Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter personnel and professional technicians. This week, using Babcox Research, we look at the breakdown of ownership at tire dealerships.
Major tire corporations such as Goodyear and Bridgestone-Firestone may come to mind when you hear the term ‘tire dealership,’ however according to the 2008 Tire Review Dealer Profile, the majority of tire dealerships (91.6 %) are actually family-owned. Sixty-two percent of those surveyed were the sole owners of the business; with 22 percent sharing the business with a partner.
The tire dealerships surveyed have been in business for an average of 29.4 years. More than half have been in business 11 years or more.
When asked about succession planning, only 16 percent said they plan to pass the family business down to a child. Twenty-five percent said they will sell their tire dealership to a non-family buyer, and 32 percent have not yet decided.
The complete breakdown is as follows:
If you are the sole owner, what do you plan to do with your business in the future?
32% have not decided
25% sell it to a non-family buyer
16% give it to a child
13% sell it to child
10% don’t intend to retire
2% sell to siblings
2% give it to siblings
1% liquidate assets
* does not add to 100% due to rounding
For more information about Babcox Research, go to: http://www.babcox.com/marketing_research.html.