This story idea seemed to be pretty straight forward. Ask a few dealers for their best idea and they would tell me about it. Then roll up several of these ideas into a list that other dealers could read and hopefully see a new idea that would work for them. At the very least, they could confirm one of their good ideas had been working for others.

But the reaction that I received from most dealers when asked for their best idea was more like, “Well, I don’t really know…we haven’t had a ‘great idea’” or “We’re really good at copying other people’s ideas.”
As it turned out, the story could have been, “Successful Dealers Do Lots of Things Really, Really Well.” We all read stories about the top dealers and the things they do to make themselves successful. The Tire Review Top Shop Awards go to dealerships that do a lot of things very well.

But are there any great ideas out there? After talking to several dealers in more detail, the answer is clearly “yes.” At the same time, the best ideas are often the simplest ones. When tire dealers – or owners and managers in any industry – try to get creative enough to come up with that next great idea, usually it comes right back to the simplest one.

A friend of mine was once given some advice: “If you are doing the same thing as the guy down the street, you’re doing nothing.” So when he, Larry Maharg of U.S. AutoForce, was a retail tire store manager, he bought some buckets and squeegees and had his crew clean the windows on every vehicle that was serviced in the store. He received so much positive feedback from customers that when he became a district manager, he asked all of his store managers to continue the practice.

Everyone wants to have that “next great idea” that separates their store from every competitor. It doesn’t have to be a big, expensive program or a time-consuming process to be effective. It can be as simple as cleaning windows or vacuuming carpets in every car or giving away free tire pressure gauges.

The small things can still be the biggest hit, but as the retail tire and auto service landscape has gotten a lot more complicated since Maharg was running a store, that “best idea” can now mean a business process, a marketing strategy, or any number of complex and expensive initiatives.

Sometimes a “best idea” is a matter of blind luck. A little over 20 years ago, Pam Gatto of Florida-based Gatto’s Tires & Auto Service, 2007’s Tire Review Top Shop Award winner, had just convinced her father – founder of the business – to run ads on cable TV. He didn’t think that cable TV spots in Brevard County were a good way to advertise. The very day that the ads were scheduled to start, the Gulf War broke out, a watershed event that put CNN on nearly everyone’s TV for days.

And just as CNN was on everyone’s TV non-stop, so were the Gatto’s Tires spots. “We saw a huge influx of customers,” says Gatto. “It created huge awareness of the business. More than one customer asked, ‘How can you afford to be on TV so much?’” Blind luck became great timing, and made this one of Gatto’s Tires’ best ideas.

Tire dealers certainly are a creative bunch, but they also are pretty secretive. It’s just too competitive out there to start explaining your best ideas to everyone, right? Let’s face it, we all copy great ideas if we think they will work for us. Not all marketing programs or business practices or customer service ideas work in every business.

Sometimes just the way an idea is developed and packaged by a particular company can turn it into its best idea. “New” ways to increase top line sales and improve bottom-line profits are being created every day. Let’s take a detailed look at some examples of this creativity.

Business Practice Improvement
Two years ago, Buffalo’s Dunn Tire had the opportunity to attend an economic development meeting that featured the topic of Lean Six Sigma. Anyone working in almost any large corporation, including tire manufacturers, knows what Lean Six Sigma is, but owners and managers of tire and auto service dealerships probably don’t. 

Lean came from the Toyota production system in Japan and Motorola was given credit for founding Six Sigma. GE’s Jack Welch helped make Six Sigma popular in the late 1980s when he required all of his managers to get trained in it. The combined Lean Six Sigma is about two things: maximizing customer value while removing waste and making processes very consistent and repeatable.

The value of these goals in the retail world lies in developing business practices that allow a retailer to focus everything on the customer. Reducing the time to get things done, eliminating activities that have no value to the customer and improving efficiencies are things that can benefit any wholesaler or tire and automotive service retailer.

Becoming more efficient also means having more time to sell. And eliminating waste means increasing profits. Dunn Tire made a commitment to review everything in its daily business with the goal to do a better job of serving customers.

The initial plan was to see exactly what its “process” of installing tires was. Lean Six Sigma involves the heavy use of statistics. Bill Cleary, Dunn Tire director of human resources and training, and his crew started by standing outside one of their stores with stopwatches, doing detailed time-study measures of all the steps taken in replacing a set of tires. 

Of Dunn Tire’s 31 stores, some were built ground-up and others were converted locations, so store and bay layouts varied widely. “Our stores are not cookie cutter designs,” says Cleary. That alone meant variations in workflow. Aft­er analyzing the process at several locations, “what we found out was that we didn’t have a standard process in our stores.”

So Dunn Tire installed work order scanner systems in its stores. Every work order is scanned four times so that each step of the workflow can be measured. The work order is scanned when it is put on the shop board (order ready), then again when the technician gets the job (job starts), when the job is done (back to desk) and a final scan when the customer is invoiced (job delivered).

Monitors are present in the shop to track the job’s progress. “I don’t need to go to the desk to see how long a customer’s car has been in the shop,” says Pat Logue, Dunn Tire managing director of retail operations. “I can look at the monitor and see if a car has been in the shop too long and ask the technician what the problem is.”

Measuring data is a big part of the Lean Six Sigma process. You need someone who likes to look at numbers – Dunn Tire has a dedicated “director of continuous improvement,” who is certified in Lean Six Sigma, watching the numbers and analyzing the data to improve processes.

One example of using the data came when Dunn Tire wanted to determine needed staffing levels by location or by time of day.

The results have been worth the time and resources invested. Dunn Tire has reduced “defects,” reduced waste, and the average work order time has been reduced from 45 minutes to 32 minutes, a 29% increase in efficiency. Being more efficient “allows time to sell something else,” says Logue.

Courtesy Cars            
Dave Bucher opened his first Family Tire & Auto Service location in New Bern, N.C., six years ago. The 2011 Top Shop Finalist’s second location opened almost three years ago, and a third store is under construction in Jacksonville, N.C. The newest store will have 12 bays and cover about 12,000 square feet when it opens this summer.

Sales have increased every year, in large part due to the dealership’s “unwavering dedication to customer service,” according to Bucher.

When we asked about his “best idea,” Bucher had to think about it for a couple days. When we talked later, he offered, “I can’t imagine running this business without courtesy cars.”

From the first day he opened for business, there has been a stable of courtesy cars with Family Tire logos. “It helps us and it saves us,” says Bucher. “If we have a big job and the customer needs their car back by 5:00 and it’s not done, it’s a difficult situation.”

Every dealer has been there: You set a delivery time that seems realistic, and then there’s a parts delay or something breaks or any number of things happen. Bucher can offer the customer the option of a courtesy car when the customer’s car won’t be done.

The logoed cars also help sell work. If a customer comes in for an oil change or a rotation on his or her lunch hour but ends up needing tires and “doesn’t have time to wait,” Bucher can offer the use of a courtesy car for the rest of the afternoon. Many times over, providing free transportation has helped sell service work that might otherwise have been put off.

Family Tire’s New Bern store has five courtesy cars and the other store has three. These are not new vehicles. In fact, Bucher says, “they are worth between $1,500 and $2,000.” Some were purchased from customers when the cost to repair was more than the customer wanted or could spend. Oth­ers were purchased wherever Bucher could find a good deal. Mechanical repairs are done in-house, the tires are replaced as needed, minor bodywork is done and all cars are detailed. Every vehicle is on a regular wash schedule and all of them carry prominent Family Tire identification, making them rolling billboards.

When asked about the liability of having eight cars in his customer’s hands every day, Bucher explains, “Our attorney brought it up one day when he was offered the use of a car while his was in for service.” He suggested that they explore any potential liability. After looking at options, they decided to set up a separate limited liability corporation to own and operate the courtesy cars. The company’s insurance agent approved the plan and provided coverage to the LLC.

Bucher says that, “insurance rates are a little higher,” but absorbing the cost has been well worth it; it’s a relatively insignificant amount that is far outweighed by the benefits.

The courtesy cars have been used hundreds of times over the last six years and there have been no damage or liability problems. Because Family Tire’s business is 65% auto service, including major repairs, “the biggest benefit comes when there is a big job.”

Buy Local
Like many dealers we contacted for this story, David Hay wasn’t sure what his “best idea” has been. 2011 Top Shop Finalist Hay Tire has worked hard over the years to gain customers by building strong relationships in community-oriented Charleston, S.C. The company also uses spots on radio talk shows, self-written TV ads and, more recently, social media to emphasize they are local people who have run a locally-owned business for more than three decades.

One of Hay’s best ideas is really his commitment to promoting the “buy local” movement. By doing so, Hay Tire is turning what many consider a disadvantage – being a small market tire dealer – into a big advantage. “As products become more of a commodity, it’s a good way to differentiate ourselves,” says Hay. “We know you and we support the local community.”

The increasingly popular “buy local” movement has gained serious momentum over the last few years. It’s not just about buying from local farmers, but about supporting all sorts of local independent “Main Street” businesses.

Charleston has a very active “buy local” movement. In fact, Hay’s wife serves on the board of Low Country Local First, an organization that has been very active in promoting the im­portance of small, locally-owned companies. (A wide range of websites provide information on “shop local” groups, including localfirst.com,
shoplocally.com, and sustainableconn­ections.org.)

When you find it difficult to compete with the big guys, there can be real value in explaining to a potential customer why it’s a good idea to buy from you, the little local guy. Locally-owned and operated means that more dollars spent in your store stay in your community. And that can mean a lot to a customer.

The “multiplier effect” means dollars spent with all types of local merchants can circulate several times within the community before a portion moves elsewhere. Local tire stores hire people – local accoun­tants and lawyers and other service providers. That relationship gets extended as Hay Tire gives almost $8,000 annually to local organizations, including schools and churches.

A recent study by the Institute for Local Self Reliance found that revenue growth for small businesses was significantly higher in areas with a “buy local” initiative. Data was gathered from 2,768 independent businesses. In areas with a specific “buy local” initiative, revenue growth was 5.6% in 2010 but just 2.1% in other areas without such a push.

So people do consider the benefits of buying locally – when they are aware of those options. Hay Tire is making people aware.

“We emphasize the fact that we’re a born-and-bred local business,” Hay says. “There is a growing national awareness of just how important locally-owned businesses are to the success of communities. This awareness fits perfectly with what we’ve been trying to do for all these years.” 

Business is good at Hay Tire, and the dealership is making plans to open one to two more stores in the near future.

Marketing to YOUR audience        
Community Tire Pros & Auto Repair has prospered in one of the most competitive retail tire markets in the country. Owner/partner Howard Fleisch­mann has had plenty of great ideas over the years that have helped Community Tire Pros compete with the hundreds of other tire outlets in the Phoenix area.

When asked about his “best idea,” he says somewhat vaguely, “It has something to do with marketing.”

Fleischmann decided a long time ago that devoting lots of marketing dollars to the broad audience was not efficient. Why market to people that live 50 tire stores away or to people who are not likely to become loyal customers? One of Community Tire Pros’ best ideas was to target marketing efforts to specific segments of the community.

In a market where the big guys lead with price, Fleischmann says, “It can’t be about price.” Community Tire Pros markets to the segments in which management feels the company can be most successful. Treating customers fairly and respectfully works in all segments, but focusing on its best customers is what the dealership has leveraged to great success.

The process started when Fleischmann asked his managers, “Who is your favorite customer and why?”

One manager said female customers were his favorite because they didn’t argue about price. Women, he felt, typically didn’t argue about a reasonable diagnostic charge either, the manager offered. Another said that gay and lesbian customers were his favorite and best customers. Others agreed, saying they valued a fair deal and being treated with respect, and were also more likely to refer their friends.

Armed with this information, Fleisch­mann decided to explore marketing specifically to the Phoenix area’s gay community. First, Community Tire Pros joined the Greater Phoenix Gay and Lesbian Chamber of Commerce; Fleisch­mann actually became a board member and his wife, Patty, currently serves on its board.

But Fleischmann wondered, “Would the gay community embrace our business?” He knew that at least one tiremaker was doing heavy marketing directed to the gay community, so Community Tire Pros advertised in several local LGBT-oriented publications.

According to the National Gay and Lesbian Chamber of Commerce, the buying power of the LGBT community was estimated at over $800 billion in 2011 and is climbing. A study done by Witeck-Combs Communications found that 87% of LGBT consumers are likely to actively seek out brands that advertise directly to them. Large companies like Proctor & Gamble and Macy’s have been target-marketing the LGBT community for years.

The two-time Top Shop Award Fin­alist also focuses on female customers. Patty Fleischmann directs store efforts to be more female friendly, which goes beyond having pristine restrooms with changing tables and free diapers. It means creating a complete atmosphere that is clean, attractive and appealing. Community Tire Pros was one of the first U.S. tire dealers to become Certified Female Friendly under AskPatty.com’s tire dealer and service program, and the business continues win over female customers each and every day.

The key is to “figure out the segments,” according to Fleischmann. “AARP might have been a good fit in our market,” and the American Indian population is a segment that the company plans to market to “down the road.” He cautions that segments won’t be the same in every market, “but target-marketing to your best customers could pay off.”

Does it work? Fleischmann doesn’t look at short-term returns on marketing dollars. He prefers to give ideas at least a year before he decides if the marketing is working. The shop’s motto is to make customers, and the sales will come. But if you measure success by customer loyalty and having your customers continue to refer their friends, then yes, it is working at Community Tire Pros.

Social Media
As Tire Review’s 2011 Top Shop Award winner, Virginia Tire & Auto has had many great ideas. Vice President Julie Holmes had the responsibility for the dealership’s social media efforts fall into her lap, mostly because no one else wanted to do it.

Social media might not be the company’s “best idea,” but since most successful tire and auto service dealers are mak­ing a real attempt to use social media effectively, it IS a great idea.

“I don’t know how it translates into sales, but we’re doing it. It doesn’t seem to be hurting anything,” Holmes chuckled. The shop has used digital couponing with success through the Living Social site, as well as with its own Facebook and Twitter efforts.

Holmes tries to keep things simple. “I linked our Twitter feed to our Facebook page so anything we post on Facebook pushes out to Twitter, and vice versa.”

Her goal is to post at least one message each weekday. “We are just trying to engage our customer base.” Virginia Tire started its Facebook efforts in May 2011 with just 122 “Likes,” and with consistent effort, has increased that number to an impressive 2,374.

Customers are encouraged to visit Virginia Tire’s Facebook page to access coupons and other offers. Experts say this is how you develop relationships using social media. Virginia Tire has a “Welcome” page that clearly and simply asks the viewer to “Like” them in order to receive exclusive offers, helpful vehicle information and to see how involved the company is with the community.

Sometimes it’s hard to find things to post on Facebook, Holmes finds. “It can be hard to get started, hard to come up with things to post,” she says, “but once you do it for a while, it just sort of starts coming to you.”

Holmes spends 10-15 minutes every day posting things to Facebook and Twitter. The day we called, Virginia Tire had a Zamboni in one of its shops from a neighborhood ice rink. She posted pictures of it with the caption, “We even work on Zambonis.” People saw it and commented on it, and another memorable association was created.

Social media isn’t new, but it’s new enough that many tire dealers haven’t taken the time to understand and embrace it. Dealers like Virginia Tire are doing a good job in that space, engaging customers and building an interactive relationship.

It probably doesn’t hurt that the northern Virginia area is one of the most socially “connected” areas of the country, but the dealer would not have generated thousands of “Likes” without working at it. With more than 800 million total active Facebook users worldwide, it’s certain that many of your customers are using it, too.

Expanding social touch
An even more valuable use of this media is Facebook advertising. Christine Taylor of JTMarCom is a social media expert and writes a social media blog for Tire Review (http://bit.ly/xT5lxY).

“Facebook is the best deal out there,” says Taylor. Perhaps the most significant feature gives companies of any size the ability to place targeted ads to groups of people they want to engage.

For example, by using the Facebook-supplied tools, you can identify people in your area that “Like” Fords or who just got engaged or just had a baby. Then you can send these customers highly targeted messages or offers. Marketing to people that are pre-disposed to prefer certain things – as indicated by their “Likes” – can be an incredibly powerful marketing tool.

Whether it’s Facebook, Twitter, Google+ or YouTube, your future “best idea” might be to spend some time checking out the full potential of web and social media for your business.

Not all ideas are “best” for you. You know your customers and your market better than anyone. After talking to dozens of tire dealers, it seems that their best ideas come from various sources. Sometimes it’s when you look at what works for others – even in other industries – and make it yours. Other times, a light bulb might go off in your head and your best idea is born. In some cases, it can be pure luck.

However it comes to you, hopefully you will recognize this “best idea” and make it your own.

Be creative and use your best ideas to help grow your business. Whether it’s that small value-added touch, implementing a business process from other industries, fulfilling a customer convenience need, promoting your store’s unique strength, focusing on your best customers or jumping into the interactive social age, find what works and put your energy toward it. The best companies are doing so with great success.