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!