With tons of car owners buying a new set of tires every day, many choose to purchase used tires. Not only are they 30% to 50% cheaper than new tires, but if you’re lucky, you can get used ones in great condition. Moreover, promoting the consumption of used tires can help reduce the amount of thrown-away rubber in landfills.
If you’re an entrepreneur looking to start a profitable and sustainable venture, a used tire shop is worth considering. Besides the obvious profits, owning this business can help reduce the impact of toxic materials that are harmful to human health and the environment. If you’re interested in starting a used tire shop, follow these steps.
1. Determine the startup costs
One major startup cost of starting a used tire business is the retail location. You should have an area for your retail space, a storage area for inventory, and a garage for servicing vehicles. Keep your overhead at a minimum by opting for a space in a low-rent district. Once you’ve worked out your startup costs, the next step is registering your business.
By using a formation agent such as those found at yourcompanyformations.co.uk you can streamline the process of starting your own business. They can take care of issues such as banking options, tax registration and your trading address. Outsourcing your company registration can save you time to work on the other crucial elements of your new business venture.
Another area to look into is your equipment costs. Used high-quality machines and tools in good condition are better compared to new but lower-quality equipment. Secondhand quality machines are more efficient to use, which means you can cut labor costs and time when installing tires or providing extra vehicle services. The third one is the used tires. Acquire a varied selection of both high-performance and low-profile tires. You can get used tires on retreading centers, junkyards, and other tire stores.
2. Acquire the equipment and tools
Many used tire shops choose to set up a garage to accommodate simple customer needs such as changing the old tires or simple maintenance checks. If you’re also looking to offer service and replacement, the first equipment to invest on is a tire changer. Consider the performance, type, and size of the tire changer.
There are particular tire changers designed for handling standard wheels up to 24 inches, low profile wheels, and heavy-duty wheels. While larger machines are more costly, they are more durable and versatile than others.
Next on the list is a two-post car lift, which is crucial for ensuring your safety when servicing cars or replacing wheels. Decide if you want a lift with a baseplate or overhead design. A baseplate design is preferred at low ceiling garages since it has a shorter construction.
On the other hand, this model makes it hard to use tools like transmission jacks or tall stand supports since it places a bigger plate below the car. If you prefer something with good support and stability, a vehicle lift with an overhead design is your best bet. It’s ideal for garages with limited space, providing you or your mechanics with great access to the cars during servicing.
Some other equipment you’ll need include a tire inflation system, an oil extractor, a wheel balancer, and a wheel alignment. One of the most important things that you do not want to overlook is sorting through the different business security systems and select the system that is best for your business premises so that your business is secured 24 hours a day.
3. Handpick your supplier
In opening a used tire shop, you’ll need to source different consumable supplies that are vital for your offered services. Some of these include patches, wheel weights, valves, lubricants, and chemicals. When sourcing these items, choose a supplier which sells them of top quality and has an impressive reputation in the industry.
At the same time, ensure they can take accountability for quality issues regarding the auto parts or tools you purchase from them. Your tire shop’s reputation is at stake when servicing your clients so be careful in picking your suppliers and the supplier. If you’re looking for a long-term partner, you’ll need to check on additional factors such as expertise in your target market, production capabilities, ethical and regulatory compliance, and ease of communication.
4. Create an advertising plan
Opening a local used tire shop requires good advertising tactics to boost profits. It’s just like any other business. Craft a plan that lists strategies suited for your tire business. Some of the basic ones include publishing print media ads for the grand opening, offering special discounts for every purchase, and providing pick-up and delivery services to local clients. You can also offer and promote bonus services like wheel balancing or give promotional gifts to loyal clients.
Exploring promotional products in Brisbane, or anywhere else, to create branded merchandise such as T-shirts or items with your tire shop’s name, is a good brand-building tool. This approach helps increase visibility and creates a lasting impression on your customers. Besides locals, you can also broaden your customer base by selling tires online. Provide a complete and accurate invoice with each transaction for your customers. Set up a website for your tire store or use e-commerce and social media platforms to sell your used tires and share your advocacy for saving the environment. Make sure that you do a domain name search first to ensure that your chosen name is free to register so you can promote brand recognition.
Starting a used tire shop will not only help you generate good profits but also set an amazing example for promoting sustainability in the automotive industry. By selling used tires, you can help car owners afford more affordable tires and take part in saving the environment. Take your time and plan your new business carefully using this guide.
