If any company is a perfect example of the American Dream, it has to be Les Schwab Tire Centers.
The Oregon-based chain started out back in 1952 with just the owner and one employee. Currently it is one of the nation’s leading independent tire dealers with more than 400 stores blanketing eight Western states. More than 18 of these are in Snohomish County.
Les Schwab was also ranked the best passenger-vehicle and light-truck tire retailer in customer satisfaction for four years in a row according to J.D. Power and Associates. The company remains privately held.
From fixing flats and retreading tires fifty years ago, the Les Schwab empire expanded to offer a variety of products and services including tires, chains, brakes, shocks, wheels, batteries and vehicle alignments.
The company currently boasts one of the largest tire retreading plants in the country. A single distribution center in the founder’s town of Prineville, Ore., has a footprint of two million square-feet.
When founder Leslie Bishop Schwab died in 2007, his company had more than $1.7 billion in annual retail sales. The continued success is due in part to a customer service-oriented business model. When you pull into a Les Schwab Tire Center, an employee comes out to greet you. It’s rare in an era of long lines and pre-scheduled appointments.
Lots of little extras are also part of the Les Schwab service model. Free flat repairs and free rotations remain a standard part of the service. Tires and wheels are cleaned after servicing so they come out looking better than when they went in.
Schwab knew that it was the little things that made the difference about how customers felt about their experience. He counted on this satisfaction to generate word-of-mouth advertising.
Schwab is also credited with being the first to introduce supermarket-style shopping to the tire market. For the first time customers were able select the tires they wanted to purchase directly from a display rather than take something sight unseen from the warehouse.
The idea was to make customers feel comfortable and confident in the products. “If we can’t guarantee it, we won’t sell it” is not just the company motto, it’s a registered trade mark.
Employees are also important to Schwab. He felt that if his employees had a stake in the business they would voluntarily work harder and offer better customer service. In 1954, just two years after opening, Schwab introduced a profit sharing plan that continues to be fully funded by the company today.
In fact, 50 percent of Les Schwab Tire Center profits go back into employee-related programs. The company also supports employee professional growth. They like to hire managers from within and it is not unusual to find store managers that started their career in the tire-changing bay.
Oregon-native Dick Borgman was named CEO of Les Schwab Tire Centers just before the founder’s death in 2007. His ongoing goal is to continue with the same model that has served the company well for so many years.
Future plans are along the same lines as those set out fifty years ago, to offer great customer service, treat employees well, monitor product lines carefully and keep an eye open to expansion.
The only major change for the company occurred last year. The head office moved from Prineville, OR to Bend, 35 miles down the road.
Les Schwab, the man himself, remains something of a Northwest icon. Two years after his death thousands of customers still hold off buying new tires until February. That’s when the company’s kitschy free beef promotion runs.
Only Les Schwab could have put the words “tires” and “beef” in the same sentence and make them both sound good.
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