Point S held its 2024 Annual Meeting at Margaritaville Lake Resort in Lake Conroe, TX, where executives highlighted that Point S not only broke new store records previously set in 2022, but added 16 stores above its 2023 goal.

Jim Richards, Point S’s national sales manager, detailed goals met in 2023, including an update on the company’s 500 stores in 50 states within 5 years plan launched at last year’s annual meeting. Before dropping the mic and walking off the stage (that’s not hyperbole, he actually did this), Richards announced the goals hit and records set in 2023.

“We had a record of 28 new locations back in 2022,” Richards continued, “We did slightly better in 2023, adding 69 locations. With only one year down, we already have 336 locations across 31 states, and still have four years to go, how exciting is that?”

Richards said 57% of its new members are A share and 43% are B share, meaning they don’t have to brand themselves with Point S signage but have no voting rights and receive no marketing support from Point S. He said there were also several stores adding a store or multiple locations thanks to “No Trouble to Double,” a Point S program that encourages shop owners with only one or two stores to add another by offering research and financial support.

Regarding growth goals met in 2023, Point S CEO Walter Lybeck said the addition of Maine, Maryland, and Michigan – as well as 69 stores, bringing the total to 336 stores across 31 states – brings him a lot of confidence that Point S will reach its 500 stores in 50 states within 5 years goal.

“To reach our goal, we have to add a net 45 stores per year,” Lybeck said. “We know there’s transition and things happen. We added 69 stores last year, 16 stores ahead of the target. We mean it when we say we’re going to grow. We’re going to make this happen.”

Better together

Lybeck emphasized the importance of Point S dealers sticking to a consistent service strategy by telling the real-life account of Howie Gruben, a customer who faced a wheel issue while driving from Portland, Oregon, to Houston, Texas. Stranded in rural Utah, Gruben spotted a Point S store and sought help. Colby, the store representative, provided immediate assistance even after closing hours. Lybeck highlighted the impact this act of service had on Gruben, turning him into a lifelong customer. Lybeck said it’s stories like this that make Point S dealers “Better together,” asserting that it fosters a sense of community within Point S.

“When we are better together we get better programs,” Lybeck said. “Better together equals world-class technology, better together is great marketing and better together equals economies of scale and better together equals profit for us, which is profit for you.”

Lybeck shifted the discussion to current trends, addressing topics like inflation, the supply chain, and the impact of electrification and technology in the tire industry. He emphasized that, though inflation is a problem for all, there are ways to combat it.

He told dealers to make sure their labor rates are keeping up with increases in wages. If costs go up for dealers, he said they should respond by increasing pricing.

“If you fall behind, you’re going to lose money,” Lybeck said. “The customer expects that price increase right now, trust me. They don’t like them. They hate them, but they expect and understand them.”

As for supply chain challenges, he highlighted problems like manufacturers struggling to produce, freight carriers neglecting container pickups and deliveries, containers going missing in ports and a lack of truck drivers due to strikes from unions.

Despite the challenges, Lybeck acknowledged that these difficulties brought attention to a crucial aspect of their operations: the need for a more flexible and responsive supply chain. In response, he said Point S has undertaken a substantial effort to rebuild its supply chain, including the opening of a new warehouse in Memphis, Tennessee, and the closure, relocation, or expansion of several other warehouses. Through these measures, Lybeck said Point S aims to enhance the efficiency and adaptability of its supply chain, ensuring better responsiveness to market dynamics.

“Our warehouses and our supply chain were not flexible enough. We built it years ago on an old model,” he said. “We needed more capacity, we needed more people and we needed to able to respond faster. We had eight warehouses at the time this year. We either moved, closed or grew in seven. Seven. Imagine taking your entire business and moving it down the street and doing that for seven out of eight of your locations. That is a massive undertaking.

“This year we opened our warehouse in Memphis, Tennessee and in 12 months, Memphis has become either our first- or our second-most profitable, most efficient warehouse in our network.”

Regarding EVs, Lybeck said that EV necessity varies among manufacturers. He said EVs represent 1.1% of vehicles on U.S. roads, with an 8% share of cars sold in the country.

He acknowledged global trends with high EV adoption rates in certain countries like Norway (90%), Sweden (38%), Denmark (45%), Finland (35%), Germany, France, and Switzerland (20-30% each). Despite acknowledging the growth, Lybeck questioned the immediate focus on EVs, suggesting that the critical factor lies in being prepared for more growth in the future, especially around 2027-2030, when many manufacturers say they plan to produce only EVs. He suggested that more manufacturers start seeking a diversified approach, including EVs, hybrids, hydrogen and traditional gas-powered cars, when thinking about the future of transportation.

“If you move 100% of the cars sold to EVs by 2035, which some people believe can happen, 13% of the market in 2035 would be electric,” he said. “So, in my mind, I look at EVs and I say it’s probably not the most important thing you need to be focusing on.”

New marketing initiatives for 2024

Devin Barr, vice president at MBT Marketing, highlighted marketing successes in 2023 and introduced plans for the upcoming year. One key tool he mentioned was the Program Informational Guide (PIG), which he described as the backbone to providing necessary information for a successful marketing year among Point S dealers.

Barr said Point S created the Point S brand folder, offering access to essential marketing elements and he emphasized improvements in the online claim process for customer rebates and increased communication through touchpoints with the marketing committee.

“This year, though, we want to go from PIG to platinum,” Barr said. “It starts with our Point S platinum partners. We’re excited to bring these partners on board; we have Falken, Hankook, Nokian, and Nexen, who will be featured throughout our entire promotional calendar this year. They stepped up because of you and because they understand our group’s growth and the power when you guys come together to bring a successful sale.”

Through this new “platinum approach,” Barr said Point S will focus on product mix, member communication and member expectations. For product mix, he said Point S dealers will focus on seasonal sale periods for PLT products depending on region. As for member communication, Point S will emphasize annual planning with partners, providing a promotional calendar 12 months in advance and feature store call-downs from the Customer Service Representative (CSR) team. Barr also said there will be certain expectations among Point S members, including the recently-introduced store participation pledge, employee product training and local media support.

“We see this strategy as a kind of stairway to success for the year,” Barr said. “You have your four seasonal promotions, again featuring Falken, Hankook, Nokian and Nexen, making sure that there’s a mix of all these tires.

Clint Young, Point S president and COO, discussed the culmination of a year-long collaboration with several dealers to unveil Point S’s new style and branding guide. According to Young, the primary focus of the style guide is to cater to both new and existing stores, with an emphasis on refreshing the image for those who have been part of Point S for almost a decade. The guide aimed to simplify the process of adopting the new branding elements for a consistent and modern look across all stores.

“You’ve got to find a way to stand out from your competition and you have to make a good first impression,” Young said. “You need to grab the customer’s attention because, at the end of the day, we don’t want any of our stores getting lost in all of the lights.”

Young also announced the Ultimate Store Makeover competition, encouraging stores to submit up to a two-minute video showcasing their refreshed stores using the new style guide. The competition, running through the end of the year, is offering cash prizes: $5,000 for third place, $10,000 for second and $20,000 for the first-place winner. Young said the winners will be selected at next year’s annual meeting.

Regina Fleming, Point S services and solutions architect, presented Point S’s new website, which went live Jan. 25. Fleming discussed key features of the new website, including ways to enhance customer education. The website incorporates information on mechanical topics, addressing potential misunderstandings and the booking process was simplified, offering options for customers to schedule appointments, drop off their vehicles and book appointments on a mobile phone.

“Mr. Tire” keynote

At the end of the general session, Point S introduced Joe Tomarchio, known as “Mr. Tire” by some in the industry, for a keynote address. Tomarchio was the executive vice president and chief operating officer of Mr. Tire, which he co-founded with his brother, Fred, in 1970. He also spent 19 years with Monroe, where he was directly involved in more than 60 acquisitions.

Tomarchio emphasized the importance of communicating constantly, monitoring daily numbers, raising prices when costs increase and leveraging group buying power – urging tire dealers to always find ways to increase profitability.