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Andonian Takes Outside Shot With Evans Tire

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  • Andonian Takes Outside Shot With Evans Tire

    ANDONIAN TAKES OUTSIDE SHOT WITH EVANS TIRE
    By: Andrew Peterson - For The North County Times

    North County Times, CA
    Nov 23 2006

    ESCONDIDO -- In the scramble and scrap of schoolyard basketball,
    quickness and drive can nullify the advantages of size and height
    -- a good thing for someone like John Andonian, who stood 5 feet 5
    inches tall when he played guard for Hoover High in Los Angeles in
    the early 1970s. Then as now, what he lacked in height he made up
    for with desire.

    "I had some basic talents and then my ambition to win," Andonian,
    chief executive officer of Evans Tire Co., said by phone recently.

    "My strength was my quickness and my defense. I (also) had a good
    outside shot."

    More than 30 years later, Andonian still prefers the David role to
    that of Goliath. Defying the odds and tire industry giants such as
    Costco and Firestone, he has grown revenues at Evans from $9 million
    to $22 million in six years.

    A family-run business based in Escondido, the company's fortunes were
    sagging when Andonian took the helm. He was, in effect, buying the
    nine-store chain from himself, as Evans was owned by AKH Discount
    Tires, which was run by Andonian and his brothers.

    The franchise was a fixer-upper.

    "Even though we had been in the market for almost 20 years, the name
    identity was very low," he recalled.

    He found the stores in need of remodeling and the work force in need
    of motivating.

    He made other changes, too -- such as a bold new purple and yellow
    color scheme for the stores, which now number 16, and a higher
    marketing profile in print and radio. But Evans needed more to draw
    attention to itself in the competitive San Diego market. Andonian
    realized that it couldn't just be price.

    "If it's just about price, you've got the Wal-Marts of the world and
    the Costcos, and you just can't compete with them," he said.

    The differentiator, he saw, was customer service, or "value-added
    programs." Evans offers free alignment on purchases of selected tire
    brands, as well as free tickets to such places as the San Diego Zoo
    or Legoland California.

    In recent years, the tire business has changed, he said, with customer
    demand pushing auto companies to offer more tire options for their
    cars. "Ten to 15 years ago, 20 tire sizes hypothetically covered 60
    percent of the market," Andonian said. "Now, you need maybe 40 or 50
    sizes to cover 40 percent of the market."

    Some things haven't changed. Evans is still very much a family
    enterprise. Andonian, married 20 years to his wife, Cynthia, says
    all three of their children have shown an interest in working in
    the business -- particularly his son Alex, 20, who attends Southern
    Methodist University in Dallas: "My theory is go to school. Graduate.

    Go work somewhere for a couple years -- then let's talk about it."

    It's an attitude Andonian's parents would recognize and respect. "My
    parents wanted more for their kids," said Andonian, whose Armenian
    family immigrated to the United States in 1969.

    For his part, he has thrived and prospered on the slopes of uphill
    battles. He said stepping in to run an already-successful company
    wouldn't be the same.

    "Keeping the status quo would be OK," Andonian said. "But certainly
    fixing (a company) and growing it would be more challenging for me. I
    like to run companies, I like to make them successful. I like to make
    them winners."

    ESCONDIDO -- In the scramble and scrap of schoolyard basketball,
    quickness and drive can nullify the advantages of size and height --
    a good thing for people like Evans Tire CEO John Andonian, who stood
    5'5" when he played guard for Hoover High in Los Angeles in the early
    70s. Then as now, what he lacked in height he made up for with desire.

    "I had some basic talents and then my ambition to win," he said by
    phone recently. "My strength was my quickness and my defense. I (also)
    had a good outside shot."

    More than thirty years later Andonian still prefers the David role
    to that of Goliath, defying the odds and tire industry giants like
    Costco and Firestone by growing Evans revenues from $9 million to
    $22 million in six years.

    A family-run business based in Escondido, Evans Tire's fortunes were
    sagging when Andonian took the helm, in effect buying the nine-store
    chain from himself, since Evans was owned by AKH Discount Tires,
    which in turn was run by Andonian and his brothers.

    The franchise was a fixer-upper.

    "Even though we had been in the market for almost 20 years, the name
    identity was very low," he recalled.

    He found the stores in need of remodeling and the workforce in need
    of motivating.

    He made other changes too -- like a bold new purple and yellow color
    scheme for the stores (which now number 16), and a higher marketing
    profile in print and radio. But Evans needed more to draw attention
    to itself in the competitive San Diego market. Andonian realized it
    couldn't just be price.

    "If it's just about price you've got the Wal-Marts of the world and the
    Costcos, and you just can't compete with them. They're just too big."

    The differentiator, he saw, was customer service. To do this he used
    what he called "value-added programs".

    "We include free alignments (on purchases of selected tire brands),"
    he said. "And we're always offering things like free zoo or Legoland
    tickets OWe're offering a one-stop shop where you can buy your tires
    and brakes and alignments O

    If you go to Costco or WalMart you're just going to get the tires."

    The changes, while effective, took time to boost the company's
    bottom line.

    "At the beginning of the second year, it started," Andonian said.

    In the meantime the tire business has changed; customer demand has
    pushed auto companies to offer more tire options for their cars.

    "Ten to fifteen years ago, twenty tire sizes hypothetically covered 60%
    of the market," Andonian said. "Now you need maybe 40 or 50 sizes to
    cover 40% of the market."

    Some things haven't changed. Evans is still very much a family
    enterprise. Andonian, married twenty years to his wife Cynthia, says
    all three of their children have shown an interest in working in
    the business -- particularly his son Alex, 20, who attends Southern
    Methodist University in Dallas.

    "My theory is go to school. Graduate. Go work somewhere for a couple
    years -- then let's talk about it."

    It's an attitude Andonian's parents would recognize and respect.

    Andonian's family history includes his Armenian grandparents' flight
    from genocide at the hands of the Turks in 1915 into Syria. The family
    immigrated to the United States in 1969.

    "My parents wanted more for their kids," said Andonian, who attributes
    his competitive nature to his father, who passed away ten years ago.

    For his part, he's thrived and prospered on the slopes of uphill
    battles. He said stepping in to run an already-successful company
    wouldn't be the same.

    "Keeping the status quo would be okay," Andonian said. "But certainly
    fixing (a company) and growing it would be more challenging for me. I
    like to run companies, I like to make them successful -- I like to
    make them winners."
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