Associate dealer programs, rewards, incentives, spiffs…no matter what you call them, these manufacturer-created programs are something with which all independent tire dealers are familiar. And they’re an important part of running a successful business, if used correctly.
But with so many options – after all, nearly every tire company offers their own version of these incentive programs – how do you choose which will benefit your shop the most? How many can you successfully use at the same time? And perhaps most importantly, how can you keep them all straight?
With the goal of creating a handy guide for tire dealers looking to compare and contrast dealer incentive programs, we reached out to tire manufacturers across the industry to get the specifics of each of their offerings. The information that follows details many program aspects of the tiremakers that participated: name and basic workings of the program, financial incentives, whether spiffs are included, tips for dealers to maximize their rewards using the program and more.
See how the programs you use stack up against the rest, and learn to get the most rewards for the amount of inventory purchased for your shop. And be sure to work with each company and its representatives to ensure you’re taking advantage everything available to you and your business.
Bridgestone Affiliated Retailer Nationwide Network
The Bridgestone Affiliated Retailer Nationwide Network offers retail marketing, business support and programs, including: a multi-branded merchandising plan (Bridgestone, Firestone and Fuzion brand passenger and light truck tires); training and education (online, experiential and in-person sessions on topics such as selling smart and succession planning, among others); business tools such as TireConnect, the Bridgestone online tire selling and commerce platform, and Tire Navigator, a big data tool that can help dealers develop informed tire buying and inventory stocking strategies at the micro-market level; advertising and promotion support, including POS materials and social media marketing management; volume discounts on Bridgestone, Firestone, Fuzion and Primewell tire brands; a credit card program; a nationwide tire protection plan and extended service warranty program; and preferred pricing on purchases of select brand name automotive parts.
Incentives Offered
Dealers are eligible for a variety of incentives, which range from tire purchase incentives, vendor rebates, discounted wearables, education seminars, sporting events, incentive trips and more, depending on a number of factors. Bridgestone offers several incentive elements as part of its overall incentive package for dealers. One incentive opportunity is the Driving Force Spiff program, which incentivizes owners and dealer sales employees for the sales of select Bridgestone and Firestone brand tires.
Level of Participation
All Bridgestone affiliated retailers use some or all elements of the program, depending on their individual needs.
Tips for Dealers
Dealers can best maximize their rewards by working closely with the Bridgestone team to understand the full suite of opportunities available to them. When retailers take advantage of the program offerings, their business has the potential to benefit from increased sales, improved profit margins and reduced operating expenses, according to Bridgestone.
Why is Yours the Best?
Bridgestone offers its dealers access to a full suite of marketing tools, tire merchandising incentives, vendor rebates and discounts in addition to instructor-led education and award-winning online training modules designed to help the dealer position their business for success. Additionally, the company’s TireConnect online selling platform rolled out nationwide in 2017. TireConnect allows retailers to offer a seamless, turnkey online retail selling environment that enables the retailer to reach more tire buyers while receiving full credit for the sale.
Continental GOLD Retailer Program
There are four volume bonus levels based off of annual tracking (Express, Select, Elite and Premier). A GOLD Dealer must meet the 100 unit minimum per quarter in order to receive their marketing line rewards. They also will earn a volume bonus incentive based off of their annual sales tracking at the end of each quarter. Both marketing line and volume bonus pay out quarterly. At the end of the year, dealers can be eligible for a marketing line reconciliation and a volume bonus “true up.”
Dealer Incentives
Dealers not only benefit from the cash rewards portion of the program, but they also can increase their rewards with new tire launch incentives, GOLD Dealer quarterly promotions, Annual GOLD Trip, Dash for GOLD contest, Engage360 online training program, Dealer Marketing Suite (showroom, media, and apparel support), exterior signage program and the UHP Express Ship Program.
RPM (Retail Performance Motivation) is designed to complement the GOLD Retailer Program by offering rewards for the retail sales team. While the GOLD Program encourages dealers to bring Conti brands into their stores, RPM adds motivation to sell to retail customers. RPM members can submit those retail invoices and earn points to redeem rewards such as electronics, jewelry, tools, vacations, etc.
Tips for Dealers
Continental said it offers a diverse and complete product portfolio, so its dealers have the opportunity to easily earn rewards across multiple segments. “Our GOLD Program also encompasses a variety of program offerings. By leveraging the sales team incentives, dealer purchase incentives, training, and marketing programs, dealers will maximize and benefit from the potential of this all-inclusive program.”
Why is Yours the Best?
The GOLD Program is simple, yet comprehensive, providing dealers with the tools and rewards they need to succeed. “Our program continues to evolve around the feedback from our dealers. With industry-leading products, an easy to follow and easy to implement program, and a strong dedicated sales team devoted to helping them to grow their business and maximize profits, we are the best partnership for these independent retail dealers.”
Falken FANATIC Associate Dealer Program
The FANATIC Program is based on a dealer’s quarterly performance. There are four levels of performance: Fan-Lite, at 60 units per quarter and a $3 reward per unit; Fan, at 125 units per quarter and a $4 reward per unit; Fan+, at 250 units and a $5 reward per unit; and Fanatic, at 400 units and a $6 reward per unit.
Dealer Incentives
Dealers earn cash rewards for the tires that they purchase. They will also earn marketing points based on the level they attain. These can be redeemed for POS materials and tires.
Level of Participation
Of the dealers that qualify to participate in the FANATIC program as a distributor, the majority of those dealers take advantage of the program.
Tips for Dealers
Each FANATIC dealer is given access to a dashboard that provides them with their purchase status on the program. By working with their distributor and tracking their performance on the dashboard, they will be able to maximize their earnings.
Why is Yours the Best?
Falken said the simplicity of its program makes it one of the easiest to understand and earn cash with. There are several events/opportunities during the year that only FANATIC Dealers are eligible for; these are often not publicized.
Hankook ONE Program
How it Works
Customers are incentivized each quarter based on their projected annual purchase quantity. There are four incentive levels: Silver, Gold, Platinum and Diamond. Rather than rewarding customers based on their raw quarterly sales data, Hankook rewards them based on their projected annual sales. Each reward level carries a different reimbursement level per tire sold. Every ONE customer who meets the Silver minimum (240 units per year) is eligible to receive a reward for each premium tire they buy — among 10 designated premium models. Rewards are paid out each quarter.
Dealer Incentives
Silver customers receive $1 for every unit purchased. Gold customers get $4 per unit. Platinum and Diamond members receive $6 and $8, respectively. All ONE customers, regardless of reward level, receive $4 for every premium unit purchased. Platinum and Diamond-level customers are also eligible to receive POS and POP marketing materials by accumulating points for each purchase. Platinum customers receive 1 program point per unit sold; Diamond customers get 1.25 points per unit.
Level of Participation
25% to 30% of Hankook dealers participate in the program
Tips for Dealers
Hankook is committed to keeping the ONE program simple. All customers must do to maximize their rewards is to sell more units.
Why is Yours the Best?
The quarterly payment system means customers get rewarded in a timely manner throughout the year, rather than once at the end of the year. Compared to other manufacturers, Hankook said it requires a very reasonable level of achievement to obtain benefits — one of the lowest minimum payouts in the industry.
Kenda Traction
Each quarter you can earn up to $2 per tire between your Kenda Traction Black Card and co-op funds. The more tires you buy, the bigger your rewards.
Dealer Incentives
Kenda offers Black Card Rewards issued quarterly, as well as co-op rewards that make it easy to promote and sell Kenda tires by shopping for in-store advertising or branded items in the Kenda Store. Being a part of the Kenda Traction network also makes dealers visible on the kendatire.com dealer locator.
Spiffs on new products in the second half of 2018 will include double rewards for Black Card earnings.
Level of Participation
At least 80% of the company’s associate dealers take advantage of the program.
Tips for Dealers
Top tier dealers are earning thousands of dollars in cash rewards, as well as in co-op rewards. In order to maximize the co-op rewards, Kenda recommends that dealers should focus on spending the rewards on digital advertising and in-store advertising.
Why is Yours the Best?
Kenda is an independent-dealer-focused brand that offers premium performance at a value price point. There are not many loyalty incentive programs in the value segment, making Traction unique.
Michelin Alliance Partner Program
Direct Dealers are rewarded on retail sales, volume and growth for Michelin, BFGoodrich and Uniroyal passenger and light truck tires. Indirect dealers are provided cash rewards based on purchases from authorized distributors and may select from six volume levels for Michelin, BFGoodrich and Uniroyal brand passenger and light truck tires. Dealers also are provided a selection of advertising, merchandising, point of sale materials, signage and assets for consumer promotions supported with fund accruals. Dealers can track their progress to program goals via online statement.
Dealer Incentives
Incentives include monthly cash payments (indirect dealers), credits against future purchases, and an invitation to the annual Customer Business Conference, among other incentives. BFGoodrich brand offers cash rewards to qualifying dealer salespeople through a reloadable debit card.
Level of Participation
All authorized dealers receive benefits, based on their specific agreement and their participation.
Tips for Dealers
Michelin recommends that dealers understand their customer base, including their priorities for product performance and fitments in their particular market. Set goals for sales and purchases that will maximize the benefits earned under the program. Avoid spreading yourself too thin: it’s better to max out three programs than marginally participate in six or more incentive programs.
Why is Yours the Best?
The brand equity of the Michelin, BFGoodrich and Uniroyal brands as well as original equipment loyalty.
Nexen Next Level Associate Dealer Program
How it Works
Nexen dealers are awarded for purchasing 100 or more tires per quarter. There are five tier levels of awards that can be earned. The more tires purchased, the more a dealer can earn.
Dealer Incentives
Dealers can earn between $4-$10 per tire in cash rewards paid quarterly.
Level of Participation
80%
Tips for Dealers
Pay close attention the mix of products you are purchasing and selling to your consumer. Missing a qualifying or tier level by any amount of quantity takes money away from you. Be sure that every tire you purchase is qualified and earning you dollars back.
Why is Yours the Best?
Nexen said the program’s simplicity sets it apart. “There are no trips or co-op funds. Everything we advertise is about putting dollars back in the hands of the dealer.”
Toyo Tires DRIVEN Associate Dealer Program
How it Works
The program rewards associate dealers with cash back, Toyo-branded merchandise and more. Dealers must purchase 50 units to enroll. Each quarter they must purchase 100 passenger car/light truck units or 50 commercial tire units to qualify for payouts. Cash rewards are earned based on three levels and received via a reloadable debit card. All Toyo product purchases count toward the three tiers with select patterns eligible for cash payouts. Patterns and payouts are designated at the beginning of each quarter. Dealers receive a POP kit after the first 100 tire orders. Each quarter, Toyo rewards top performers with branded merchandise. Dealers who achieve the highest level within four consecutive quarters in a calendar year are eligible for a signage program. Dealers also have access to online training, marketing assets, and are listed on ToyoTires.com.
Dealer Incentives
DRIVEN Dealers earn cash rewards based on their purchases of Toyo-brand passenger car, light truck and commercial truck tires. They have access to Toyo dealer resources including merchandising materials, POP materials, the T3 Training program, photography and logos.
Level of Participation
The Toyo Tires DRIVEN program continues to see double-digit growth year after year, according to the tiremaker.
Tips for Dealers
According to Toyo, “Our program offers dealers the opportunity to grow their business and grow their profits while selling passenger, light truck and commercial Toyo Tires; tires known for their quality and performance.”
Yokohama ADVANTAGE Associate Dealer Program
How it Works
ADVANTAGE Associate Dealers can earn cash rewards on Yokohama treads purchased through their designated distributor. Dealers are also eligible to earn travel rewards, marketing funds, signage and POS material based on quarterly and annual goals.
Tips for Dealers
Dealers can utilize ADVANTAGE Online to track their progress toward goals and ensure they are maximizing their rewards.
Why is Yours the Best?
The ADVANTAGE program tends to be highly regarded for its simplicity and comprehensive rewards, according to Yokohama.
Others
A handful of tire companies declined to participate in this story, either because they do not offer a dealer incentive program or because they view that information as proprietary. Be sure to check directly with the tiremakers and their representatives whose products you carry in volume.
Two tire manufacturers were hesitant to respond to our query, and instead provided the following information.
Cooper Tire, Mastercraft
“Cooper is committed to supporting our associate dealers as they are critical in representing our products to consumers. We currently have dealer programs including Medallion for Cooper dealers and Century for Mastercraft dealers. Associate dealers that are part of these programs are supported by Cooper in many ways, including marketing insights and assistance, product education and other tools and techniques to help build their businesses. Because we consider the details of these programs to be competitive information, we do not share specific information related to our dealer programs.”
Goodyear
“We believe we have the most comprehensive, competitive and industry-leading programs that enable Goodyear to be the most customer-centric tire manufacturer and drive tire sales. Our programs are designed to be turnkey and drive efficiencies for our tire dealers while promoting flexibility as we know and understand that not every tire dealer is the same. These programs, such as the Tire & Service Network (TSN), provide tools that build business, provide training and enhance marketing efforts to create a comprehensive solution for dealers. TSN features elements like nationwide service warranties, store signage and point of sale materials, a credit card program and training and education.” TR
