Promoting quality satisfaction – a gentleman’s agreement
Master-Sport will be the first Premium Plus supplier on the Tyre24 platform
Motortec Automechanika Madrid 2019 – this is where the entrepreneurs were introduced to each other. The exchange of pleasantries between Michael Saitow and Wieslaw Rutka was dominated by one thought:our companies are such distant worlds, so nothing but…. to earn a round million euro! What is so special about the strategic partnership between Tyre24 and Master-Sport today?
Highly qualified specialists develop software, web applications and onlinenet platforms that are among the most successful in the automotive industry. Real engineers test proposals for the automotive industry. On one side the e-commerce giant with its Tyre24 shopping platform, on the other the know-how of Master-Sport. We are the first to announce this agreement!
From now on, the two gentlemen’s interests are aligned. Anyway, the strategic cooperation agreement itself is said to be a gentlemen’s agreement. Its pillars must be a guarantee: the best price in exchange for premium quality delivered to the customer in record time.
In mid-October we meet Michael Saitow from Tyre24 at the MasterSport logistics centre in Gorlice (Małopolskie Voivodeship).
- Why are we sitting here? Because we are announcing a great project together! – starts Michael Saitow, CEO and founder of Saitow AG, the company behind the Tyre24 shopping platform. – From the Madrid Automechanika we came to the conclusion – Master-Sport is a manufacturer, and that’s half the battle, because by joining forces we can be up to half the price of similar offers on the e-commerce market. The other half of success is volition, because we have so far only worked with parts distributors boasting extensive experience in the e-commerce market.
Offers on Tyre24 now connect 2,000 bidders with 40,000 buyers. Suppliers to garages. The annual turnover is already well over 1 billion euros. At the Sauerwiesen 2 Technology Park in Kaiserslautern, over 100 Saitow AG developers ensure that the best algorithms guarantee the best price. Under the best logistical conditions. By recommending those in the best quality. Until recently only from the tyre range, more recently also from fast-fit spare parts such as brake discs and pads, suspension components, filters.
The three pillars of the satisfaction strategy
Old-school businessmen will probably remember a kind of humorous warning. In garages it was quite common to see messages for motorists: good and cheap won’t be fast; good and fast won’t be cheap; fast and cheap won’t be good. Who practices this aporia even today
You don’t have to be a genius to discover – by the way, the times of the pandemic only accelerated the decision to combine the efforts of our companies – that the future is online shopping, proves Wiesław Rutka, president and shareholder of Master-Sport. – The future is transactions combined with service when it comes to the aftermarket industry. Let us emphasise that the debut of the collaboration is an absolutely new quality on the Tyre24 platform. You don’t have to be a genius to realise – by the way, the pandemic has only accelerated the decision to combine the efforts of our companies – that online shopping is the future,” Wiesław Rutka, President and shareholder of Master-Sport, says. – The future is transactions combined with service when it comes to the aftermarket industry. Let us emphasise that the debut of the collaboration is an absolutely new quality on the Tyre24 platform. Never before has the automotive industry offered such an immediate response to purchasing decisions.
Tyre24 and Master-Sport have signed an agreement, which is followed by a declaration: delivery the following day. In the first stage 1000 Master-Sport items will become recommended. Of course, the number of references will be increased in the near future, because Master-Sport also includes suspension parts, filters and brakes… A total of 15,000 references for the aftermarket. From now on available 24 hours a day in Europe. It is easy to imagine the potential for customer reach in the EU for the only Premium Plus supplier on the Tyre24 platform. A sultana, too, insofar as it is a manufacturer of spare parts.
Today, brake pads, shock absorbers, filters, and in a moment probably also batteries. And what’s more, they are signed with numerous patent rights. For 25 years we have been developing technological thought and only agreements with corporations do not allow us to boast about the giants of the automotive industry we supply our car parts to, so that the cars assembled in this way leave the factories as top market proposals – Wiesław Rutka, the president and shareholder of MasterSport, proves.
And he adds that so far MS has focused on manufacturing and perhaps not enough on brand recognition in the EU. The manufacturer was only available on e-commerce platforms through cooperating companies.
How to earn a million euros in a year?
Almost 1.5 years since the first meeting in Madrid, work has been ongoing to improve the platform on which the offer meets with interested parties.
- Let us emphasise that the debut of the collaboration is absolutely new on the Tyre24 platform,” continues Michael Saitow, Tyre24.
- Until now, we have never guaranteed such a rapid response to purchase decisions. Since our platform brings together numerous bidders, who declare different policies regarding delivery standards, delays in deliveries lasted up to several days. He adds that several days of waiting for complete parts is nowadays definitely too long for customers. For motorists in garages, in addition to replacing tyres, to carry out economically justified repairs, for example to the brakes. To replace shock absorbers or filters. This is why, in the face of the recession, economical online shopping is the most promising supply channel and one of the easiest obstacles to overcome in terms of digitalisation, especially for small and medium-sized enterprises. Automotive spare parts are the largest item on the supply side for any workshop and therefore offer the theoretically greatest savings potential. And purchasing platform Tyre24 boasts record low margins – less than 1% on transaction value…
- That is why it is almost impossible to find better prices than at Tyre24! My vision of earning more than a million euros in the next few years? As long as we don’t make any reprehensible mistakes, we have the opportunity to carve out a really sizeable slice of the aftermarket pie. As we have been growing extremely fast over the past years, I expect spectacular growth from the cooperation with Master-Sport. The strategy of aggregating around ourselves brands which have not yet been recognised on the market will bear incredible fruit,” asserts Michael Saitow.
Here we add. If you believe it, around €10 million of the round billion turnover remains profit, of which as much as €8-9 million is invested in innovation and development of the ecommerce market leader company.
- What do we gain and what do we expect? A recommendation from Tyre24 will give us the opportunity to increase our production. By selling to garages in Europe, we multiply our profit and increase the commission of the purchasing platform, so close cooperation is in the interest of both parties. The agreement is followed by taking over the whole process of order processing and possible complaints. Of course, we do not expect the latter, since the quality of our proposals has been verified by the market for 25 years. With the debut on the digital platform, we will gain access to data on customer expectations – Wiesław Rutka, Master-Sport, concludes.
Speaking of the most advanced purchasing platform, the automatic feedback will make the Master-Sport group able to respond more quickly and precisely to market needs. The efforts of the engineers will be even more focused on the development and improvement of the products awaited by the aftermarket.
Great product, great price, fastest delivery
Data exchange interfaces linked to goods management systems even more flexible and individualised. And all so far tested and hosted in-house. Few people know that Tyre24’s impressive history of successful e-business orientation includes algorithms that continually calculate the response times needed to finalise deliveries. From now on deliveries directly from the manufacturer. This required the development of a standard for logistics to meet the recommendation: parts ordered by 6 p.m. already in the workshop the next day. It is a comprehensive and far-reaching cooperation project between the two companies, when one more thing is taken into account. The agreement provides for maximum procedural simplification on the part of the purchasing contracting party. What is the benefit for the workshop?
B2B platforms such as Tyre24 have long been a popular alternative when buying car parts online. In the wake of the coronavirus pandemic, the use of online sourcing has increased. More buyers and sellers in Poland are discovering the advantages of Tyre24.
Since the platform is fully digitised, the workshop does not have to worry about financial operations. It is the system (24 hours a day!) that generates and manages the payments. All formalities will be simplified as much as possible. The model is to be SEPA (Single Euro Payments Area) – a common area of cashless settlement in euros according to unified rules. And since this is the case, when the platform fulfils orders from its stock, the concern remains that the fast-moving volume of goods is balanced on both sides – seen from the Master-Sport perspective. Of course, the stock must be balanced so as not to generate unnecessary costs for storing it in Germany.
The cooperation between the two gentlemen has every chance of success. After all, Tyre24 boasts very rapid growth with a high market share of 3% in the German spare parts market. This is no small amount compared to Germany’s largest wholesaler, which holds 6% of the market. For Master-Sport this promises to be a recommended supplier. And soon in other European countries too. With many years of mutual experience, this cooperation promises much success.
Text: Rafał Dobrowolski
Photo: Rafał Dobrowolski, Tyre24