Aftermarket accessories – especially custom wheels and tires – have always been about being trendy. From the designers to the customer, the goal is always to stay ahead of the trendiness curve.
But for an independent tire dealer, success with custom wheels and performance tires has always been about following the trends. Today, with national and local economic conditions to consider, automakers putting out sporty vehicles with “aftermarket-look” wheels and UHP tires and TPMS now becoming the norm, staying ahead of the trend curve has gotten harder.
And it’s not about to get any easier, according to those in the UHP tire and wheel segments.
Of course, size proliferation is one of the headaches. In 2000, there were just five Tire & Rim Association recognized tire sizes with 19- to 23-inch wheel diameters. In 2006, that grew to 31 sizes. Conversely, there were 37 recognized 14-inch sizes in 2000. That fell to just 25 by 2006.
“Obviously, tire dealers need to be aware of the trends in high performance tire sizing,” says Bob Toth, Goodyear’s high performance tire marketing manager. To stay up on these changes, Toth recommends dealers work closely with their suppliers to study the vehicle trends in their local selling markets.
“There are also upgrades in shop equipment that ought to be considered – making sure tire changers and wheel balancers can handle larger diameter wheels, and that the necessary adapters are available to technicians,” Toth says. And with more vehicles coming with run-flat options, dealers need to cover that contingency, too.
But it’s not just tires seeing changes. “The proliferation of new wheel companies means that dealers need to be cautious with regard to quality,” according to Alan Peltier, COO of HRE Performance Wheels. “They need to ensure they’re dealing with partners who have properly engineered and tested their wheels to assure the safety of their customers.”
“Everything is getting bigger. There seems to be no limit to how large tire and wheel manufacturers wish to go with their product offerings,” says Joshua Lorig, sales manager for Toyo Tire (USA) Corp. “Independent tire dealers have to be cognizant of these trends, because it can affect the way they operate their business.”
The proper tools, equipment and training, Lorig says, can help dealers establish themselves as experts in the industry, “which is exactly what consumers in this segment are looking for.”
Rick Brennan, Kumho’s director of brand management, agrees about the impact of size proliferation, but adds: “The proliferation of tire sizes and types mean matching the consumer to the right tire is becoming more complex and involved. This fact along with TMPS issues and load capacity for plus-sizing light truck fitments will take more effort and time for dealers to train people and collect accurate information.”
Consumers – and the consumer culture – do dictate so much of what happens in the performance market. Dealers do have to work harder to keep up with tastes, styles, sizing and safety.
“The emphasis on larger diameters is adversely affecting the performance and safety of tire and wheel upgrades,” says HRE’s Peltier. “OE suspension and brake systems are not designed to withstand the increase in unsprung mass and rotational inertia” from significant plus-sizing and what Peltier says is “poor engineering” on the part of some wheels, and the result is a potential ride quality/performance/safety issue.
“Consumers and vehicle manufacturers act as independent catalysts for the evolution of market trends,” Toyo’s Lorig says. “Luxury SUVs are a prime example where the trend has evolved from aftermarket plus-sizing to having “plus-sized” tires and wheels available as an option from the factory.”
One backside consideration of this OE movement, of course, is that the tiremakers now have to consider this in their product development efforts. If the carmaker wants a UHP tire specific to their vehicle, someone will make it and the rest of the market will have to react.
Consumers of these OE-upgrade vehicles may well react – negatively – when it comes time for them to spend more money than planned on repalcement tires. “More sport-style vehicles mean more HP and UHP fitments that the consumer may not be aware of until the replacement tire is needed,” Kumho’s Brennan says. “Having the right skill to provide the customer with the right information on purchasing replacement tires will be a key customer service factor in the future.”
Don Mathis, sales manager for Wanli importer ZT Wholesale, sees “affordable prices” as the key to aftermarket success for dealers. “Consumers continue to want larger diameters and lower profile sizes at affordable prices. We believe that the small- and mid-size car market will see significant growth in the 20-inch-plus size range, and SUV fitments will continue to go larger with growth in the 24- and 26-inch sizes.”
Switching gears somewhat, plus-sized wheels and tires are not necessarily a “need” purchase for consumers, which means that in some areas of the country local economic conditions will have an impact on sale potentials.
On a broader scale, high gasoline prices – up to around $3 per gallon since last summer – have wreaked havoc on discretionary spending. Tire dealers are not alone here, but it is a serious issue in many markets.
While Goodyear’s Toth says gas prices have had no real impact, others are not so sure it hasn’t hurt potential sales. “Gas prices have certainly raised the bar when it comes to consumers evaluating their wants vs. their needs,” says Toyo’s Lurig. “Aftermarket wheels and tires rarely fit into the category of a ‘need.’ With that said, those who demand the best, and are willing to pay for it, are virtually unaffected.
“On the other hand, those who are forced to compromise will have to give up something – either the whole tire and wheel package or just one element of the package,” he says. “However, consumers need to keep quality in mind as they consider price.”
“The slowing of ultra-large plus-size fitments for light trucks has been the main change we’ve seen,” says Brennan of the impact of gas pricing. “Although fewer 26-inch and larger fitments are being mounted, 20-inch and larger aftermarket car fitments are increasing. People still have to drive, but gas prices are cutting into available funds for aftermarket upgrade purchases.”
Technology has also been a key driver of aftermarket UHP tires and wheels. In the old days, the transition from track to traffic wasn’t that difficult. With today’s emphasis on size and look vs. pure performance – and the demands of today’s vehicles and regulations – things are a lot different, as dealers well know.
There has been no single regulation that has impacted the UHP business like TPMS. Mounting low profile tires on large diameter wheels with a TPMS sensor hanging in the valve hole has become a training nightmare.
“Tire dealers need to be aware of proper TPMS service – with all vehicles, but especially as it relates to UHP tires,” says Toth. “The UHP customer is often more discriminating and expects more, so any level of service and satisfaction must be well-delivered by the dealer.”
“New technologies are a constant evolution,” says Lurig, “and they challenge both tire and wheel manufacturers to push themselves to produce even better products. We also see an industry-wide need to establish a brand image with a ‘flagship’ UHP tire. All of these factors have diversified the way we categorize tires with respect to how well they are expected to perform.
“It’s given consumers more options, but it’s also required that dealers become very well educated on what’s the right product for a consumer’s particular needs. Wheel manufacturers, then, are challenged to build appropriate products based on the purpose of the tire application, be it racing for the track, performance for the street, or simply for aesthetics.”
That diversification means more than just hot shot technology. Kumho’s Brennan sees it in more practical terms. “Putting more everyday use performance attributes into UHP tires is a key issue – more mileage, all-season traction, ride comfort and lower noise are driving new developments.”
So, after all of this, what advice does the market have for its dealers?
Goodyear’s Toth says, “To reach the UHP consumers out there and satisfy their needs, dealers should concentrate on 1) Providing ultimate customer service (because these discriminating customers love their cars and have probably invested heavily in them), and 2) Consider your store image. Does your building look better and more professional than your competition? It had better, if you’re trying to establish an upscale image that warrants upscale pricing.”
In addition to advertising their UHP capabilities, Toth advises dealers to consider event marketing, which can involve “hosting a local car club or other enthusiast groups at the store location, or cooperating on one of the group’s driving programs.”
HRE’s Peltier feels “aligning with good partners that offer a quality product and customer service is critical to ensure that you can create a repeat customer. In the high-end of aftermarket wheels/tires, customer service is key.”
“Stay educated,” says Lurig. “You can learn something new about this industry everyday, and that’s the way you stay sharp. Read industry publications, visit online forums, and so on. When you have the knowledge, you come across to your customers with confidence, and that leads to more sales.
“Consumers aren’t really buying a particular product; they’re buying into you and your recommendation,” he says. “If you honestly know what’s the best product for your customers, you will instantly gain their trust.”
“The number one thing an independent dealer can do to improve their UHP sales is to work with a specialty distributor,” claims ZT Wholesale’s Mathis. “The price and supply, especially for new sizes, will be greatly improved compared to buying small quantities direct from the manufacturer or from an ‘all-lines’ wholesaler.”
“Get more knowledge!” is the simple reply from Kumho’s Brennan. “The dealer who has the best ability to teach and satisfy will gain favor. As the tire world continues to fragment, providing correct and honest direction to consumers will earn more ultra satisfied customers.”
