Opening a Tyre Depot

tyreshopquery

Hi Everyone,

Myself and my partner are thinking about opening a Tyre shop.

He is already a successful mechanic and has his hands full with that but wants to open a new separate business and wants me to run it.

We would be employing someone straight away and I know the laws/insurance etc involved with it (I think). I am in the process of finding a location and I have requested pricelists from wholesalers but haven't gotten anywhere with them.

Has anyone here done something like this? Any advice would really be great. Not sure about software packages for small businesses and everything else I am not thinking about.

Uncle Ben

tyreshopquery wrote: »

Hi Everyone,

Myself and my partner are thinking about opening a Tyre shop.

He is already a successful mechanic and has his hands full with that but wants to open a new separate business and wants me to run it.

We would be employing someone straight away and I know the laws/insurance etc involved with it (I think). I am in the process of finding a location and I have requested pricelists from wholesalers but haven't gotten anywhere with them.

Has anyone here done something like this? Any advice would really be great. Not sure about software packages for small businesses and everything else I am not thinking about.

Don't forget the registration for the tyre regs.

Bigus

I think a few months for you working in somebody else's tyre shop or advance pit stop to gain some rudimentary experience in a specialist business, would be much more beneficial to both of you,before you consider setting up by yourself,
you could get this experience by agreement with an established tyre operator provided your proposed location was well away not to compete with your mentor, maybe offer to work free or at a reduced rate, or do it covertly which I wouldn't recommend.

ironclaw

You're going to need knowledge the area, that's for sure. You've average punter might buy the cheapest off the shelf but someone may come in and ask for a specific tyre, or ask does it suit the car in question. For me, there is nothing worse than going to a specialist and knowing more than them. What are speed ratings, loading measurements etc. What's the difference between brands, the thread cutting and the compound? In Irish weather, what's recommended? Can I use run flats etc etc. An Audi S3 needs entirely different attention to a Nissan Micra. Tyres are also pretty dangerous to be working with, a lot of injuries in the trade come from activities relating to tyres.

I'd echo Bigus and recommend experience in the area, even for a 3 to 6 month stint.

enricoh

The tyre game is a bit of a race to the bottom at the moment.
Trying to get prices off some suppliers is like trying to get the third secret of fatima!
Get your prices first in writing n see if it'll be worth it. Might be a niche for fitting tyres lads buy online as some places wont. But be prepared for war if u scratch an alloy!
Fitting the cheapest craps possible is what most people want, n probably gives most return.
A container of decent part worns to start off with might be an option instead of tying up 50K in New stock.
Whats the competition like locally would decide it for me, good luck

porsche boy

50k in stock for a tyre shop is nonsense. IMO 5k in initial stock would be absolute max. take the 10 most popular sizes and get a set of economy tyres, a set of mid range and a set of premium and replenish when sold. Let's be honest, there is 4 or 5 sizes that you'd sell on a daily basis. Any odd ball sizes will be special order in 90% of tyre shops anyway.
You will drop 15-20k in equipment as a start up. Ramps, compressor, air guns, tyre machine, balancer, sockets, racking, jacks, fixtures & fittings for your air lines etc.
Do remember margin on a tyre is usually 25-30%, less on bigger tyres. Servicing, brakes & suspension work will net you maybe 70% profit which is what you'll be needing to do to keep your head above water. on that basis a good mechanic will cost you 600-700 a week on wages. It's a cut throat environment and be prepared for other garages and mechanics to slate you to all that will listen, comes with the territory unfortunately.

enricoh

porsche boy wrote: »

50k in stock for a tyre shop is nonsense. IMO 5k in initial stock would be absolute max. take the 10 most popular sizes and get a set of economy tyres, a set of mid range and a set of premium and replenish when sold. Let's be honest, there is 4 or 5 sizes that you'd sell on a daily basis. Any odd ball sizes will be special order in 90% of tyre shops anyway.
You will drop 15-20k in equipment as a start up. Ramps, compressor, air guns, tyre machine, balancer, sockets, racking, jacks, fixtures & fittings for your air lines etc.
Do remember margin on a tyre is usually 25-30%, less on bigger tyres. Servicing, brakes & suspension work will net you maybe 70% profit which is what you'll be needing to do to keep your head above water. on that basis a good mechanic will cost you 600-700 a week on wages. It's a cut throat environment and be prepared for other garages and mechanics to slate you to all that will listen, comes with the territory unfortunately.

50k stock for a tyre shop is nonsense - I'd say the place nearest me has 1 million no problem, including truck n tractor stuff admittedly.
U,d want 5 grand alone for van tyres.
If a lad comes in for 2 195/55r15s n uve only got 195/65 u are no use to him n will go off to his usual garage. Too many different sizes nowadays. Ringing him in a few days when u get them won't cut it.

odeamarcas

I write business plans for people planning new start ups, and before they do I always try to find them a sample business plan (there are lots online) of a similar business. This gives them a good overview of all the legal, operational, financial, market factors, marketing elements that they should be considering. Most of these plans are fictitious but they will give you plenty to think about and in a structured and constructive way. Google "tyre centre business plan sample", and one will pop up. It should be worth a read.

porsche boy

enricoh wrote:

50k stock for a tyre shop is nonsense - I'd say the place nearest me has 1 million no problem, including truck n tractor stuff admittedly. U,d want 5 grand alone for van tyres. If a lad comes in for 2 195/55r15s n uve only got 195/65 u are no use to him n will go off to his usual garage. Too many different sizes nowadays. Ringing him in a few days when u get them won't cut it.

A million in stock.... I presume your calculating that base on the selling price rather than the purchase price. Having a million in stock would be ludicrous as most wholesalers can have orders delivered within 24 hours. Also tyres sitting in stock will naturally age and nobody wants to buy tyres that are 3 or 4 years old.
In relation to your van tyres comment, when you know what goes on a transit and a hiace and a primastar etc you should be able to have a good selection of stock for less than a grand.
I have managed tyre shops/service centres for a good few years now and done so quite successfully, without a million quid worth of stock.