SOURCES OF SUPPLY The following list is representative but not a complete compilation of the manufacturers and distributors of tires and related supplies. New companies are coming into the market all the time and you should make it your business to watch for the announcements of their development. Do this by subscribing to relevant trade […]
Category: Business
Computing Margin and Markup (tire shops)
COMPUTING MARGIN Gross profit margin aka gross profit or gross margin is the difference between net sales (total sales minus any discounts and/or returns) and the cost of those sales. For example if: Net Sales […]
Regulation of Wages, Hours and Working Conditions (tire shops)
REGULATION OF WAGES AND HOURS The Fair Labor Standards Act requires minimum hourly wages for the employees of most firms. The minimum wage for employees covered by this act is set by Congress, it is $3.35 as this is written (in California the minimum wage is $4.25 effective July 1 1988). The act also requires […]
Financial Management for a Tire Shop
FINANCIAL MANAGEMENT You must regard capital as a business tool requiring skilled use. All money invested in your business whether in fixtures equipment stock or operating expenses should yield a profit. Because of the risks you incur by going into business for yourself this capital should yield a higher rate of return than could be […]
Taxes, Advertising and Promotion for a Tire Shop
TAXES As a business owner and employer you will be responsible for collecting various state and federal taxes and remitting these to the proper agencies. In addition you will be required to pay certain taxes yourself. When reading the following sections remember that at the time this manual went to press all tax information reflected […]
Efforts to Make Improvements in Tire Industry
DESPITE THE BEST EFFORTS of everybody in the tire business automotive tires in the first decade of the century left very much to be desired. A satisfactory replacement for solid truck tires had not been found. Pneumatic tires on passenger cars were unreliable. A short ride in the country without the necessity of having to […]
Ancillary Service and Office Equipment for a Tire Shop
ANCILLARY SERVICE EQUIPMENT We’ve mentioned that many shops are offering not only tires but related automotive services to increase business. Generally tire dealers increase the scope of their services by moving progressively outward from the tires themselves. They start around the wheel by offering brake and shock installation then wheel alignment exhaust-system/muffler service lube and […]
Tire Shop Building Preparation
BUILDING PREPARATION Tire dealerships stock several types of passenger-car tires and one or two brands of truck/pickup/RV tires though this will vary by market. Smaller tires are placed on the left with progressively larger ones lined to the right. All-season 12- or 13-inch tires begin the layout usually ending with 15-inch or larger on the […]
Important Factors for Tire Site Selection, Facility and Layout
IMPORTANT FACTORS FOR SITE SELECTION Among the factors to consider when pinpointing an exact location for your tire store are: 1) Accessibility to potential customers. 2) The rent paying capacity of the business. 3) Restrictive ordinances. 4) Traffic density. 5) Customer parking facilities. 6) Proximity to other businesses. 7) History of the site. 8) Terms […]
Market / Location of Potential Customers for Tire Shops
Basically anyone who owns a vehicle is a prospective customer for a tire store. Any person who a drive has to periodically have mechanical service done or put tires on his car. But this is an enormously wide market for the typical small business owner to consider you need to define as closely as possible […]