Google
 
Web www.nwbusinessmonthly.com

Les Schwab – Not just a tire company
54 years strong and growing

by Dana E. Blozis


When people think of Les Schwab, some picture the man himself, decked out in his trademark cowboy hat, while others envision one of his many tire stores dotting the western United States. And, of course, there are those who identify the company with its 42-year-old “free beef” promotion offered each February. Regardless, Les Schwab is a well-recognized name in the West, synonymous with quality, commitment and customer service.
Started in January 1952, Les Schwab has grown from a small tire store in Prineville, Ore., to a 400-store company spread throughout Alaska, Washington, Idaho, Oregon, California, Utah and Nevada. Expanding at the rate of 15 to 20 stores per year, the company’s sales are fast approaching the $1.5 billion mark, making it one of the largest independent tire companies in the country.
Originally moving into the Seattle market in 1980, the company is comprised of company stores, which are owned directly by Les Schwab and his family, and member dealers, which are independently owned. Instead of being run as franchises, the member dealers follow the Les Schwab business model, utilizing company support whenever needed. Providing everything from training to information technology to marketing assistance, Schwab’s simple business plan ensures each store’s success, regardless of its ownership.
In northwestern Washington, Les Schwab is represented by 12 different locations. In addition to the company-owned store in Ferndale, Pat Rimmer owns three stores (Sedro Woolley, Stanwood and Burlington); Bill Floyd and Russ Perry own one store (Mount Vernon); and Bud Wallgren owns seven stores (Oak Harbor, Clinton, Anacortes, Lynden and three stores in Bellingham).
According to area managers Wayne Galloway, III (Ferndale), Ed Perry (Burlington) and Dick Eggen (Wallgren Tire), they don’t see themselves as separate or competing stores. Instead, they work together to promote quality customer service and to help each other when needed.
“Each one of us represents Les Schwab to the public,” Galloway explained. “Regardless of which store you visit, you’re going to have the same experience. That’s just how we do it.”
“The bottom line is Ed’s customers are my customers, and my customers are Ed’s customers,” Galloway said. “They are all Les Schwab customers. The bottom line is that we took care of them and provided them with the Les Schwab experience no matter what location they went to.”
Noting that they dress in the same white shirts and blue pants and the stores have a similar look and feel, most customers don’t realize there is a difference from store to store, Perry said. Regardless of ownership, each store offers the same products, the same service, and the same atmosphere.

Customer service is key
After 54 years in the business, one wonders about Les Schwab’s secret for success. What has fueled his company’s growth over the years? Why do customers return again and again for tires, wheels, brakes and alignment services? According Galloway, Eggen and Perry, customer service is the most critical to the company’s success.
“Nothing else matters,” Galloway said. “Nothing happens until you take care of the customer.”
In addition to focusing on top notch service, Les Schwab stores offer a supermarket selection at competitive prices, which allows them to meet almost anyone’s needs from the average consumer to the commercial or farming customer.
“That’s the difference between Les Schwab and another chain store,” Eggen, general manager of the Wallgren Tire Les Schwab stores said. “We’re not locked into one brand. We can accommodate anyone’s needs and wishes.”

Regional company with a local flavor
In each market where Les Schwab has a presence, the company encourages its employees to be active members of the community. Not only does the company make donations to local nonprofit groups, but many of the company managers actively participate in the management of organizations like the Chamber of Commerce, Kiwanis and Rotary Club. Les Schwab stores also sponsor local sports teams, or as Perry puts it, “almost anything that involves kids.”
“We’ve become really good partners with our area schools,” Perry said, noting that Les Schwab makes donations to school programs and the students reciprocate by volunteering at events like customer barbecues.
“We give more than just a donation,” Galloway added. “We’re part of the community. We take a lot of pride in that.”
Aside from its nonprofit generosity, Les Schwab takes good care of its employees through advancement opportunities, benefits packages, retirement plan contributions, and manager and employee bonuses, returning profits back to the stores.
“Les Schwab gives over 50 percent of profits back to the employees,” Perry said, adding that profits are also reinvested to build new stores.
It is this commitment to community and customer service that has made Les Schwab so popular with employees and patrons alike.
“The people that work for Les Schwab Tire Center, whether it is a company store or a member dealer, truly love working for Les Schwab,” Galloway said, noting that Les Schwab employs about 200 people in northwestern Washington.
“There is no company in the world that gives us the ability to take care of our customers as well as our company does,” Galloway added.
Perry concurred, “I couldn’t imagine working any where else. I love coming to work every day.”


Who is Les Schwab?
Aside from knowing he wears a cowboy hat, a blue jacket and a white shirt, how much does the public really know about Les Schwab? According local managers Galloway, Eggen and Perry, Schwab is a sharp manager who is good with figures, loves his company, and takes pride in knowing the names of his managers and each store’s sales history.
“Talking to Les Schwab is like talking to your grandpa,” Galloway said. “He loves his company and he takes great pride in knowing each store and what is unique about it.”
Eggen remembers his first meeting with Schwab in the late 1970s:
“I saw that he smoked a pipe and wore a cowboy hat. I wondered, ‘What does this guy know about tires?’”
“I’ve probably never met anybody that’s more humble. He’s easy to talk to; he likes a good joke, and he’s an extremely sharp individual with figures,” he added.
“It was right out of the gate that I first admired the man,” Eggen said. “He’s extremely honest, caring and humble. He’s a good person.”



Why the beef?
For those who aren’t familiar with the Les Schwab “free beef” promotion, Schwab started this popular idea in the early 1960s as a way to thank area farmers and ranchers for their dedication and hard work. Schwab purchased large quantities of beef from them, to be given away to his tire customers. Anyone who buys tires during the month of February receives free beef from the freezer or in a party pack, compliments of Les Schwab. In addition, all of the Les Schwab stores hold a grill giveaway and some a weekend barbecue in February to thank their customers for their patronage. Prices are not raised to cover the cost of the beef; instead, it is given to customers free of charge. The beef provided to customers in northwestern Washington is also grown in the area, although Les Schwab representatives did not say which farms provide it.









Click here to subscribe to the Northwest Business Monthly Magazine

HOME | MAGAZINE | PAST ISSUES | SPECIAL EVENTS | VIP CLIENTS | EDITORIAL CALENDAR | ADVERTISING INFO | PRESS RELEASE | CONTACT INFO

Northwest Business Monthly, 1732 Iowa Street, Bellingham, WA 98229 • (360) 671-3933 • Fax (360) 671-3934