"Independent dealers sell more than 50 percent of replacement tires in the United States, and are a vital component of Michelin's business; Michelin will not grow if they do not succeed," says Bob Schaffner, manager of wholesale distribution development.
"Feedback from Alliance Dealers is overwhelmingly positive," he notes, "with 90 percent of AADs who responded to a recent survey indicating that the program has helped them sustain or grow their business."
Now in its fourth year, AAD is helping dealers throughout the nation increase their profits, according to Schaffner. It aims exclusively for Michelin's independent dealers who purchase MAST's car and light truck replacement tires, including the Michelin, BFGoodrich, Uniroyal and associated brands available via the company's distribution network.The program is executed entirely online; e-Statements allow dealers continuous visibility of purchases, goals and program earnings, Schaffner explains. They receive regular electronic direct deposits as goal-attainment rewards, and the company has steadily increased its payouts over previous years.
Dealers also have heightened their use of advertising and marketing funds earned through the program, which supports their efforts for increasing store traffic and their own competitive position with respect to their shoppers.
"This faster, more streamlined payment process frees up dealer cash flow," says Schaffner, "and as a result Michelin has seen remarkable growth in the number of dealers participating in the program since its inception."
He goes on to relate how "we're confident that 2011 will be a growth year – and we'll offer financial incentives to AADs who increase their program level so they can earn even more next year."
For more information, visit www.michelin.com.
