Selling tires: Family business only gets better with time
Fourteen years after the company started distributing Goodyear tires, it received a national award for best sales performance and now distributes eight other tire brands and offers automobile services.
Macro Tires Inc. was set up in 1998 along A. Soriano Street in the North Reclamation Area, Cebu City.
Macro Tires Inc. general manager Jedd Ryan Go said his parents, Judy and Robert, wanted to diversify from the family’s retail chain Prince Warehouse Club.
“Back then, there was not much competition, and the market was not as big,” said Judy Go, who now runs a sister company Speedy Tires Inc.
The store had 18 employees when it opened and catered mostly to walk-in clients.
Believing there was an underserved and untapped market in Cebu, they targeted taxi fleet and rent-a-car operators.
Since the Goodyear tire brand caters to high-end customers, the store offered other brands to reach across market segments.
“Now we carry at least eight brands, including Gajah Tunggal, Yokohama from Japan, Radar, China-brand tires and other products, such as basic spare parts, lubricants, alloy rims, engine oil,” said Go.
In 2009, the company moved out of the North Reclamation Area when the building owner had other plans.
“We went out and looked for a property and we got that lot along the national highway in Tipolo, Mandaue City, right across Security Bank,” Go said.
With the bigger space, their services expanded to computerized wheel alignment, nitro air pumping, tune-up, wheel balancing, under chassis repairs, air-conditioning and carbon cleaning.
The new office has a waiting lounge for customers with TV set and Wi-Fi connection.
“We invested a lot to make our products and services cater to what our customers need. We emphasize quality and convenience,” said Go.
The network of dealers and subdealers expanded to Iloilo, Leyte, Negros and Bohol markets.
“We have at least 50 dealers and subdealers. We plan to expand more,” Go said.
Tire sales grew at least 20 percent last year.
“There are many people now who buy cars, some as second cars. About 10 percent of car owners are also fond of ‘pimping’ their rides, so they invest in new tires, rims and other upgrades for their cars,” said Go.
Tires cost P1,500 to as high as P13,000 each.
“We have many clients who own multicabs and invest in making them look good. Buying tires with alloy rims are often their top investments,” said Go.
Many new players have also opened tire shops, including surplus product dealers, which pose the biggest threat, said Go.
“In terms of pricing, we cannot compete with surplus dealers. These are supposedly banned according to the law but they keep coming anyway,” said Go.
To stay competitive, the store expanded product lines to compete with surplus products but still of good quality.
Go said they plan to set up a carwash service in the Tipolo office by the second quarter.
The store bested 100 other dealers when it was named Goodyear Philippines’ 2011 National Dealer.
“We are further encouraged to do our best and get the same award next time,” said Go.
