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Tire fitting business plan: an example with calculations

Any business related to car maintenance and repair brings the owner a good income. This is an easy-to-explain fact: the roads in Russia are not the best, and almost every family has cars. The easiest way to enter the car business is from tire fitting - you don't need a lot of money to open it, it pays off quickly and brings good profit. The prospects for tire fitting are also quite interesting - it can grow into a full-fledged service station or auto parts store.

Business nuances

Considering payback of tire fitting as a business, then you should immediately clarify some of the nuances. The main one is the certain seasonality of this activity. The main influx of customers is in autumn and spring - it is at this time that most motorists change summer tires to winter tires and vice versa. In summer, there are much fewer clients.

Equipment for tire fitting can be bought by used, reducing costs

But this does not mean that you need to limit yourself to two seasons of work. In summer and winter, drivers need balancing, vulcanization of wheels, a service of rolling disks, changing tires, etc. Therefore, you need to work constantly, just in autumn and spring you will have a lot of clients.

The second caveat is location. You need to find a convenient place near a major highway or in the center of a sleeping area. The third nuance is workers. It depends on them whether your establishment will be profitable and popular. It is necessary to select competent, qualified employees who will be able to communicate with customers and "change" cars.

You should also be aware that there are two types of tire fitting:

  1. Autonomous (classic).
  2. Mobile.

Classic tire fitting is located in a small room. In order to get into it, the motorist himself comes to the right place. Mobile tire fitting allows you to change and repair tires on the road. This requires a special truck with a kung, which houses the equipment and employees. A similar mobile car is popular in big cities and metropolitan areas. People do not want to waste time standing in lines, so they order the service while at home or at work. Your mobile workshop will arrive at the right time, performing all the necessary operations on site.

How to start?

Consider what you need to open a tire service and how much it will cost. First of all, decide on the expenditure side and where you, in fact, will take the start-up capital. The average investment in a full-fledged tire fitting is usually about 7 thousand dollars. This amount can be reduced if you organize a business in your own garage.

The tire service can be opened in a regular garage

If you have the money necessary for opening, then you can proceed to the next stage - registration and purchase of equipment. If not, then draw up a competent business plan and contact banking or credit institutions with it. They are quite willing to issue loans for everything related to the auto business because of the high payback.

Next, you will need to choose a location. The best options are near large highways, in garage cooperatives, in residential areas. Be sure to inspect the selected places, find out about the availability of competitors and their prices, so that this does not come as a surprise.

Note:tire service should be clearly visible from the road - many drivers drive into such places impulsively. Also, it will be useful to have a nearby parking lot.

In the service itself, it is recommended to organize a small relaxation room with a sofa, TV and a coffee machine. Replacing all wheels takes about 30 minutes - people need to spend this time somewhere, and not interfere with the craftsmen.

Equipment

It is best to buy new equipment, but if you are limited in money, then you can save up to 40% by buying a used device. You will need:

  1. A tire fitting machine (the cost is about 50 thousand rubles).
  2. Balancing machine (40 thousand rubles).
  3. Jack (3-5 thousand rubles).
  4. Vulcanizer (10,000 rubles).
  5. Compressor (150,000 rubles).
  6. Pneumatic impact wrench (10,000 rubles).
  7. Wheel inflation equipment (5,000).
  8. Bath for checking the quality of vulcanization.
  9. A set of keys.
  10. Workbench.

In total, the purchase of the most necessary items will have to spend about 3.5 thousand dollars. If you buy used equipment, then the costs can be reduced to 2-2.5 thousand, but its resource will be much less.

Tire service can be combined with tire and wheel sales to increase profits

Staff recruitment

To compose correctly business plan "how to open a tire service from scratch" you need to decide on the number of employees. Usually 2-3 people work at a standard tire fitting. You can save a lot if you work yourself at first. This will give two advantages at once:

  1. You will get a return on your investment faster.
  2. You will understand the process and will be able to control employees in the future.

In order to learn the art of tire fitting, two months are enough. But a lot really depends on employees - if they do their job carelessly, then customers will immediately move to competitors.

You will need to organize full-fledged video surveillance in the workshop - this will avoid controversial issues and fraud on the part of the staff.

Advertising

The issue of advertising for this type of business is somewhat different from other types of entrepreneurship. For example, an advertisement in a newspaper or on the radio will not attract a customer who has a punctured wheel and is driving a spare tire. Therefore, the workshop must be clearly visible, it must have a beautiful and large sign. Outdoor advertising - a billboard installed along the highway or a portable billboard in front of the entrance - has proven itself quite well. A detailed price list in front of the entrance also attracts the attention of customers (most motorists do not even know what services tire fitting provides in addition to their direct responsibility for repairing and replacing tires).

In parallel with portable advertising, you can use the classic one: leaflets, brochures, business cards. Be sure to develop a system of discounts for regular customers, carry out various promotions to tie local residents to you. For example, preferential storage of winter / summer tires, free tire inflation, etc.

Mobile tire fitting can bring profit no less than a classic one, at a cost 2-3 times less

Profitability

Now let's consider tire fitting business plan: an example with calculations taken based on average values ​​for a city with a population of over 300,000.

The consumable part includes:

  1. Purchase of the necessary equipment - 200,000 rubles.
  2. Purchase of inventory - 50,000 rubles.
  3. The rent is 30,000 rubles per month.
  4. Salary is 40,000 rubles per month for 2 employees.
  5. Furniture - 10,000 rubles.
  6. Other expenses - 20,000 rubles.
  7. Advertising RUB 10,000
  8. Registration, taxes, documents 30,000 per year.

In total, you will need to spend about 400,000 rubles to open a full-fledged tire fitting. This amount can be reduced by 2 or more times if you purchase used equipment or open a business in your garage. The standing monthly payment will be approximately 75 thousand.

The income part is easy to calculate. The cost of repairing / changing clothes with balancing 1 wheel is 150 rubles. On average, a normal tire service serves about 25 vehicles per day. Daily income is approximately 3,500 thousand rubles, or 105,000 per month. That is, the net profit is 105-75 = 30 thousand rubles a month. It turns out that the average payback period is no more than 10 months (if you yourself work in the service, then 6-7 months).

But it should be remembered that in the spring-autumn period the number of customers increases significantly (at least 2 times), and they change 4 wheels at once. On average, the profit per day comes out at 20,000 rubles, the season lasts about 3 weeks, that is, all the investments made can be recouped in just a month.

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