On April 1, Pep Express, the commercial division of The Pep Boys, and Meineke announced the launch of the Meineke TreadSmart Tire Program, an all-new Meineke Dealer Association (MDA) authorized tire program.
Developed with input from the MDA, this initiative is designed to increase franchisee engagement and competency in the tire business as a way to help drive incremental profits and facilitate the sale of adjacent service offerings around the wheel.
The program was designed by Pep Express to mirror the benefits and financial advantages of major tire manufacturer loyalty programs, but offers a much broader base of “Good, Better, Best” branded- and private-label offerings.
The TreadSmart Tire Program is geared towards national and regional accounts that compete in the aftermarket service arena. Under this new program Pep Express has put together an aggressive commercial pricing plan, with an additional companion rebate matrix designed to reward franchisees based on volume and brand selection up to a maximum of 5 percent. As an additional benefit, tire purchases also will count toward required purchase levels on the parts side thereby maximizing rebate payouts across the board.
The ability to “Hot Shot” tires from local Pep Express locations enables Meineke to establish a unique position in the commercial tire space that caters to businesses that, for the most part, do not stock tire inventory. While the tire business can be lucrative and drive other adjacent service offerings once the wheels are off the ground, the complexity and cost of stocking a solid range of options can be problematic for most service centers.
“We know time is money. The Pep Express business model is designed to service our customers ‘on demand,’ unlike other distributors that execute next day or once a day deliveries for the purpose of replenishing stock. This latter model works fine if you are a tire retailer, but not for a service shop,” the two companies stated in announcing the new program.