Anyone on here run a tyre business? Is it worth it?

[DaveDorson]

So I've got an opportunity to get into doing tyres, not your run of the mill stuff, but you do need to make the bread and butter as well; it'd be a sales/distribution business with some fitting as well if needed.

I'm fortunate in that I already own a Hoffman tyre machine, fairly modern one, and a big compressor, balancing machine, decent jack, hard stand, etc etc. I've got a decent size unit too that I'm using to do my own cars, so I'd be able to have room for storage; it's on a light industrial estate that's mostly full of petrol heads and automotive industry.

I'm not really interested in doing tracking and stuff, just supply and fit tyres, but I need an idea of the mark up folks make on them, and the turn-over and over-heads that I might not have thought about.

Obviously, PM's would add a layer of discretion if you don't want people knowing your business.

I'd doing a fairly decent salaried job at the moment, but I'd quite like to work for myself, and do something bit more focused on the stuff I enjoy, and I'd enjoy being my own boss.

[Kiltox]

I would expect that the margins are wafer thin on anything run of the mill.  Places like F1 Autocentres are kicking the arse out of price by buying in bulk and selling online  

would also imagine you need liability insurance in case you fuck up someone’s car or wheels. 

 

[Mally]

You can't sell and fit tyres without Tracking and balance, Well you can, but!   Ask Bornite!

Anyway I think that's where the money is.

[DaveDorson]

  On 08/08/2019 at 11:09, Mally said:

You can't sell and fit tyres without Tracking and balance, Well you can, but!   Ask Bornite!

Anyway I think that's where the money is.

Expand  

I can do balance.

 

I guess I could do alignment too, but I'd rather not.

[DaveDorson]

  On 08/08/2019 at 11:03, Kiltox said:

I would expect that the margins are wafer thin on anything run of the mill.  Places like F1 Autocentres are kicking the arse out of price by buying in bulk and selling online  

would also imagine you need liability insurance in case you fuck up someone’s car or wheels. 

 

Expand  

Most places mark them up at about 20-30% a tyre from what I understand.

My current policy would cover me for that, as I'm insured to work on peoples cars already, so I'd just make a call to check and pay the premium if I'm not.

Of course, I'd also factor in the cost of any additional over-heads.  But I already have the unit, just my electric would go up.

[Kiltox]

Are you in an area with a shortage of tyre places? There are LOADS of them near me.  Why would I come to you when I can just go wherever’s cheap online? 

I get if it’s an add on to an existing automotive business or a part of one, but I’m not sure it’ll pay the bills on its own?

edit - not saying I don’t wish you success with it, just spewing my thoughts out devils advocate style 

[Mally]

Bornite's new tyres lasted 140? miles without the alignment.

If customer refuses alignment  it's their own fault.

If you can't offer alignment it's your fault, and you owe them 2 more tyres FOC.

Am not saying a tyre business is a bad idea though, but you must cover the basic necessities.

[Split_Pin]

Tyre businesses are a favourite front for money launderers, just watch you don't move into anybodys patch.

 

[DaveDorson]

  On 08/08/2019 at 11:18, Kiltox said:

Are you in an area with a shortage of tyre places? There are LOADS of them near me.  Why would I come to you when I can just go wherever’s cheap online? 

I get if it’s an add on to an existing automotive business or a part of one, but I’m not sure it’ll pay the bills on its own?

edit - not saying I don’t wish you success with it, just spewing my thoughts out devils advocate style 

Expand  

The local area where the workshop is lacks tyre specific places for sure.  There's a place that makes bespoke wheels, and there's a garage who I know supply and fit tyres when people need them, I could probably farm out the alignment to them too, perhaps help them out with the tyre thing so they can concentrate their time on getting mechanical work out the door.

  On 08/08/2019 at 11:19, Mally said:

Bornite's new tyres lasted 140? miles without the alignment.

If customer refuses alignment  it's their own fault.

If you can't offer alignment it's your fault, and you owe them 2 more tyres FOC.

Am not saying a tyre business is a bad idea though, but you must cover the basic necessities.

Expand  

I could work out a deal with the place over the road for alignment I'm sure;  at the moment I do my own cars with chalk and string, and I get decent results, but it takes AGES.  I know the investment for the machinery to do it quickly would be too high right now.

[DaveDorson]

  On 08/08/2019 at 11:28, Split_Pin said:

Tyre businesses are a favourite front for money launderers, just watch you don't move into anybodys patch.

 

Expand  

Noted :).

 

As I said I don't think there's anyone local doing it at the moment, which is why I was thinking it might be worth my looking into.

[Kiltox]

The idea of teaming up with local firms who do related stuff (especially the wheel guys) sounds good!

[skattrd]

I got some tyres fitted the other week at F1autocentre.
Whilst there I had a chat with the manager chap, he reckoned they made £4 on the tyres they sold me, but the £48 they charged for tracking is where they make the money.

I'd price up some of the flashy laser alignment things, at £40 a go it would pay for itself.

[chaseracer]

Worth considering going mobile?

[DaveDorson]

  On 08/08/2019 at 12:35, chaseracer said:

Worth considering going mobile?

Expand  

Mobile tyre vans are an absolute magnet for thieves, so I'd rather keep it bricks and mortar.

[RobT]

  On 08/08/2019 at 12:32, skattrd said:

I'd price up some of the flashy laser alignment things, at £40 a go it would pay for itself.

Expand  

I paid £90 for four wheel laser alignment on the S60 recently.  An element of London prices there, but still, a good earner for the garage.  Only thing is, it needed a ramp.

[meggersdog]

You know Colin, have you spoken to him about it ? He only does tyres and sends customers to Bourne for tracking.

I send my customers to Colin so if you do start up might be able to send customers your way.

[DaveDorson]

  On 08/08/2019 at 13:52, meggersdog said:

You know Colin, have you spoken to him about it ? He only does tyres and sends customers to Bourne for tracking.

I send my customers to Colin so if you do start up might be able to send customers your way.

Expand  

Yeah I was talking to Col about it earlier funnily enough; he's basically told me I should do alright doing it, and given me some details of people to talk to about supply as well for the run of the mill stuff, as well as an idea of mark up and other expenses.

My unit is over at Kings Cliffe, and there's not really anyone near that does rubber, I think you need to venture into Corby or Peterborough to find someone outside of the usual garages that can fit a tyre if you need one, but it's not really what they do.

[meggersdog]

Funnily enough Project Heaven were just in so I have got customers your way

[Kiltox]

  On 08/08/2019 at 12:41, RobT said:

I paid £90 for four wheel laser alignment on the S60 recently.  An element of London prices there, but still, a good earner for the garage.  Only thing is it needed a ramp.

Expand  

I think the gear is a fair old investment on top of the cost of a ramp. 

[Aston Martin]

Blackcircles

[DaveDorson]

  On 08/08/2019 at 14:03, meggersdog said:

Funnily enough Project Heaven were just in so I have got customers your way

Expand  

What's Pete buying off you today?

[RobT]

What's the price of commercial tyre disposal, roughly?  The only thing I could find online after a brief search was £220/tonne.

[DaveDorson]

  On 08/08/2019 at 14:20, RobT said:

What's the price of commercial tyre disposal, roughly?  The only thing I could find online after a brief search was £220/tonne.

Expand  

I think it works out a couple of quid a tyre.  You add it to the supply cost to cover your over-head and find someone that will collect them and supply a transfer certificate.

[DaveDorson]

  On 08/08/2019 at 14:11, Kiltox said:

I think the gear is a fair old investment on top of the cost of a ramp. 

Expand  

That's the other thing, I don't have a ramp, they take up a fair bit of space truth be told which I'd rather not have used.  I very rarely find I need a ramp, but if I did I'd borrow one of the local guys ones as I've a great relationship with the lot of the car folks around here.

 

I did look at those £80 alignment things that people sell, but they're front only really, so not ideal.  I'd rather ship the work over the road to the little garage or send them to my mates at Project Heaven if it's something fancy for a proper setup as they live and breath that sort of thing, so would do it better than me, quicker, and for less money.

[egg]

  On 08/08/2019 at 14:13, Aston Martin said:

Blackcircles

Expand  

Can you become a fitter for them?

Guy near me operates a fairly low tech outfit - just fits and balances - with very little stock in a tiny unit.  Alignment farmed out (in my case to my 'own' mechanic). His USP is that he will come to you to fit.

[Kiltox]

  On 08/08/2019 at 14:38, DaveDorson said:

That's the other thing, I don't have a ramp, they take up a fair bit of space truth be told which I'd rather not have used.  I very rarely find I need a ramp, but if I did I'd borrow one of the local guys ones as I've a great relationship with the lot of the car folks around here.

 

I did look at those £80 alignment things that people sell, but they're front only really, so not ideal.  I'd rather ship the work over the road to the little garage or send them to my mates at Project Heaven if it's something fancy for a proper setup as they live and breath that sort of thing, so would do it better than me, quicker, and for less money.

Expand  

What about a scissor lift? Thinking about one myself given the space saving qualities. Would speed up fitting...

[purplebargeken]

I'm not sure it's worth the hassle, you'd just be going round in circles................................................

[SiC]

The alignment only places around here seem to make a nice crust from doing quality four wheel alignments on expensive sports/race cars and always seem busy. There is a world away from your £40 Kwik fit tracking alignment and a £200 session at a proper, respected wheel alignment centre with decent kit. 

People seem prepared to travel if they know they're going to get their cars aligned all up properly by someone that cares. 

[sierraman]

In a word, No. 

90% of people buy the cheapest rubber, so you are competing with Kwik Fit. Good luck with that. 

As for part worns, forget it, the quality of part worns these days is dire. 

[New POD]

The bloke that I keep going back to is one of 3 places on the local light industrial estate. 

I go back because he and his staff are nice. Polite, and friendly and genuinely interested in getting you sorted. 

He knows his stuff when it comes to brands you've never heard of.  That said he's accepted that the omega only gets wet grip A uniroyal rainsports.  Despite him suggesting other stuff.  He's always busy.