While the automobile industry is constantly changing, tires remain a consistent business model. The tire shop is a tried and true business model. There are many niches in the tire industry, from repair to retail. Depending on your marketing skills and capital investment ability, you can fill one or more niches.
Locating and space requirements
Two key components are required for opening a tire shop auckland: licensing and location. Mobile repairs are an option, but the business model is not ideal. It is better to offer one service within a series of offerings.
Space is required to accommodate vehicles in your location. A minimum of one garage bay is necessary, but more bays with higher clearance will increase your earning potential. Leasing is a common option, especially for new businesses with limited capital.
You will find the business in high demand markets, especially with advertising. However, natural foot traffic increases when there is high visibility.
Market Research and Planning
Before investing in a location, do your market research. The population, competition and vehicles on the roads should all be considered. Because every vehicle on the road needs tire service, the tire business is usually safe. However, it is important to understand the dynamics of the local economy.
A small town that has a tire shop is difficult to reach, but an area with high traffic and a growing population is more attractive.
Conduct market research and evaluate the pricing of competitors. Then, develop your pricing strategy. Calculate the profit margins for each service. This information can be used to calculate the required number of customers to achieve your income goals.
Licensing & Insurance
You will also need business licensing and liability coverage. In many states, a retail location will require a business tax licence. Check the local ordinances to see if your state license is required.
Also, you will need to register and create your company. An LLC is the most common corporate structure for a single-owner shop, while an LLP for a partnership is more common. Talk to a business lawyer to determine which structure is best for you.
Once you have obtained the licenses, liability insurance, and the equipment required, you can start marketing your tire shop.
Tire Service Offerings
There are many niches in the tire industry, including repair, retail, mounting and balance and alignment. Some shops offer varying degrees of mechanical work. A good way to up-sell is to focus on the front end.
The shop can quickly assess the need for repairs to brakes, U-joints and idler arms, as well as other front end components. This increases the billable hours and profits margins.
Although many shops don’t work on transmissions or engines, they can handle suspension-related parts. You will need basic tools such as socket wrenches and screwdrivers if you are looking to expand your services into mechanical work.
Equipment and Overhead
The cost of simple tire repairs is very low. Plugs and patches will be required. You’ll also need the ability to remove the tire from the rim and mount it again after the repairs are complete. To balance the tire on its rim, you will also need to have weights. This is where the mount and balance machine are essential.
You will need floor jacks and stands to lift your vehicles, just like every other automotive shop. It is useful to have an air compressor in order to operate the air gun that tightens the lug nuts. This can be done manually using a lugnut wrench. However, an air compressor can adjust the pressure and tighten the nuts precisely.
This equipment includes basic repairs, mounting, and balancing for tires and repair shops. You will need space for display and storage of bulk inventory. Alignment can be done using a computerized machine, which requires either a large investment or a lease option. Customers often want alignment along with tire mounting to increase their returns.
Marketing your Business
After the business has been launched, licensed, and set up, some traffic may come in organically. However, marketing can increase traffic, sales, and revenue. Advertise locally, create a website, and have the business listed in Google’s local search. This platform allows customers to find you, use your service, and leave reviews.
To drive repeat business and referrals, run first-time customer specials, offer free diagnosis and put emphasis on customer service. A tire shop can create a loyal customer base just like mechanics. It is very important to spread the word about your tire shop.