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New announcement from Michelin. Looks like they're getting into the online game...


Elon Block

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New announcement from Michelin. Looks like they're getting into the online game with a new and
different approach to making it easy for the customer to do business with them. There are a number
of interesting things in the website's FAQ's that caught my eye.
http://www.moderntiredealer.com/news/story/2015/08/michelin-pilot-program-sells-tires-online-and-offers-concierge-service.aspx

Even if you're not a tire dealer, this move is a game-changer, What are your thoughts on this?

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Mr Block, This is a very good point and interesting one . I have been a MAST dealer for 25 to 30 years my loyalty numbers have always been around 88 to 91% loyalty every year. I am tracking this year at 54% . Therefore , all my backside money is being held. This is the first time in our companies history , since 1961, this has happened. I sent a pretty testy letter to Mast headquarteres for them to explain this and how it could happen. My PD is ATD my SD is TCI. It is obvious ATD rollout of there new online ordering has been a catastrophe and Michelin fill rate is horrible. I hate to say this good or bad although I feel at this point they are scrambling to reestablish there presence in a quickly changing market. I am waiting for a response from Michelin If they do not figure a way for my company not to be punished for there lack of product, I will make a change after all these years. The MAST program needs overhauling , it is basically same as it was 20 years ago.Thanks for bringing this to light, we are all in this together. I am so glad I found this website. Thanks David

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Mr Block, This is a very good point and interesting one . I have been a MAST dealer for 25 to 30 years my loyalty numbers have always been around 88 to 91% loyalty every year. I am tracking this year at 54% . Therefore , all my backside money is being held. This is the first time in our companies history , since 1961, this has happened. I sent a pretty testy letter to Mast headquarteres for them to explain this and how it could happen. My PD is ATD my SD is TCI. It is obvious ATD rollout of there new online ordering has been a catastrophe and Michelin fill rate is horrible. I hate to say this good or bad although I feel at this point they are scrambling to reestablish there presence in a quickly changing market. I am waiting for a response from Michelin If they do not figure a way for my company not to be punished for there lack of product, I will make a change after all these years. The MAST program needs overhauling , it is basically same as it was 20 years ago.Thanks for bringing this to light, we are all in this together. I am so glad I found this website. Thanks David

I'm just curious. Are you saying Michelin is penalizing you for you buying outside their program?

 

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  • 3 weeks later...

Sorry for the late reply, Michelin makes us set up primary and secondary distributors, you must buy 75% of their product from primary and the rest from secondary to qualify for the CVP "rebate" money. I have been on average of a 88% to 12% since 2000, this year Michelin had a unreal supply issue, I had to get Michelin/ BFG tires from whomever had them which skewed my numbers to 60/40%, 100% supply shortage issue. My rebate will be around 10k, was 18k 5 years ago, changing markets have really caught up with them. They really have no solution , I turned my secondary supplier off, so no rebate money from the product from the secondary point. After I saw your post about the direct sales, it really hits me wrong, I have been loyal to the Mast program since the inception. The Independent Tire Dealer sells 48% of Michelin/BFG product, the rest is split up by car dealers , large franchise locations, big box stores an so on. I suspect when word hits the Independents will not be renewing there Mast agreement and move to other brands that protect us to some degree. Watch Cooper, they are licking there chops. This will be a interesting 4th quarter for Michelin, as you said whether you sale tires or not, "this is a game changer" . I just can not for the life of me understand there mindset, Michelin could loose 10 to 15% of Independent tire dealers in quarter 4, This will be interesting to watch. Thanks for the heads up on the direct sales, did they really think it would be a secret.

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