By Jessica Jones
Start a tire dealership to provide motorists with quality tires, tire accessories and repair services. Open a shop that specializes in specific tire models and styles or sell used or discount tires. Being able to educate motorists about the types of tires and tire repair and maintenance helps you build a loyal customer base while increasing profits.
Determine which kind of tire dealership to open. Specialize in a specific tire manufacturer by opening a tire franchise, open a tire shop that carries tires from a variety of tire manufacturers or open a used tire and repair shop to sell discount tires. Research the pros and cons of each type of business by requesting franchise information and by conducting market research in your area to determine consumer demand. For example, if your area has two or three discount tire and repair shops or franchises, opening a tire dealership that carries multiple manufacturers may be the most profitable option.
Choose a location for your tire business. Busy locations near auto repair shops, gas stations, auto supply stores and other retail businesses may generate a larger amount of business than a downtown location. Find a location with a garage if you plan to offer tire repair and replacement services.
Register your tire business as a limited liability company, corporation, partnership or sole proprietorship with the secretary of state and county clerk's office. Contact the Internal Revenue Service to apply for an Employer Identification Number. Use this number on all business documentation. Apply for a sales tax number through the department of revenue to collect sales tax from customers.
Set up your tire dealership by displaying tires on the walls or purchase tire racks. Create a backstock area to store tires. Place manufacturer display signs to educate customers as to the types of tires you keep in stock.
Create a list of tire manufacturers and vendors to contact when ordering tires.
Purchase used tires from junk yards, auctions, private sellers or recycle tires from customers. Carefully inspect all used tires before placing used tires on sale.
Advertise your dealership by placing ads in newspapers and local magazines or pay for radio and television ads. Create fliers to hand out to local businesses such as gas stations, auto body repair shops and auto supply stores and others that are not direct competitors. List your tire dealership in business directories. Create coupons to include in direct-mail coupon circulars.
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Writer Bio
Based in the Washington metro area, Jessica Jones has been a freelance writer since 2006, specializing in business topics.
Her fiction has also been featured in publications such as "The Jamaican Observer Sunday Literary Supplement" and at websites including HackWriters. Jones earned a Master of Fine Arts in fiction writing from Lesley University.
Alexander Cequea
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Updated September 26, 2017
tire image by Orlando Florin Rosu from Fotolia.com
Even though the auto industry gets most of its revenue from selling cars, according to Investopedia.com, the auto parts industry is much bigger. In order to become a tire distributor, you will need knowledge about different types of tires and their benefits. You must be able to understand the demand for each type of tire in your locality to succeed in your business. You will need to obtain a business license as well as a resale permit from your state.
Study the different types of tires.
Research factors such as tire size markings, speed ratings, load index, uniform tire quality grading, ply rating or load range, and wheel basics for each type of tire. There are three main kinds of tires: consumer, commercial and specialty tires. List the benefits of each type to become a knowledgeable distributor.
Make a product list. Analyze the tire market in your area and get an overview of the business along with a list of your competitors. List the type of tires they are offering and their prices. In addition to the three kinds of tires, you can also distribute accessories, such as tubes and wheel weights.
Write a business plan. Include a business overview, competitor analysis, product list and marketing plan. Also include a detailed explanation of your target market, financial projections and funding opportunities. Location and connections are very important in this kind of business. Explain in your business plan where you will distribute tires from and why this is a good location.
For example, are there auto repair shops nearby? Are you near a major highway intersection? Are there lots of cars for sale? Answer these questions in your business plan.
List tire manufacturers or suppliers in your area. Evaluate them based on factors like brand, product, quality, durability, guarantee, discounts, shipment costs and bulk-pricing. Narrow them down based on payment terms and reliability.
Select a suitable location to serve as your warehouse. Ensure that this complies with your local zoning regulations.
Obtain the appropriate business licenses and permits from your federal, state, city and county governments. Obtain a resale permit from your county courthouse. Consult with an attorney for the best type of business structure for a tire business in your area.
Purchase inventory and vehicles to transport your tires.
Market your services. Build relationships with automobile dealers in the area. Offer them incentives to send their clients to your tire distribution center.
Connect with repair shops and tire dealers to strengthen your visibility in the neighborhood. Ask if you can leave fliers and posters at their businesses.
Obtain insurance that covers your inventory, warehouse, trucks and employees.
Join your local chamber of commerce to network with other local business people.
Negotiation plays an important role in maintaining relationships with both suppliers and clients.
ReferencesAlexander Cequea has been writing since 2008. He is an activist, speaker and film producer whose work has been featured in "Enlightennext Magazine" and the Environmental News Network. Cequea is currently producing a documentary about sustainability and consciousness. He has a Master of Business Administration in sustainable business from Maharashi University.
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Official dealers of the trading house "Kama" work in various regions of Russia.
