Wednesday, 23 January 2013

FIFTY SHADES OF .......................................BLACK




Ok! So what have tyres got to do with boring books? Easy; they're both boring! Or are they?
Well there's the the history of tyres that we've written about here on a few occasions. There's the marketing history which is as old as marketing itself is as a science. There's the R&D that has taken hard solid bands on trams and waggons to air filled constructions that can carry Tonnes of weight. And of course there's the mobility that they have given to us. But what are tyres actually made of?


If you've ever wondered why Bibendum is white when he's actually constructed of tyres? The answer is simple. When he was originally designed in the1890's, tyres were made of rubber. Rubber or Latex as harvested from the South American rubber tree(Hevea tree) is a milky white sap when harvested. It changes in consistency when mixed with water and other compounds and becomes elastic in texture.
With the development of rubber tyres for waggons and trams, the value of rubber  as a commodity soared. What followed was orgy of greed, slavery and destruction meted out to the South American Indians. As a people they were facing extinction at the hands of the so called rubber barons until Hevea seeds were transported to other tropical regions to be cultivated in plantations.





With the development of pneumatic tyres for bicycles in the 1880's, Carbon Black was added to improve the durability, then fabrics for support. Radial tyres (from 1946) required large proportions of steel chord for support. Oil, Hydrocarbons, Sulphur, all make up the modern tyre. In fact, these days most car tyres will typically be made up of about 20% natural rubber. The remainder being made up of the above mix and this lovely cocktail of ingredients.





The result of this is that prices of tyres are sensitive to a whole range of commodities on global markets. Natural rubber is sold by the Pound on stock exchanges and it's production can be seriously effected by weather, Tsunamis, floods , etc. Oil and steel prices change dramatically on a week to week basis.
The most recent spikes in prices and shortages of some sizes was caused by problems of supply where rubber was concerned. This appears to have stabilised and prices of tyres now seem to have reached a level where they will hopefully sit for a while.
At Heffernan Tyres, we are multi brand and so are not dependant on any one supplier. This enables us to shop around for the best value and price on premium tyres. we then purchase in bulk which again improves our price. This enables us to pass on the best possible price to our customers. And there's nothing boring about that.




Thursday, 10 January 2013

SOMETIMES IT JUST GETS SILLIER AND SILLIER!




IRISH GOVERNMENT JOB CREATION POLICY.

Heffernan Tyres have been aware for some time of an ''imbalance'' in the system where legitimate tyre businesses and Government agencies are concerned. We've written about it here on a number of occasions. We see it in the approach to the sale of second hand tyres, illegal dumping and VAT fraud to name but a few areas.
We have also on a number of occasions in the past year , interviewed men for positions as Breakdown drivers for our business who had tried to start their own businesses. Some had failed or were struggling to make it work. On closer inspection, we found that a number of these men had been given financial assistance from The Department Of Social Protection to start up Truck Mobile service businesses. Sounds reasonable enough until you look at a number of factors. These men had,
  • No insurance for the dangerous type of work they were doing.
  • No Public Liability Insurance.
  • Insufficient equipment to do their job safely.
  • None of the overheads that a business such as ours has.
Yet the Department in it's wisdom sees fit to put these men into opposition against us in order to massage the unemployment register numbers. There is no doubt that some of these operators have taken work off businesses such as ours before going bang. Then there's the lost VAT, tax, PRSI,etc. But wait, it gets sillier!



An article appeared in the Irish Tyre Trade Journal last week reporting ,

''that the Department of Social Protection is purchasing workshop equipment (workshops lifts, compressors, tyre changers, wheel balancers etc.), for social welfare recipients  to help set them up in business in direct competition to existing businesses in the sector.

A number of reputable workshop equipment suppliers that do not wish to be named have confirmed to TyreTrade.ie that they have been paid by the Department of Social Protection for equipment that was purchased on behalf social welfare recipients.
It has also been alleged though not confirmed, that some of the equipment which has been purchased with government funds, has been shipped overseas.''

The Representative body for the Irish Tyre Industry, ITIA, has responded with concern and will hopefully be verifying the details with a view to action in the coming weeks.

We are all in favour of job creation. But job creation means creation of sustainable jobs not quick fixes that jeopardises legitimate business. Our business makes significant tax contributions to the government. The least we expect in return is a level playing field. We are not getting it.





Wednesday, 2 January 2013

''If you always do what you've always done, You'll always get what you've always got''


''If you always do what you've always done, you'll always get what you've always got''



DEBRA SEARLE MBE


One of my personal favourite sayings. Logical and to the point. I originally thought it was coined by Transatlantic solo rower Debra Searle, but have since seen the saying attributed to everyone from Henry Ford to Socrates. No matter! The saying is as relevant in business as it is in life.
No matter how good we are at anything there is room for improvement and we will not improve unless we tweak, change or totally overhaul the way that we have previously done things.





New year is traditionally the time of year that we make resolutions to be better than we have been. Whether by being fitter, healthier, nicer. The gyms and sports clubs do well out of it as do the smoking replacements and the clean living books.





In business we have an opportunity to look at the year that was 2012. To evaluate where we got it right or wrong and to make changes accordingly. Were there opportunities missed or not maximised? Are there areas of our service that we can improve on?
We will be doing this at Heffernan Tyres this week. Setting our direction for 2013 and ensuring the continued success of our business. We will almost certainly be broadening our service offer and growing our business significantly in 2013. We will be confident that we can achieve growth by being adventurous, trying new things and building on the services where we are already successful.
It is often prudent to change by increments. The famous JND(just noticeable difference). And just like our friend Monsieur Bibendum, in time you look back and hardly recognise yourself. Happy New Year!














Wednesday, 19 December 2012

CONTINENTAL. '' THE WORLD AT THEIR FEET ''





With the successful conclusion  of Euro 2012 this year it seems right and fitting that Continental Tyre Group continues it's growing relationship with the beautiful game. They have successfully signed a contract as sponsor and official tyre for Brazil 2014. Not only has the partnership been a success for both parties to date but some of the associated ad campaigns have been awarded for their inventiveness also. The ''Don't miss the Big Game''campaign for South Africa 2010 was well recognised for it's contribution to the tournament and included a competition to find Britain's best football fan as well as a generous donation to the Black Rhino Conservation Fund. In general, Continental have proved an excellent ''fit'' as a football sponsor. No controversies or health contradictions. Just a strong corporate brand with a great product and a commitment to energy conservation.





This successful partnership for Brazil 2014 will cap off what has been a very successful year for the German manufacturer. From September Continental AG has been listed in the top Deutshe Borse segment again, having returned to the category of most valuable companies in Germany after four dynamic years of growth and capital investment. The company is now turning over in excess of €30 billion and employs over 170,000 people worldwide. These figures represent a massive turnaround for the company given the scepticism surrounding their takeover by AG Schaeffler at the start of the financial crisis in 2008.
Excellent product innovations in recent years backed by creative product releases and marketing strategies would suggest that Continental has many more good years ahead. Their R&D is the amongst the best in the industry and new technologies around energy saving such as ''Black Chilli'' technology have enhanced the company's environmental reputation.




On a local level, We at Heffernan Tyres have had an excellent year with Continental Tyre Group.
In May 2012 ,our MD, Thomas Heffernan attended the official launch of the new Conti Premium Contact 5 in Barcelona. The presentation at the launch has been dubbed ''the best tyre presentation ever'' by the automotive media.
Continental sponsored several Irish initiatives in 2012 including Irish Car of the year 2013 and Irish tyre retailer of the year. We expect further initiatives in the coming years. 
Our Continental team consisting of Lucy Edwards, Georgina Twohig and Darren Meikle have worked closely with us in 2012 and we look forward to growing our business with them in 2013.
In retail, being the best requires having the best merchandise available for your customers. And at the moment Continental tyres are ticking all the boxes that we require at Heffernan Tyres.





Tuesday, 11 December 2012

LICENCE TO...................................FIT!






No! This post has nothing to do with 007 and his Licence to kill. The Irish Tyre Industry Association (ITIA), of which Heffernan Tyres is a member, is about to embark on a campaign for the  licencing and regulation of the Irish tyre industry. The objective would be to provide legislation to close depots that didn't meet a benchmark of compliance or were operating outside of the law with regard to VAT,Insurance, Environment, etc.
At a recent social event, I was having a conversation with a major identity of the Irish car market. The conversation inevitably turned to business and the current conditions in the Irish Automotive industry. I raised the issue of part worn tyres as a scourge to the legitimate tyre trade at the moment. To my surprise my companion then gave me an anecdote about a friend of his with a BMW 5 Series who had purchased a pair of part worn Runflats for his car at €90 cash. ''They're €200 each new, You cant blame people! You'd do the same yourself'' Well no! I wouldn't. The European driver who parted with his part worn tyre did so for a reason. He may have driven it flat for 100km or more at 100KPH or more. The tyre was then repaired (contrary to manufacturers recommendations) here by a part worn cowboy and fitted by an uninsured person. Aside from that they're great value!.
My point here is that if senior identities within the Irish Automotive Industry think like this, we will never succeed in educating the public to the dangers of part worn tyres. We need a different approach.

ITIA CAMPAIGN


Black and grey market operations are thriving in Ireland the moment. Cash transactions with no VAT are the order of the day in the shed type tyre shops which have popped up everywhere. Part worns and sometimes stolen tyres are what is on offer. There is no enforced regulation or legal criteria required to set up one of these businesses. A premises and a tyre machine are all that is required to commence trade in the tyre business as it stands.
We need criteria such as training, insurance and health and safety standards put in place as standards necessary for a licence to fit tyres. The dividend for government would be a greater tax take, better safety standards and a reduction of black/grey market activity.

The ITIA initiated a training programme for tyre technicians last year. It has been well received and our manager, Nigel, was very enthusiastic about the standard when he attended. It is the aim the ITIA to have at least one ATA accredited technician in every member depot. He or She can then train their colleagues and contribute to raising standards overall. We can view this accreditation as a ''licence to fit''.
It will set businesses like Heffernan Tyres apart from the cowboys and provide a benchmark for legislation for licencing. This fight for legislation and regulation will be difficult. But the end result will mean jobs, revenue for government and safety for the motorist. And that's worth fighting for.


Wednesday, 5 December 2012

WINTER TYRES AND BLACK ICE.



This year has been slow for us in terms of winter tyre sales in Ireland. The bad winter of two years ago created a spike in demand last year. People thought that bad winters were going to be an annual occurrence rather than the one in fifty year weather event that it was. The mild winter we had last year brought people back to reality. This is a mild country.
We do get asked by our regular customers if it is a good idea to change to winter tyres or not.
Naturally we would love if tyres were a seasonal item in Ireland as they are in Europe. If people were legally obliged  to change their tyres at the start of winter it would boost our sales considerably. Come Spring we would have the same boost. So we should be shouting their virtues from the rooftops.
In truth, most years, winter tyres are a useful safety addition for the motorist in Ireland but not really an essential item except for the odd snowy day. Last year we had probably two days of snow in Kildare so for most motorists mobility was not a problem.
Even in snow, most premium tyres will get you moving but will never perform as well winter tyres.
Winter tyres have a greater number of "sipes" compared to their summer counterparts. These sipes make the tyre behave like a squidgy and give grip in the iciest of conditions. Compounds are also different in winter tyres. Summer tyres become hard and rigid in cold weather and this reduces grip further whilst winter tyres remain malleable in all conditions.
A notable exception to the advice above would be in the case of rear wheel drive vehicles such as BMWs and Mercedes. This type of vehicle struggles in snowy conditions and can have real difficulty gaining traction and getting mobile in even light snow. We strongly recommend winter tyres for these cars. Or at least on the drive axle.




Continental Winter tyre showing extra grip sipes typical of premium winter tyres.

The last few days have seen a cold blast across Ireland with the mercury plunging to -4C and below.
The lack of drying during the day creates rivulets on the road surface. This water freezes at night as transparent ice. The asphalt can then be seen through it and so the name ''Black ice'' has been given to this sort of phenomena. Black ice is invisible to the driver and is very dangerous. Summer tyres have  little or no traction on black ice so it is responsible for many accidents in Ireland every year. A change in regular road noise whilst driving is a sign of it's presence and that you may be driving on it. In such instances it is important not to panic or hit the brakes. Slow down by deceleration, find traction and proceed with caution.




BLACK ICE

Black ice conditions are where winter tyres prove their worth. Tests conducted have shown differences of stopping distances at moderate speeds of up to 15 metres. Those are life and death distances.
So a number of points in summary. Winter tyres are a great addition to your safety as a motorist.
The Irish market is totally reactive rather than planned or proactive. You will need to decide well in advance for many sizes as they will be scarce when the snow is actually falling.
If you plan your journey route, time  and speed around the conditions, you can save yourself having to buy winter tyres.
Well most years anyway.






Friday, 30 November 2012

TWO IRELANDS. LILY MAE'S SONG




Listening to Newstalk's Tom Dunne this morning, you could not but have been moved by the interview with Lily Mae Morrison's Mum. Lily Mae is battling Neuroblastoma, an aggressive form of cancer, and a version of Elton John's  "Tiny Dancer" has been released to raise funds for her. The response has been astounding. The song has gone viral and is selling in huge volumes. The story has gone global and even Elton himself has lent his support.





Amidst the other news on the radio, you couldn't help but think that there are two Irelands out there.
Yesterday, our arguably most odious politician, Michael Noonan, assured us that ''we would be getting a fair budget, with those who could afford it being affected the most''. You wouldn't have to be Nostradamus to figure out who Michael is talking about.  He means employers and small businesses and because of his detachment, does not realise the damage that he will do. Now don't get me wrong, it's not a Fine Gael thing. We've been governed by a combination of five parties over the last five years and all have proved their rottenness and detachment from those of us who live in the real world. Higher taxes for employers and small business will mean job losses, resulting lower PAYE tax take and increased welfare payments. Thus perpetuating Ireland's problems. Mr. Noonan showed his odious detachment from ordinary people during his time as Minister for Health some years ago and his recent comments on Greeces' economic problems would indicate that he has not changed. This is the one Ireland which Irish people do not deserve.



And then there is the other Ireland. The Ireland of leaders like Lily Mae's Mum. People who want to make a difference and are supported by the warmth of a people who genuinely care for each other.
When Irish people put their minds and hearts into something we are capable of doing brilliant things. That is the Ireland we can all be proud of and which will continue to survive despite the terrible conditions created by those we pay to govern us.We all hope and pray that Lily Mae will get the treatment she needs and deserves and that she will celebrate many Christmases to come with her family.
Oh! and its a nice song too. Buy it!