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Anyone own their own tire shop? kinda O.T.

Discussion in 'The Hokey Ass Message Board' started by V8, May 31, 2005.

  1. V8
    Joined: Oct 7, 2002
    Posts: 192

    V8
    Member

    This doesn't have much to do with hotrods but I'm not sure where else to go for this question. I was thinking of opening a tire shop and just wondering what kind of permits or business lisence you need. Also what you'd need to get wholesale tires from firestone and micheline etc. Also how is your business doing? Thanks and I appreciate anybodys help...
     
  2. Fat Hack
    Joined: Nov 30, 2002
    Posts: 7,709

    Fat Hack
    Member
    from Detroit

    Hey V8!

    I used to work at a tire store, and also at a tire warehouse before that.

    Some states may differ, but here in Michigan, if you're going to be working on vehicles (even just removing the wheels and reinstalling them), you need to purchase a Motor Vehicle Repair License from the State. You also need to have at least one certified mechanic on the payroll, and on duty at all times at which work is being perfromed on a customer's car.

    (The mechanic need not DO every wheel and tire install, but he has to be there. You can have "tire busters" doing much of the grunt work, so long as they are under the supervision of a licensed mechanic.)

    Additionally, you will need to carry the usual expenses related to ANY small business...insurance, rent, shop supplies, etc, etc, etc.

    Most independant tire stores buy from regional warehouses locally, rather than directly from the tire manufacturer. You'll need to establish a business account with a tire warehouse in your area that handles the brands you wish to sell, and then you will be able to purchase tires through them for resale at the retail level. You will get a discount on price, and your Tax Exemption permit will mean that you won't have to pay sales tax on your tire purchases, since the customer will pay it upon the completion of a retail purchase.

    Tire disposal is something you must consider, too. These days, old tires carry a "hazardous materials" designation, and you will have to pay to have your old tires hauled away and disposed of. Most places openly charge a one to five dollar fee per tire to the customer to cover tire disposal. Other places include that fee in their tire and labor prices without itemizing it, but it does cost money to get rid of your old carc***es.

    Also, if you plan to display tire manufacturer's banners, logos or signs outside your store, you may need to pay a fee to said manufacturer. Those roadside shops you see with "Firestone" or "Good-Year" on the side of the building don't get to display those signs for nothing...you gotta pay to use their established brand name to attract business!

    It's a tough and dirty business, but it can be fairly profitable if you can sustain a steady flow of customers. Being able to do more than just hawk tires is extremely important, you'll want to be set up to do flat repairs, broken stud removal and repair, and maybe brakes and/or front end alignments. That will allow you to cover more of the customer's needs in one stop.

    Another tip is to be sure that you are equipped to handle non-automotive tire needs, too. One store I worked at made a killing because we were the only place around that could (or WOULD!) sell, mount and service ATV, motorcycle, garden tractor and trailer tires in addition to car and truck tires. The more completely you can meeet the tire service needs of your customer base, the more successfull you will be!
     
  3. long island vic
    Joined: Feb 26, 2002
    Posts: 2,193

    long island vic
    Member

    make sure that you do front end work...every shop i worked at gave a((free))brake check when the tires were off...they ALL NEEDED SOME THING you dont make the big mark up on rubber but you can hit them on repairs
     
  4. V8
    Joined: Oct 7, 2002
    Posts: 192

    V8
    Member

    dang, thanks, that helped alot!anyone else?
     
  5. V8
    Joined: Oct 7, 2002
    Posts: 192

    V8
    Member

    yah, brakes are a good upsale. Does that mean you have to buy brake pads for just about every car or do you not stock them. how does that work, just run to kragen or something?
     
  6. Brandy
    Joined: Dec 23, 2004
    Posts: 5,286

    Brandy
    Member
    from Texas

    ]

    My Uncle owns a tire shop. It's been a family owned business for YEARS! He stocks most normal brakes, but don't forget that your local CarQuest can have parts delivered to you within a couple of hours!
    **x
    Brandy
     
  7. Fat Hack
    Joined: Nov 30, 2002
    Posts: 7,709

    Fat Hack
    Member
    from Detroit

    You'd need a certified brake technician on duty at all times (which can also cover you as far as hving someone to 'supervise' the tire busters), and you'd likely want to stock the common numbers.

    Any shop doing repairs is going to need a good, working relationship with a local auto parts store or warehouse that sells to wholesale accounts. Any decent store/warehous will offer a delivery service as needed, and will also be able to suggest the most common brake pad, shoe and rotor numbers that you may want to keep a supply of at your store.

    (You don't want to have to wait for the parts store to bring you Ford Taurus brake pads...you should have ones for ultra common cars like that on hand!)

    It's also easier to sell the customer on the repairs if you have the part there in the store and can get the job done quickly. Having your brake technician do the brake job while the tire busters are changing and balancing the tires is the most efficient way to run things.

    Also, once you get the capital behind you, invest in an alignment rack and hire a good ch***is technician. Wheel alignemts and tire sales go very well together, you inform your customer that they don't want to wear their new tires prematurely, so you advise them to have their alignment checked. Some stores offer 'free' alignements with a new set of tires to help sell the tires, but that 'free' deal is just rolled into the cost of the tires. Being able to do alignements and front end repairs will just make you (and your shop) more of an ***et to your local customer base. If they have to go elsewhere to get their front end work done, they'll likely just buy their tires there, too. Better for you to be able to meet all of their needs!
     
  8. corncobcoupe
    Joined: May 26, 2001
    Posts: 9,154

    corncobcoupe
    SUPER MODERATOR
    Staff Member

    Don't plan on a making a dime for 3-5 years.
    If you have a loan, remember the bank gets paid first, your employess second and you are last on the pay list.
    Liability insurance.
    Don't hire a non legal citizen, just because 11,000,000 are working here, it still IS NOT AMERICAN to hire a criminal.
    Make it a LLC company or incorporate so if you go belly up, just the business does and not ALL OF YOU.
    Business lawyer for the above.
    figure 200K start up capital for equipment and supplies.
    If you are going to do oil changes, make damn sure you are enviromentally correct or bye,bye.

    Still want your own shop now ?

    Cob
     
  9. check to see what you have for compe***ion in your area...the local independent tire store i have been going to for years is now suffering after wal-mart opened a supercenter with auto service/tires
     
  10. Bigdaddy
    Joined: Dec 12, 2002
    Posts: 2,203

    Bigdaddy
    BANNED

    V8. you are crazy just stay in your garage keep building cars like the super low A that stir up **** for nearly no money at all and sell them for big dollars..... thats you thing DO IT!!!
     

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