applications. With the wheel removed, the rotor must be secured to the hub with all wheel fasteners torqued to specification.

Leak detection

In order to better accommodate vehicles with minimal ground clearance, consider low-profile floor jacks such as Torin’s TCE82002.

Leak detection, whether dye or smoke, is essential for any shop to quickly and accurately locate vacuum, fluid and exhaust leaks. A variety of leak detection devices makes the shop more profitable. They can prove to be real time savers, especially when trying to find those annoying “mystery” leaks. If you already have a smoke machine, consider adding a dye system. If you have a dye kit, consider adding a smoke machine.

Floor jacks Hydraulic floor jacks take a terrible beating, not only from up and down use over time, but also because they are subjected to lots of dirt, rust and road salt that fall off of vehicles during jack use. In addition, jacks can get wet during shop floor wash-downs. Seals may start to degrade and plungers may start to stick. As soon as a hydraulic floor jack begins to show signs of weakness, slow movement or leakdown, don’t delay. Send it out to a reputable hydraulic repair shop for an overhaul. Depending on the age and condition, it may better in terms of cost and downtime to simply replace it with a new jack. Even if your existing floor jacks are in good condition, consider currently available features that will improve ease of use and efficiency. Many of today’s floor jacks offer features previously not common, such as longer reach, lower profile for accommodating vehicles with minimal ground clearance, dual hand and foot control, padded lift contacts and wheel designs that resist hang-ups on rough or dirty shop floors.

A/C equipment

Depending on the shop’s requirement for compressed air frequency of use and duty cycle, a rotary screw design can offer increased duty cycle, less noise and reduced operating heat as opposed to a piston-style compressor. An example is Kaeser’s Sigma Airtower 7.5 hp unit, featuring a rotary screw compressor, refrigerated air dryer, drain and receiver tank in one compact unit.

Condensed from Jacques Gordon’s article that appeared in MTD’s April 2017 issue: In 2014, Fiat Chrysler Automobiles N.V. began filling the air conditioning systems on almost all of its models with R1234yf refrigerant. That same year, General Motors Corp. began using it in the Cadillac XTS. Since then, GM has been gradually switching over its entire line of vehicles to R1234yf, and Ford Motor Co. has also begun using it. Since the new machines will not recover contaminated refrigerant, your shop will need some kind of recovery-only machine. Because R1234yf is mildly flammable, shops should not just use an old R134a machine with fitting adapters; it must be specifically designed to SAE Standard J2851, which applies to recovery-only machines. Some machines will simply be described as “spark free” and that’s OK, but the holding cylinder must also be rated for flammable gases. It’s still early, but because the refrigerant is so expensive and the equipment needed to service the system is so specialized, improper service techniques will make refrigerant contamination a much bigger issue that it has been in the past. So as your shop prepares to service cars with R1234yf, make sure the equipment list includes at least one refrigerant identifier and a recovery-only machine.

MTD September 2017

DELINTEâ€™S LIGHT TRUCK/SUV

POWER LINE-UP OF TIRES

BANDIT M/T

dx9

BANDIT A/T

dx10

BANDIT H/T

MUD TERRAIN TIRE

ALL-TERRAIN TIRE

HIGHWAY TERRAIN TIRE

dx11

THE ULTIMATE TIRE FOR THE ULTIMATE OFF-ROAD CHALLENGE

FOR OVERALL TRACTION AND HANDLING IN RUGGED TERRAIN

THE PERFECT BALANCE OF TRACTION, QUIET AND COMFORT

Puncture Guard Toughness. Three tough layers of polyester cord fabric and high strength steel belts guard against rock and debris punctures. Super Stable Shoulder. The varying shapes of the shoulder blocks are optimized for improved handling and control on unpaved roads. Wetland Optimized Grooves. Angled lateral and longitudinal groove structure promotes better drainage for improved braking and handling on wet, soggy ground.

High Stability Tread Corners. The special cutting corner on all borders of the groove pattern makes it more dimensional while promoting driving stability and comfort. Zig-Zag Middle Block. The zig-zag middle tread pattern reduces noise while the sloped corner repels rocks and improves earthgrasping performance. Special Shoulder Shape. The bench-shaped shoulder design provides excellent earthgrasping action for stable high-speed turns under dry and wet road conditions.

Noise-Reducing Shoulder. The closed shoulder design blocks noise from the middle of the tires for a quieter, more comfortable ride. Optimal Middle Pattern. The consistent middle pattern and uninterrupted closed shoulder design improves stability. Longitudinal Traction Grooves. The longitudinal groove design is optimized for effective drainage, faster braking, improved acceleration and stable turning on wet terrain.

Shop equipment

Wireless touch screen pads are becoming more popular. An example is the Launch Tech X-431 PAD II AE-301180411.

Air compressors A reciprocating air compressor’s motor should undergo an oil change about every three months or so. A rotary screw compressor’s oil should be changed about every 7,000 hours. An air intake filter should be cleaned about once each week, and replaced as needed, perhaps every three months or so. Naturally this will depend on the shop environment in terms of how much airborne debris is generated. Water accumulation in the tank is a major concern. Not only will this lead to rust buildup and potential tank failure, but also water in the lines, which ruins pneumatic tools. A water separator and air dryer is essential. If you’ve been somewhat lax in terms of maintenance to prevent water buildup, and if that compressor has been in service for more than five years or so, internal rust may be serious enough to pose an air leak issue. If your shop currently uses a piston motor, and you’d like to reduce the shop’s noise level, consider upgrading to a rotary screw compressor. A screw compressor offers substantially lower dba and longer/more continuous duty cycle duration for increased efficiency, especially during multi-pneumatic tool air consumption demands.

“No matter what tool we discuss, after the end user understands their tool, software should be updated monthly for current vehicle coverage,” says Daniel Bemiss, marketing manager for AUTEL (Automotive Intelligence/ Intelligent Technology Corp. Ltd.). “The end user needs to understand that all electronics have a lifespan. How many years is a diagnostic tool a viable money maker for your shop?” The bottom line: Scan/diagnostic tools are continually evolving and becoming increasingly sophisticated and easier to use. Updating hardware and/or software is a must to stay competitive. Other innovations in diagnostic tools, such as those offered by Drew Technologies Inc., allow remote access to a shop customer’s vehicle for full scan and diagnostics, informing the shop tech of faults and suggested repairs. These tools continue to evolve with ever-expanding capabilities. ■

Diagnostic equipment The need to continuously stay updated in terms of diagnostic procedures is critical if the shop intends to remain competitive. Both OE systems and procedures continue to evolve at a rapid pace, requiring the latest in tool capability and software updating. “Without new equipment, shops cannot take advantage of services,” says Scott Gompper, national retail sales manager for Launch Tech USA. Innovations such as being able to live-remote to another similar tool is but one example of diagnostic tool evolution, allowing a tech to communicate with a tech in another shop for advice, in addition to parts lookup and ordering capabilities.

Alignment system design and technology continually evolves to provide easier, faster and more accurate wheel alignment service. Do yourself a favor and check out your supplier’s latest models.

MTD September 2017

IT'S NOT JUST A STEER TIRE, IT'S A FINANCIAL STRATEGY.

Introducing the ST719 SE Your customers are struggling to reduce operating costs and Sumitomo has the solution. Introducing the new Sumitomo ST719 SE steer tire. With deep tread and wide, solid shoulders, it’s specifically engineered to deliver high mileage in regional applications. Plus, the ST719 SE is SmartWay® verified for excellent fuel economy. And here’s the best part. The ST719 SE is priced to offer impressive value to your customers while delivering generous margins for you. To learn more, visit SumitomoTruckTires.com.

For what drives you.

Tire Dealer of the Year

By Joy Kopcha

Brothers with a vision

re Dealer râ€™s Ti of ale t De

Modern Tir e

r Award Yea he

25 th

ANNIVERSARY 1993 - 2017

Rainy days led Mark and Scott Rhodesâ€™ father into the tire business. The second-generation owners of Plaza Tire are aggressively opening new stores and working to be the best in the Midwest. They are the winners of our 25th Tire Dealer of the Year Award.

2017 Tire Dealer of the Year

t Plaza Tire Service Inc., there’s only one brand that really matters. “Whatever you do, say Plaza Tire a lot. We may not have this brand or that brand tomorrow, but there will always be Plaza Tire.” That was the advice Vernon “Pee Wee” Rhodes passed along to his older son, Mark, 30 years ago as he started to hand over control of the company’s marketing duties. It’s been 54 years since Pee Wee Rhodes opened a car wash that ultimately led him into the tire business, but his words still drive the organization he founded in Cape Girardeau, Mo. Now the business is led by his two sons, Mark Rhodes and Scott Rhodes. They’ve added 25 stores since they purchased the corporation and have transformed a 150,000-square-foot former manufacturing plant into a new headquarters and distribution center. Their 62 tire stores in four states generate an estimated $80 million in sales, and construction of the 63rd store is underway. Their success has earned Mark Rhodes and Scott Rhodes Modern Tire Dealer’s 2017 Tire Dealer of the Year Award.

A photo of Vernon “Pee Wee” Rhodes hangs in the lobby of the Plaza Tire headquarters, and a box full of his green business cards remains on display in the training center.

The early days It all began with a car wash. In 1963 Pee Wee Rhodes opened Plaza Car Wash Inc. in Cape Girardeau. Rainy days made for slow days, so he struck up relationships with used car dealers. He’d clean up cars as they were sold and install retreaded tires on them. “Dad always called it ‘romancing’ used cars,” Scott says. He bought the retreads from a shop behind the car wash. Eventually that retreader went out of business, so Pee Wee bought the equipment. As tire sales increased, he installed a tire changer on the sidewalk in front of the car wash. City officials

Fast facts about Plaza Tire history • Why is it called Plaza Tire? The original store was located across the street from the Town Plaza shopping center. The name defined where it was. • Why is everything green? Pee Wee Rhodes had three mismatched trucks. Two were green, and one was red. It was cheaper to paint the red one and make them look consistent. • When did your dad retire? “He never retired to the golf course or Florida. He worked until about a month before he died (on July 29, 2011),” Mark says. “My father was a deal maker. He liked to make deals, whether it was buying a tire store, buying a piece of real estate or buying a truck; it wasn’t the size, it was the thrill of negotiation.”

cited it as a violation of a local ordinance, which forced the business owner to make a decision. Over Labor Day weekend in 1968 Pee Wee ripped out the equipment from his car wash business, sold it for scrap, and on Tuesday morning reopened as Plaza Tire Service. “He sold a going business for scrap,” Scott says. “That’s how my father did things, and he never looked back. He was very good at making a decision and sticking to it.” The first new tire brands he sold were Gates and BFGoodrich. He built a wholesale business and created routes based on what he had learned while working for Bunny Bread Co. In the beginning, Plaza Tire was more of a wholesaler than a retailer, with 80% of the business coming from wholesaling. New retail locations were added in the early 1970s, but it was after fuel prices skyrocketed in 1979 and 1980 that Pee Wee saw a path toward rapid retail expansion. That’s about the time Mark started working for his father. Corporate records show his first day of work was in 1978, but he says he has a check stub that dates back to a year earlier. After graduating from high school in 1982, he spent a couple disengaged years at the University of Missouri earning mediocre grades. He came back home and considered taking a semester off, but knew all along that he wanted to work in the tire business. Once he was back in Cape Girardeau, he became entrenched in the business, and one thing after another seemed to cement the idea he was where he needed to be. There was the flood after more than 6 inches of rain fell on May 15, 1986. He and his uncle Edwin “Pete” Rhodes had water up to their armpits as they were treading through the company’s headquarters and original store. (His parents and Scott, who was 15 at the time, were out of town.) Later that year his uncle, who had been a partner in the business, retired. A few years later his father had a heart attack. “There was always a reason for me to be here,” Mark says. “It never made sense to go back to school, and by that time I had such a job and responsibilities built up, how would I leave? And I didn’t want to.”

MTD September 2017

2017 Tire Dealer of the Year Change in responsibilities The heart attack prompted Pee Wee to take a step back, and Mark says it also changed his role in the business. “As I got more engaged he probably got less engaged.” Mark eventually took on the bulk of the tire operations — overseeing the wholesale and retail businesses, as well as the purchasing, pricing and marketing. Pee Wee turned his focus to real estate. He was a believer in owning the land where stores were built, so he scouted property for future Plaza Tire stores. The company owns all but three of the locations where it sells tires. He also bought other property along the way. That real estate development business, now known as the

The parts franchise “gives us a consistent price and quality of parts,” Mark says. The parts inventory is housed inside Plaza Tire’s lone distribution center, in Cape Girardeau, and parts are shipped to stores on the same delivery schedule and in the same trucks as tires. A majority of the parts franchise’s business is made up of sales to Plaza Tire stores. Performance Quick Lube opened in late 1998 next door to Cape Girardeau’s third Plaza Tire store. The tire dealership is surrounded by new car dealers and on a street that features heavy retail traffic with Walmart and Target nearby, plus quick access to hotels and Interstate 55. But the real estate was expensive, so Scott says they looked for “something that was complementary.”

The Rhodes brothers don’t think of themselves as risk takers, but they understand some might describe them that way. Scott says, “I think that’s what business is, risk taking and being a little cavalier.”

Rhodes Group, is controlled by a group of family members, including Mark and Scott. Its holdings are mostly centered in Cape Girardeau, and include some highly visible properties around town. About half of its business is tied to the land where Plaza Tire builds and operates its stores. The other half of the real estate is leased to third-party entities, with a focus on retail and office space. But real estate is just one piece of the network of businesses Mark and Scott have built. They also own a Mighty Auto Parts franchise, a quick lube, and a commercial construction business. And they say each entity helps Plaza Tire grow. “A lot of them are industries that we use or need, and we have tried to capitalize on. It’s all interconnected,” says Scott, who estimates he spends half his time focused on those other entities, with the other half dedicated to the inside operations of Plaza Tire. Like Mark, Scott says he inherited his tasks in the business as his father stepped further away from the day-to-day operations.

They built the quick lube and tire store side-by-side at the same time. But since then there’s been a dramatic shift in the quick lube business. “We’re not in love with the quick lube business,” Scott says, though they have no plans to leave it. “Back then Pennzoil and Valvoline went to great extremes to tell everybody that they needed to change their oil every 3,000 or 4,000 miles,” Mark says. “Now all the car manufacturers are saying it’s 8,000 miles or 10,000 miles, so they’ve cut that business in half.” Still, Mark says the quick lube — they opened only that one — “keeps its head above water, but it’s not a great money maker on its own for us. Back then it looked like it was an upcoming industry.” Scott expects quick lube businesses everywhere will have to offer more services in the future. “I question that whole sector and what’s going to happen.” Boulder Construction LLC isn’t facing the same uncertainty. Mark and Scott created the construction company in 1999

MTD September 2017

2017 Tire Dealer of the Year were mobilizing to start the construction of Plaza Tire’s third store in Springfield, Mo. Boulder Construction is a small, low rise commercial general contractor — with a lot of tire store experience. It has about 50 employees.

A special case

Even with all the high-tech advancements of business, there’s still a place for low-tech systems that work. This bank of mailboxes is used to sort everything from paperwork to printer ink that needs to go to each store.

in an effort to “get a little more control” over the building of its stores, Scott says. As they’ve grown into it he says they’ve found they can save money on their own projects, but also make money working on others. “These other businesses kind of started as part-time ventures,” Mark says. “We have this building and we rent it out. But the construction business has really developed into a big business of its own.” In early August, Gabe Wunderlich, the company’s general manager, was juggling about 10 different projects as crews

In Springfield, Plaza Tire is doing something it has never done before. It’s opening three stores, back-to-back-to-back, all in a year. The first opened in May on the east side of town, and the second opened its doors on Aug. 3, 2017, on the west side. The third is due to open by the end of the year. Springfield, in the southwest corner of Missouri, is the third largest city in the state, and it would seem like a natural market for a tire dealership born in southern Missouri. But the 276 miles from Springfield to Cape Girardeau in the southeast corner of the state have always been a barrier. Mark says, “It’s probably a market we neglected. Springfield traditionally is hard to get to from Cape Girardeau. We woke up to the fact it might be a good spot for us.” It’s required some adaptation. Plaza Tire prides itself on serving customers quickly, and that includes having the tires they need in stock. Daily delivery to Springfield from the company’s sole warehouse in Cape Girardeau isn’t a viable option, so that means the Springfield stores need more space for tire inventory — anywhere from 1,800 to 2,400 tires per store. They receive deliveries twice a week. “We think you’re not planning on having a tire problem

C O N G R AT U L AT I O N S MARK & SCOTT RHODES — 2017 MTD DEALER OF THE YEAR —

Vee Rubber would like to congratulate Mark & Scott Rhodes on being named Modern Tire Dealer’s 2017 Dealer of the Year! We are proud to partner with professionals like yourself—your efforts and commitment to this industry do not go unnoticed.

V E E R U B B E R U S . C O M

G L O B A L L Y

D R I V E N .

T H A I L A N D

M A D E .

MTD September 2017

When Plaza Tire moved to its new headquarters in 2008 it made the companyâ€™s tire distribution more efficient. Previously the stock was divided between two buildings, and tires would have to be staged outdoors because there werenâ€™t enough doors for all the trucks.

From your partners at

800-998-9897 myerstiresupply.com

Congratulations Scott and Mark Rhodes 2017 Tire Dealer of the Year

www.moderntiredealer.com

2017 Tire Dealer of the Year

Significant numbers: Plaza Tire Service

130,000

number of tires the warehouse holds

retail sales versus wholesale

when you get out of bed in the morning,” Mark says. “You have a tire problem and pull into Plaza Tire, you don’t want me to say ‘I’ll have it tomorrow.’ That’s the way we think.” As a result, each of the 62 Plaza Tire stores stocks at least 1,200 tires. Some have 1,600 tires in stock. That focus on inventory and fast service has been part of the mantra since Mark and Scott’s father was in charge. He came up with the business’ tag line, “the quick change artist” and did everything with a sense of urgency. Mark says, “My dad was a believer that it didn’t really matter how well you did something, but if you did it fast, it was good.” That didn’t mean quality work wasn’t important, but he knew he could satisfy with speed.

average star rating (out of 5.0) by customers

$80 million estimated annual sales

65%

80%

tire sales versus service

700

the average number of customer reviews each week

brands of tires

4.7

number of stores as of September 2017

“He wanted everything to be done quick, because it fuels more business. You get people in and out quicker and you have time for another job in that bay. “Even today when we look at customer reviews, the one thing that comes up overwhelmingly in reviews, both good and bad, is you were either really good and fast and speedy, or you were slow,” Mark says. “So if you can dominate that speed factor it makes the customer happy. Why do we have quick lubes and drive-thru restaurants? Because time is of the utmost importance.” This year, Plaza Tire has introduced a new element to its race to service customers better and faster with a new promise: “four tires in one hour, guaranteed.” It excludes custom wheels and applies to purchases of in-stock tires only.

‘We want to sell more tires’

Dustin Knupp works to remove a flat tire from a customer’s vehicle at the Plaza Tire store in O’Fallon, Mo. It’s the newest Plaza Tire location in the St. Louis market.

While some tire stores are minimizing and even eliminating the tire displays in their showrooms, Plaza Tire takes the opposite approach. There are tires on display inside the store, as well as outside. Creating those outdoor displays got a little easier for employees last year. At the 2016 Specialty Equipment Market Association Show, Mark discovered TruStack Tire Dollies. The flat, plastic dollies make it easy to stack and move tires. Plaza Tire uses them to cart tires outside the store each day. “Each store was rolling 20 to 30 stacks of tires in and out every day. This is a clean, easy, efficient thing. It was one of those things that we really needed and it fits into our marketing.” It probably doesn’t hurt that the thin platform is bright green and matches the Plaza Tire color scheme. “When people drive by our stores there’s no doubt that we’re in the tire business,” Mark says. “That’s what we do. We’re probably 65% tires. We like to be a very high percentage of

MTD September 2017

Congratulations

Mark and Scott on your great Adventure. Undoubtedly, people with vision, passion, skill, determination along with a great TEAM are ultimately recognized for their outstanding accomplishments. Congratulations Mark and Scott on your well deserved selection as the MTD Tire Dealer of the Year for 2017. Plaza Tire...thanks for selecting Dick Cepek Tires and Wheels to be part of your Adventure.

DICKCEPEK.COM

2017 Tire Dealer of the Year Meet Mark Rhodes Full name: Mark Elwin Rhodes Age: 54 Birthplace: Fredericktown, Mo. Education: Attended the University of Missouri. Family: A father of three: Sam, 22, Zach, 20, and Madelyn, who turns 6 this month. Siblings: Older sister Kelly Holloway, and a younger brother, Scott Rhodes What’s your advice for a new tire dealer? Hard work pays off. Take care of your employees and customers. What’s your morning routine? Get up between 6 and 6:30 a.m., shower and get dressed, do things around the house and arrive at work by around 7:30 or 8 a.m. What’s the best part of your job? Having success day to day. Seeing when you launch a promotion that really works, or when you promote people and it really works well. What’s the worst part of your job? Having to end a relationship with an employee. If you could change one thing about yourself, what would it be? I’d be more organized and more digitally savvy. I missed that by five or six years. I know enough to be dangerous. If your brother could change one thing about you, what would it be? That I’d be even older. If you could be anything but a tire dealer, what would you be? A cowboy. If there were no financial constraints, what’s one change you’d immediately make to your business? I’d have zero debt, and provide better benefits for our employees. The best way to spend a day off is: playing golf with friends, working around the house, and grilling in the backyard. What is your biggest regret? Not serving in the military.

What’s your guilty pleasure? Sneaking off to a Cardinals day game during the week. I always feel guilty when I’m not here. That’s how mom and dad raised us. In school you earned the best grades in: history. What would your high school friends say about you now? That I haven’t changed. What’s your life motto? The harder you work, the luckier you get. Who would be the best celebrity to portray you in a movie? Kevin Costner. “He’s not quite as dynamic as I am.” If you had been a movie star, what movie and role do you wish you could have had? Kevin Costner in Tin Cup. Something most people don’t know about you is: I’m a horrible speller, and I sometimes purposefully misspell words. What’s been your biggest success in the tire business? The recognition our employees, family and company get from being named Tire Dealer of the Year. What’s your favorite childhood memory? When I was a kid we took long, Chevy Chase-like vacations. To my dad it wasn’t about what we saw, it was how fast and how far we traveled. Your favorite meal is: steak and potatoes. What’s your favorite hidden gem in Cape Girardeau? The Pilot House, a barbecue dive. If we took away your cell phone on a Monday morning, how long could you conduct business without it? If I could get to my office, I could do it, but it might slow things down. What’s something your dad taught you about the tire business? Hustle. Be aggressive and treat people the way you’d want to be treated.

tires. That’s our M.O. There are people who focus on service. There are people who focus on tires. We want to sell more tires.” Plaza Tire offers 16 tire brands to its customers, but the company doesn’t buy from them all equally. Mark says its top brands are Falken, Bridgestone, Firestone, Nokian and Michelin. “Typically the more well-known the brand, the more competitive it is,” Mark says. “Everybody has Bridgestone,

Mark’s daughter, Madelyn, 6, has brought a princess element to his daily world.

Mark’s sons Zach, center, and Sam, right, are both learning the ropes of the business when not away at college.

Firestone, Michelin and Goodyear available to them, so therefore the margins get compressed on them. “You have to balance yourself with those well-known brands — because people want to buy them, they’re pull brands — with brands that you can kind of market as your own. And then you have to have your economy brands, too.” There’s at least one thing in the tire industry that hasn’t

MTD September 2017

2017 Tire Dealer of the Year Meet Scott Rhodes Full name: Scott Michael Rhodes Age: 46 Birthplace: Cape Girardeau, Mo. Education: Graduated from Southeast Missouri State University in 1995 with a general studies degree. Family: Married to Samantha, and father of Annabelle, 9, and Addison, 5. Siblings: Older sister Kelly Holloway and older brother Mark Rhodes. What’s your advice for a new tire dealer? You have to have inventory, and you have to get people in and out. If you could pick your superpower, what would it be? To clone good people. What’s your morning routine? During the school year the kids are out the door at 7:30 a.m. and I leave with them. What’s the best part of your job? Watching employees succeed. What’s the worst part of your job? Sometimes things with employees don’t work out. They don’t want it as much as we want it for them. If you could change one thing about yourself, what would it be? I’d try to be healthier. If your brother could change one thing about you, what would it be? I don’t know why he’d want to change anything about me. If you could be anything but a tire dealer, what would you be? I can’t imagine not being in some type of business that I owned. If there were no financial constraints, what’s one change you’d immediately make to your business? Reward employees more. The best way to spend a day off is: at the lake with my family.

What’s your guilty pleasure? Cars and travel. What is your biggest regret? I didn’t go away to college. In school you earned the best grades in: marketing and business classes. What would your high school friends say about you now? Throughout high school and college I was engrained in the business, so they probably wouldn’t be surprised. What’s your life motto? Do what you say. Who would be the best celebrity to portray you in a movie? Will Farrell. (He had to call his wife, Sam, on this one.) Something most people don’t know about you is: Seems like everybody knows everything. What’s been your biggest success in the tire business? That Mark and I have been able to work together and continue to grow the business successfully. What’s your favorite childhood memory? Spending time at Kentucky Lake. Your favorite meal is: any meal with friends and family. What’s your favorite hidden gem in Cape Girardeau? My backyard. If we took away your cell phone on a Monday morning, how long could you conduct business without it? If I was in the office and had a computer and a landline, I could make it. Otherwise, not long at all, and I’d be stuck at my desk all day. What’s something your dad taught you about the tire business? You have to have product ready to sell when the customer comes in, and you’ve got to get them in and out.

changed since the first tire meeting Mark attended decades ago. “I’ve always been taught that about 70% of people buy what’s recommended. When you take that into consideration, even the people who say they want the cheapest thing still fall into the category. “You’re going to sell them something. They don’t know what the cheapest thing is. You still have pretty good control over what you’re selling. “One thing I think we’ve done well with is supply a high degree of variety, brand and price points.”

Scott and his wife, Samantha, are busy parents of two elementary-age children. Daughter Annabelle is 9 and son Addison is 5.

Success with direct mail Giving customers a choice ties into Plaza Tire’s marketing strategy. Brian McMillan directs marketing and advertising for the tire dealership, which is the 18th largest in the country according to the Modern Tire Dealer 100. Plaza Tire points its marketing in a lot of directions, including television and radio, Facebook and Instagram, paid online search and direct mail. But the overall strategy is clear — market the Plaza Tire name. Direct mail is an especially good example of that. The

MTD September 2017

RHODES

CONGRATULATIONS TO SCOTT AND MARK RHODES

MODERN TIRE DEALER’S 2017 TIRE DEALER OF THE YEAR From hand-operated car wash to auto empire, Plaza Tire Service reigns above the rest. The MICHELIN® tire brands are proud partners with Scott, Mark and the professionals at Plaza Tire Service.

KING OF THE

2017 Tire Dealer of the Year

John Sneed, manager of Plaza Tire’s flagship store in Cape Girardeau, uses the Quick Check Inspection system from Hunter Engineering to evaluate a vehicle’s alignment.

company usually sends five or six mailings a year across its four-state region of Missouri, Arkansas, Illinois and Kentucky. Each mailing adds up to about a half million pieces, and can cost roughly 30 to 40 cents per piece for full-color printing and postage. There are 8-and-a-half-inch by 5-inch postcards, eight-page catalogs and jumbo full-page postcards. They

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prominently feature tire prices and specials, as well as discounts on oil changes, alignments and other automotive services. No matter the format, no mailing focuses on a single tire brand. “We’ve done smaller pieces, but we just don’t get the response from them. It honestly doesn’t cost that much more to do a larger, multi-page piece,” McMillan says. “Our premise has been if you’re going to send it, you’re going to get more response if you do just a little more. “We have people tell us all the time, ‘we’ve got better options than direct mail,’ but you can see a change when those mail pieces start to hit.” Mark says, “It’s a balance. If you just do direct mail you’re missing all the people who are digital. If you just do digital you miss all the people who aren’t. There’s a happy medium in there, whether it’s television or radio or Facebook or an email blast or a direct mail piece or a printed ad or billboard. There’s still billboards that are quite viable.” McMillan believes direct mail still delivers the best return. “It’s right there in front of people, and ours are always bright and colorful. We put enough time on the coupons that they don’t expire too quickly, and the coupons are trackable, so we can definitely see what gets the most redemptions. Anytime we do one of these buy three, get one free offers it’s a great deal, and people love it.” The company applies similar brand thinking to the look of its stores. While some tire dealerships promote tire brands with large lighted signs on their buildings, Plaza Tire keeps the look

“The Tire Alliance Groupe congratulates Mark and Scott Rhodes for their selection as the winners of MTD’s 2017 Tire Dealer of the Year. Plaza Tire Service has been a member of “TAG” for over 20 years and it is a privilege having a company of their reputation in our group!” — Paul Alves, President

MTD September 2017

clean and simple. Stores all feature a distinguishable bright green fascia, and tire brand banners usually fly from the tops of bay entrances, but the stores don’t feature fixed exterior signage from any tire company. All of that space is dedicated to highlighting the Plaza Tire name. “With city codes it used to be that you could hang as many signs as you wanted on your property,” Scott says. “Now it’s very restrictive so you have to choose who you want to focus on. If there’s going to be a big sign, we want it to have our name on it.” Because zoning rules are different in every community, Plaza Tire doesn’t have a fixed signage plan for its stores. “We want all we can get,” Scott says. Case in point, the newest store in Springfield is the same model as the store in Chesterfield, Mo., a suburb of St. Louis. Zoning laws in Springfield allowed four signs on the building, plus a sign attached to a pole. “In Chesterfield we have the exact same building and we could only get two building signs and a monument sign (that’s 6 feet off the ground),” Scott says. “You never know. You try to get all you can.”

Building blocks

When the bays aren’t busy, employees switch to cleanup duty. John Curd wipes away cobwebs in Cape Girardeau.

Those discrepancies in zoning rules are a common hurdle for the fast-growing tire dealership, and specifically for Scott, who leads all real estate efforts, including those fine details. He says even though building codes are similar, the specifics of signs and architectural features on buildings vary by municipality. For years Plaza Tire’s trademark red letter sign has been backed

www.mamsoftware.com

Congratulations to Plaza Tire Tire Dealer of the Year

MAM Software would like to congratulate Mark and Scott Rhodes on being named MTD’s 2017 Tire Dealer of the Year. Your dedication and leadership is what makes Plaza Tire a successful team in this industry. We are proud to be your partner and we thank you for being one of our top customers on our VAST product!

www.moderntiredealer.com

2017 Tire Dealer of the Year

Plaza Tire supports lots of community causes, including the not-for-profit Discovery Play House in Cape Girardeau. It features interactive displays for children, and at the “tire store” they can remove tires and check under the hood.

by green metal sheeting. “Some don’t like the green metal because it’s too bright,” Scott says. “We were in Chesterfield and they likened us to a McDonald’s and Walgreens. I told them if you mean that as a slap in the face I take it as a compliment because they’re very successful organizations.” Plaza Tire has found a way to adapt in those circumstances. In

November 2016 the company opened a new store in O’Fallon, Mo., another St. Louis suburb, and was forced to replace the green metal with green-painted, wooden slats. It gave the store a more modern look, and the three stores that have opened since have featured the same slatted-front. The Chesterfield outlet carries the distinction of being the most difficult store to build, Scott says. It opened in December 2008 and was the 50th Plaza Tire store. “We were new in those markets. And in the high-end demographic cities, the metro areas, their system is much more structured, and they have a lot going on. Smaller markets are eager for something that is happening, so it’s excitement and they welcome you. In a lot of the bigger markets they have a ton going on and your store opening is just another day for them.” Ideally, every store would mimic two of the three Plaza Tire stores in the company’s hometown. Both are located on Kingshighway Street, albeit on opposite ends of town. The north-side store has nine bays, while the flagship south-side store, which sits on the same block where the business began in 1963, features 11 bays. “Those two stores are our favorite prototypes,” Scott says. “The bays run parallel with the street so you get good street presence. They take more frontage, so sometimes you don’t have the opportunity to get that much, or you can’t afford it. But it follows something our father taught us. You want to show the bays. We have very visible bays and glass doors.” Improving the visibility of Plaza Tire’s flagship store was a process decades in the making. It required multiple deals to

MTD September 2017

CONGRATULATIONS

TO DEALER OF THE YEAR AWARD RECIPIENTS MARK & SCOTT RHODES

Cooper Tire & Rubber Company would like to congratulate Mark and Scott Rhodes on receiving the Dealer of the Year award from Modern Tire Dealer.

2017 Tire Dealer of the Year

Since its beginning Plaza Tire has placed a big emphasis on stocking tires — rather than depending on daily deliveries — to make sales in its stores. In 2017 the company rolled out a new initiative: “four tires in one hour, guaranteed.” If a store doesn’t meet the one-hour promise the customer earns a $25 gift certificate.

acquire a full city block, but after the final parcels were purchased in 2010, the company was able to build a new flagship store in time for its 50th anniversary in 2013, and also turn the building to face the busier street. Missouri Department of Transportation counts show 20,170 cars drive past the store each day — that’s the equivalent of more than half of the city’s residents passing by daily.

‘In it for the long term’ Plaza Tire’s growth has been steady, but Mark and Scott say they don’t have a master plan on a shelf for where they want to take the business. No magical number of stores they want to own. No pie-in-the-sky dream of hitting a certain sales figure. “We want to run a good business,” Mark says. “We want to be profitable and be able to pay our bills and treat our employees well. To think we have a five-year plan or something that sophisticated would be wrong. We’ll grow within our marketplace and expand out gradually if the moment is right. Next year we might not open any stores. That’s the good thing about being independent.” The brothers say there’s no ideal number of stores to open each year, but for their size opening two or three a year isn’t a problem. One year they opened eight stores, including acquisitions, and also bought part ownership in a local new car dealership. (They’ve since sold their stake in the car dealership.) That was a bit much, they admit. “It wears out our people and our infrastructure,” Scott says. Still, they’re constantly looking at markets for new stores. “We try to be opportunists,” Mark says. Scott adds, “We don’t land bank a ton of real estate. Although we’re 62 stores we’re still a small company. When we open

a store it takes a lot of operations staff, it takes a lot of cash, equipment, inventory, hiring and time. It’s a big task.” And once the construction work is done, the risk is really just beginning. “We have an over $2 million investment in Springfield, plus inventory and equipment, and we’re going to throw the keys to a store manager who hasn’t worked for the company for a long time and tell him, ‘get after it.’ If you think of it that way, it’s a little crazy.” Most of Plaza Tire’s growth has come from organic expansion, but the company occasionally does acquire other tire stores. About a quarter of the existing stores are the result of acquisitions. “We like to acquire, and we constantly talk to people,” Scott says. “You get people exiting the business and they’re not sure they want to exit. It’s an emotional deal. Sometimes those conversations take a long time, but we want to buy existing stores.” One benefit to acquisition is the quicker operational startup, but Mark says, “that doesn’t always mean that it’s more successful.” Scott adds, “We pick up baggage, good and bad. You don’t know what’s there until you’re committed, but the good thing with an existing business is there are existing customers coming in the door.” The flip side is that as an independent tire dealer, the company can take risks as it opens new locations. “If we know we’re not going to be profitable quickly in a certain market, or know it’s going to take a little longer than it should, that’s a personal decision we’re making,” Mark says. “We’re going to open this store and know it might not be successful for 18 months, but we’re going to take that risk. We’re in it for the long term.” After 54 years in business, Plaza Tire has more flexibility than it did when Pee Wee was just getting started. He made decisions based on how much money he had in the bank. There

MTD September 2017

THE LEGACY CONTINUES Scott and Mark Rhodes Congratulations on being selected as MTDâ€™s Dealer of The Year. Your dedication to marketing, development and the community are a true testament to your focus on continued growth for the future.

yokohamatire.com ÂŠ2017 Yokohama Tire Corporation

2017 Tire Dealer of the Year were times he knew he didn’t have enough to make payroll, so he’d create and sell coupon books to car dealers, or sell window stickers to customers for a year’s worth of unlimited car washes. He’d go out and hustle to get cash for payroll. “We have a little better foundation than that,” Mark says. “It helps the decision-making process. If you gamble on something, it’s not all or nothing.” But the long-term thinking isn’t reserved for the men at the top of Plaza Tire. Mark and Scott say it’s something they have to instill in all 452 of their employees, and especially in their store managers. “We tell them to think long term,” Mark says. “I’ll catch managers and they’re not going to fix something for a few dollars. I ask them, ‘Are we going to close tomorrow? Can we not take care of that right now?’ “That goes for our buildings, too. I’ll walk into a building and a door knob will be busted or a chair is broken. But they don’t want it to go on their expenses. I tell them to think a little longer term. We build buildings out of block concrete and steel. When we build something we own it, and we want it to be around and look good for as long as possible. We’re here to be long term.” That same long-term thinking is important in every facet of the business, including managing employees, knowing how to stay away from needless drama and providing good customer service. Employee management: Mark thinks the company is easy to work for, and “not crazy demanding” of its employees.

Pee Wee Rhodes wanted to do something special for longtime employees. In 1988 he gave the first gold ring to James “Peto” Williams for his 25 years of service. Williams was one of Pee Wee’s first car wash employees.

Workers have been known to get a second chance and even a third chance on more than just an occasional basis, especially in entry-level positions. That’s because the company knows it’s hard to find good people, but also, Mark says, “Sometimes we see more in them than they see in themselves.

MTD September 2017

CONGRATULATIONS MARK & SCOTT RHODES!

2017 MTD TIRE DEALER OF THE YEAR

Pantera Tire would like to take this opportunity to applaud Mark & Scott Rhodes for being named MTDâ€™s Tire Dealer of the Year. We here at Pantera Tire are honored to partner with these hard-working professionals and wish continued success for years to come!

A N E W S TA N D A R D I N C O N S U M E R T I R E S W W W. PA N T E R AT I R E . C O M

2017 Tire Dealer of the Year “They’re 22 or 23 years old. They’re living in today, maybe starting a family and thinking about wanting to earn $1 more an hour. But I’m thinking, if this person works out we could do this and this with them. We’re thinking long term and they’re thinking about right now.” Avoiding drama: Growing up in a family business, there’s plenty of opportunity for drama. But Mark and Scott say they both learned early on you can’t engage it. “You have to realize everyone has their role,” Mark says. “There’s going to be ways he wants to do stuff and there’s going to be ways I want to do stuff with the business or buildings or people, and you just compromise and figure out ways to make

Travis Smith is one of Plaza Tire’s 452 employees.

it work. You could argue about stuff all the time if you wanted to. We separate our tasks.” Scott adds, “I always tell people we don’t have $1,000 arguments. It’s bigger than that. If you make decisions you’re going to make some bad ones, and we accept that. We make decisions on each other’s behalf every single day. We have to be comfortable with that or nothing gets done.” That’s another lesson that needs to trickle down to the store level. “I get hit with problems all day long, five, six or seven days a week,” Mark says. “You can’t get wrapped up, because you’d be wrapped up in it 100% of the time. I’ve grown up here when we had 12 stores, and as we’ve grown you learn to roll with the punches.” If there’s a problem you review it and respond with a plan, “and hopefully we fix it in a long-term kind of way.” Customer service: “It’s a lot easier to take care of a problem when it happens than for the customer to call the store manager, the store manager to call a supervisor, a supervisor to call Kevin (Seabaugh, the head of retail operations),” Mark says. “The time it takes to go through all those people, the customer is then really upset. There’s no better time to take care of the customer than the minute it happens. That’s something you’ve got to teach some managers because they tend to feel like the customer is mad at them. They’re not mad at them. “When I get a complaint, and I don’t get many of them because our guys are good, I let the customer say everything they want to say, and then I ask what can I do to make it better? How can I make you happy? And then whatever it is,

CONGRATULATIONS PLAZA TIRE 2017 MTD TIRE DEALER OF THE YEAR

From Your Proud Partners at Valvoline ™

MTD September 2017

2017 Tire Dealer of the Year you do it. Ninety to 95% of the time you can make them happy.” Jim McWilliams has worked in the tire industry for 35 years, and joined Plaza Tire as part of an acquisition in 1998. He’s now an area supervisor with 10 stores in the St. Louis area, and says the thing that sets Plaza Tire apart is “hands down our customer service is impeccable. “If there’s a problem, we’re going to take care of it. That’s how the Rhodes brothers are: take care of the customer no matter what it takes. We want happy customers and happy employees.” Jerry Iverson manages the newest Plaza Tire in the St. Louis market. The store on the north side of O’Fallon, Mo., opened in November, and he says he recently had a customer say his car got scratched while it was at the store. He told the customer to take it to the body shop and get an estimate so he could turn it in. “He said it wasn’t there when he brought it here, so we took care of it,” Iverson says. “At the end of the day if they’re still your customer, it’s going to take care of itself eventually. An unhappy customer though, you’ll never get them back.”

Scott and Mark are proud of their longtime employees. Chuck Schuessler, left, and Andy Klipfel, center, started work within a week of each other. Kevin Seabaugh, right, leads retail operations and has known Mark since kindergarten.

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MTD September 2017

The power of good employees In the span of about one week in the summer of 1971, Plaza Tire hired Andy Klipfel and Chuck Schuessler. Klipfel remembers his first day on the job: They drilled holes into the walls of the car wash building to make room for more tires. He continues to work on the site of that original store and is the company’s most expert tire technician on any size tire, from passenger to truck to farm to off-the-road tires. Schuessler works in the corporate office. He supports the retail operations and also helps with inventory issues. If there’s an inventory problem, he finds it and fixes it. When Klipfel and Schuessler started, Scott was not yet 5 months old. They’re among the 19 employees with at least 20 years of service to the company. “Obviously we wouldn’t be where we’re at without great employees,” Mark says. “That’s a big part of the honor of us being named Tire Dealer of the Year. All of the employees can share in the recognition, because they’re on the front lines every day making customers happy and making things work. We’ve got great employees, management and family. It’s a true team effort with all those people.” Plaza Tire recognizes employees’ service to the company with awards and plaques on significant anniversary dates. But when the first employee hit the 25-year mark, the company wanted to do something special. James “Peto” Williams was the first to receive a gold Plaza Tire ring. As employees notch another five years of service, the company gifts them with another diamond for the ring. When Williams died in 2011 he had served Plaza Tire for more than 30 years. Mark and Scott are proud of the relationships they’ve maintained with long-term employees. “I think we’re very good at keeping people. It’s hiring the right person at the beginning and having them grow with us,” Mark says. “Every time I get ready to hire somebody, I think about how I want to hire the right guy, because I don’t want to have to end a relationship with anyone either. If you hire well at the beginning you don’t have to face that.” And even though the industry talks a lot about a shortage of technicians, Scott says it’s just as important to focus on good managers. “You have to figure out a people pipeline and stack a bench. You have to have good techs and good shop people, of

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course, but if you have strong managers, they will hire good people. They will seek out the good people.” He says it’s the company’s responsibility to provide the tools to recruit good employees: access to training, the potential to advance with the company, plus benefits. “We’re not competing for people just within our industry. We’re competing for people in lots of industries. People with a good work ethic have a lot of opportunity.” In Cape Girardeau and the surrounding region, Plaza Tire’s biggest competitors in hiring are the medical sector, plus other retailers.

2017 Tire Dealer of the Year Competing with tire manufacturers Competing for employees is one thing, but competing for tire sales is another. And the revolution of tire manufacturers entering the direct-to-consumer segment online is troubling. “It’s reality,” Mark says. “But on the other hand I don’t like them telling me who I can sell and who I can’t sell. If I was playing devil’s advocate, I’d say if they can sell tires on the internet how can they tell me who I can’t sell to, which is what some of them are doing. They’re sending out letters and saying you can’t sell tires to this company or that company, but then they turn around and do it. “They tell me I have to buy so many tires a year, but they don’t want me to sell them through a certain channel. But they’ll sell through that channel and then those people are selling that tire in my market. “If you’re going to sell those tires online, you should reduce the amount of tires I have to buy.” The issue really isn’t a new one in the industry, Mark admits. “I didn’t like it when they started selling straight to car dealers either. I still don’t like it. We were selling those people tires, too, and now manufacturers that we’ve been buying tires from have opened up competitors in our towns by selling to car dealers directly.” Plaza Tire currently isn’t an installer for any tire manufacturer’s online selling program. It’s not a Recommended Installer for Tire Rack Inc. either. But the company’s stores will install tires for any customer. “We like to make them our customer,” Mark says.

As for tire manufacturers selling online to customers, Scott says,“They’re competing with what we view as their bread and butter, their independent dealers. We want to be the seller and the installer.”

“We have great relationships with our manufacturers. None of this is antagonistic. Do I disagree with them on how they do things? You’re damn right. If I think it hurts Plaza Tire’s business I’m going to speak up.”

Congratulations

Mark & Scott from your friends at

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MTD September 2017

2017 Tire Dealer of the Year An evolution of online sales Plaza Tire knows it might have to adapt to joining those tire installation programs one day. It has already adapted how it handles its own online tire selling platform. In the beginning the only way to get an online quote for tires from Plaza Tire was to submit a request online. But more than five years ago the company changed its ways. Now customers can compare prices. They start by selecting which store they want to visit, and then input either their vehicle information or tire size. Mark says, “You have to think about the concept of why people go online. Why would people take the time to go online if they didn’t want to see pricing? That’s my opinion.” Scott agrees. He’s seen it in his own shopping habits. “I find myself wanting to buy more stuff online and expecting to find pricing. I don’t like that, because I’m a big believer in buying and shopping locally.” Don Francis spent five years managing a Plaza Tire store before he moved to the corporate office as the project manager. His job now is to jump from one special project to the next. But he remembers well what it was like to stand behind a sales counter and have a customer come in and ask to have tires they purchased online elsewhere installed. “My attitude in the very beginning was not good about it, because they didn’t buy them from me. There was a little ego involved. But then I realized they have the whole rest of the car that I can work with. “My attitude has evolved into making a friend out of that person instead of worrying about them saving $60 when they bought the tires,” says Francis. “I can get that $60 back pretty quick if I just take care of that customer. “People online can’t go out in the parking lot or the driveway and see their car. I can say ‘I see something you might want to get looked at.’ “You can’t stop the trend of people The marketing plan for Plaza Tire includes a hefty dose of both digital and tradibuying tires online, but how can you tional avenues. Its website prominently features the option for customers to shop for tires. And on social media, the biggest hits come when a store finds and make the most of it? When people are online rescues a kitten from underneath the hood of a vehicle. calling you, at least half of the people don’t know what size of tire they use. They really don’t know the day? Or why is this store very successful at doing certain enough to go online and buy tires without some degree of things that other stores aren’t? We can research what they’re research.” doing and implement it elsewhere. There are all kinds of things like that, if you’re paying attention.” Data mining: the new frontier McMillan says, “Stores don’t probably have enough of a Francis and McMillan, Plaza Tire’s marketing manager, macro view to put it all together. You have to take a higher work together on a lot of projects. “Our roles overlap a lot,” level approach to get there. We have all these locations and McMillan says. They both can see a big future in data. transactions, so you start to have enough of a data sample.” “I think data mining is the frontier ahead of us,” Francis Two years ago while focusing on the company’s online reviews, says. “How can we take years’ worth of consumer behavior Francis realized that the store with the second-highest number and start to analyze it?” of reviews submitted had the highest customer satisfaction Here’s an example. “Why are people buying certain service rate. “They were leading the pack.” products that we offer on certain days or even certain times of So he dug into those reviews, and saw over and over again

MTD September 2017

Congratulations to

Mark & Scott Rhodes winners of the 2017 Modern Tire Dealer

Tire Dealer of the Year!

Thank you for your outstanding partnership from all of us at Hunter Engineering!

2017 Tire Dealer of the Year

Carole Rhodes and her husband founded Plaza Tire. Here she poses with the potential leaders of the third generation to continue the family business, from left, her grandsons Sam Rhodes, Zach Rhodes and Casey Holloway.

The next generation steps up ‘It’s their choice,’ says Mark Rhodes Both Mark and Scott Rhodes grew up in the business, and had to work their way up. They see a similar path for the next generation. Mark’s two oldest children, sons Sam, 22, and Zach, 20, have already started working for the business, as has a nephew, Casey Holloway, their sister Kelly Holloway’s son. They start in the warehouse, in the service department at a store, or behind the sales counter. Mark also has a young daughter, who turns 6 this month, and Scott’s children are young, too. Scott says right now their idea of working at Plaza Tire is riding on a forklift and raiding the vending machines. Sam earned his undergraduate degree from the University of Mississippi in the spring, and has returned to campus this fall to complete a one-year MBA program. Zach is a junior at the University of Missouri. But Mark is cautious in trying to envision how the next generation takes its place in the business. He doesn’t want his sons to think they have to follow in his footsteps. “It’s their choice,” he says. “If they choose to be part of it, then they have to understand that it can be very hard, and very rewarding.” Scott understands the difficulty Mark is facing. As Scott was preparing to graduate from college in 1995, his friends were getting recruited to companies and moving to new places. It sounded more glamorous than staying in his hometown and working for his dad in the tire business. He talked to his dad about it, and remembers “those were not always great conversations.” (Mark on the other hand, can’t imagine ever doing anything else. In fact, it took him more than 10 minutes to answer this question: “If you could be anything but a tire dealer, what would you be?” Read his response on page 52.) Scott says his dad “never really understood why you wouldn’t want to do this. There was not a day my dad did not look forward to coming to work. The older I get I have more appreciation for it, which I think is common. He viewed it, and we do, too, as we work with our friends, our suppliers. Our employees become our friends and part of our family.”

customers were mentioning store employees by name. They were establishing a personal connection. “They probably knew the customer’s name when they walked in the door and people are impressed by that. For some people, that comes really naturally for them to do that; others have to work real hard at it.” Noticing that spilled into human resources, he says. “How can we select more of those people and get them into those positions? We’re doing OK like we are, but we want to keep raising the bar and get more intentional.” The data also has helped the company identify the biggest cause of customer dissatisfaction. “It’s clear it’s communication related,” Francis says, so store employees need to be more patient and more intentional with their communication. “Work a little harder and be a little more straight up, a little more considerate, a little more transparent. Usually if you communicate with people like that, they’re pretty good about not beating you up later.” Mark sees time as the most critical factor. “A high percentage of the dings are ‘you didn’t get it done in time.’” Sometimes it’s as simple as not telling the customer when a second problem had to be investigated, or another part had to be ordered and it’s going to take an extra 30 minutes. “If you tell a customer it’s going to be an hour, it needs to be an hour. If you tell them it’s going to be $100 and it’s $105, he may not say anything to you, but in the back of his mind he’s thinking, ‘you told me $100.’”

Buying groups offer benefits Data mining might represent the future of the tire business, but Plaza Tire still sees plenty of room for the tools that have helped tire dealers for decades. That includes membership in buying groups. Plaza Tire is among the founding members of the 21-year-old Tire Alliance Groupe LLC (TAG), and Mark is the group’s current chairman. He’s also chairman of the SURE Tire Co. buying group, of which Plaza Tire is a member. “Mark has gotten involved in the management of TAG over the last several years,” says CEO and President Paul Alves. “Although this was new to him, his levelheadedness as we continue to grow as a group has been very helpful.” With TAG, Mark says the benefit comes from the relationship among dealers. He looks past the fact that in some cases, fellow TAG members are his competitors. “Competitors will teach you a lot of lessons, good and bad. It’s not uncommon in any of those relationships to learn what works for them, and share what works for you.” Plus, membership helps leverage purchasing power, which is something any tire dealer can

MTD September 2017

PARTNERING WITH THE BEST

We appreciate the level of hard work and dedication that goes into creating a successful team in this industry. Thatâ€™s why we are proud to partner with the

2017

MTD Tire Dealer of the Year

Congratulations Mark and Scott Rhodes, owners of Plaza Tire Service in Cape Girardeau, MO.

The highest quality professional parts, service and solutions dedicated to your shop.

2017 Tire Dealer of the Year appreciate. Even with 62 stores and 130,000 tires in his warehouse, Mark doesn’t think it’s possible to outgrow the benefits of a group. “You never know what specials are out there,” he says. “We may get a deal because of our relationship with the manufacturer. We may get a special because of our size. We may get one because we’re part of the group. I think it would be some of each. I don’t think it’s clear cut. “Growing up in the business and being part of TAG, Larry Morgan and Tom Gegax were part of the group when I was just getting started in the business, so these are people who you learn things from,” Mark says. (Morgan and Gegax, from Morgan Tire & Auto Inc. and Tires Rob Millsaps likes to have wheels on display in his store, including this one with an Plus, respectively, are both former acid-dipped camoflauge finish. It’s a good visual for customers, he says. winners of MTD’s Tire Dealer of the Year Award.) Snapshot of a store With SURE Tire, Plaza Tire holds the exclusive rights to Rob Millsaps manages the Plaza Tire store on the north side of the Summit brand of tires in its territory. That’s an especially Cape Girardeau. It’s near an upscale, residential neighborhood. helpful benefit for Plaza Tire’s wholesale business, Mark says. “We’ll probably have two or three appointments a day, but

Mark and Scott Rhodes 2017 Dealer of the Year CONGRATULATIONS

to Mark and Scott Rhodes being named Dealer of the Year for 2017 by Modern Tire Dealer. With 61 locations Plaza Tire Service is the 18th largest tire dealer in the nation. NAPA Auto Parts is proud to be a valued partner and extend our wishes for continued success. NAPAOnline.com

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MTD September 2017

CONGRATULATIONS TO MARK & SCOTT RHODES OF PLAZA TIRE Blacklion Tire appreciates Mark and Scott’s team and is proud to be a partner. Being named Modern Tire Dealer’s 2017 Tire Dealer of the Year is a tremendous accomplishment and we thankfully applaud your well deserved success.

BLACKLIONTIRES.COM

2017 Tire Dealer of the Year we’ll see 65 cars a day,” Millsaps says. “Eighty percent of our business is walk-in business.” The store, which opened in 1995 and was the second Plaza Tire store to open in the company’s hometown, sells 600 to 700 tires a month (half its inventory) and does $1.9 million in business a year, Millsaps says. The store also provides some auto services for two used car dealers and one new car dealership nearby.

‘They are forward thinking’ One big asset to Millsaps’ alignment business has been the use of Hunter Engineering Co.’s Quick Check inspection system. About a third of all Plaza Tire stores have some version of the system that checks a car’s alignment, brake system and tire tread. The Quick Check lane at Millsaps’ store is designed to check a vehicle’s alignment. Plaza Tire has set up screens in its customer waiting areas that show the results of each inspection as it’s done. Millsaps says the system helps sell alignments “at the beginning of the sale.” Larry Watson is the Midwest division manager for Hunter. He says the equipment company has a long-standing relationship with the Rhodes family, and that Plaza Tire was the first

Plaza Tire averages 4.7 stars out of 5.0 Online reviews provide a playbook for stores Four-and-a-half years ago when Plaza Tire Service Inc. turned its focus to soliciting online customer reviews, Don Francis was uneasy. “In the beginning we were leery of the whole review thing. We thought people were only going to post reviews if there was something they were concerned about,” says Francis, who has spent the last five years working as a project manager for the tire dealership. “We found it was just the opposite.” Tens of thousands of reviews later, Plaza Tire’s 62 stores average a 4.7 rating on a five-star scale. Initially the company worked to publish those reviews on its own website. Its customer relationship management (CRM) software sent an email to customers after they visited a store, and reviews were posted on the company’s website by store location. Francis says the company averages 700 reviews a week. The only problem is, those reviews aren’t also showing up on Google. “Knowing that Google pretty much owns the market in search, we decided to expand our focus and start looking at Google reviews as well,” says Brian

independent tire dealer in the nation to install the Quick Check equipment in its stores. “The one thing about Plaza Tire is they are forward thinking. They’re not scared to invest in technology to differentiate themselves from the pack.” Plaza Tire had at least a three-year head start on any other independent dealer using the Quick Check technology. It also was the first to install large windows and flat screen monitors in its showrooms so customers could watch the inspection as it happens, he says. “There are a lot of tire dealers who feel like ‘we’ve done it like this forever.’ But if you’re not careful with that mentality, you can be outpaced,” Watson says. “(Mark and Scott) have always got their eyes open, always willing to try new things, but at the same time they try to stay consistent with their values. They’re not all over the place.” Every new store Plaza Tire that has opened within the last five years has been built with a bay dedicated for the Quick Check system, and the company has retrofitted their busiest existing stores to add it as well, Watson says. “You’ve seen Plaza Tire adopt new ideas and build stores. You see them growing. You look at the other regional chains in their area and they’re not keeping pace.” ■

★★★★★ McMillan, director of marketing for Plaza Tire. Despite having thousands of reviews direct from their customers, McMillan says there weren’t many reviews posted directly on Google. So the company invested in another tool, and now customers who provide a cell phone number at the time of service are sent a text message asking for a Google review. Those who provide a landline (the software can detect which is which) are still sent an email with the same request. Plaza Tire tested the new technology beginning in April with nine stores. By June 12 it was rolled out to every store. “We’ve seen good success with that,” McMillan says. Since the roll out, the high rankings have continued. Francis says, “We were reassured by having so much track record behind us, even if we saw some valleys in certain stores, it’s not going to hurt the big picture.” McMillan adds, “But there’s still that certain throw up feeling when you turn it all in. What if this all goes wrong?” “You asked for it,” Francis says. “Don’t ask for somebody’s opinion

unless you’re really ready for it. Our guys obviously are largely doing the right things because people are very quick to name names of those who helped them.” The group of test stores did include one new location. Plaza Tire opened its first store in Springfield, Mo., in May. The company was curious to see the response to a new store in a new market. “For weeks there was nothing but five-star reviews,” McMillan says. “Then, we got ‘the four-star review.’” What caused the store to lose its perfect score? A customer visited the store on a perfect-weather spring day and thought the store should have some kind of outdoor seating. The customer sat on the curb to enjoy the weather. The company responded to the review, agreed it was a great idea, and by the end of the week there was a bench outdoors. Mark Rhodes, president of Plaza Tire, says, “We can take the information and use it to improve our customer service. I read reviews as a playbook. I tell our guys, read this and do more of it, and read this and stop doing it.”

MTD September 2017

TIRE MOUNTING EQUIPMENT Lower, larger and heavier are the 21st century buzzwords

HOW TO SELL MORE ALIGNMENTS 2 dealers share their secrets

THE REAL BENEFIT OF TPMS And how to educate your customers

THE INDUSTRY’S LEADING PUBLICATION

2013 Tire Dealer of the Year

on being named the 25th winners of our Tire Dealer of the Year Award Counter Intelligence: Create a digital footprint and kick-start sales SEPTEMBER 2010 • VOL. 91, NO. 9 • TEN DOLLARS • A BOBIT PUBLICATION

THE INDUSTRY’S LEADING PUBLICATION

John Snider

Snider Tire Inc.

MTD’s 2010 Tire Dealer of the Year Solve problems with alignment service

re Dealer r’s Ti of ale t De

r Award Yea he

Mark and Scott Rhodes

Modern Tir e

Congratulations

Dan and Diane Hennelly September 2013 | Vol. 94, No. 9 | $10 | A Bobit Publication | www.moderntiredealer.com

ANNIVERSARY 1993 - 2017

Counter intelligence

We are retailers You must keep an eye on the details in retail

e must never forget that we are reThe exchange of ideas and needs shared by the tailers. Consumers have never decustomer, and the solutions shared by the counter manded more from retailers than staff, are all details. For example, the tone of they do today. To win at retail today, you must voice, the pace of the verbal exchange, the level deliver more, period. of understanding and agreement, along with the Simply stated, retailers are in the business of physical environment and product presentation, selling things directly to customers for their own is all so critical, and details matter. The best use. Retailers are at the end of the food chain. presentations net the best results. Manufacturers make stuff, distributors move it When I visit an Apple store today, I can feel the around, but retailers make it happen. Retailing is By Wayne Williams attention to details that were established in Apple’s where products meet people. Not all products are early DNA. There is a rhythm and a cadence to made for all people, so retailers play a vital role in matching an Apple store that is driven by details choreographed in the right products to the right people. advance of customer visits. A customer can take time and As studies have shown, and as tire dealers experience browse or they can get in and get out. Why? Because it every day, most tire consumers are tire agnostic. Consumers was thought out thoroughly ahead of time. If a customer really don’t know enough or care enough about tires to wants to browse, no problem; there are plenty of properly make informed tire selections. As we know, selecting the displayed products, and people do spend extended time. right tire is about much more than matching a tire size to On the other hand, there are plenty of trained and engaged a vehicle’s make, model and year via a series of drop-down store associates ready and willing to help at a moment’s boxes on a website. It’s easy for a consumer to find their notice, and each associate is able to complete a transaction tire size online; after that, selecting the right tire is a bit so there’s no waiting in a checkout line. Apple has anticipated more challenging. and executed these details because retail is detail. Let me give you an example of a lack of detail common to many tire store websites. In doing my research, I was visiting a tire website and found it difficult to locate the “Search by Tire” interface. It was hard to find because it was below the fold and I had to scan down. On most tire websites, the “Search by Tire” interface is in your face. In my opinion, neither is ideal. I think a home page should say “hello” before it starts questioning you. Isn’t that what you do at the counter when a customer walks in? A small detail. On the website, I entered a 2006 Honda Accord EX four cylinder, and up popped 31 different possible options for tire size 205/60R16. Who offers 31 tires at the retail sales counter? Nobody I’ve ever seen. The search returned 13 different brands, 38% of which would be considered Tier 1 brands. Of the 31 individual options, 23 were Tier 1 tires. Why would any website return six Bridgestone options? Counter salespeople play a vital role in retail — they “Wayne, what’s the problem?” you might ask. I’ll tell match the right products with the right people. you the problem. The customer is driving an 11-year-old Before I further my point, let me share a quote made entry-level Honda Accord. Who would realistically offer in 2006 by Ron Johnson, the man in charge of opening top-of-the-line tires from Michelin, Goodyear, Bridgestone, the first Apple stores along with Steve Jobs. Johnson is Pirelli and Continental to the owner of an 11-year-old car? quoted as saying, “The reason Apple is really good, I think, Why would a store offer tires online that they are unlikely and the reason their stores succeeded, is not just ’cause to offer at the counter? They were offered in the wrong we know the big idea, but we have a real passion for the order for an 11-year-old car. littlest detail. It’s legendary in our products. We have the Retail is becoming more detailed, and we are going to same passion for detail in retail.” look into problems and solutions in more detail in future I’ve heard it said a hundred times, retail is detail. I articles. ■ couldn’t agree more. Counter intelligence is all about creating customer confidence at the sales counter where Wayne Williams is president of ExSell Marketing Inc. in La it matters most. The sales counter is fraught with details. Habra, Calif. He can be reached at exsellmkting@gmail.com.

MTD September 2017

European notebook

A new ‘groundbreaking’ development in tire tread measurement TreadReader looks to be adaptable and efficient

ll over the world, making sure that vemobile phone or PC through a special TreadReader hicles maintain a legal limit in tire tread app making the system completely versatile in continues to be a constant problem, any tire inspection environment. The app easily with tire dealers taking valuable time to measure connects to the scanner through Wi-Fi to produce customers’ tires. In Europe there is an ongoing a complete customer report showing vehicle crusade to find a piece of equipment which is light identification, 3D tire scans with color-coded and easy to use that ensures a swift turnaround tread warnings and error alarms for every axle of tire checks in dealerships and garages. and tire position. I have followed this project with interest for In fact, this new TreadReader scanner has quite a while and have seen potentially innovative By John Stone captured the attention and imagination of the products appear to be the answer. But eventually retail tire sector across both the UK and Europe they fail to deliver through one detail or another from of national fast-fit networks, regional dealership groups precision reading to size and weight. and even tire manufacturing companies who operate However, recently I have been researching a totally new retail outlets. and different type of equipment called a TreadReader This is because of the product’s versatile ability to Hand Held Scanner. identify negative issues with customers’ tires along with This new TreadReader scanner device is manufactured being able to state when a tire will need replacing due to by a UK-based company called Sigmavision. Very quickly worn tread depth (in due course). It has also been stated this innovative piece of tire technology is gathering interest that using a scanner effectively protects a technician from across Europe. making manual visual errors. So just what makes the TreadReader Hand Held ScanSigmavision also offers an alternative TreadReader ner so different? Well, it seems that built-in technology product — the Drive Over Ramp which is a fully automated overcomes the limitations of traditional point gauges measurement system for passenger cars and light commercial and the measurement errors normally associated with vehicles with laser sensors located in a surface-mounted ramp. such optical devices and it performs particularly well on The tire then passes over a pressure switch that triggers the dirty and wet tires. measurement of the tire patch at a width of approximately It also incorporates an impressive 3D laser scanner that 50 mm and around 300,000 data points on the tire patch to ensure accurate and repeatable measurements. As I write this article there are still an estimated 30 million illegal tires being driven on European roads. When you couple this alarming fact with a proven high percentage of tires that come into tire dealers for replacement which are already illegal, it goes without saying that badly worn tires continue to be a very serious problem. Any new, innovative product that helps tire technicians to easily check tread depths on customers’ cars is always going to be enthusiastically received by the industry. 3D scans of a tire’s tread TreadReader Drive Over Ramp Not all new products live up to their initial marketing can be viewed on a tablet, uses laser sensors to take credentials, but in my opinion this new TreadReader mobile phone or PC through measurements of footprints of scanner has already established an impressive reputation a special TreadReader app. passenger and light truck tires. for adaptability and efficiency. It seems to be destined covers the full tire width as well as 50 mm around the to become popular in tire outlets and workshops in the circumference that additionally highlights any uneven or future. ■ edge wear which could indicate wheel misalignment or worn suspension. An intensive 3D scan is taken of each John Stone has been working within the global tire industry tire from 320,000 measurement points with an accuracy of for the past 26 years. In 2004 he launched his own consulting 0.2 mm or 0.008 inches and advanced software algorithms company, Sapphire Media Services, which caters to business give detailed color-coded three-dimensional tire tread media clients around the globe. Stone also writes for tire and images complete clarity. automotive-related publications in Europe, South Africa 3D scans of a tire’s tread can also be viewed on a tablet, and Asia.

MTD September 2017

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Business insight

How to protect your business from government fines The good news: It doesn’t take a lot to stay in compliance

t was widely believed that when the Republi2) Non-salaried employees must use a clock to cans took control of the federal government in record their hours, and be paid the proper overtime November that small businesses could breathe premium, and this includes overtime pay on bonuses a sigh of relief. The reason is that traditionally, and commissions. This is an area of frequent fines. Republicans are “more friendly” toward business. If an hourly person is paid a bonus, spiff or Lower taxes, less regulation, few new rules. otherwise, they must be paid a “premium” on However, we currently do not live in traditional that money as per current federal regulations, times. Here is why: The federal government is every week. The table to make those calculations terribly in debt, and they struggle with raising is available on the DOL’s website. taxes on the general public, as that has largely By Dennis McCarron been taboo toward getting re-elected. So without FICTION: My employees are happy, no one raising taxes, the government has little recourse. It’s time would turn me in. to go after businesses. FACT: If you want to roll the dice, that is your call. It is, Sure, there will be few new rules. Previously, the threat of after all, your business. Keep in mind, though, that an auditor, new overtime rules was on the horizon and believed to be who happens to stop by and wants to snoop around, will a done deal, but the passage of the rule was put on ice. So pull your employees into an office one by one, and generally why sound the alarm? Because the Department of Labor intimidate them into finding something. And then, if that (DOL) has described the tire and automotive industry as junior auditor decides that your actions are “negligent,” he “easy pickings” for violations. And a lot of junior auditors can then go back four years and calculate all lost wages, on were just released throughout the country looking to top of fines. I wouldn’t roll those dice. See aforementioned become senior auditors. And the only way to become a “easy pickings” comment. senior auditor is to fine, fine, fine. The industry is already being hit, with dealers across the FICTION: I pay my employees well, I don’t have anything country crying foul; over-zealous auditors are hitting hard to worry about. and creating revenue for the government. It is not necessary FACT: It’s not about how much you pay them (that was for a complaint to be filed for an auditor to visit you, they the rule that was frozen). It’s about how they are paid, and just need to be in your neighborhood. if the rules of managing and overtime are applied correctly. Let’s take a quick look at what is fact, what is fiction, and If you aren’t doing those two things correctly, be prepared what you need to do to protect your business. for a stiff fine, penalties and payment of back wages. FICTION: Republicans are in charge, I’m good! FACT: The government needs revenue and is actively enforcing current rules to maximize and generate funds. FICTION: The new rules everyone talked about last year didn’t go into effect, I’m safe! FACT: We need to clearly identify what was shelved and what is current. What was shelved was the increase in managerial base pay to $48,000. Current rules, which are widely violated across many industries, are being heavily enforced. What are the current DOL rules regarding overtime and salary pay? 1) Only one salaried person can be in charge (with the ability to hire and fire personnel) per small location. A very large tire shop can argue the need for two, but it’s likely to lose that argument. The salaried person must have autonomous ability; in other words, they must be able to make independent decisions. Many managers who work for an owner do not pass the basic test of hiring and firing.

I am sorry to be the bearer of bad news, but what I have read and heard from the industry, this is a real challenge. The good news is that it doesn’t take a whole lot to get in compliance. First, make sure there is only one salaried employee per location who has the ability to hire and fire independently. Second, make sure that hourly employees clock in and out regularly, accurately, and are paid OT premiums on their bonuses and spiffs. Of course, this is a limited column, so I can’t get into minutia of details for hundreds of scenarios. This is meant as a general overview of the industry “as is.” If you believe that you may not be in compliance, I suggest talking to an expert (SESCO is the company my 20 Groups are referred to) and find out how to get there. ■

Dennis McCarron is executive director of Dealer Strategic Planning Inc., a company that manages multiple tire dealer 20 Groups in the U.S. (www.dsp-20group.com). To contact McCarron, email him at dennis@dsp-20group.com.

MTD September 2017

Focus on industry

Tire brand strategy TBC says it can compete at ‘every price position’ By Bob Ulrich

BC Corp. was built on private brand tire sales and exclusivity. “After more than 60 years as a leader in the industry, the underlying foundation and philosophies on which TBC was built still hold true,” says Erik Olsen, chairman, CEO and president. However, the company has been admittedly “quiet” the last few years, only recently becoming aggressive in the aftermarket once again. “We were assessing our programs and products,” says Marty Krcelic, executive vice president of the TBC Wholesale Group. “We truly believe some of the current changes we have made in some categories are game changers. Advertising those products will help elevate TBC not only in our current customers’ minds, but also in potential customers’ minds.” Those changes include an increased focus on the Sumitomo flagship brand. The company also has been in an expansion mode, adding NTB stores in several states. Modern Tire Dealer talked with Krcelic and Jon Vance, vice president of product marketing for TBC Brands, a division within TBC Wholesale, about brand strategy. MTD: You appear to be aggressively marketing your core consumer tire brands. How would you break down your brand portfolio? Vance: Our passenger and light truck product screen is intended to occupy every price position, and across every market segment. At every spot in the wholesale distribution channel below the OE manufacturers, we have a product under our portfolio of brands that offers a product solution in that big space. We have four proprietary or TBC-controlled brands: Multi-Mile, Eldorado, Delta and Vanderbilt, which tie back to the historical sales and marketing mission of TBC Wholesale selling private brands, if you want to call them that. We call them core or control brands or exclusive brands. But then we also have exclusive marketing rights to three manufacturers’ brands: Sumitomo, Sailun and our most recent edition, Crosswind. And depending on the specific product group within that brand portfolio, we occupy various positions and various pricing levels to target various competitive sets with an assortment of product grouping.

MTD: In what tier do your flagship and proprietary brands compete? Vance: If you’re a Sumitomo brand customer and utilizing the full scope of the Sumitomo brand portfolio, you would use all of Sumitomo’s top-tier product offerings to occupy that “top-tier” or “best” selloff position below the major Tier 1 OE brands, and serve as a true first or early replacement option versus these brands as well as competing with Tier 2 brands. With Multi-Mile, Vanderbilt, Delta and Eldorado we have “good,”

“better”and “and “best” product offerings that compete effectively in the mid-tier and value market space. For example, our best Multi-Mile offering in the performance touring category is the all-new Supreme Tour, which offers our most progressive and expansive size selection as well as our most comprehensive warranties. We would then target the value-tier or “better” product segment with the Matrix Tour, also a Multi-Mile brand. And of course we offer opening price point product lines as part of these branded programs as well. We market each product line in the Multi-Mile, Eldorado, Vanderbilt and Delta brands at different price positions, allowing the dealer to target multiple competitive steps. Krcelic: TBC’s product offerings have been consistent and reliable. Multi-Mile has been around over 55 years. We may change manufacturers who manufacture portions of a line to make sure we’re competitive in the products we need, but we keep the value of the brands constant. And market exclusivity gives our dealers the ability to extract potentially higher sales dollars and profitability against the retailer that changes brands every six months or year. That is why Delta was such a good fit for us.

Jon Vance, left, and Marty Krcelic run TBC Brands. “TBC’s philosophy is always to support the independent tire dealer, and to give them a semi-exclusive or exclusive program in the marketplace,” says Krcelic.

Vance: We are very interested in limiting the amount of churn and turnover in our product offering at that opening price point because we’re really seeking to anchor consistency and stability for our distributors at every step in our offering under our various family names. We’re not seeking stability at the top end while allowing the churn at the bottom to be price-driven. The reason consistency and equivalency in programs and across all our brands is so important is that TBC Brands sells to large-scale operators. They are some of the largest, most respected, most well-known regional wholesalers in the industry, as well as some of the largest retailers in the country. These organizations have to transact on large, consistent scales or they face disruptions they’d rather not face. ■

MTD September 2017

Focus on industry

TIA to celebrate 20th anniversary of its Global Tire Expo Event to include educational sessions on today’s hot topics By Lori L. Mavrigian

he Tire Industry Association (TIA) is holding its 20th Global Tire Expo – Powered by TIA this year, again as part of the Specialty Equipment Market Association (SEMA) Show. It will take place at the Las Vegas Convention Center from Tuesday through Friday, Oct. 31 – Nov. 3. TIA will be hosting its pre-show special events including a cocktail hour, the Tire Industry Honors awards ceremony, and the TIA welcome reception on Monday, Oct. 30. “The Tire Industry Association is excited to join SEMA for the 20th anniversary of the Global Tire Expo (GTE) in Las Vegas,” says Roy Littlefield, executive vice president, TIA. “The staff at TIA is looking forward to introducing some exciting new

educational session this year that touch on important topics from addressing the biggest challenges for TIA expects there will be more than technicians to driving 2,400 companies exhibiting at this the millennial con- year’s Global Tire Expo and SEMA and attendance is expected to sumer to your business. Show, top last year’s 175,000. “We also invite participants to join our 2017 Legislative Review that will address the White House administration’s impact on the current state of the tire industry,” Littlefield adds. “We hope that everyone will take advantage of all the resources and opportunities

Automotive Aftermarket Industry Week: an automotive extravaganza The Tire Industry Association’s Global Tire Expo and the Specialty Equipment Market Association (SEMA) Show held at the Las Vegas Convention Center are both part of the Automotive Aftermarket Industry Week (AAIW) running Oct. 31 -Nov. 3.

Completing the all-things automotive extravaganza is the Automotive Aftermarket Products Expo (AAPEX) held at the Sands Expo in Las Vegas Oct. 31 - Nov. 2.

www.moderntiredealer.com

AAPEX 2017 is bringing experts to discuss automotive technology and the biggest opportunities and challenges it presents for auto repair shops. Several AAPEX programs will address and spotlight automotive technology, including the new Mobility Park, the new Technology Intersection, AAPEXedu sessions, Let’s Tech presentations and a Service Professionals Summit. Joe Register, director of emerging technologies for the Auto Care Association, will be among the experts on hand during AAPEXedu sessions. Register says, “One of the biggest opportunities is replacement and calibration services for advanced driver assistance systems (ADAS) devices, such as LIDAR, radar and image processing, which offer new revenue opportunities for progressive repair shops, provided they have the right equipment and properly trained technicians.” He adds, “A real game changer is the possibility of remote diagnosis enabled by vehicle telematics, which has the potential to move the industry

from scheduled routine maintenance services, to predictive maintenance based on information obtained from on-board fault detection and isolation (FDI) systems.” Brian Daugherty, chief technology officer, Motor & Equipment Manufacturers Association (MEMA), also will be among the expert speakers at AAPEX 2017. He says, “One exciting opportunity on the horizon is vehicle-to-vehicle communications systems — also known as V2V systems. “The National Highway Traffic Safety Administration has proposed that V2V safety warning systems be required on all new light vehicles. If that rule making is finalized, V2V will quickly become available in the aftermarket as well. “These systems will require wiring, GPS and V2V antennas, Electronic Control Units, and display screens. Installing and maintaining these systems will become a rapidly growing business opportunity for aftermarket shops and repair facilities.” For more information on AAPEX 2017, see www.aapexshow.com.

Focus on industry that GTE and TIA has to offer, and be sure to visit our booth #40069.” Here is a schedule of events. MONDAY, OCTOBER 30 8 a.m. – 8:30 a.m. TIA board meeting continental breakfast: Bally’s Las Vegas Hotel & Casino 8:30 a.m. – 12 p.m. TIA board of directors meeting: Bally’s 8 a.m. – 2 p.m. Tread Rubber & Tire Repair Materials Manufacturers Group, (TRMG) meeting: Bally’s 9 a.m. – 4 p.m. TIA executives’ meeting: Bally’s 12 p.m. – 12:30 p.m. Annual membership meeting (open to all members): Bally’s 12:30 p.m. – 2 p.m. TIA appreciation lunch with state and provincial association executives (by invitation only): Bally’s 2:30 p.m. – 5 p.m. Tire Retread Information Bureau (TRIB) meeting: Bally’s 5 p.m. – 6 p.m. Cocktail hour (open to all members): Paris Las Vegas Hotel & Casino 6 p.m. – 8 p.m. Tire Industry Honors awards ceremony: Paris, (ticketed event — open to all members and show attendees) 8 p.m. – 10 p.m. Welcome reception: Paris, (ticketed event — open to all members and show attendees) TUESDAY, OCTOBER 31 9:a.m. – 5 p.m. Global Tire Expo – Powered by TIA/SEMA Show: Las Vegas Convention Center – South Hall 10 a.m. – 11 a.m. TPMS at 10 — Next generation of TPMS tools: Las Vegas Convention Center – South Hall 10 a.m. – 11 a.m. Truck Tires at 10 — Jacking and lifting trucks and trailers: Las Vegas Convention Center – South Hall 12 p.m. – 1:30 p.m. TIA past presidents’ luncheon: Las Vegas Country Club 2 p.m. – 3:30 p.m. Tires at 2 — Successful tire dealers share their secrets: Las Vegas Convention Center – South Hall

WEDNESDAY, NOVEMBER 1 9 a.m. – 5 p.m. Global Tire Expo – Powered by TIA/SEMA Show: Las Vegas Convention Center – South Hall 10 a.m. – 11 a.m. Automotive Tire Service (ATS) at 10 —The art of balancing: Las Vegas Convention Center – South Hall 10 a.m. – 11 a.m. Truck Tires at 10 — Truck tire service after 7 years of CSA: Las Vegas Convention Center – South Hall 12 p.m. – 1 p.m. TIA’s 2017 Legislative Review — How has President Trump and the Republicans in Congress impacted the tire industry?: Las Vegas Convention Center – South Hall 2 p.m. – 3 p.m. Management at 2 — Growing your tire business in the millennial age: Las Vegas Convention Center – South Hall THURSDAY, NOVEMBER 2 9 a.m. – 5 p.m. Global Tire Expo – Powered by TIA/SEMA Show: Las Vegas Convention Center – South Hall FRIDAY, NOVEMBER 3 9 a.m. – 4 p.m. Global Tire Expo – Powered by TIA/SEMA Show: Las Vegas Convention Center – South Hall For more information, see www.tireindustry.org.

Legends to rock the SEMA Show Running concurrently with the GTE is the SEMA Show, which drew 70,000 domestic and international buyers in 2016. It will offer displays in 12 sections and have a New Products Showcase featuring 3,000 newly introduced parts, tools and components. It also will have educational seminars, product demonstrations, special events and networking opportunities. Plus, SEMA has lined up legendary musicians Jimmie Vaughan, Billy F Gibbons, Jeff Beck and Michael Anthony to be the featured entertainment at the SEMA Industry Awards Banquet, Thursday, Nov. 2. Tickets are available exclusively to SEMA show goers at www.semashow.com/awards-banquet. “This is an extremely exciting opportunity to see four legendary musicians who are all ‘car guys’ play together at the SEMA Industry Awards Banquet,” says Chris Kersting, SEMA president and CEO. The banquet includes the announcement of the SEMA Person of the Year, Manufacturer of the Year, WD of the Year, Manufacturers’ Rep Agency of the Year, and Gen III of the Year and tributes to this year’s SEMA Hall of Fame inductees: GiGi Carleton, Doug Evans and Barry Meguiar. Additional details are available at www.semashow.com. Updates on the GTE, the SEMA Show and the Automotive Aftermarket Products Expo (AAPEX) will be in our October issue. ■

MTD September 2017

TPMS

Toyota Highlander 2008-2017 The compact spare tire is not equipped with the tire pressure warning valve and transmitter SUBJECT VEHICLES: 2008–2017 Toyota Highlander and Highlander HV. RELEARN PROCEDURE? Yes. SPECIAL TOOLS NEEDED? Yes, a Toyota Techstream.

he tire pressure monitoring system (TPMS) of the 2008–2017 Toyota Highlander and Highlander HV is designed to provide warning when the tire inflation pressure of one or more road tires is low. A tire pressure warning valve sub-assembly equipped with tire pressure sensor/ transmitter is installed in each tire and wheel assembly. The sensor measures the air pressure and internal temperature of the tire. These measured values and the transmitter ID are transmitted to the tire pressure monitor antenna and receiver assembly on the body via radio waves. This data is then sent to the tire pressure monitor ECU from the tire pressure monitor receiver. If the transmitter ID has been previously registered, the ECU compares the measured air pressure value and the standard value. When the value is less than the standard value registered in the tire pressure monitor ECU, the tire pressure warning light on the instrument cluster will turn on. In order to reset the warning threshold in response to changes in tire pressure values due to tire type and installation position changes, a tire pressure warning reset switch is used. This switch is used to initialize the system after certain repair procedures. Under the following conditions, the system may not function properly:

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• Facilities or devices that use similar radio frequencies are located in the vicinity of the vehicle. • A radio device of similar frequency is used in the vehicle. • A film or window tint that may interfere with radio waves is attached on the glass. • A large amount of snow or ice is stuck to the vehicle, especially onto the wheels and around the wheel wells. • Use of non-original wheels may result in the system failure or air-leak. • Tire chains are used. • Snow tires or tire chains are used. • If the spare tire is in a location subject to poor radio wave reception. • If a large metallic object which can interfere with signal reception is put in the trunk. • When the full-size spare tire is not within the receivable range of the electric wave, a signal may not be received because the full-size spare tire is fixed. Accordingly, the system may not function properly. If there is a possibility that the tire pressure warning system does not receive a signal from the full-size spare tire, rotate the tire 90 to 270 degrees. • If the system was initialized with tire pressures which were not at the specified values.

Tire pressure monitoring system warning light NOTE: The tire pressure warning light may turn on due to natural causes such as natural air leaks or tire pressure changes caused by temperature. In this case, adjusting the tire pressure will turn off the warning light.

TPMS NOTE: If the warning light turned on due to very low outside temperatures that cause decreases in tire pressure (such as in winter), adjust pressure to a higher pressure suitable to cold conditions. Tire pressure decreases by about 1.45 psi (10 kPa) for every 18 degrees Fahrenheit (10 degrees Celsius) drop in ambient temperature. NOTE: The compact spare tire is not equipped with the tire pressure warning valve and transmitter. If a tire goes flat, the warning light will not turn off when the flat tire is replaced with the spare. When the standard tire is repaired, inflated to the specified level and returned to the vehicle, the warning light will go out. When the tire pressure warning light does not go off, or when it comes on during driving, check tire pressure. If the tire pressure warning light comes on after adjusting the tire pressure, the tire may have a slow air leak. If the warning light is still on even though the tire pressure is correctly adjusted, the tire could be punctured. Repair as necessary. If the warning light turns on within several hours after adjusting the tire pressure, the tire may have a slow air leak. Repair as necessary. If the warning light is on or blinks after all above situations have been investigated, there is a malfunction in the TPMS. See appropriate manufacturer service information.

Initializing the tire pressure monitoring system

The system will need to be initialized when tires are replaced with tires of different pressures, or the tire pressure sensor and/ or tire pressure monitor ECU are replaced. See “Initializing tire pressure monitoring system.” When a tire pressure sensor and/or tire pressure monitor ECU is replaced, the sensor ID must be memorized by the tire pressure monitor ECU prior to system initialization. See “Tire pressure sensor registration.” When the tire pressure warning light does not go off, or when it comes on during driving, check tire pressure. Adjust tire pressures to specification. Check that the warning light goes out after a few minutes. NOTE: If the negative battery terminal is disconnected, initialize the following power systems after the terminal is

CAUTION: Set tire pressure within the specified range before initializing. DO NOT push the reset switch without adjusting tire inflation pressure of all tires (including the spare tire). Otherwise, the low tire pressure warning light may not come on even if the tire pressure is low, or it may come on when the tire inflation pressure is actually normal. If you push the reset switch while the vehicle is moving, initialization is not performed. NOTE: The system will need to be initialized when the tires are replaced with tires of different pressures; or the tire pressure sensor and/or tire pressure monitor ECU are replaced. Set tire pressure within the specified range before initializing. When a tire pressure sensor and/or tire pressure monitor ECU is replaced, the sensor ID must be memorized (registered) by the tire pressure monitor ECU prior to system initialization. See “Tire pressure sensor registration.” NOTE: Perform the tire pressure adjustment after the tires have sufficiently cooled down. NOTE: The initialization is normally completed within two to three minutes. If the initialization has not been completed successfully, DTC C2177/77 will be set after approximately 20 minutes. Initialization can be terminated by connecting terminals 13 (TC) and 4 (CG) of the DLC3. During initialization, the tire pressure sensor measures the inflation pressure of the tires, and registers the signals that are transmitted into the tire pressure monitor ECU at a frequency of one per minute. The initialization process is completed when the signals from the tires (including the spare tire) have been received. The initialization process is canceled if the ignition switch is turned to the OFF position prior to the completion of initialization. To restart initialization, the tire pressure warning reset switch must be pressed again. 1) Set the tires to the specified (cold) pressures as indicated

Figure 1: Locating the TPMS reset switch (2008-13).

Figure 2: Locating the TPMS reset switch (2014 and later).

Reset procedures

reconnected: window control system, back door system, sliding door system and the moon roof. Refer to the owner’s manual or appropriate manufacturer service information.

MTD September 2017

on the tire and loading information label. Monitor / Data List. NOTE: It may 2) Turn the ignition switch ON. take about two or three minutes 3) Press and hold the tire pressure warning until the values are displayed. reset switch for three seconds or more If the values are not displayed after a until the tire pressure warning light blinks few minutes, perform troubleshootthree times (one second on, one second ing according to the inspection off). See Figures 1 or 2. procedure for DTCs C2121/21 4) Turn the ignition switch OFF. to C2125/25. 5) Connect the Techstream to the DLC3. If the IDs have not been reg6) Turn the ignition switch ON. istered, DTC C2171/71 will be 7) Turn the Techstream ON. stored in the tire pressure warning 8) Check the data list. Enter the following ECU after three minutes or more. menus: Chassis / Tire Pressure Monitor If normal pressure values are dis/ Data List. played, the IDs have been registered NOTE: It may take about two or three Figure 3: Locating the tire pressure sensor correctly. If the tire pressure values minutes until the pressure values are transmitter ID. are not displayed after a few minutes, displayed. If the values are not displayed the IDs may be incorrect or the after a few minutes, perform troubleshooting according to the system may have a malfunction. inspection procedure for DTCs C2121/21 to C2125/25. If After all IDs are registered, DTC C2126/26 (Transmitter the initialization has not been completed successfully, DTC ID not Received in Main Mode) is stored in the tire pressure C2177/77 will be set after the vehicle is driven for 20 minutes warning ECU and the tire pressure warning light blinks for or more. one minute and then comes on. 9) Initialization has been completed when the expected tire When the tire pressure warning ECU successfully receives pressure data for all wheels is on the Techstream display. radio waves from all the transmitters whose IDs are stored in the ECU, DTC C2126/26 is deleted and the tire pressure Tire pressure sensor registration warning light goes off. NOTE: When a tire pressure sensor and/or tire pressure 9) Confirm that the expected tire pressure data of all tires are monitor ECU are replaced, the sensor ID must be memorized displayed on the screen. (registered) by the tire pressure monitor ECU prior to system initialization. To perform this procedure, the Techstream must be used. It is not necessary to register the sensor ID(s) when only a tire rotation is performed. NOTE: Before beginning the registration process on vehicles where tire pressure sensors have not been replaced, retrieve sensor transmitter ID(s) using Techstream or by reading the ID on the tire pressure sensor. If the sensor is being replaced with a new one, make a note of the seven-digit number (transmitter ID) before installation, as it cannot be seen after the sensor is installed (see Figure 4). 1) Set the tire pressure of all the wheels to the pressure specified on the tire and loading information label. 2) With the ignition switch OFF, connect the Techstream to DLC3. 3) Turn the ignition switch ON. Turn the Techstream ON. 4) To perform the transmitter ID registration, enter the following menus: Chassis / Tire Pressure Monitor / Utility / ID Registration. 5) Input the transmitter IDs (ID1 to ID5) using the Techstream and transmit them to the tire pressure warning ECU. NOTE: The tire pressure warning light will continue to blink until the tire pressure warning ECU receives the input ID signals. The previously registered IDs will be deleted from the memory when the registration is completed. Registration can begin while in initialization mode. However, the initialization mode will be cancelled when the registration mode is started. 6) The “ID Registration is Complete” is displayed on the Techstream display. 7) Confirm ID registration through data from all wheels being displayed on the Techstream. 8) Enter the menu items in this order: Chassis / Tire Pressure

SCHRADER’S SINGLE SKU SOLUTION TO TPMS

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TPMS Demounting/mounting procedures CAUTION: The tire should be demounted from the wheel using the tire changer manufacturer’s instructions. Use the following information to avoid damage during the demounting/ mounting procedures. NOTE: The system will need to be initialized when tires are replaced with tires of different pressures, and the tire pressure sensor and/or tire pressure monitor ECU are replaced. When a tire pressure sensor and/or tire pressure monitor ECU are replaced, the sensor ID must be memorized (registered) by the tire pressure monitor ECU prior to system initialization. See “Reset procedures.” NOTE: If the negative battery terminal is disconnected, initialize the following power systems after the terminal is reconnected: window control system, back door system, sliding door system and the moon roof. Refer to owner’s manual or appropriate manufacturer service information.

Tire pressure sensor CAUTION: The use of tire sealants is strictly prohibited for vehicles equipped with a TPMS. Tire sealants can clog tire pressure sensors. CAUTION: Be sure to reinstall tire valve caps, or dirt or moisture could get into the valve core and cause air leakage. Use only the original valve cap. If any other valve cap is used, it may corrode or melt, and become extremely difficult to remove. NOTE: The average life of the grommet of the tire pressure sensor is approximately five years, at which time it must be replaced. If the valve is leaking air, but it is less than five years old and the grommets are in good condition, retighten the valve nut to 35 in.-lbs. (4 N.m). Whenever the tires must be replaced, replace grommets for tire pressure sensors as well. NOTE: If the tire pressure valve sub-assembly is going to be replaced, make a note of the seven-digit number (transmitter ID) before installation, as it cannot be seen after sensor is installed (see Figure Fig. 4). Whenever a new sensor is installed, it will need to be registered in the tire pressure monitor ECU. 1) When replacing a wheel or tire, tire pressure sensors must be set up in one of the following ways:

• Remove the sensor from the old wheel and install it in the new wheel. Keep the same wheel with tire pressure sensor, and replace only the tire.

Figure 4: An exploded view of the tire pressure sensor.

• Use a new wheel and sensor (the new sensor must be registered after installation).

2) Remove the wheel. Remove the cap and valve core, and release air from the tire (see Figure 4). NOTE: Keep the removed cap, valve core, nut and washer. 3) After ensuring that air is sufficiently released, remove the nut and washer that is used to hold the tire pressure sensor and drop the sensor inside the tire. NOTE: Be careful not to damage the tire pressure sensor due to interference between the sensor and tire bead. 4) After dropping the tire pressure sensor into the tire, disengage the bead using the shoe of the tire remover (see Figure 5). 5) Remove the bead on the upper side following the usual procedure 6) Take out the sensor from the tire, and remove the bead on the lower side following the Figure 5: Disengaging the bead using a tire remover. usual procedure. NOTE: Check that no cracks or damage are visible on the grommet. If so, replace the grommet together with the washer and nut. Always replace the grommet and washer when replacing the warning valve and transmitter. 7) Remove the inner grommet from the tire pressure sensor, or retrieve it from the wheel, if necessary. NOTE: The tire pressure sensor is powered by a lithium battery. When a sensor is defective, remove the battery from the sensor and dispose of properly.

Installation 1) Insert the tire pressure monitor valve into the valve installation hole. Insert from the inside of the rim so that the print surface can be seen (see Figure 3). Check for the following:

• Check that there is no visible deformation, damage, or other abnormalities on the tire pressure warning valve and transmitter. • Check that there is no foreign matter on the inner grommet and around the rim hole. • If the tire pressure warning valve and transmitter is installed upside down, it may be damaged by the tire bead when the tire is installed, or may fail to transmit signals when the vehicle is driven at high speeds. • If installing a new tire pressure warning valve and transmitter, write down the ID number before installation (see Figure 3). It will be necessary to register the ID in the ECU after installation. 2)Install the washer on the tire pressure monitor valve from the rim side, and tighten the nut to 35 in.-lbs. (4 N.m). See Figure 6. No further tightening is required once the nut is tightened to the specified torque.

MTD September 2017

S H O C KS & S T R U T S

Check that there is no foreign matter on the washer and nut. If the tire and tire pressure warning valve and transmitter have been removed, check that there is no damage or cuts visible, and no foreign matter, such as mud, dirt or sand, is attached to the grommet. Replace the grommet with a new one if any of the defects mentioned above are found. Check that there is no oil, water or lubricant around the rim hole, tire pressure warning valve and transmitter, washer and nut. Failing to do so may result in improper installation. CAUTION: If the tire pressure warning valve and transmitter is positioned outside this area, it will interfere with the tire bead, and may cause the tire pressure warning valve and transmitter to be damaged. If the use of lubricant is required when installing the bead, do not apply the lubricant directly to the tire pressure warning valve and transmitter. 3) Put the wheel on the mounting machine, and install the lower tire bead. Position the main body of the sensor in the shaded area as shown in Figure 7. 4) Making sure that the tire bead and tool do not interfere with the main body of the sensor and that the sensor is not clamped by the bead, install the upper bead and inflate the tire. 5) After the tire is inflated, the valve nut may be loose. Retighten the nut to the specified torque, Figure 6: Installing the tire pressure sensor. and then check for air leaks with soapy water. 6) Install the tire and wheel assembly on the vehicle. 7) When a new sensor is installed, the ID code will need to be registered. See “Tire pressure sensor registration” under “Reset procedures.” 8) After completing the operation, remove the valve core to rapidly release the air in the tire. Ensure that the tire pressure warning light comes on. If the warning light does not come on, refer to the appropriate manufacturer service information. Re-inflate the tires. 9) If there is an air leakage, Figure 7: Positioning the tire pressure sensor. tighten the tire pressure monitor valve nut to 35 in.-lbs. (4 N.m), and push the valve core two to three times to remove any dirt attached to the valve core. If air continues to leak, replace the grommet, washer and nut. ■ Torque specifications Component Wheel nut Tire pressure sensor nut

Ft.-lbs.(N.m) 76 (103) In.-lbs. (N.m) 35 (4)

Information for this column comes from Mitchell 1’s “Tire Pressure Monitoring Systems Guide” for domestic and import vehicles. Headquartered in Poway, Calif., Mitchell 1 has provided quality repair information solutions to the automotive industry for more than 80 years. For more information, visit www.mitchell1.com. For archived TPMS articles, visit www.moderntiredealer.com.

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Products TBC offers new Multi-Mile Supreme Tour LSX/CSX line The new Multi-Mile Supreme Tour LSX and CSX tires are distributed exclusively by TBC Brands. Produced by Sumitomo Rubber Industries, the Multi-Mile Supreme Tour LSX/CSX is available in 56 T-, H-, V- and W-rated sizes. TBC says the LSX is the perfect choice for drivers of performance-oriented sedans seeking the optimum blend of a smooth and quiet ride with advanced all-season traction and handling. The CSX delivers outstanding all-season capability and is uniquely tuned to meet the durability requirements of later model crossovers and SUVs. TBC BRANDS LLC www.tbcbrands.com/touring-tire

Ford has new line of Motorcraft loaded struts designed for fast, easy installation Ford Motor Co. has introduced Motorcraft loaded struts designed to offer fast, easy installation and a low competitive price to the marketplace. Made with 98% original equipment components, the new struts are priced the same or lower than major competitors. The company says that with the spring already in place, they’re easy to install while providing OE-level quality, fit and performance. In addition, the struts are the only OE-spec loaded struts available for Ford and Lincoln vehicles. Initial applications include: Mustang (2005-2010); Escape/Mariner (2001-2012); F-150 (2004-2013); Crown Victoria/ Grand Marquis (2003-2011); and Lincoln Town Car (2003-2011). FORD MOTOR CO. www.fordparts.com/motorcraftloadedstruts

All-natural Eco-Absorb is designed to safely clean shop spills Eco-Absorb absorbent is made from an all-natural, non-toxic earth compound. Eco-Absorbent Technologies Inc. says spill cleanup can be done safely and quickly so work can resume with no hazardous dust, slick residue, or lifting of heavy bagged absorbents. Eco-Absorb can be used safely without worry of inhalation, and will remain dust-free even when exposed to the open air indefinitely. Eco-Absorb weighs one-third less than traditional clay products but absorbs up to 15 times more, according to the company. Eco-Absorb indicates a substance is hazardous by changing color. ECO-ABSORBENT TECHNOLOGIES INC. www.eco-absorb.com

Innova unveils CarScan Pro line Innova Electronics has added the CarScan Pro line to its portfolio of on-board diagnostic (OBD) tools. The line includes the entry-level 5023 CarScan Code Reader, the 5100 CarScan ABS/SRS, and the fully featured 5160 CarScan Pro. Each of the Innova CarScan tools includes access to RepairSolutions Pro through a free one- to 12-month trial subscription. The higherend 5100 and 5160 tools also include Bluetooth connectivity to conveniently communicate with the RepairSolutions Pro mobile app (iOS and Android). RepairSolutions Pro is a diagnostic solutions resource created to help professionals and shops diagnose and repair today’s complex vehicles by providing verified fixes, difficulty ratings, technical service bulletins, step-by-step instructions, a resource to connect with fellow pros, and more. INNOVA ELECTRONICS CORP. www.pro.innova.com

Yokohama adds to Geolandar line Yokohama Tire’s new Geolandar M/T G003 features aggressive sidewall styling, Geo-Shield technology and a special triplepolymer compound. The M/T G003 is initially available in 37 sizes, ranging from 15- to 20inch rim diameters. The company says the new Geo-Shield construction incorporates multiple sidewall plies, steel belts, a full nylon cap and a high turn-up carcass to create a stronger tire that provides strength and protection, even in the harshest off-road conditions. The longer-lasting tread is the result of a new, high-density compound and a wider, flatter profile. YOKOHAMA TIRE CORP. www.yokohamatire.com

JS Products adds new Steelman wheel stud cleaner set JS Products’ Steelman Wheel Stud Cleaner Set can be used by hand or with a cordless drill using the quickchuck adapter. The set is designed to provide a time-saving solution to an everyday shop task. The Steelman Wheel Stud Cleaner Set comes in a blow-molded case. Six quick-change brushes are supplied and fit both SAE and metric studs. The company says the larger brush sizes make this set perfect for commercial vehicles. Replacement brushes are available individually in all sizes. JS PRODUCTS INC. www.steelmantools.com

MTD September 2017

SEMASHOW.COM

DON’T MISS THE INDUSTRY EVENT OF THE YEAR

TUESDAY, OCTOBER 31–FRIDAY, NOVEMBER 3, 2017 • LAS VEGAS CONVENTION CENTER, NEVADA

Ad index When you contact one of our advertisers please be sure to mention you saw their ad in Modern Tire Dealer Advertiser 31 Incorporated Aftermarket Auto Parts Alliance Inc. Autel Diagnostics Bartec USA BKT USA Inc. Bridgestone Tire Continental Gold Retailer Program Double Coin Tires Falken Tires Federated Auto Parts GroundSpeed Tires Hankook Tire America Corporation Hunter Engineering Company K & M Tire Inc. Kenda Tire USA Kumho Tire USA Inc. KYB Americas Corporation Linglong Americas Inc. Monroe Shocks & Struts Nexen Tire America Inc. Nitto Tire U.S.A. Inc. Omnicraft Auto Parts Rotary Lift Schrader Performance Sensors SEMA Show Sentury Tire Americas STEELMAN Select TPMS, by JS Products Sumitomo Tire Sumitomo Tire TBC Brands Travel Centers of America ZC Rubber America Inc.

Page 13 83 33 87 11 27 31 25 21 95 35 15 26 81 IBC 19 29 7 17, 91 IFC OBC 37 23 89 93 39 36 5 41 79 9 32

Website www.31inc.com www.alliance1.com www.autel.com www.bartecusa.com www.bkt-tires.com www.bridgestonetire.com www.contilink.com www.doublecointires.com www.falkentire.com www.federatedautogroup.com www.sentury.tires www.hankooktireusa.com www.hunter.com/mtd www.kmtire.com automotive.kendatire.com www.kumhotireusa.com www.kyb.com www.linglongtire.com www.monroe.com www.nexentireusa.com www.nittotire.com www.omnicraftautoparts.com www.rotarywheelservice.com/mtd www.schraderinternational.com www.SEMAshow.com www.senturytireusa.com www.steelmanselecttpms.com www.sumitomotire.com www.sumitomotrucktires.com www.gosailun.com www.ta-petro.com www.arisuntires.com

Tire Dealer of the Year Ad index

Advertiser

Page Website

Advertiser

Page Website

Advance Auto Parts

shop.advanceautoparts. com/home

Mighty Auto Parts

www.mightyautoparts. com

Bartec USA

www.bartecusa.com

Mohawk Rubber Sales

www.mohawkrubber.com

Blacklion Tires

www.blackliontires.com

Myers Tire Supply

www.myerstiresupply.com

Bridgestone Affiliated Retailer Network

www.affiliatedretailer.net

NAPA Auto Parts

www.napaonline.com

Nokian Tyres Inc.

www.nokiantires.com

Cooper Tire & Rubber Company

www.coopertire.com

Pantera Tire

www.panteratire.com

Dick Cepek Tires and Wheels

www.dickcepek.com

Rubber-Inc.

www.rubber-inc.com

Falken Tires

www.falkentire.com

SURE Tires Inc.

www.summittire.us

First State Community Bank

www.fscb.com

Tire Alliance Groupe

www.tirealliance.com

Hankook Tire America Corporation

www.hankooktireusa.com

Valvoline

www.valvoline.com

Hunter Engineering Company

www.hunter.com

Vee Rubber America Inc.

www.veerubberus.com

MAM Software

www.mamsoftware.com

Yokohama Tire Corporation

www.yokohamatire.com

Michelin North America Inc.

www.michelin.com

MTD September 2017

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Pre-employment drug testing helps prevent problems, dealers say be more of a challenge in the future. This is a tough subject as it affects individuals, families and businesses. We also recently asked, “Do you sell used tires? Do you get a lot of requests for them? What standards do you set for a good used tire that you consider OK to sell?” Here are a couple of responses. 1. We do not sell used tires. Period. End of discussion. 2. We sell used tires if they are three years or newer, with 6/32nd of tread left or more!

What’s on your mind? Our council members also told us what was on their mind.

Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Last month we asked, “Is drug testing part of your hiring process? How much of a problem is drugs in your workplace? If you discover one of your employees has a drug problem, what do you do?” Here are some responses. 1. We drug test all new hires, and randomly test current employees. Our company has a zero tolerance on drugs, but we would be naive to think all employees follow it. If a current employee tests positive he or she is offered a chance to attend a drug counseling program. If they choose not to, they are terminated. If they choose to go they are offered a second chance. 2. Yes, we do drug test. We do not have a substantial drug problem in the work place, we pre-screen potential employees before hiring. We have an outside provider handling drug screening. If an employee tests positive for drugs, the provider communicates with the employee to determine if it is anything that could cause a false positive. We follow their advice with employees and then make a judgment call on rehab or firing. The screening provider helps us to limit our liability.

3. We perform pre-employment drug screens for all new hires. We are fortunate to not have a large drug problem across our state and at our locations. We have a treatment and remediation program in place for employees as/if required. 4. Pre-employment drug testing can help prevent hiring of those who may use drugs. Our company does provide assistance for employees who acknowledge use or a problem. As society seems to be more tolerant of some drugs, it could

Regarding the topic of used tire sales — it is interesting that legislation has been brought up in several states over the past couple of quarters concerning used tires sales and liability with little or no success. Jon Shields, Field Sales and Training Carroll Tire Co. Atlanta, Ga.

Recruiting new talent. It seems as though young people aren’t as enthused about cars as they once were and it appears that high schools are ushering all students toward college and away from hands-on type of work. I think many kids today would prefer making much less money at a shopping mall than making more money working as an auto technician or sales person in our industry. We need to stress and to provide quality technical and skilled trade education at the high school level in this country. Tripp Lee, General Manager Frasier Tire Service Inc. Sumter, S.C.

Our biggest concern at this time is the lack of availability of medium truck tires due to the increase in heavy-duty truck production. Jim Whitehead Jr., Owner/Partner Jim Whitehead’s Best One Tire Augusta, Ga.

Join Modern Tire Dealer’s National Advisory Council

Each month, Modern Tire Dealer is guided and influenced by a select group of readers — members of our National Advisory Council. These members’ opinions are the heart of the monthly Your Marketplace column, compiled by industry analyst Nick Mitchell. If you’d like to join this prestigious group, please let us know. We’d love to hear from you. Contact Editor Bob Ulrich at Bob.Ulrich@bobit.com or call (330) 899-2200, ext. 2211.

MTD September 2017

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