The automobile industry is ever evolving, but tires have remained consistent – and the tire shop is a proven and effective business model. Many different niches exist within the tire business, ranging from retail to repair. You can fill a single niche or multiple, depending on your capital investment abilities and marketing.
These are two critical components to opening a tire shop: location and licensing. While you have the option of making mobile repairs, the business model is limited and is often better suited to one service in a suite of service offerings.
Your location will require space to house vehicles. At least one garage bay is required but multiple bays with high clearance increase your earning abilities. Purchasing the space is ideal as an investment, but leasing is common, especially for a new business with limited capital.
The business will come to you in a high demand market – especially with advertising – but a high visibility location increases natural foot traffic.
Always do your market research before investing in the location. Assess the population base, vehicles on the road and the competition. The tire business is often safe because every vehicle on the road requires tire service. It is however important to understand dynamics in the local economy.
For example, a small town with a staple tire business is a difficult market to penetrate while an urban or growing area with high traffic has more potential.
While conducting market research, assess the pricing offered by competitors and work through your pricing strategy. Determine the margins and profits from each service offered. Based on this information, you can calculate the number of customers required to reach income goals.
Additionally, you will require business licensing and liability insurance. A retail location requires a business tax license in many states.
After securing your state license, check the local ordinances for city or county license requirements.
You will also need to create and register your company. The corporate structure for a single-owner tire shop is most commonly an LLC and an LLP for a partnership. Speak to a business attorney to see which makes the most sense for your needs.
After obtaining the licenses and liability insurance, you can acquire the equipment needed and begin marketing your tire shop business.
The tire business has niches that include repair, retail, mounting, and balance and alignment. Some shops even offer mechanical work to varying degrees. Focusing on front end work is a good up-sell.
Brakes, U-joints, idler arms and front end parts are often in need of repair, and the shop can quickly examine and quote the additional work while increasing billable hours and profit margins.
Many shops do not work on engines or transmissions but they will handle suspension-related parts.
If you want to expand into mechanical services, you'll need basic mechanical tools like screwdrivers, socket wrenches, and even a torch and welding equipment.
Overhead for simple tire repairs is minimal. You will need plugs and patches and the ability to pull the tire off the rim and remount after completing the repair. You also need weights to balance the tire on the rim. A mount and balance machine is the primary tool here.
Like every automotive shop, you'll require floor jacks and jack stands to lift the vehicles. An air compressor to operate an air gun for the lug nuts is useful. You can do this manually with a lug nut wrench, but the air gun can set to the pressure specifications and tighten the lug nuts perfectly.
This equipment covers the basic repairs, mounting and balancing requirements for a tire and repair shop. For retail, you need floor space to display tires and storage for bulk inventory. Alignment is done on a computerized machine that requires a significant investment or lease option.
The returns are also increased, however, and many customers want their alignment done alongside tire mounting.
When the business is set up, licensed and launched, you may receive some traffic organically, but marketing will increase traffic, sales and revenue. Advertise locally, set up a website and get the business listed on Google's local business search. Customers can find you, utilize your service and leave reviews through this platform.
Run first-time customer specials, offer free diagnostics and focus on customer service to drive repeat business and referrals. Like mechanics, a tire shop can build a fiercely loyal customer base. The word of mouth aspect of the tire business is extremely valuable.
All vehicles need quality tires. But these important parts eventually wear down and need to be repaired or replaced. So tire repair and replacement services are always in demand.
In fact, the U.S. tire industry is worth about $35 billion. And U.S. drivers shell out about $3 billion each year due to tire damage from potholes.
If you’re looking for a new business opportunity that’s steady and fairly recession-proof, the tire business could be perfect for you. But you don’t have to start from scratch when building your new enterprise.
Franchises provide the opportunity to connect with a recognizable brand and utilize their proven systems and processes. There are plenty of big names in the industry to consider. In fact, some even offer various automotive repair and maintenance services.
If you’re interested in purchasing a tire repair franchise or similar auto service center, check out the list below for options.
Here are the best tire repair franchise businesses for aspiring entrepreneurs to consider:
Big O Tires has been providing tire and auto service since 1962.
It has more than 450 locations throughout the country. And franchisees get some freedom to operate independently while still receiving support when needed. In addition to traditional franchises, the company also offers multi-unit opportunities, veteran and first responder discounts, and conversion opportunities for existing tire businesses. The franchise fee ranges from $10,000 to $35,000. And the total upfront investment ranges from $311,000 to $1,138,300.
Tuffy Tire & Auto Service started in Detroit and has been around for more than 50 years. The company offers tires, muffler service, and various other auto repairs. The company is dedicated to staying on top of new technology in the auto industry. And they provide extensive support to franchisees. You don’t need automotive experience. And they offer both single and multi-unit opportunities. The fee for new franchises is $30,000. And the initial investment ranges from $224,000 and $413,500.
Spiffy is a mobile, on-demand car care business. The company provides tires, oil changes, washing, detailing, and glass service. Since it’s a mobile business, franchisees can keep costs relatively low. And you may be able to get up and running quickly since you don’t necessarily need a physical storefront location. The company also has proprietary technology and green solutions that improve the experience and attract more customers. The franchise fee is $40,000. And upfront costs range from $100,000 to $200,000.
RNR Tire Express provides a variety of tire replacement and auto services. The company provides exclusive territories for new franchises. And you don’t need specific automotive industry experience to be considered. There are currently more than 500 locations around the country. So there’s a fair amount of brand recognition already. They also provide unique rent-to-own payment options to attract even more customers, increasing profit potential for franchisees.
The initial franchise fee is $35,000. And upfront costs range from $500,000 to $1,000,000.
Meineke is a total auto care franchise business. With tons of services, franchises can enjoy a variety of revenue streams. And the company has national and well-established brand recognition in markets across the country. It also provides a dedicated tech platform for performing inspections and managing operations. Basically, this can make the day to day operations much more straightforward, which is especially helpful for new franchises. They look for franchisees with business acumen, strong community ties, and a drive to succeed. The initial franchise fee is $35,000. And startup costs range from $319,774 to $610,318.
GoMobile provides customers with a mobile tire buying experience. Basically, you can run everything from a van instead of a large storefront. You can keep a minimal inventory and each discount franchise is set up with an online purchasing platform for customers to easily order online.
The company is especially popular with fleet vehicles. So franchisees can get lots of ongoing business from local companies that need tires. You also get access to training and general business support. The fee for the franchises is $30,000. And total costs come to about $170,000; you can buy the mobile shop and pretty much everything you need right from GoMobile.
All Tire Supply offers tire repair materials, tools, and equipment. As a mobile distributor, they work with auto repair shops, dealers, and retailers that need replacement parts. Since it’s not a traditional repair shop, you can keep startup costs relatively low. For example, you just need a warehouse for inventory and distribution network, rather than a fully developed storefront. As a B2B business, this option also allows you to serve a different market than many automotive franchises. And you don’t need to worry about building an extensive team or service list. The fee for the franchises is $50,000.
And startup costs range from $80,300 to $172,800.
Tire Pros is a network of select independent tire shops throughout the country. When your shop is selected for the program, you receive a dedicated account manager, training, purchase incentives, relationships with vendors, and marketing support. It’s also backed by American Tire Distributors, the largest tire distribution network in North America. And there are currently more than 600 franchise locations throughout the country. The fee for the franchises is just $7,000. And the total upfront investment ranges from $218,000to $369,500.
In Motion Tires provides full-service mobile tire and wheel shops around the country. They currently have markets available in multiple states. Owners get the opportunity to work closely with customers and work with their hands on a daily basis. The company provides state of the art equipment and business support to help franchisees get their operations off the ground.
They also provide training for new franchises. There are currently only a few set locations. So markets across the country are open. The company doesn’t publish its franchise fees or costs. But you can reach out to them to find out more.
Tread Connection offers mobile tire repair and installation vans. The company offers a tire repair and replacement franchise with low overhead. No automotive experience is necessary. And the company provides training and protected territories. There are also incentives for franchises that include multiple territories. The minimum fee for the franchises is $37,500. The mobile tire repair van costs between $115,000 and $135,000. And other startup expenses range from $11,700 to $30,900.
Tire repair and automotive franchises can cost anywhere between $100,000 and $1,000,000. Generally, mobile franchises cost between about $100,000 and $200,000. And larger brick and mortar shops that provide tire repair and other automotive services cost between $200,000 and $1,000,000.
Tire repair shop profits depend on a number of factors, including shop size, inventory, team size, prices, location, and sales and service volume. Moderately sized tire shops with minimal expenses may expect a profit margin of around 20 percent or more. Adding multiple revenue streams like automotive repairs may help shops become more profitable.
The amount a tire repair shop brings in can vary widely. However, a moderately sized shop with a few employees and service bays can bring in between $36,000 and $60,000 per month. That could lead to monthly profits of $20,000 or more.
To start a new tire repair shop, you first need to find a location. Scout a location that’s easy to access with plenty of space for repair bays and inventory storage. You should also research the customers in the area. Pretty much every location has some need for tire repair or replacement.
But the income range and driving habits of your customers may impact what type of products and services you provide. For example, shops in a low-income area may benefit from offering used tires. But if you’re opening up in a city with lots of public transit, research competition in the area to make sure the market isn’t too saturated.
You also need to set up your location with lifts and other equipment to facilitate quality service. Then invest in the necessary inventory. This often involves creating relationships with popular tire brands. You’ll also need to hire some tire and auto repair professionals to provide the necessary services to your customers. Offer training. Create a service list and prices. Brand and market your business. Then manage the daily operations.
These are just some of the steps involved in opening a tire business on your own. If you want a step-by-step guide laid out for you, a franchise may be the way to go. The opportunities above give you access to proven systems and set processes so you know what to do every step of the way.
Then you can utilize strong brand recognition to immediately build trust with customers in your area.
Image: Depositphotos.com
Despite the huge amount of competition, both in the largest cities and in small ones, the business of providing tire changing services is quite an interesting and capable idea to consider. The number of cars on the roads is growing, and the existing workshops do not always have time to expand their capacity and fully meet the needs of customers. That is why below it will be told how to open a tire service.
Before starting a workshop, collect as much wheel and tire data as possible. They come in different types for different machines and different sizes. In addition, in addition to tire repair, such organizations often provide additional services: oil changes, tire repair and wheel balancing, sale of related products. However, when answering the question of what is needed to open a tire shop, it should be noted that, as in any other type of business, first of all, it is necessary to draw up a competent business plan.
It will help attract investors.
Review on the topic: what kind of business can be opened in the garage.
Content:
. includes additional services. In particular, balancing car tires. At the same time, the most inexpensive automobile machine costs $ 1,400, and a balancing stand - from $ 1,000. The list of expenses should include a vulcanizer (approximately $200), a jack (from $40), tools (from $400) and a compressor ($500). How much does it cost to open a tire shop? Based on the “turnkey tire fitting” service provided by some equipment suppliers, this pleasure will cost 2,700 euros.
Many aspiring entrepreneurs who do not have their own premises and do not want to pay rent are considering opening a tire shop in a garage.
In principle, it is convenient for a large garage community, and this is beneficial not only to the business owner, but also to customers. However, it should be noted that only those people whose garages are located in this community will be customers.
Tire service, like any other business, requires registration with government agencies. In this case, you can register both a legal entity and an individual entrepreneur. You will also need the necessary permits and licenses, registration with the tax service.
As tire suppliers, it is recommended to choose dealers, and official manufacturers, or become a dealer with well-known manufacturers yourself. It is important, before registering a company, to think over a business strategy in order to compete successfully. To do this, you need to either reduce the cost of providing services, or compete by providing those services that are not on the list of competitors.
In any case, a competitive analysis is necessary. Only then can you answer positively the question: is it profitable to open a tire shop.
A workshop will require at least two experienced mechanics to run smoothly. In the future, as the business expands, it is possible to recruit apprentice students for permanent or seasonal work.
Should I open a tire shop? In this business, it is important to have customers. The specificity of the business is that tire fitting services may be required by customers quite unexpectedly. Advertising in the media or the Internet is not as effective here as a large billboard that can be seen from the road from afar. It is recommended that instead of the name of your company, simply write “tire service”.
Tire fitting business. How to open a tire shop: equipment, documentation, features of work.
In this article you will learn how to open a tire shop, how to choose equipment and obtain the necessary permits.
The services of tire workshops will always be in demand, align a wheel, repair a punctured tire, balance a wheel, change tires, every car owner needs these services. Of course, this business is not super-profitable, but $1,000 a month, and during the seasons of changing winter and summer tires, you can earn two or three times more.
No license is required to open a tire shop.
1. Registration of IP (single tax).
OKVED code - Maintenance and repair of other motor vehicles. 50.20.2.
2. Apply in writing to the city administration and provide a sketch of the project, if the permit is issued, you can install tire fitting and purchase equipment.
3. Conclude an agreement with the municipal service for the removal and disposal of waste.
4. Submission of a notice to Rospotrebnadzor on the start of entrepreneurial activity.
5. Obtaining a permit from the fire department.
6. Get permission from the city administration to open a tire shop.
You can do the paperwork yourself, or you can contact a law firm, where all the paperwork will be done for you on a turnkey basis.
For a tire shop, you can use a garage, a change house, a sea container, or make a pavilion with a frame of shaped pipes, cover the walls and roof with corrugated board. The room must be insulated to reduce heating costs in winter. A UFO type heater can be used as heating. It is also necessary to foresee the possibility of connecting the premises to the 220V network, which is necessary for the operation of all equipment.
It is most convenient to place a tire repair shop at the entrance and exit from the city, as well as in a residential area, the main condition for successful work will be the location of the premises directly near the roadway with a convenient entrance and a small parking lot.
Land for the location of the workshop will need to be rented.
To open a tire shop, you will need the following equipment:
Semi-automatic tire changer.
Optional Model Bright LC810G - $1500.
Can be used with a maximum wheel diameter of 1000 mm. That allows you to work with the wheels of both passenger cars and with Gazelle and passenger route transport.
Floor vulcanizer with automatic temperature control $300 - $500.
Compressor - $1500.
Semi-automatic balancing machine - $ 1200.
Machine BRIGHT CB910GB.
Hydraulic rolling jack – 2 pcs.
Air wrench.
Pneumatic grinder.
Tire test bath.
Set of drum sockets.
Phillips keys.
Other tools.
Consumables - standard balancing weights, adhesive weights, for alloy wheels, valves, seals, patches, etc.
The cost of the work performed depends on the size of the wheel, the table shows the average prices for the services of tire workshops.
| R 12 — 14 | R 15 — 16 | R 17 — 18 | Jeep | Gazelle | |
| Wheel beading | 60r | 70r | 90r | 110r | 120r |
| Balancing | 60r | 70r | 100r | 110r | 120r |
| Chamber replacement | 50r | 50r | 50r | 50r | 60r |
| Removing and installing wheel | 90r | 90r | 90r | 100r | 110r |
| Camera repair | 60r | 60r | 60r | 60r | 80r |
| Wheel inflation | 10r | 10r | 10r | 10r | 10r |
| Sealing the tire bead with sealant | 60r | 60r | 90r | 90r | 90r |
| Sealing the tire bead with assembly paste | 10r | 10r | 10r | 20r | 20r |
Own prices for services should be set based on the prices of competitors, usually the prices in workshops in each region are almost the same.
