Les Schwab Tire Centers

“Within five years, 60 independent dealers had joined. They added fifty million in annual sales without Les investing a dollar in real estate or inventory.”

“By 1970, Les had codified his profit sharing into what he called the 100 story. For every hundred dollars of store profit, 25 went to the manager, 10 to the assistant manager, 27 to the employee bonus and retirement fund. The company kept 38%.”

“By the time he died, Les Schwab Tire Centers was distributing over half of all profits directly to employees. The employees' trust held three hundred and thirty-two million dollars. Store managers routinely made 200,000 dollars a year, and many retired as mill…”

“13 years later, when the family finally sold, the market value of Les Schwab's creation was over three billion.”

“By 1975, Les Schwab had over 60 company stores plus 60 member dealers. Revenue exceeded a hundred and thirty million.”

“He solved the eternal problem of expansion capital by making his managers into bankers. They funded growth not because they had to, but because they wanted to. Their equity was building while it sat there. Meanwhile, the company got interest-free loans from th…”

“Effective immediately, all manager shares dropped from 50 to 45%. If they appointed an assistant, that person got 10%. If they didn't, the company kept the extra five percent.”

“Every Les Schwab store would follow this model. Every manager would be a partner, not an employee.”

“By the mid-nineteen seventies, some of the store managers were making over a 100,000 dollars annually, more than most corporate executives in the 19 seventies.”

“Les Schwab built a three billion dollar tire company in the mud and gravel towns of the Pacific Northwest. And he did it while charging higher prices than his competitors, and he did it while giving away half of his profits.”

“He built a multi-billion dollar business selling tires by treating his employees like owners. His businesses outcompeted every competitor simply because his employees cared more.”