How Profitable Is A Tire Shop

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How Profitable Is A Tire Shop
How Profitable Is A Tire Shop

Video: How Profitable Is A Tire Shop

Video: How Profitable Is A Tire Shop
Video: Why You're not making enough profit selling Tires? 2024, November
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Today there are a lot of tire shops, which allows you to think about the high profitability of this business. Is it really? It all depends on how this business is organized and on the costs of it.

How profitable is a tire shop
How profitable is a tire shop

Organization of a tire workshop

In order for a tire shop to generate a good income, it is necessary to carefully study the market. The fact is that several years ago the licensing of this activity was canceled, which greatly simplified the registration of a tire fitting. Therefore, the field is very popular for the development of your own business.

The preparatory work includes finding a place for tire fitting. If it is located near a busy freeway, close to a garage cooperative or gas station, the chances of making a significant profit from it are greatly increased. It happens that some tire changer is not able to cope with the existing flow of customers. This means that in this place the demand for such services is increased. This suggests that the business here will be very profitable.

It is clear that the workshops will not specialize only in the replacement of automobile wheels. The wider the choice of services, the more clients there will be. The work of the staff plays a huge role. The master must be able to cope with the tasks that are assigned to him, otherwise the client will find another tire changer, and the loss of one client after another will greatly reduce the possibility of making a big profit.

Tire workshop costs

The profitability of a tire shop largely depends on its costs. It is clear that the lower the costs, the greater the profit. However, there are areas where you will have to spend a significant amount of money in one way or another.

The first thing to remember is renting a room. Usually tire shops are located in small non-residential premises. Their rent is approximately ten dollars per square meter. The ideal area is fifty square meters, which costs about $ 500 per month.

Of course, the equipment also costs money, and even more than the rent. However, if the rent has to be paid every month, then the equipment is not. The approximate cost of buying a tire changer, jacks, vulcanizer and other devices will cost about $ 3,500.

Opening an IP costs about $ 800. Now you can calculate how profitable the tire shop is and how quickly it pays off. If you add up the cost of equipment and the opening of a sole proprietorship, you will get $ 4,300. If the company serves 20 cars per day at an average price per check of 150 rubles, the daily income will be 3,000 rubles, and 90,000 rubles will come out in a month. It is necessary to subtract from this amount the rent of the premises, the salaries of the workers and the costs of depreciation and consumables, then the net profit will be $ 1,600. Of course, this is under ideal conditions, and on average, the profitability of a tire fitting is about $ 1,000. It turns out that the enterprise will pay off in six months. Perhaps the income is not very large, but it is stable.

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