First Stop in Europe believes that the changing technology in automobiles presents both threats and opportunities for tyre and service centres in Ireland. First Stop is developing programmes and supports for its members to help them be more relevant to consumers in this changing environment. Eddie Cunningham talks to Pat Curran, CFO, at Bridgestone Europe’s Retail Division.

Eddie Cunningham interviewing Pat Curran, CFO at Bridgestone

Tyres help to make the world go round but those involved in selling them could be left behind if they don’t change how they do business.

That’s the message for retail outlets not just in Ireland but across Europe as new-car technologies pose some of the stiffest challenges to the old order of things. By the same token, they also present unprecedented opportunities.

And that is where Bridgestone and its retail arm First Stop come in. Or, more accurately, that is where they want to join in realising those opportunities for the good of all concerned – not least the tyre giant itself.

Their message to the 22 First Stop stores they own on the island of Ireland and their 59 independent First Stop outlets/partners is clear and precise: either you change along planned routes or you become much less relevant to consumers.

Pat Curran, CFO at Bridgestone Europe’s  retail division, sat down to talk us through what he sees coming down the line for these business and to outline the extensive help, support and guidance his company is prepared to offer to turn the wheels of change.

He is, effectively, appealing to those running the outlets just outlined to avail of what Bridgestone can do for them at this challenging juncture for their businesses.

“There is a crossroads looming,” Pat says. It is all driven by the speed of new technology as it is applied to cars. And that could put huge strain on current volumes at First Stop outlets.

“With so many cars you can’t lift the bonnet without going to the appropriate place. So, new cars tend to stick with dealerships but as they approach three to four years old, they would tend to drift into the aftermarket, the fast fits, independent tyre and service centres, First Stops of this world.”

So what is the problem?

“The cars that are being sold today are packed full of technology, without additional expertise and equipment, independent dealers will be excluded from servicing these cars when they would normally be coming their way in a few years’ time.”

The older carpark, the ones that First Stop looked after in one respect or another for so long, is “shrinking”, Mr Curran stresses. “Every month, every year, it is shrinking.”

FIRSTSTOP

Many of the First Stop outlets are tyre specialists. Some have become more diverse. But Bridgestone believes that those who remain solely as pure tyre specialists will struggle. That is because tyres are a small part of the overall motor industry. Not to mention the fact that motor dealers are trying to re-establish themselves as tyre suppliers again.

Another danger is that if you are just supplying tyres, you risk losing custom in the future, Bridgestone Ireland’s Marketing and Public Relations Manager Colm Conyngham, who also plays a development role for First Stop told me.

“The average motorist only changes tyres every two years or so but within that time frame there are opportunities for franchised motor dealers to take your tyre business.”

He added: “Even if they are only fitting a light bulb for someone, it gives the independent First Stop partner time to interact with the customer and perhaps get some additional work on their car.”

So for First Stop outlets the message, again, is clear: “The more diverse you become the better chance you have.”

Even the basic business of tyres, with TPMS (Tyre Pressure Monitoring System) now requires skills not previously called on.

Pat Curran talks of the European perspective and produces clinical graphs to underline how outlets have historically been excluded from new-car servicing business.

As the cars got older the likes of First Stop outlets picked up more business.

But they are now being squeezed out by the need for wider application of technology and diagnostics etc.
Mr Curran says: “We want to support them with training, doing deals with some of the premium suppliers of equipment across Europe and so on. We want to working closely with them. We have teams in various markets, not just to supply but to train as well.”

He is adamant: “We would be linking training very heavily to all our supply deals going forward. We want the guys to be able to meet the changing environment. In conjunction with that, we are working with US and European colleagues to introduce a proven customer process at the point of sale.”

The challenge lies with the ability to be able to offer more. “It is not easy to diagnose problems in a vehicle. It is safe to say that many vehicles leaving a tyre shop probably need a couple of hundred euro worth of work for safety reasons.

“If a car drives in, has four tyres fitted and drives out, the consumer should be made aware that the car needs other work done. It is not selling as such; it is awareness. We have embarked on quite an extensive programme. We have taken our US colleagues over to build a “safe process” to enable the dealers to diagnose these particular things in a vehicle and present to the customer in a constructive manner.”

To become more diverse and implement the system we call “RPM” will be quite a step and investment. But it is essential.

And, Pat stresses, it will be fair to the customer. “It is not a disservice to point out these things to consumers.” Underlining confidence in the new process is a built-in safety measure to prevent people from being overcharged. More than two people will need to check everything.

Mr Conyngham sums up what is involved: “You can put on a few tyres and let them off. Or you can have a systematic approach to checking the car and give them a report.

“When you boil it right down it’s a matter of saying to someone who has come in for tyres that you can run a little check on their car too, but this needs to be done in a systematic way.”

Pat expands: “Every staff member needs to be qualified to do that. You need certain equipment, which First Stop can provide. And you need a standard check.

“The process we are imparting here has probably been 20 years in improvement and enhancement in the US. So we’re not re-inventing the wheel. We are taking a good, strong process and imparting it here. We have shared it now with some here (in Ireland) and our own depots are operating it around Europe. Already we have one independent First Stop partner in Dublin who is implementing the formula and can see the benefits for their business.

“It is about customer service and about managing customer expectations. If you brought in a 10-year old car, a sharp-eyed mechanic probably would take €1,000 to €1,500 euro to do the work.

“But what we stress to our people is that, yes, we inspect the car but we differentiate between what you need for legal/safety reasons and what’s nice to have. I think that is important.”

He emphasizes: “This is about what keeps people safe and legal that you would recommend. And that’s in writing, not scribbled down. It’s in writing. They’ve (outlets) got to be able to stand over it.”

Colm admits that will be quite a step for the ‘pure tyre specialists’. “But what we are seeing is a growing awareness. The message we’re trying to get across to them is that we will have a package, one part of which will be this process that will help them in the new environment.”

Pat says one of the strengths of the network that Colm has helped build up is they have the trust of people in the towns and regions they operate.

“These guys are part of the fabric of the town and are trusted. What we are sharing with them is the ability to look after their customers even better and retain their trust. They cannot survive; the industry cannot survive without that word ‘trust’. It is critical.”

He cites United Tyres in Donnybrook. “Go back five years with John O’Sullivan and he did nothing but tyres. He has now invested in equipment. His son Kevin has really taken up the baton. We shared this process with him some months back. He is installing various pieces of hardware which are integral to the process. It is a clear, robust process to keep you, the consumer informed. At the end of the day, they’re the boss.”

Colm points out one key component of the process; “in most situations the personnel at a First Stop outlet (or any other for that matter) only have a short window to secure additional work.  Customers generally don’t want to remain any longer than originally agreed. That’s because we are working in a fast business. People are just turning up and hoping to get sorted quickly. So if there is additional work to be done you need to tell them quickly.”

Pat explains further: “The process is central. The best examples of good process are Ryanair, McDonald’s and Argos. I think successful process for us will lead to greater trust and better customer service in the end.”

They both agree that some independents are already doing elements of it “instinctively” but, crucially, it is not packaged.

Mr Curran goes on: “We want to make them aware that the marketplace is changing; the whole world is changing; things are becoming faster, digital, and we see our role (as being) to look to the future, to guide our partners there with less investment on their part because we will do the research.”

I’m sure his next comment will ring a bell in most businesses. “If you run a small business, the hardest things to do are the Operations Manuals, Health and Safety manuals. We do one of those for hundreds of stores but a single manager has to do it for one. That’s where we can assist.”

So what will all this cost the First Stop independents?

“In a word: Time. Time is the key investment. Time for training. He insists: “Our biggest criteria if you want to go on this road is that you and your team must attend training; to be trained and to be competent and qualified to do whatever it is that the customer needs.”

Colm says: “In an overall sense we’re saying to existing partners to stick with us for all these reasons. Stick with us and we will help you to meet all these challenges. We’re going to help those who are with us.  They have to be prepared.”

This is such a big commitment it is only natural I should ask why they are making such an undertaking?

Pat is pragmatic in his reply: “In five years I want to be selling these guys tyres. We have factories and innovation centres – all of which depend on us selling tyres. This is a good way of securing and protecting a very important channel for us in Europe and here in Ireland.

“The clock is ticking. We’re looking for our partners across Europe to trust us.”

Trust and tyres – two things that make the world go around.