FIXTURES
The broad category of “fixtures” can include such items as partitions paneling signage storage shelves and/or cabinets lighting checkout counter(s) and all shelves tables’ stands wall systems and showcases and related hardware for product display. The cost of fixtures depends upon a number of variables including: the shop’s location, its size and present condition, the type of merchandise to be sold, what kind of image you want it to project, and whether new or used fixtures are purchased.
There is sometimes a blurry line between fixtures and leasehold improvements. So a contractor might lump a share of the fixture expenditures into the leasehold improvement category.
If you are handy with tools and able to design and build display fixtures and make the desired renovations in your intended retail space then by all means do so and save you some money. Even an amateur handyperson should be able to put up shelves or place hooks or pegboards for wall displays.
All or most of the fixtures you’ll need are available from a variety of suppliers. Local suppliers are as close as your Yellow Pages. Check under “Store Fixtures.”
The Checkout Counter
A split-level counter from 5 to 8 feet long works best. A height of about 45 inches on the customer’s side is fine for a thin ledge on which the customer can place or receive cash or sign sales documents. A counter of about 36 inches on the sales clerk’s side will provide a working surface for running the cash register wrapping items and writing out sales slips. Shelves under the counter provide space for storing business forms receipts and other supplies. If you have a split level checkout counter built from the floor up it can cost you as much as $750. This like other items can be bought used for a fraction of that amount.
The Cash Register
Electronic cash registers (ECRs) are available from many different manufacturers at $750 to $3 000 new. To free capital in the early stages check on a lease purchase arrangement which will run about $ 100 to $ 150 per month, you can also lease a mechanical cash register in your early phase and make the decision on what to buy later.
ECRs perform several bookkeeping functions and can track inventory and customer accounts. When volume warrants you should purchase one. A more serious question is whether you need one in the start-up phase. Some retailers believe that an ECR or any cash register is a highly visible invitation to robbers as well as a significant expense. If you don’t buy or lease a cash register you can get by with an adding machine with tape and a cash box but this is a much unsophisticated way to go. You can get an adding machine for $50 to $200 and a cashbox for $25 to $40.
Security
Small merchandise equipment and cash attract burglar’s robbers and shoplifters as well as paying customers. Therefore merchants have been forced to become aware of security adding burglar alarms as standard equipment.
On-site and/or silent alarms are recommended as deterrents against both armed robbery and burglary. For $500 to around $2 500 (depending on individual needs) a merchant can have a combination of two or three different alarm systems installed that warn of different types of illegal entry and ring in on-site and/or at the alarm company’s station when activated.
The most commonly used alarms are: the infrared alarm which detects changes in temperature the vibration detector usually used on glass windows and the magnetic contact alarm which is triggered if a door or window is opened and the contact broken. Some facilities require more than one kind of alarm system. The average cost just for installed alarms runs between $1000 and $2000. Shopping center tenants usually receive the services of a security patrol as part of their common area fees but many store owners prefer the extra assurance of burglar alarm systems.
Industry figures show that sales personnel steal twice much as merchandise as outside thieves including shoplifters. To prevent this problem all job applicants should be carefully screened and their references checked. A safe for locking up purses bags and cash (for later deposit in the bank) is also advisable. Access to any safe and keys to the facility should be restricted to the most-trusted employees.
To learn what your security risks are and to get protection contact local “Security Control Equipment and Systems” companies listed in your Yellow Pages. Also your local police department will very likely have literature and experts available to help make your facility secure.
MAJOR EQUIPMENT AND FIXTURES ITEM RANGE
| Air Compressor (5-10 hp) | $2 500 to $7 500 |
| Hydraulic Lifts (2-5) | 5 600 to 17 500 |
| Bumper Lifts | 1 500 to 4 000 |
| Tire Changer | 1 550 to 3 000 |
| Spin Balancer | 5 500 to 7 500 |
| Air Gun | 50 to 150 |
| Air Buffer | 50 to 75 |
| Cabinet Air Reel w/Tire Inflator | 500 to 550 |
| Air Chuck (4) | 150 to 250 |
| Hydraulic Jack & Stands | 75 to 125 |
| Air Pressure Gauges | 5 to 10 |
| Wheel Weight Tools | 10 to 20 |
| Retractable Drop Cord Units | 100 to 150 |
| Extension Cords | 25 to 50 |
| Work Benches Cabinets | 200 to 350 |
| 4-Way Lug Wrenches | 5 to 10 |
| Hubcap Hammers | 15 to 20 |
| Tool Trays (2) | 150 to 250 |
| Office Furniture/Equipment | 500 to 750 |
| Office Supplies | 200 to 300 |
| Signage | 2000 to 7 500 |
| Furniture Waiting Room … | 750 to 1500 |
| Coffee-Making Equipment… | 175 to 650 |
| 250 to 2 500 | |
| 250 to 500 | |
| Cash Register (leased) | 100 to 150 |
| Miscellaneous Tools | 300 to 500 |
| TOTALS | $22.510 to $55.860 |
| * Major equipment may be financed. | |
| OPTIONAL EQUIPMENT ITEM RANGE | |
| Battery Service | |
| Economy Tester | |
| Hydrometers | |
| 150 to 200 | |
| 125 to 200 | |
| 75 to 125 | |
| 20 to 35 | |
| 10 to 15 | |
| 100 to 175 | |
| 15 to 25 | |
| Filler Bulbs | 15 to 25 |
| Volt Meter | 50 to 250 |
| Terminal Puller | 5 to 10 |
| Cell Filler | 5 to 10 |
| Terminal Cleaner | 1 to 5 |
| TOTALS | 573 to 1.075 |
| Brake/Shock Absorber Service | |
| Brake Lathe | $3 500 to $4 500 |
| Disc Brake Tools | 50 to 75 |
| Hub/Drum Puller | 15 to 25 |
| Bearing Cup Driver | 8 to 14 |
| Brake Cylinder Hones (disc & drum) | 25 to 50 |
| Axle Puller | 25 to 35 |
| VW Brake/Bleeder Wrenches | 5 to ID |
| TOTALS | 3.628 to 4.709 |
| Alignment Service | |
| Alignment Rack | 2 000 to 4 000 |
| Caster/Camber Gauge | 15 to 25 |
| Front Wheel Adjuster | 5 to 10 |
| Steering Wheel Puller | 3 to 5 |
| VW Brake/Bleeder Wrenches | 5 to l fl |
| TOTALS | 2.028 to 4.05 |
| Tune-Ups | |
| Diagnostic Computer | 16 000 to 20 000 |
| Dynamometer | 3 400 to 7 000 |
| Air-Conditioning | |
| Charging Station | 1 500 to 3 000 |
| Motor Manuals | 4Q to 600 |
| TOTALS | 20.94 to 30.6 |
| Lube/Oil Change Service | |
| Air Line Lubricator | 120 to 150 |
| Magnetic Starter | 225 to 275 |
| Steel Rex Hose (2) | 240 to 300 |
| Rolling Drain Pan (2) | 1 500 to 1 800 |
| Waste Oil Hose (2) | 250 to 450 |
| Grease Pump w/Follower Plate (2) | 1400 to 1 600 |
| 10-Ft. Grease Hose | 50 to 70 |
| Grease System Control Valve | 70 to 90 |
| Drum Gear Oil Pump | 600 to 800 |
| Oil Shut-Off Valve | 30 to 50 |
| 10-Ft. Oil Hose | 40 to 60 |
| Oil Pump | 700 to 800 |
| Oil Reel w/Totalizing Meter | 800 to 900 |
| Pistol Grease Gun | 25 to 35 |
| Oil Suction Gun | 15 to 25 |
| Grease System Control Valve | 70 to 90 |
| 10-Gal.-Cap. Car Vacuum | 350 to 550 |
| 55-Gallon Storage Tanks (3) | 100 to 400 |
| Portable 300-Gallon Oil Tank | 1.5 to 3 000 |
| TOTALS | 8.085 to 11.445 |
| Muffler Service | |
| Exhaust System Pipe Bender | 5 000 to 10 000 |
| Mig Welder | 800 to 1 200 |
| Acetelyne Torch (2) | 150 to 300 |
| Tubing Cutter | 75 to 100 |
| Pressure Bleeder | 175 to 250 |
| Macpherson Strut Compressor | IQQ to 5QQ |
| TOTALS | 6.3 to $12 350 |
SOURCES OF SUPPLY
The following are representative but certainly not the only suppliers of equipment for the tire trade. Also check the business to business Yellow Pages under “Tire Recapping Retreading & Repairing Equipment & Supplies” or the relevant equivalent for local sources. Tire manufacturers (see Inventory) and local- area wholesalers are one source of tire- changing shop equipment. Be aware that major companies you write to will either send you a catalogue or put you in touch with the company representative in your geographical area. Another important source of used equipment is the classified ads section of the trade journal NTDRA Dealer News the official publication of the National Tire Dealers and Re-traders Association 12501 Street N.W. Suite 400 Washington DC 20005.
Focusing primarily on tire dealerships it’s not our intent to describe in detail all ancillary services or equipment manufacturers relating to those services. However the equipment list includes a cost breakdown for ancillary equipment. In addition we’ve published detailed operations manuals on the following related businesses:
“30-Minute Tune-Up Shop” (X1009)
“Muffler Shop” (XI044)
“10 Minute Oil-Change Shop” (XI054).
We also recommend an equipment catalog available from ATECO:
WA (800)552-7132, OR (800)452-7437, CA (800)426-3880, USA outside WA (800)426-2880.
Air Compressors
Ateco Equipment P.O. Box 9039 Seattle WA 98109 ,(206) 281-5000
New Castle Engineering Inc. 555 N. 12th Street New Castle IN 47362 ,(800) 428-8111
Iowa Mold Tooling Inc. 500 Highway 18 W. Gamer IA 50438 (515) 923-3711
Gast Manufacturing Corp. P.O. Box 97 Benton Harbor MI 49022, (800)952-4278
New York Testing Laboratories 75 Urban Avenue Westbury NY 11590, (516) 334-7770
Ingersoll-Rand 200 Chestnut Ridge Road Woodcliff Lake NJ 07675, (800) 8474041
Earl E. Knox Co. 1100 Bacon Street Erie PA 16512, (814) 459-2754
Thomas Industries Power Air Division 1419 Illinois Avenue Sheboygan WI 53082, (414) 457-4891
Bauer Compressors Inc. 1328 W. Azalea Garden Road Norfolk VA 23502, (804) 855-6006
Fuller Co. P.O. Box 2040 Bethlehem PA 18001 ,( 215)264-6011
Eagle Air Systems A Division of Pressure Systems Inc. P.O. Box 458 Pleasant Garden NC 27313, (919) 674-3621
Hydraulic Lifts
Ateco Equipment P.O. Box 9039 Seattle WA 98109, (206) 281-5000
Bishamon Inc. 1140 E. Sandhill Avenue Carson CA 90746, (213) 604-0779
Kwik-Way Manufacturing 500 57th Street Marion IA 52302, (319)377-9421
Dresser Industries Inc. 1600 Pacific Dallas TX 75201, (800) 221-3024
Worth Manufacturing (pipe-bending equipment) 5951E. Rosedale P.O. Box 8484 Fort Worth TX 76112, (817)451-1248
Tire-Changing Equipment
Iowa Mold Tooling Co. Inc. 500 Highway 18 W. Gamer IA 50438, (515) 923-371
Neal Machine Corporation 1410 E. Kibby Street Lima OH 45804, (419) 229-7010
Tennessee Industries Ammco Tool Division P.O. Box 1600 LaVeme TN 37086, (800) 323-6852
Ateco Equipment P.O. Box 9039 Seattle WA 98109, (206) 281-5000
Coats Co. Hennessy Industries 1601 JP. Hennessy Drive LaVergne TN 37086-1600, (615) 793-7533
Western Commercial Products (inflation unit) 1515 E. Sunset Tulare CA 93275, (209) 688-7400
Wright Tool Co. Inc. 1738 Maplelawn P.O. Box 1239 Troy MI 48099, (313) 643-6666
Solar Industries Inc. 22201 Industrial Boulevard Rogers MN 55374, (612) 428-4121
Bear Hydraulics P.O. Box 272 Warwick RI02887- 7272, (401) 732-5832
Mohawk Rubber Sales of New England 104 Long water Drive Norwell MA 02061, (617) 871- 2970
VALVE STEMS WEIGHTS PATCHING MATERIALS
Adams PSP Inc. (tubeless tire repair kit) P.O. Box 189 Butler PA 16003, (412) 287-671
Truflex Rubber Products Co. 1667 N-Main Street Los Angeles CA 90012, (213) 224-6300
Patch Rubber Co. P.O. Box 933 Akron OH 44309, (216) 745-6964
Coats Co. Hennessy Industries 1601 JP. Hennessy Drive LaVergne TN 37086-1600, (615) 793-7533
Technical Rubber Co. 200 E. Coshocton Street Johnstown OH 43031, (614) 967-9015
Parker-Hannifin Corp. 21337 Hemlock Avenue Lakeville MN 55044, (612) 469-5000
Rocson Inc. 3261 Copley Road Copley OH 44321 ,( 216)666-8806
Alignment Equipment
FMC Corp. Industrial Park Conway AR 72032, (501) 327-4433
Kwik-Way Manufacturing 500 57th Street Marion IA 52302, (319)377-9421
Tennessee Industries Ammco Tool Division P.O. Box 1600 LaVergne TN 37086, (800) 323-6852
Tool & Parts Suppliers
Rolero Corp. Omega Manufacturing Division 4933 E. 154th Cleveland OH 44128, (216) 581-0633
Lempco Industries Inc. 5490 Dunham Road Cleveland OH 44137, (216) 475-2400
Kent-Moore Tool Group 28635 Mound Road Warren MI 48092, (313) 574-2332
C&H Distributors 400 S. Fifth Street RO. 04499 Milwaukee WI 53204, (414) 271-2250
W.W. Grainger Co. (branches in major cities) 5500 W. Howard Street Skokie IL 60077, (312) 338- 0980
Additional Equipment
Eaton Leonard Technologies (the Bend it) 6305 El Camino Real Carlsbad CA 92008, (619) 438-5322
Worth Manufacturing (pipe-bending equipment)
5951 E. Rosedale RO. Box 8484 Fort Worth TX 76112, (817) 451-1248
Sun Electric (electronic analyzers diagnostic equipment) One Sun Parkway Crystal Lake IL 60014, (815)459-7700
United Technologies Bradley Field Rd. Windsor Locks CT 06096, (203) 623-1621
Christie Automotive (fast chargers load testers) 690 S. B Street Tustin CA 92680, (714) 544-1003
Pennzoil Co. (lube equipment) P.O. Box 2967 Houston TX 77252-2967, (713) 546-4000
Quaker State Oil Refining Corp. (lube equipment) 255 Elm Street Oil City PA 16301, (814) 676-7642
INSURANCE: MANAGING RISK
Knowing what kind of insurance to carry and how much is an important aspect of good risk management. Consider:
1) The size of the potential loss
2) The probability of the loss
3) The resources available to meet the loss if it should occur.
No business can possibly eliminate or transfer all of the risks. You must assume some of them. How do you decide whether a particular risk should be transferred to an insurance company or assumed? Figure the maximum potential loss that might result. If the loss would force your company into bankruptcy or cause serious financial damage don’t assume the risk.
Contrary to popular opinion a high probability of loss doesn’t mean the risk should be insured. In fact the greater the probability the less appropriate is the purchase of insurance to cover the risk.
In the first place losses that occur with relative frequency are predictable and typically small. They can be assumed by the business without too much financial difficulty they are often budgeted as part of the normal costs of doing business and are figured into the prices charged to customers. Some common examples are shoplifting and bad debt losses. Also where probability of loss is high a more effective method of controlling the loss is to adopt appropriate precautionary measures.
The key to purchasing insurance (and all risk management) is: Do not risk more than you can afford to lose.
Insurance Planning
Begin with a consideration of the insurable risks faced by your business. In general the following risks can be covered by insurance:
1. Loss or damage of property: including merchandise supplies fixtures and building
2. Loss of income resulting from interruption of business caused by damage to the firm’s operating assets
3. Personal injury to employees and the general public
4. Loss to the business caused by the death or disability of key employees or the owner
A standard fire insurance policy pays the policyholder only for losses directly due to fire. Other indirect losses known as consequential losses may be even more important to your company’s welfare. You can protect yourself against these losses by obtaining business-interruption insurance. Consequential losses include the following:
1. Loss of use of a facility
2. Continuing expenses after a fire: salaries rents paid in advance interest obligations etc.
3. Extra expenses of obtaining temporary quarters
4. If you are a landlord loss of rental income on buildings damaged or destroyed by fire
Under common law as well as workers’ compensation laws you as an employer are liable for injury to employees at work caused by your failure to provide safe equipment and working conditions hire competent fellow employees or warn employees of an existing danger. In every state an employer must insure against potential workers’ compensation claims, however employee coverage and the extent of the employer’s liability vary from state to state.
General liability covers any kind of bodily injury to nonemployees except that caused by automobiles and professional malpractice. In some cases this liability may even extend to trespassers. As a business owner you may also be liable for bodily injuries to customer’s pedestrians’ delivery people and other outsiders even in cases where you have exercised “reasonable care.”
Cars and trucks are a serious source of liability. Most businesses own one or more of them. Even if none are owned under the “doctrine of agency” a business can be liable for injuries and property damage caused by employees operating their own or someone else’s car while on company business.
The company may have some coverage under the employee’s own liability policy but the limits might be grossly inadequate, where it is customary or convenient for employees to operate their own cars while on company business as with salespeople on the road or covering a route you should acquire non-owner ship liability insurance.
The best form of general liability insurance for the small business consists of a comprehensive general-liability policy combined with a comprehensive auto liability policy and a standard workers’ compensation policy.
Types of Coverage
You can purchase insurance to cover almost any risk. The following types of coverage are most commonly used by business owners:
1. Fire and general property insurance: covering fire losses vandalism hail and wind damage.
2. Plate-glass insurance: covering window breakage.
3. Consequential loss insurance: covering loss of earnings or extra expenses when business is suspended due to fire or other catastrophe.
4. Burglary insurance: covering forced entry and theft of merchandise and cash.
5. Fidelity bonding: covering theft by an employee.
6. Fraud insurance: covering counterfeit money bad checks and larceny.
7. Public-liability insurance: covering injury to the public such as a customer or pedestrian falling on the property.
8. Product liability insurance: covering injury to customers arising from the use of goods purchased through the company.
9. Workers’ compensation insurance: covering injury to employees at work.
10. Life insurance: covering the life of the owner(s) or key employee(s).
11. Business in temptation insurance.
12. Malpractice insurance: covering you against claims from clients who suffer damages as a result of services you perform.
13. Errors and omissions insurance: covering you against claims from customers who suffer injury or loss because of errors you made or things you should have done but failed to do.
Obtaining Coverage
After listing your insurable risks and the types of insurance available to cover them decide how much of a loss you can afford to bear yourself and the possible losses that you would prefer to transfer and then look at the insurance company’s premiums for assuming part of the risk.
Seek cost estimates from at least two reliable insurance agents and carefully evaluate them before buying any coverage. Explore package insurance policies at discounted rates.
Insurance agent who can assist you in planning risk management as your business grows.
Look in the Yellow Pages under the heading of “Insurance” to find companies that specialize in business insurance. Having the services of a company that specializes is most important if your business is unusual in any way. Look for an in INVENTORY.