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6 • One-on-One
What sort of assistance do you provide apart from the norm?
We have something we refer to as the ‘outlets in intensive care’ programme
which provides specific timely assistance to any franchise within the group
that might be experiencing a fundamental problem in their area. This is not to
be viewed as a negative. Quite the opposite in fact, as the system enables us
to identify a particular need, thereby allowing us to focus our full attention and
whatever resources may be required on the franchise in question (at no extra
cost) in order to help them out of their immediate situation.
A network is only as strong as its standards and I’d like to believe our
franchisees understand that. With everyone contributing to the collective
with respect to aligning perspectives, we can achieve our goals both at a
franchisee level and a franchisor level.
Whenever I get to visit one of our franchisees (not as often as I would like),
I constantly remind myself of my goal - to ascertain how I can add value to
him, rather than what I’m going to get out of this meeting?
What is your view on multiple brand-cum-franchise alliances?
I must confess this was new to me. I found it a real challenge when I first
began my career with Hi-Q as I had not previously been exposed to multibrand
or multi-franchise arrangements. Ideally, I would prefer it if our network
So where to from here?
The strategy is simple. Go back to basics, achieve growth through our
network rather than at its expense, and don’t attempt to grow the company
at the expense of existing dealers by opening shops nilly-willy.
was made up of single franchise alliances but I’ve come to
understand that this market and the business model of the
Can we take that to mean you’re not planning on opening
industry as a whole, doesn’t always allow that. ❝
new Hi-Q outlets in the immediate future?
On a positive note, multi-franchising can ease the load Go back to basics,
It’s not our primary focus, although we are looking to fill
for a sole franchisor, whilst also making us aware of rival
offerings that could be seen as adding more value to their achieve growth through
some gaps in what we term ‘open points’. That said we are
reaching the point of diminishing return. By and large, our
businesses.
the network rather than footprint is established which makes the decision to open
a new outlet all that more drawn-out.
at its expense, and don’t
Yes, but don’t you run the risk of a breach in confidentiality?
While there is always that risk, bear in mind, mature attempt to grow the
operators want to make money out of all their outlets
What is your stance on price discounting?
and as such, are highly unlikely to jeopardise one for the company at the expense If you’re not market-related on price you’re out
next. Our attitude is this: If you can’t control the situation,
of the game! However, surveys have shown that
of existing dealers.
the next best thing is to be in a position to influence it.
price only rates third in the list of requirements
You certainly can’t concern yourself with the notion that
❞ that drive consumer choice. At Hi‐Q, we live by the
important information of a confidential nature might leak to
your competitors. That is when you run the risk of becoming dictatorial.
Suffice it to say we make a point of aligning ourselves with responsible
operators and strive to keep in mind that competition is a good thing for
both industry and consumer, in that it helps you to raise your game.
simple principle of ASK (attitude, skills, knowledge),
recognising that if the network fully embraces this concept, other
more important elements such as brand and quality will automatically
take preference over price.
The important message we constantly communicate to the network is,
‘how hard did you work for this particular margin?’ In life, you get what
Are you a multi-brand operation?
Yes. Goodyear is our biggest sell-out brand by far, followed by Pirelli,
you deserve. The key in today’s market is to know who you are, position
yourself accordingly and upsell!
Michelin and Yokohama (accredited suppliers) and anything that is
produced locally (approved suppliers). We pride ourselves in giving the
customer what he wants but do not carry warranties for products that are
not on our approved list.
Are you enjoying your time in the tyre retail sector?
Yes, I am. In many ways it’s familiar territory, while in others it’s a complete
departure for me. As a corporate person, this has been a big learning curve
What happens should someone within the group breach franchise
as this is not a game whereby success is determined by the big leading the
protocol?
Our relationship with our network is very much like a marriage. If you keep
raising the issue of breaches, you stand the risk of alienating your franchises.
As mentioned previously, we prefer to adopt a consultative approach.
small, but rather by the fast leading the slow.
An Ivory Tower mentality won’t work here. Retailers need to come up with
innovative solutions to problems on a regular basis. More important, their