How2Day: Pros of AmPac Tires

AmPac Tire was a large distributor/wholesaler of tires, servicing shops and independent tire dealers. In 2008, it was bought out by American Tire Distributors. The CEO of American Tire, Richard Johnson, stated that this move would benefit independent tire dealers because of a stronger distribution network, giving American Tire the ability to supply a wide variety of brands.

American Tire aims to offer a diverse selection, so dealers are able to offer their customers a wide brand selection. If a customer wants a brand that is not stocked, a dealer can quickly call up American's local distribution hub, and have the specific brand available.

Convenience is a key feature of American Tire Distributors. Through online ordering, orders can be placed any time during the day or evening, a big benefit for the shop owner. He can close the shop for the night, and do his ordering afterwards. American Tire also states that since they stock a full line of accessories, such as wheels, all the items can be on one invoice and the entire order is delivered on the same truck.

Because American Tire has 82 warehouses across the United States, short delivery times from order placement to physical delivery to the retailer is possible, a significant advantage for a dealer. If a customer places a special order for a tire, she does not want to have to wait two weeks or more for the order to come in.

If a retailer succeeds, American Tire succeeds. If the retailer fails, American Tire loses sales. Its to their advantage to provide business counseling services to retailers. One service AT provides is cooperative marketing, meaning that the cost of marketing is shared between American Tire and the retailer.

American Tire is a wholesaler, selling to retailers. All the benefits of American Tire, however, trickle down to the final consumer, the customer of a retailer. If a customer likes a particular brand of tire, but her tire shop does not stock that brand, an American Tire retailer can easily order and deliver the tires promptly. The customer does not have a long wait time for her tires to be in the shop.

Another benefit, to both the retailer and his customer, is a wide wheel selection.The retailer can advertise he carries different wheels, from various manufacturers. If a customer wants a particular wheel, it can be ordered and delivered quickly. Again, wait times between ordering and delivery are reduced significantly with a retailer using American tire as the distributor.

A third benefit is the reduced shipping cost. Shipping costs are usually passed along to the consumer. Because all of a retailer's order is on one truck, his shipping costs are reduced by using American Tire. This reduced shipping cost can be passed on to the consumer.

How2Day