TIA providing tire dealers a series of tips for surviving this rough economic climate

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Tire dealers are being offered advice from the Tire Industry Association (TIA) on how to weather the ongoing economic storm:

Know What to Buy – and What Not to. According to TIA president Dan Beach, you should keep inventories low in order to conserve cash, but you should also look at other necessary, yet less critical expenses to see if you can lock in low prices now.

“For example, for a tire dealer, it’s important not to have a buildup of tire inventory in order to keep a solid cash reserve. Yet, for other expenses – such as uniform service – it may make sense to shop around now to lock in a low price, as many vendors are willing to negotiate in an economic climate like this,” says Beach.

Consider Joining a Trade Association. Membership in a trade organization such as TIA can benefit businesspeople on several fronts, Beach notes. Most associations offer their members discounts on vital products and services, such as workers’ compensation and liability insurance, consumer credit cards and business software. In addition, they often provide valuable training and education opportunities to help businesspeople stay competitive, he says.

Don’t Fear Change. “Change” seems to be almost as popular these days as the word “recession,” according to Beach. Follow this trend, he advises. Take a look at existing expenses, such as insurance, uniform service, credit card processing and payroll services. Then, shop around. Businesspeople might be surprised at how much they can save by switching vendors of these services. If nothing else, with the information gathered from shopping around, businesspeople can go to existing vendors and negotiate lower prices.

Don’t Cut Marketing – Increase It. When the economy slows down, the first thing businesspeople often do is to cut their marketing budget for items such as advertising, direct mail pieces and public relations. But, what they are really doing is making it much harder to reach critical customers.

For example, “Many trade publications, Web sites, newspapers and radio and television stations are willing to deal right now when it comes to advertising,” says TIA Director of Marketing Communications Richard Porter. “As business slows down, you need to work harder to reach customers in order to generate sales. Cutting your marketing expenditures only makes that effort much more difficult.”

Invest in Training. With the battle for customer dollars getting even fiercer, businesspeople need every weapon in their arsenal to stay ahead of the competition. One way to achieve this is by investing in training.

“Investing in education for your service teams, as well as your salespeople places a value in front of your customer that many of your competitors may not have,” says Jerry Lott, loss prevention manager at TIA-member GCR Truck Tire Centers in Austin, Texas.

“This same education also places value in you as an employer. In today’s environment, employees tend to look at education as a sign that their company cares about them. On top of that, if you are unfortunately involved in litigation over an injury or other liability, the first thing the plaintiff’s attorney will look at is training,” he points out.

If You Have to Cut, Think Outside the Box. Do you turn the heat down after hours? Does a cleaning company come in every week to clean? Do you have to buy landscaping mulch every other year?

“You might be surprised at how these small, repeatable expenses add up,” says Todd Hart, director of sales, at TIA-member B&J Manufacturing Co. “For example, if you switch to recycled tire mulch for your landscaping, it will last you several years, versus using traditional wood mulch, which has to be replaced every year. While a greater up-front expenditure, the recycled rubber mulch is a maintenance-free solution for many years, saving the labor and materials costs associated with replacing wood mulch every year.”

Listen . . . and Put Two and Two Together. Go beyond just reading and listening to the headlines. See where the trends seem to be going. Also, now more than ever, listen to your customers, Beach advises. For example, if your customers are having an increasingly difficult time trying to afford the products and/or services you offer, they need to find a way to make it easier and more enticing for the customer to buy.

“Learn to put ‘two and two’ together once you know what the trends are,” says Beach. “For example, offering a credit card like CarCareONE, which allows consumers to pay for automotive purchases over 90 days with no interest, can provide customers with the mechanism(s) necessary to go ahead and make the purchase.”

For more information, visit www.tireindustry.org.