New kid on the block TYRES & MORE ® first emerged in 2013 as a complementary brand to the highly successful Tyres & More® Group, which arguably, is recognised as a market leader in South Africa. As part of theTiAuto Investment Group of companies, this exciting new tyre and fitment brand, sporting a funky image coupled with a bright corporate identity that is hard to miss, is fast becoming a player to be reckoned with. And all this in the space of 24 months.
So what is this budding franchise doing right to achieve such a swift growth curve?
At their Strijdom Park store, we pinned down managing executive Gary Ingle and Franchise Executive Fred Scheepers together with a franchisee regional manager Mike Gatton, to find out. We first met with you in the last quarter of 2013. At the time you had opened your first store in Woodmead, Johannesburg, on 26 August.
What is the total number of TYRES & MORE ® stores today?
“We currently at 27 stores and are represented nationally with the exception of Limpopo Province. We do have plans to begin operations in this Province in the near future however, once we have identified possible candidates to join our Group.”
So are you actively seeking potential franchisees at this point in time?
“Yes, we are constantly on the lookout for the ‘right’ people to join our ranks, although we do receive leads from our existing franchisees as well.”
Define the ‘right’ people.
“Franchisees must subscribe to our philosophy which encompasses important elements such as a passion for customer service, adherence to corporate image and the ability to provide sound advice and fresh customer solutions to the motorist.”
How would interested parties go about applying for a franchise?
“The first step is to submit an application which will be evaluated. Next, we will conduct a financial diligence exercise coupled with reference checks, followed by a stringent interview to assess whether the fit is right for both parties concerned.”
Are you fielding calls currently from members of rival groups?
“There is a huge level of interest owing to the support we offer, our reputation and our unique selling points such as our strong marketing and advertising drive, our National Point of Sale system and our store management business model. We are the only franchise to offer dedicated store development managers who have all personally managed tyre fitment stores.”
Interest in joining the ranks has further risen in recent months due to a better understanding of the TYRES & MORE ® business model. The initial perception that the franchise is too expensive is diminishing as word gets out that the franchise fees are linked to turnover and that the rebates we enjoy from our national suppliers largely offsets these fees.”
What is the feedback from your franchisees?
“Our franchisees are often our best recruiters as they spread the word in the marketplace about the benefits that come from an association with us. In turn, we strive to maintain a collaborative relationship with our franchisees, as opposed to a dictatorial stance, whilst simultaneously retaining controls and Group standards. The growth of our franchises is pleasing to see. Take this store for example, which is now one of four that is owned by a single franchisee and overseen by Mike Gatton a franchisee regional manager.”
When it comes to customer service, what do you believe differentiates TYRES & MORE ® from opposition brands?
“As you know TYRES & MORE ® is a sister company to the Tyres & More® Group of companies and we aspire to similar standards. Over the years we’ve identified that it’s usually the small things that make the biggest impression. For example: meeting the customer at their car, driving their vehicle onto a ramp, explaining in detail the work that needs to be carried out.
Added to this, the TiAuto Group takes great pride in the comfort and quality of its stores. Our waiting rooms are closed off from the workshop to provide privacy and cushion against noise, we provide coffee on tap and even offer fun activities for the children while they wait. We are constantly striving to improve the fitment experience, particularly for our female clientele.
Strict adherence to standards is another crucial element to our business as all it takes is one dissatisfied customer to tarnish our reputation. Monitoring complaints, as well as compliments, and providing a suitable course of action that appeases the customer is key. Our CRM system sends a SMS to every customer providing them with a fuss-free platform to engage with us regarding their experience.
Training plays a huge role in our organisation as a way of uplifting and maintaining standards.
The consistency of our stores in terms of look and image coupled with our ability to diversify so as to provide the full spectrum of services – crucially important once a vehicle has outlived its Motorplan – serves to differentiate us further.
We believe that economic growth lies with the emerging middle class and as such, we are well poised to take advantage of this important market dynamic by offering true value.”
What are the set up costs for a TYRES & MORE ® franchise?
“For a new store capital outlay is in the region of R2.5 million, typically 50% should be unencumbered cash and the balance can be financed via one of several financial institutions to which we are affiliated. We also recommend R750 000 – R1 000 000 operating capital.”
Are you a multi-brand outlet?
“Yes and in the true sense of the word. We offer all the major replacement market brands as well as our own such as Yokohama, Hankook, GT Radial, AtlasBX and Duracell automotive batteries.
One of our major strengths is our buying power which allows us to secure the best possible deals for the benefit of the TiAuto Investments Group as a whole.”
What is your view on market saturation?
“We believe that market saturation only poses a threat to businesses that remain stagnant in their approach to business. The TiAuto Investments Group is intent on seizing market opportunities as they arise which means that we are constantly reinventing ourselves in a bid to remain competitive in the market.
Our offering is unique and different.
That being said we all have a role to play especially during an economic downturn when people tend to hold on to their vehicles for longer. This presents mammoth opportunities, especially for fitment outfits that offer the entire spectrum of underbody services, such as TYRES & MORE ®.”
What about mixed alliances?
“We do not subscribe to the concept of mixed alliances, believing that our businesses will succeed provided we all remain on the same team.
Furthermore we remain respectful of territories in the quest to build sustainable businesses. And should an opportunity arise in a particular area we would offer this to the nearest franchise ahead of another interested party.”
Name the biggest challenges to your business.
“For the most part our challenges are similar to those encountered by most businesses in South Africa, irrespective of industry sector. A fluctuating exchange rate coupled with fluctuating inflation, less disposable income, power shortages etc. are all areas of concern.
More specifically in the case of TYRES & MORE ®, there is much work to be done with respect to branding. Comparatively, we are not as well established as some franchises out there so it will take heavy investment by way of marketing and advertising to establish a stronger presence in the market, something we are well prepared for.”
Are you aiming for further market penetration?
“We have not set a limit as to the number of stores we hope to end up with. As the right locations, opportunities and individuals present themselves, we will capitalise on them.
In contrast, we are heavily focused on maintaining high standards and providing motorists with a satisfactory experience.”
In a ‘market first’ TYRES & MORE ®, is offering a potential franchisee the opportunity of a lifetime! Successfully convert an existing store to a TYRES & MORE ®, franchise before December 2015 and Tyres & More will waive the joining fee! The offer is valued at R50 000.00 and only available to SA Treads readers!
Source: https://satreads.co.za/nowpdf/SA_TREADS-Sept2015.pdf
