* Calculations use average data for Russia
From 300 000 ₽
Initial attachments
75,000 - 800,000 ₽
35-40%
Profitability
12-24 months
Payback period
Tire fitting as a business is a minimum investment, ease of organization, quick payback, and most importantly - a consistently high demand due to the constant growth in the number of cars. Finding out what you need to start.
The Russian car park is growing every year. Currently, there are about 300 cars per 1000 people. Moreover, this figure will clearly grow - the Russian Federation is in the sixth ten in this rating of the countries of the world. In the United States, there are almost 800 cars per 1000 population, and in San Marino, in general, 1200 cars per 1000 population. Thus, tire fitting services will be more and more in demand every year. Moreover, with the adoption of the law on the compulsory use of winter tires, each motorist has to change tires at least twice a year. Consider how to build a tire shop-based business.
What format of tire fitting to choose
Currently, there are two options for opening a tire fitting business - mobile and stationary. First of all, it is necessary to decide in which segment we want to work.
If stationary tire fitting has been known to everyone for a long time and is usually a small room with stationary equipment for repairing and replacing car tires, then mobile tire fitting is a specially equipped vehicle that provides field services for all types of tire fitting, as a rule, around the clock.
Both options for opening a tire fitting have their own demand. Mobile tire fitting, of course, is developing at a faster pace, as it provides more convenience to the client, but his services are somewhat more expensive. The disadvantages of mobile tire fitting, first of all, include the lower quality of the services provided, due to the fact that the mobile equipment is more difficult to calibrate. In the future, the balance between the number of mobile and stationary tire changers will be leveled, mobile tire fitting will be mainly used in case of road breakdowns and other emergencies, and stationary stations - for scheduled tire changes.
What equipment is needed for tire fitting
To ensure production, it is necessary to purchase equipment. An approximate list of equipment is shown in the table below. The volume of investments required for the purchase of equipment is 357,000 rubles.
List of tire fitting equipment
|
Name |
price, rub. |
Quantity, rub. |
Total cost, rub. |
|
|---|---|---|---|---|
|
Basic equipment |
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|
Tire changer |
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|
Balancing machine |
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|
Jacks |
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|
Compressor |
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|
Wrenches |
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|
Vulcanizer |
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|
Pneumoball |
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|
Bead expander |
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|
Metal workbench |
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|
Tool kit |
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|
Consumables set |
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|
Delivery, installation, connection |
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If there is no mains connection, then a generator will be required, but this option is undesirable as the cost of supplying energy will be significant.
For a mobile tire fitting, you need about the same list of equipment, but in addition you will need a car with a cargo compartment, preferably at least 15 m. The cost of such a car is, of course, significant. For example, minibuses Mercedes Sprinter, Iveco Daily or PEUGEOT Boxer are suitable.
The number of manufacturers of tire fitting equipment is very large. The cost of a set of equipment starts from 150 thousand rubles. This, of course, is the cheapest and not the highest quality equipment. A high-quality kit will cost 300 - 400 thousand rubles.
What are the requirements for the tire fitting room
Let us briefly dwell on the issue of the characteristics of the premises for stationary tire fitting.
The most important issue when organizing a workshop is finding a suitable site. It is important to choose a convenient location as the profitability of the business depends on it. The most attractive areas for a tire shop are those in high but slow traffic areas. It can be:
parking of mega-complexes, shopping centers;
parking lots and garages;
areas at the entrance to sleeping areas;
busy city streets;
entrance to the city.
The most suitable area is considered to be the area behind the traffic light. While waiting for the green signal, the driver can scan the area and notice an advertising sign or sign leading to the workshop.
When choosing a location, you should pay attention to the presence of competitors nearby. This will allow us to assess the level of consumer demand and make a decision on the choice of a site. The building of the tire fitting shop should be clearly visible from the road and have a convenient access.
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In addition to the characteristics of the site, it is necessary to take into account the room in which the workshop with all the equipment will be located. For an ordinary workshop, an area of 30 sq.m. will be enough. Any non-residential buildings are suitable for this: garage boxes, hangars, etc.
Currently, ready-made modular solutions for a tire workshop are presented on the market. Their cost starts from 250 thousand rubles. As a rule, such a solution is cheaper than building a building from traditional materials. What is especially convenient is that such pavilions are already equipped with everything you need - from windows and doors to electrical wiring. Adequate thermal insulation of the premises is provided.
Room requirements:
the presence of ventilation, running water, heating and at least one window;
separate premises (i.e. outside residential and public buildings);
finishing of floors and walls with moisture-resistant and explosion-proof materials;
explosion-proof lamps and devices;
the presence of a bathroom and a shower for the staff.
Ideally, there will be a small waiting room for clients. Separately, special attention must be paid to the quality of the flooring, since the equipment of the tire workshop weighs a lot and the floors must withstand significant loads.
Tire service personnel
For round-the-clock work of a tire fitting, which is necessary, especially in a high period of demand for services, two teams of two people are required. One of the main advantages of this business is that almost anyone can do it, and no special knowledge is required. Secondary or higher education in the profile, experience in car repair, tire fitting skills. One person can work at one assembly station. However, this does not mean that there are no requirements for workers at all. Clients are earned by honest and high-quality work.
The average salary of tire service workers is about 40 thousand rubles, but it all depends on the region. The highest salaries are in Moscow and the Moscow region, as well as in the northern regions of the country, where the salary of a tire service worker can exceed 60 thousand rubles.
How much do tire shops earn
The cost of tire replacement services in small cities starts from 500 rubles, in cities with a population of over one million - from 700-800 rubles, in Moscow - from 1000-1500 rubles. The revenue of tire shops is highly dependent on seasonality, so there is no average revenue here. The peak of sales falls on spring and autumn - the time of transition from winter tires to summer tires and vice versa. The beginning of the high sales season for the tire fitting season in the south of the country falls on March and November, in the northern regions, the spring season starts a little later, and the autumn one earlier. At this time, the workload of the tire shops is such that they work around the clock in a very busy mode. In the off-season, some tire shops are closed.
The revenue of a tire shop is also strongly related to its location. During the season, tire fitting brings about 25-30 thousand rubles a day. The maximum sales are in November-December and March-April, as motorists change tires at this time. During the period of peak sales, the revenue of one workshop can be up to 800 thousand rubles a month with 15-25 cars being serviced daily. However, in other months the demand can sharply decrease to 4-5 clients per day and the revenue is about 75-150 thousand rubles. In fact, such figures indicate that in the low season, tire service works on the verge of breakeven, and profits are generated in the high season.
The main expense item for a tire shop is wages and mandatory deductions from it. Other major costs include: land lease, costs of materials for repairs and components, utility costs.
As for the payback period of the tire workshop, it is from one to two years. Basically, the value of the payback period depends on the amount of equipment costs and the correctness of the chosen location of the workshop, which largely determines the amount of its revenue. According to experts, the profitability of tire shops is 35-40%
Where is the best place to open a tire service
Tire shops are a fairly popular type of business. Their number is increasing every year, in some large cities there are 38 tire shops per 100 thousand inhabitants. In the ranking of cities with the highest concentration of tire shops per capita at the time of this writing, the leaders are Krasnoyarsk, Novosibirsk and Yekaterinburg. Therefore, before opening a tire service in your city, study the competition in the local market. This data can be obtained using services such as 2GIS.
To ensure the efficient operation of the tire shop, it is very important to choose the right location. First of all, a good traffic flow is desirable, which passes near the tire shop. It is optimal to choose a place near large avenues, gas stations or large parking lots. Such a choice will help you reduce the negative effects of such a factor as seasonality, since you will always be in sight. It is undesirable to place the tire service next to competitors. As a rule, good places for the location of a tire fitting are rarely empty, but options for the location of a new workshop can always be found.
Some experts point out that the location near garage cooperatives is a plus for a tire workshop, since the cooperative generates traffic, other experts believe that this is a disadvantage, since garage owners often change tires along with wheels on their own. In our opinion, the presence of a garage cooperative is rather a plus, since among car owners there are more and more women who are physically difficult to replace tires, and young people who are used to paying for such services. Women and youth are considered by the workshop owners to be the best customers.
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The presence of a sleeping area next to the workshop can also be a positive factor. Pay special attention to new multi-storey housing estates where residents may lack car services. Today it is possible to assess the density of competitors in many Russian cities with the help of cartographic Internet reference books like 2GIS.
Legal aspects of opening a tire service
As for the organizational form of business registration, it is recommended to choose an individual entrepreneur. A limited liability company should be registered to open a tire shop only if multiple business owners are expected. However, as a rule, the tire fitting business does not provide enough profit to be of interest to several owners at once.
There are no special requirements for tire fitting. However, if you do everything "as it should", the costs will only increase for the services of specialized firms for the removal and disposal of old tires, which many car owners, after replacement, abandon at the installation. There are strict environmental regulations for the disposal of old tires, so having such an agreement will demonstrate your good intentions and law abidance.
The work of a tire fitting shop is suitable for the taxation regime in the form of a single tax on imputed income (UTII). UTII is a special tax regime that is available for certain types of activities, while tax accounting is kept in a simplified form, but accounting is still necessary. Optimally, in the case of using UTII, to engage a specialized outsourcing accounting company for accounting and calculating taxes. The owner of a tire shop pays taxes, imputed income tax, social security contributions and contributions to the FIU, as well as personal income tax. When choosing a single tax, the organization is exempt from paying other taxes.
UTII is also convenient because the basis of Art. 346.32 of the Tax Code of the Russian Federation, a company can reduce the amount of UTII payment by the amount of quarterly insurance contributions for compulsory pension insurance, sick leave payments, compulsory social insurance payments. At the moment, the owners of tire shops can fully take into account the fixed amounts paid to the pension fund to reduce UTII, only if they do not have hired employees, that is, do not pay UTII at all. Individual entrepreneurs using the labor of hired employees can reduce UTII within 50% of the amount.
The main code for the new OKVED directory is 45.20 "Services for the maintenance and repair of vehicles". Also, in the presence of certain types of activities, it is necessary to use the following additional codes: OKVED code 45.20.1 "Maintenance and repair of cars and light trucks", OKVED code 45.20.2 "Maintenance and repair of other vehicles", OKVED code 45.20 .3 “Vehicle washing, polishing and similar services”.
What documents will be needed to open a tire workshop
SES requirements imply the following documents for opening a tire workshop:
production control program;
Rospotrebnadzor's conclusion on the compliance of the premises with the standards;
permission of Rospotrebnadzor to carry out activities;
contracts for the removal of waste, hazardous substances, disinfection, washing of overalls.
How to advertise tire service
The most effective tire shop advertisements are usually local advertisements that are distributed close to the tire shop. Distribution of booklets, advertising in elevators and nearby car service points, which do not have their own tire service, are effective.
It will not be superfluous to register on message boards and social networks, however, such advertising will generate significantly less traffic. It will be great if you provide your clients with the possibility of recording via the Internet. Website builders have ready-made blocks that will make it easy to organize such an opportunity for clients.
How to increase the profitability of tire fitting
An important point in organizing a tire fitting business is specialized software that allows you to keep a convenient record of its activities. There are many types of such software. There are options for installing such software on a computer or using the system in the "cloud". Additionally, it allows you to quickly register orders, restrict employees' access to only the necessary financial data, make it easy to record income and expenses and build an effective staff motivation system. Moreover, for a small tire workshop, you can even find a free solution.
In an effort to increase the profitability of the business, many tire shops are either on the path of opening new points, or on the path of expanding related services. For example, due to the growth of "garageless" motorists, some tire shops offer services for seasonal storage of rubber. Others are beginning to provide truck tire fitting services, in which there is less competition than in the passenger segment, while others are adding the service of mobile workshops and field assembly to the list of services. Although the latter option is considered a trend, it still does not have such competition as stationary tire fitters. Judge for yourself, out of 475 companies providing tire fitting services in Rostov-on-Don, only 16 have a field fitting service (2GIS data as of September 2018). Also winners are those workshops where they perform work from rolling and straightening discs to complex repairs of side cuts. The standard of living of motorists is improving, and they are already willing to pay more to be able to fix everything in one place without getting dirty while waiting for a cup of coffee in a nearby cafe. That is why the option of combining tire fitting with a mini-cafe is more and more common.
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If you do not understand the tire shop business very well, then you should consider the option of purchasing a franchise. Companies that offer tire workshop franchises offer ready-made work standards for employees, accounting systems to control the passage of orders, the necessary equipment and components. Typically, an admission fee and periodic, monthly or quarterly payments (royalties) are paid.
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