International Process and Performance Institute

Looking at the market from the customer point of view, in the 1960’s Discount Tire decided to run its business by creating a definition for success (customer success) that fulfilled an unmet need in the market. This led to Discount Tire running its business with low prices without up-sell, the employment of staff trained to give objective advice on tire selection appropriate to the needs and goals of each customer and prompt, courteous delivery of services. Those Moments of Truth in the typical up-sell and cross-sell “process” were suddenly gone.

How do you get to $1.5 billion in revenue in a crowded, low-margin business like retail tires as a start-up? Not by adding in extra services. That is another big difference with Discount Tire. The company became an organization of tire experts. It only does tires and tire related services. You can’t get your oil changed at Discount Tire because oil changes are not related to tires.

Another interesting move by Discount Tire was the decision to deliver flat tire repair to customers for free. Again, focusing on the customer and customer success, Discount Tire decided to give away a high-value (to the business) industry service - the repairing of customers’ flat tires - for free. Now having a flat tire is certainly a Moment of Truth for customers, but having those flats fixed for FREE is a Moment of Magic – eliminating the additional Moments of Truth we would normally encounter in attempting to get our flat tire fixed.

Discount Tire is the company that fixes its customers’ flat tires for free, doesn’t up-sell, offers very low prices on a broad selection of tires, has objective tire experts for employees, and gets you in and out fast.

That value proposition and delivery of success has turned the tire sales and service industry upside-down.