Thinking of starting a tire business next year. I worked at Discount tire for 2 years and literally everything you said is true. Thats how they make the big bucks
The tire manufactures and distributors have long disrespected the dealers. Buy in programs with distributors and manufacture dealer programs are total garage. They give you a $2 per unit spiff on certain models only if you hit certain volume levels; all the while under mining your sells to the guy across the street who may or may not be any program. That's not to also mention that programs will lock the dealer in to terms of service that puts you a disadvantage to the guy who isn't on any programs. I always love it when these tell people tell me to use tires for "up sale" marketing. Given the cost of labor, equipment and other required overhead. I've got a bridge in Arizona I'd love to sell you if you believe that is a great strategy. Tires = Lots of stress and work with no Reward.
Hello sir! My family owns a tire shop in a small/medium sized city. We could never make $277 a set profit for one set! The local competition sometimes drops to $10 above cost per tire and no labor added either. And , he rotates for free!!! Oh, I miss took your profit chart. We do find a lot of extra services that cars need. But never over $100 for a set of 4 tires on profit.
You just as well shut down if you can’t make over $100 on a new set of tires I’m in a very competitive market in SC and I never make less than $150 on a set have made up to $300 on big mud grips and run flat sets
@@shawnelliott5484 ;;; good too hear , thats my plan , about $25 a tire , i worked for a Distributer and delivered to your neck of the woods, I will be up in NC
I guess it depends on your business. Used tires do not convey first class plus they could have liability problems. I’m a big fan of selling top quality new tires to a quality conscious customer who will also be interested in purchasing your mechanical services Let me know what you think thank you for your comment
The beauty of being in the automotive business is that the average person doesn't take care of their vehicle. People may think you're just trying to sell them things they don't need... but most of the time when a car comes in for one thing you can spot 3-5 other things it needs done as well. Either because the customer just doesn't know it's something that needs to be maintained or because like most people they excel and pushing things off well past when it should be done. Though I will say a lot of shops will say you need a service done, because by manufacturers guidelines it's due, but the service could actually be pushed off a little longer as those guidelines are often shorter intervals than they should be. Like changing oil every 3k miles. You can get 5k easy on even basic oil these days.
I'm not sure what distributors have what programs. Call the local distributors and ask the question about programs. You could also call the manufactures and ask about their programs and distributors. please if you have further questions please email me directly alan@beechconsulting.ca
@Super Liegebeest 3 months?? That seems kinda extreme or idk what Chinese tires they bought but I’ve had some personally and they lasted me about 2 years max with proper rotation and no suspension or steering problems of course
Everything he said is too much bs just to sell tires, listen everyone it’s NOT worth it. At least not anymore. There is no money in selling tires. After taxes and tire disposal fees, paying your employees and the insanely competitive market you’re left with shit. It’s too much stress for no money. He mentioned selling alignments and all that other bullshit, what he failed to mention was the price of an alignment machine. It’ll take you years to pay that thing off. Don’t do it.
Question: $277 on basic tire installation? Can you please break that down for me? I help with a family business in the city of El Monte CA. I charge $30 to mount and balance, most people spit out their coffee and tell me off stating that I'm ripping people off! Making me feel like sh*t by telling me the guy down the street does it for $20 a tire. $80 profit to mount and balance 4 tires, including tire disposal. Keep in mind we are not making any profit off the tire. Most shops here are mom and pop shop, using average of $16,000 to do a basic flat repair, but charging only $15 to $20. One hole in the wall shop down the street from me charges $10!! I charge $30 for a flat repair, I have very good technology and new machinery, yet more than half of my customers tell me off. $20 bucks won't get you into the Disneyland Parking Lot, they charge $30. I don't get how you get a $270 profit margin on a basic tire install.
💩 talk.. we customers are trying to get the least out of our pockets.. specially if we're broke Wich in fact most of us are.. that's why we hate to walk into a shop & have pushers sellers on our face all the time.. we need the service but we need reasonable prices not extra shit that's why customers 70 percent of the time don't go back😅
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Thinking of starting a tire business next year. I worked at Discount tire for 2 years and literally everything you said is true. Thats how they make the big bucks
thanks Rolando
I worked at valvoline and I can second that
I worked there for 3ish years hell yeah man! Good to see another discount tire fella
Worked there 2 and a half years 👊🏽👊🏽
The tire manufactures and distributors have long disrespected the dealers. Buy in programs with distributors and manufacture dealer programs are total garage. They give you a $2 per unit spiff on certain models only if you hit certain volume levels; all the while under mining your sells to the guy across the street who may or may not be any program. That's not to also mention that programs will lock the dealer in to terms of service that puts you a disadvantage to the guy who isn't on any programs. I always love it when these tell people tell me to use tires for "up sale" marketing. Given the cost of labor, equipment and other required overhead. I've got a bridge in Arizona I'd love to sell you if you believe that is a great strategy. Tires = Lots of stress and work with no Reward.
Great video.
Pls advise your thoughts to people who want to start tire business for the first time.
Great. Thank you.
Thanks for sharing your tips,
Hello sir! My family owns a tire shop in a small/medium sized city. We could never make $277 a set profit for one set! The local competition sometimes drops to $10 above cost per tire and no labor added either. And , he rotates for free!!! Oh, I miss took your profit chart. We do find a lot of extra services that cars need. But never over $100 for a set of 4 tires on profit.
You just as well shut down if you can’t make over $100 on a new set of tires I’m in a very competitive market in SC and I never make less than $150 on a set have made up to $300 on big mud grips and run flat sets
@@shawnelliott5484 Is Discount Tire a good place to buy tires?
@@JaimeGarcia-pe7bj I don’t know because I have never bought anything from there.
@Mark Johnson excellent statement
@@shawnelliott5484 ;;; good too hear , thats my plan , about $25 a tire , i worked for a Distributer and delivered to your neck of the woods, I will be up in NC
Great info sir
What do you think about selling used tires?
I guess it depends on your business.
Used tires do not convey first class plus they could have liability problems.
I’m a big fan of selling top quality new tires to a quality conscious customer who will also be interested in purchasing your mechanical services
Let me know what you think
thank you for your comment
You do great videos. Hope to see many more.
Thank you Sir for that information
Just as long the customer needs the work on there car dont lie. don't assume the wont know you are just making it up to make your self more money.
I couldn't agree more Todd - everything falls apart if you don't run your business with integrity!! Thanks
The beauty of being in the automotive business is that the average person doesn't take care of their vehicle. People may think you're just trying to sell them things they don't need... but most of the time when a car comes in for one thing you can spot 3-5 other things it needs done as well. Either because the customer just doesn't know it's something that needs to be maintained or because like most people they excel and pushing things off well past when it should be done. Though I will say a lot of shops will say you need a service done, because by manufacturers guidelines it's due, but the service could actually be pushed off a little longer as those guidelines are often shorter intervals than they should be. Like changing oil every 3k miles. You can get 5k easy on even basic oil these days.
Do you think pushing retreated tyres business can be profitable in third world countries ?
wanting to ask. Is american tire distributors the only place to buy tires from? Looking into adding this service. Thank you
I'm not sure what distributors have what programs. Call the local distributors and ask the question about programs. You could also call the manufactures and ask about their programs and distributors. please if you have further questions please email me directly alan@beechconsulting.ca
pending ur area ;;; Atlantic Tire Dist , Parrrish Tire Dist , Blacks Tire Dist...
Thank you sir!!
I worked at a tire shop and their profit in Chinese tires was like 50%
@Super Liegebeest not really they don’t have any problems like that they just don’t last as long really.
@Super Liegebeest 3 months?? That seems kinda extreme or idk what Chinese tires they bought but I’ve had some personally and they lasted me about 2 years max with proper rotation and no suspension or steering problems of course
;; THATS RITE..
Everything he said is too much bs just to sell tires, listen everyone it’s NOT worth it. At least not anymore. There is no money in selling tires. After taxes and tire disposal fees, paying your employees and the insanely competitive market you’re left with shit. It’s too much stress for no money. He mentioned selling alignments and all that other bullshit, what he failed to mention was the price of an alignment machine. It’ll take you years to pay that thing off. Don’t do it.
give up and sell the business. good advice....
I was thinking about starting a tire business. I looked it up on UA-cam and this is the first comment I read. 😂
What POS system do you use?
I would recommend Autoleap
How to find the best price on tires as a small time guy with a business license and sellers permit?
@Super Liegebeest looking for new I do semi tires
@Super Liegebeest thanks I’ll check it out
Not easy to do if you are a Scum ball dealer. I have visited enough of those.
Amen, brother. Those scumballs are really good at it.
Question: $277 on basic tire installation? Can you please break that down for me? I help with a family business in the city of El Monte CA. I charge $30 to mount and balance, most people spit out their coffee and tell me off stating that I'm ripping people off! Making me feel like sh*t by telling me the guy down the street does it for $20 a tire. $80 profit to mount and balance 4 tires, including tire disposal. Keep in mind we are not making any profit off the tire. Most shops here are mom and pop shop, using average of $16,000 to do a basic flat repair, but charging only $15 to $20. One hole in the wall shop down the street from me charges $10!! I charge $30 for a flat repair, I have very good technology and new machinery, yet more than half of my customers tell me off. $20 bucks won't get you into the Disneyland Parking Lot, they charge $30. I don't get how you get a $270 profit margin on a basic tire install.
💩 talk.. we customers are trying to get the least out of our pockets.. specially if we're broke Wich in fact most of us are.. that's why we hate to walk into a shop & have pushers sellers on our face all the time.. we need the service but we need reasonable prices not extra shit that's why customers 70 percent of the time don't go back😅