Bruce Halle was not a fan of tires. He didn’t even like tire stores much. He did however have a passion for creating opportunities for people, which led him to create a huge and successful tire-selling business.
According to Michael Rosenbaum’s biography, Halle started Discount Tire with “six tires and no plan,” which is what he called his initial business venture. Halle borrowed $400 in 1960 to open his first store at Ann Arbor, Mich. To pay off a debt from an unsuccessful automotive supply company.
Rosenbaum said that Halle’s drive to “pay forward” to others was what revolutionized the tire-selling industry. Discount Tire was headquartered in Scottsdale (Ariz.) and had 1,076 locations and 22,977 employees at the end of 2020. The privately held company also reported $5.17 Billion in sales, making them the largest independent tire retailer.
Halle, pronounced “holly”, died in 2018. However, his life’s lessons are still relevant.
Halle’s Lesson: Nice Guys Can Finish First
Halle’s stepson Michael Zuieback was the former CEO and chairman of the company. He told Investor’s Business Daily that the success of the company is due to the unique culture the founder created.
Zuieback stated, “We hire people who are like people because that attitude creates strong teams that will support one another.” “They will make our customers feel loved and cared for.”
Zuieback stated that Bruce’s favorite thing in his entire life was to visit shops and get to know the employees, their interests, and their personal lives. He woke up each morning thinking of ways he could help others or recognize employees’ achievements. He was passionate about helping others and this passion spread throughout the company.
Halle’s humility, kindness, and appreciation were noted by coworkers. These traits are still the company’s core values.
Learn Resilience Like Halle
Halle’s early years didn’t look like it would be a ticket to greatness.
He was born in 1930, one year after the Great Depression. His parents saved money and moved in with his parents in Berlin. N.H. Halle, Halle’s father, worked as a firefighter or at odd jobs. In 1943, the family moved to Detroit where Halle, an older man, guarded wartime production at Ford Motor.
Bruce was a good student. Bruce was a good student, but he also worked hard. He did everything, from creating photos to digging graves.
Halle enrolled in 1948 at Eastern Michigan University, Ypsilanti, as a physical education major. He wanted to become a coach. However, his grades were not great.
His life took him in a different direction.
Find New Opportunities
Halle married Gerry Konfara in 1950 and left college to join Marines. After three years of service, he returned to Ford and worked as an assembly worker. He also received a degree as a business administrator.
Halle was successful in selling cars but failed in insurance. A friend was having trouble with his auto supply and tire retailer. Halle decided to invest in it. However, the company was eventually wound up in bankruptcy in December 1959. Halle was then faced with a $12,000 debt to a tire manufacturer.
He transformed what could have been a burden in to a new opportunity.
Halle rented his store with an inventory consisting of four retreads and two new tires, as well as some spare parts. It took three days for the first customer to come in. Due to his debt, Halle was unable to buy tires from other manufacturers. After closing his shop, Halle would visit other dealers to get a bargain. His air tank could only hold one tube tire at once. Halle brought his tires to the gas station to get a refill.
He made a profit in the first year.
Build Your Foundation On Character
A miracle occurred: a tire wholesaler trusted Halle.
“The Legend of Discount Tire” by Richard Hubbard and Jeffrey Rodengen. “Halle didn’t have any credit or capital. But Jay Isaacson of World Tires saw something special in him. “He could order 40 tires and pay once they were all sold.”
Halle ensured that his anti-corporate culture and founding philosophy were instilled in all employees as he grew the company. It would feel like a family, no matter how big the company grows. Halle would encourage customers to be fair (there is no commission for pushing any product), “Think about the customer first, and the spreadsheet second.”
This was only the beginning.
Instill Your Values Into The Company
Halle also coached employees about developing winning mindset. This was a major advantage over other companies that merely sell tires.
He said, “Get to get to know your customers and be friendly.” You can find something you enjoy in every person and make a transaction into an ongoing relationship.
Halle was keen to see the company retain a family-like feel. He said, “We have to fight bureaucracy. It’s like a virus that creeps in all alone.”
Halle introduced Ted Von Voigtlander, a minor partner. In 1964, the two opened another store. Halle’s innovative offers were a key reason the company grew. Halle would free install or remove snow tires every season. Customers appreciated the clean and friendly environment. Customers also liked the lower prices of off-brand tires. They thought they were better than big brands.
It was an idea that had legs.
Expand your Idea
Six locations were open at the time of the 1968 closing. However, winter was slow for business.
Halle believed they might expand to Southwest. The Southwest was at the height of its growth boom, and could offer steady business all year. They arrived in Phoenix the next April. They found their first location on a busy street just a few days later. The store was opened in January 1970.
In Phoenix, snow tires were not an option. The company offered flat tire repair free of charge, no matter where they were purchased. The warranty was also extended beyond that provided by the manufacturer. Discount Tire was the No. 1 tire in 1988. Discount Tire was No. 1 in the industry by 1988. It boasted 201 stores and $311 millions in sales.
Promote from Within
Managers at all levels begin as tire technicians. Managers at all levels are awarded bonuses, rewards, and raises for their speed and exceptional customer service.
Managers of stores earn a percentage if sales exceed a certain amount. Halle said that promotions from within mean that “nobody’s left behind” if they are able to keep up.
Discount Tire has been growing when the economy was strong and when it was weak. There have been no layoffs. Halle started using his corporate jets which allowed him to visit shops and take top performers to outings to places such as Lake Tahoe or New Orleans.
Humorous advertising was a key factor in expansion. In the beginning, Halle and Von Voigtlander were dressed up as Robin and Batman in advertising spots. A TV commercial in 1975 showed a woman blowing a tire through a shop window. The announcer said that customers who were not satisfied could return any item. The Guinness Book of World Records has recognized it as the longest-running continuously running ad of all times.
Continue to bounce back
Halle failed to realize that despite his success, he tried unsuccessfully at other innovations such as the introduction of new products and services. He learned to keep to the “hedgehog rule” as a result of the study “Built to Last”, Jim Collins, and Jerry Porra. The best companies are focused on what they do best.
Tragically, Halle’s wife Gerry died from cancer in 1989. Halle was almost killed in a mountain bike accident in 1992. He began to recover and then he entered philanthropy. Halle met Diane Myers, who was raising money for the Phoenix Art Museum. They were married in 1999.
They supported many charitable causes, including helping homeless children to get educations and the American Heart Association. Forbes estimated that the Halle estate had a net worth of $5.2 billion, despite their generous support.
In January 2020, Discount Tire’s CEO was Dean Muglia. To help the pandemic, Zuieback continued to be involved as chairman.
Zuieback stated, “We concentrate on being good at what we do so that our tools, our profits can be used to invest in our people’s dreams.” Bruce said it that way.
Halle’s Keys
- Discount Tire is the largest independent tire and wheel retailer in the world.
- He was able to overcome a near total lack of inventory and cash when he began.
- Lesson: Take care of your employees. They will be able to serve you well. Negative thoughts are a waste.