How Retreading Brings Better Partnerships With Customers And Benefits The Industry

Transcription

1 How Retreading Brings Better Partnerships With Customers And Benefits The Industry

2 Better Faster Cheaper: Better Faster Cheaper

3 We have all met the guy who knows the price of everything but the value of nothing. Cheap: costing very little; relatively low in price; inexpensive Cost: the price paid to acquire, produce, accomplish, or maintain anything or an outlay or expenditure of money, time, labor Price: The sum or amount of money or its equivalent for which anything is bought, sold, or offered for sale Value: The worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange.

4 Price And Value: Buy Cheap Buy Twice It is unwise to pay too much for something but it is risky to pay too little. When you pay too much you could lose some money. When you pay too little you could lose everything, because the item you purchased was incapable of doing the job it was bought to perform. The common law of business balance prohibits paying a little and getting a lot, it cannot be done.

5 Price And Value If you deal with the lowest bidder (or lowest price) it is a good idea to add a contingency for the risk you take. If you can afford to do that, it proves you had enough money to pay for something better in the first place. Quality is remembered long after price is forgotten.

6 The True Cost Of Tyres (Total Cost Of Ownership) Cost of Tire Km of Tire Value of Tire

7 A Few Words On Cost Versus Price What is price? Price is market value, or agreed exchange value, that will purchase a definite quantity, weight, or other measure of a product or service. Competitive landscape The tire business is a competitive one. A tire price firstly reflects the value provided to customers, but evolves in view of the competitors offer. Residual value Service Technology Brand image Product Attributes Value Aspirational price Real price

8 Product, Quality, Service And Price Are Linked = PRODUCT PERFORMANCE MARKETING SKILL SERVICE QUALITY Equalising effect of competitive landscape & price

9 Price Is A Very Blunt Instrument Leveraging price to overcome competitor price/product/marketing/ service combination PRODUCT PERFORMANCE MARKETING SKILL SERVICE QUALITY

10 Price Tends To Have Short Term Effect Temporary impact of price action PRODUCT PERFORMANCE MARKETING SKILL SERVICE QUALITY

11 The professional approach to price can combat price in a surgical and precise way = Additional equalizing PRODUCT PERFORMANCE MARKETING SKILL SERVICE QUALITY Neutralizing effect on price

12 Physically we all sell tires,..but that is only part of the story Q1. What do we sell (directly or indirectly) to our dealer customers? Q2. What do we sell (directly or indirectly) to our end consumers? A1. Profit opportunity A2. Mobility & Safety & value for money

13 How Re-treading Brings Better Partnerships With Customers And Benefits The Industry

14 How Re-treading Brings Better Partnerships With Customers And Benefits The Industry Adopting a Retread doctrine is good for fleets. Application based selling and tyre/casing management by the user (or his supplier) is a key element Objective is to prolong tyre life by extracting the value engineered within the product at conception. The result is reduced running cost (total cost of ownership) and reduced consumption of raw materials, better green credentials. As the basic raw material for retread is the casing, there should be a good link between new tyre makers and the retreading community. Most re-treaders have direct relationships with the end user customer to harvest casings. An opportunity exists to influence the end user regarding which new tyre choices are appropriate for retread, sustaining the retreading business activity for the future.

15 Better Partnerships Are Simple Product, service, information and Retread Select the correct tire for the clients operating conditions Inflate to carry the corresponding load per axle (using load and inflation tables for data) Maintain the tires by offering regular inspection and performance monitoring Protect your investment in new tyres by retreading the worn casing Lower your running cost by good tyre husbandry and casing management (possibility of multiple retread) Enjoy the lowest cost of operation by using quality new tyres coupled with a professional retread supplier

16 Select the correct tire for the clients operating conditions

17 Inflate to carry the corresponding load per axle Download from

18 Maintain the tires by offering regular inspection and performance monitoring Download from

19 Protect your investment in new tyres by retreading (not selling) the suitable worn casings KEEP THE BOTTLE, REFILL OR SELL??????? Extend service life Two ways I nf l at ed gas bot t l e pr i ce: 100 Gas i s exhaust ed Sel l bot t l e: 20 Re f i l l : 60 Save cost Pr i ce gap & pr of i t : 19

20 Lower your running cost by good tyre husbandry and casing management (possibility of multiple retread) Download from

21 Enjoy the lowest cost of operation by using quality new tyres coupled with a professional retread supplier

22 WHO WE ARE A Singapore Based Global Tire Company Giti Tire has been in the tire business for more than 60 years. The company has become one of the world s largest tire manufacturers, serving customers in more than 130 countries. 5 R&D and Technical Centers 8 Manufacturing Plants 11 4 R&D in China, USA, Germany, Indonesia, and 1 testing center in UK 6 in China and 1 in Indonesia 1 in the U.S. expected to be operational in 2017 Offices Singapore, Indonesia, Malaysia, China, U.S., Canada, U.K., Germany, France, Brazil, Dubai (UAE) 32,000 Employees 70,000 Points of Sale Worldwide In more than 130 countries

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