Starting investments
75 000 - 800 000 ₽Revenue
35-40%Profitability
12-24 monthsPayback period
Tire service as a business means a minimum of investments, simplicity of organization, quick payback, and most importantly - consistently high demand due to the constant increase in the number of cars. We find out what is needed to start.
The Russian fleet is growing annually. Currently, there are about 300 cars per 1000 people. Moreover, this indicator will obviously grow - the Russian Federation is in the sixth ten in this rating of the countries of the world. In the USA there are almost 800 cars per 1000 people, and in San Marino, there are 1200 cars per 1000 people in general. Thus, tire fitting services will be more and more in demand every year. Moreover, with the adoption of the law on the mandatory use of winter tires, every motorist has to change tires at least twice a year. Consider how to build a business in a garage based on a tire workshop.
Which tire format to choose
Currently, there are two options for opening a tire business - mobile and stationary. First of all, it is necessary to decide in which segment we want to work.
If stationary tire fitting has long been known to everyone and usually is a small room with stationary equipment for repairing and replacing car tires, then mobile tire fitting is a specially equipped car that provides field services for all types of tire fitting, usually around the clock.
Both options for opening a tire are in demand. Mobile tire fitting, of course, is developing at a faster pace, as it provides more convenience to the client, but his services are also slightly more expensive. The disadvantages of mobile tire fitting, first of all, include the lower quality of the services provided, due to the fact that mobile equipment is more difficult to calibrate. In the future, the balance between the number of mobile and stationary tire service stations will be leveled, mobile tire service will be mainly used in the event of breakdowns on the roads and other emergency situations, and stationary stations - for planned tire replacement.
What equipment is needed for tire fitting
To ensure production, it is necessary to purchase equipment. A rough 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
No. | Name | price, rub. | Amount, rub. | Total cost, rub. |
|---|---|---|---|---|
Basic equipment | ||||
one | Tire changer | 60, 000 | one | 60, 000 |
2 | Balancing machine | 120, 000 | one | 120, 000 |
3 | Jacks | 16, 000 | 2 | 32, 000 |
four | Compressor | 37, 000 | one | 37, 000 |
five | Wrenches | 5, 000 | 2 | 10, 000 |
6 | Vulcanizer | 25, 000 | one | 25, 000 |
7 | Air blower | 2, 000 | one | 2, 000 |
eight | Airborne expander | 2, 000 | one | 2, 000 |
9 | Metal workbench | 13, 000 | 2 | 26, 000 |
ten | Tool kit | 25, 000 | one | 25, 000 |
eleven | Consumables kit | 25, 000 | one | 25, 000 |
12 | Delivery, installation, connection | 30, 000 | one | 30, 000 |
Total: | 357, 000 | |||
If there is no connection to the power grid, then a generator is required, but this option is undesirable, since the cost of the cost of providing energy will be significant.
For mobile tire fitting, you need about the same list of equipment, but you will additionally need a car with a cargo compartment, preferably at least 15 m. The cost of such a car, of course, is 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 quality kit will cost 300 - 400 thousand rubles.
What are the requirements for mounting a tire
Briefly dwell on the issue of the characteristics of the premises for stationary tire fitting.
The most significant issue when organizing a workshop is finding a suitable site. It is important to choose a convenient location, since the profitability of the business depends on this. The most attractive areas for a tire workshop are those located in a zone of high but slow traffic. It can be:
parking of megacomplexes, shopping centers;
Gas station;
parking lots and garages;
areas at the entrance to the sleeping areas;
Busy city streets
entry into the city.
The most suitable area is the area behind the traffic light. In anticipation of a green signal, the driver can look around 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 you to assess the level of consumer demand and decide on the choice of site. The building of a tire workshop should be well visible from the road and have a convenient access.
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 square meters will be enough. For this, any non-residential buildings are suitable: garage boxes, hangars, etc.
Currently, ready-made modular solutions for the 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 necessary - from windows and doors to electrical wiring. Adequate insulation of the premises is provided.
Room Requirements:
the presence of ventilation, water supply, heating and at least one window;
a separate room (i.e. outside residential buildings and public buildings);
finish floors and walls with moisture-proof and explosion-proof materials;
explosion-proof fixtures and devices;
the presence of a bathroom and shower for staff.
It is optimal if a small waiting room is provided for customers. Particular attention must be paid to the quality of the flooring, since the equipment of a tire workshop weighs a lot and the floors must withstand significant loads.
Tire service staff
For round-the-clock tire service, which is necessary, especially in the 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 special knowledge is not required. Secondary technical or higher education in profile, experience in car repair, tire fitting skills. One installation post can work for one person. However, this does not mean that there are no requirements for employees at all. Customers earn honest and high-quality work.
The average salary of tire 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 worker can exceed 60 thousand rubles.
How much do tire shops earn
The cost of tire replacement services in small cities starts at 500 rubles, in cities with a million-plus population - 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 tire fitting 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 loading of tire shops is such that they work around the clock in a very busy mode. In the off-season, some tire shops close.
The tire shop's revenue is also strongly related to its location. In the season, tire fitting brings about 25-30 thousand rubles a day. The maximum sales volume falls on November-December and March-April, as motorists change tires at this time. Over the period of peak sales, the revenue of one workshop can be up to 800 thousand rubles per month with daily maintenance of 15-25 cars. However, in other months, demand may drop sharply to 4-5 customers per day and revenue of about 75-150 thousand rubles. In fact, these figures indicate that in low season, tire service is on the verge of breaking even, and profit is generated in high season.
The main expense item of a tire workshop is wages and mandatory contributions from it. Other main costs include: renting a land plot, expenses for materials for repair and components, expenses for utilities.
As for the payback periods of the tire workshop, it is from one to two years. Basically, the payback period depends on the amount of equipment costs and the correctness of the chosen location of the workshop, which largely determines the size of its revenue. According to experts, the profitability of tire shops is 35-40%
Where is best to open a tire service
Tire shops are a fairly popular type of business. Their number is increasing annually; in some large cities, there are 38 tire workshops per 100 thousand inhabitants. In the ranking of cities with the highest concentration of tire workshops per capita at the time of 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 effective operation of a tire workshop, it is very important to choose its location correctly. First of all, a good traffic flow, which passes near the tire shop, is desirable. 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 a factor such as seasonality, as you will always be in sight. It is undesirable to have tire service near competitors. As a rule, good places for mounting a tire 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 minus, as garage owners often change tires together with disks on their own. In our opinion, the presence of a garage cooperative is more likely a plus, as there are more and more women among car owners who are physically difficult to replace tires with and young people who are used to paying for such services. Women and youth, according to workshop owners, are the best customers.
The presence of a sleeping area near the workshop can also be a positive factor. Pay special attention to new multi-story residential complexes, the residents of which may lack a car-care center. To evaluate the density of competitors in many Russian cities today, you can use cartographic online directories like 2GIS.
Legal aspects of opening a tire fitting
As for the organizational form of registering a business, it is recommended to choose an individual entrepreneur. A limited liability company should be registered for the opening of a tire workshop only if several business owners are expected. However, as a rule, the tire fitting business does not provide enough profit to be interesting to several owners at once.
There are no special requirements for tire fitting. However, if you do everything “as expected”, the costs will increase unless you pay for the services of specialized firms for the removal and disposal of old tires, which many car owners throw after installation at installation. There are strict environmental standards for the disposal of old tires, so the presence of such an agreement will demonstrate your good intentions and law-abiding.
The work of a tire workshop is suitable for the tax regime in the form of a single tax on imputed income (UTII). UTII is a special taxation regime that is available for certain types of activities, while tax accounting is kept in a simplified form, but accounting is still necessary. In the case of using UTII, it is optimal to use a specialized outsourcing accounting company for accounting and tax calculation. The owner of a tire workshop pays taxes on imputed income taxes, social security contributions and contributions to the Pension Fund, as well as personal income tax. When choosing a single tax, the organization is exempt from 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 the payment of UTII by the amount of quarterly insurance contributions for compulsory pension insurance, payment of sick leave, obligatory social insurance payments. At the moment, owners of tire shops can fully account for the fixed amounts paid to the pension fund to reduce UTII, only if they do not have employees, that is, do not pay UTII. Individual entrepreneurs using hired labor can reduce UTII to within 50% of the amount.
The basic code for the new OKVED reference book is 45.20 “Services for maintenance and repair of motor vehicles”. Also, in the presence of certain types of activities, it is necessary to additionally use the following codes: OKVED code 08/18/2019 "Maintenance and repair of cars and light freight motor vehicles", OKVED code 08/18/2019 "Maintenance and repair of other vehicles", OKVED code 18.08.08 .2019 "Car wash, polishing and the provision of similar services."
What documents will be needed to open a tire workshop
SES requirements require the execution of the following documents for opening a tire workshop:
production control program;
conclusion of Rospotrebnadzor 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 work clothes.
How to advertise tire fitting
The most effective tire shop advertising is usually local advertising, which is distributed near the workshop itself. Booklet distribution, advertising in elevators and nearby car service points that do not have their own tire service are effective.
It will not be superfluous to register on message boards and on social networks, however, such advertising will generate significantly less traffic. It will be great if you give customers the option of recording via the Internet. On site designers there are ready-made blocks that will make it easy to organize such an opportunity for customers.
How to increase the profitability of tire fitting
An important point in organizing a tire fitting business is specialized software that allows you to conveniently record its activities. There are a lot of 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 access to employees only with the necessary financial data, makes it easy to take into account income and expenses, and build an effective staff motivation system. Moreover, for a small tire shop you can even find a free solution.
In an effort to increase the profitability of the business, many tire shops go either along the path of opening new points, or along the path of expanding related services. For example, due to the growth of “garageless” motorists, some tire service companies offer seasonal rubber storage services. Others are starting to provide truck tire fitting services, in which there is less competition than in the passenger segment, while others are adding mobile workshop and field editing services to the list of services. The latter option, although it is considered a trend, does not yet have such a competition as stationary tire changers. Judge for yourself, out of 475 tire service providers in Rostov-on-Don, only 16 have on-site installation services (2GIS data as of September 2018). Those workshops where they perform work from rolling and dressing discs to complex repairs of side cuts also win. The standard of living of motorists is increasing, and they are ready to pay more to be able to fix everything in one place without getting dirty, waiting for a cup of coffee in a nearby cafe. That is why the option of combining tire fitting with a mini-cafe is increasingly common.
If you do not understand the business of tire shops very well, then you should consider the option of acquiring a franchise. Companies that offer franchises for tire shops offer off-the-shelf work standards for employees, accounting systems to control the passage of orders, the necessary equipment and accessories. As a rule, an entrance fee and periodic, monthly or quarterly payments (royalties) are paid.
08/18/2019