Tire fitters don't bring big income, but the service has a steady demand. To start their work, a minimum of permits is required. This significantly reduces the time required to set up a business and the costs associated with this process.
Existing tire shops differ from each other in terms of scale and method of providing services. They can take the form of stationary points and traveling workshops on wheels. Services for the repair and replacement of “shoes” for cars are accompanied by the sale of tires and wheels.
There are more than 30 thousand tire shops in Russia. Recently, “garage services” on wheels have been gaining great development. Mobile tire fitting is a van equipped with all the equipment necessary for work, which goes to assist the client on call.
The main advantages of such tire shops are mobility, availability of service for the client, regardless of the location of the vehicle breakdown. They operate in the area of busy highways.
Business Advantages and Disadvantages
The main advantage of tire shops is the ease of organizing a business, a minimum of approvals and permits, small amounts of investments, a steady demand for the service, a short payback period for investments, and good prospects for growth and development.
The service can use three taxation options in its work - imputation, a simplified system and payment for a patent.
Main disadvantage- low level of income and seasonal business fluctuations. The main share of income falls on spring and autumn.
Average statistical indicators
It takes an average of $60,000 to open mobile tire shops. Most of this average cost goes towards the purchase of a van and the equipment needed to operate the field service.
One way to save costs is to buy a used van. This type of service is less subject to seasonal fluctuations in comparison with local tire shops.
The amount of costs for opening stationary points is much lower. The cost of what is necessary for work is on average $ 3,500. The premises can be rented. About $ 800 is spent on the preparation of the necessary documents for work.
The average revenue of a tire service serving 20 cars per day is $ 3,000 per month. After paying rent, taxes and wages about $1,000 left. With such profitability, the payback period of the business can be 4 months.
Franchise costs on average are:
- Initial investment from - 500 thousand rubles. Lump-sum payment - from 20 thousand rubles.
- Royalty - from 10 thousand rubles.
- Payback from 12 months. Regions of work - settlements with a population of 30 thousand inhabitants.
Franchise Directory
Franchise VIANOR
The translation of the name of the tire service network means “northern way”. The company was founded in the early 90s. The first Finnish tire center in Russia was opened in 2005.
Franchise launch year - 2005.
Number of enterprises in Russia: own - 498, franchised - 319.
Lump sum- 60 thousand rubles.
Advertising fee- missing.
Royalty- 25 thousand rubles.
Initial investment- from 500 thousand rubles.
Payback period from 1 year.
Monthly profit- from 50 thousand rubles.
The minimum size of the required area- from 200 sq. meters.
Regions of work: countries of Europe, USA, CIS, Russia.
Central office from: Nokian Tire LLC / Nokian Tiers LLC 188640, Russia, Leningrad Region, Vsevolozhsk, Brick Plant Industrial Zone, quarter 6.
Telephone: +7 812 336 9000
Fax: +7 812 336 9595
Email: [email protected]
Website: https://vianor.ru
- About the tire business
- Purchase of equipment
- Preparation of documents
- OKVED and the taxation system
- Similar business ideas:
The tire business has always been, is and will be relevant as long as millions of cars drive around our roads. Despite the growing number of cars and car owners, entry into the tire business for new players is not getting any easier. The reason for this is a huge competition in the market, a large number of network players, continuous price dumping. In fact, a newly minted entrepreneur has two ways here: either invest millions in creating a large store with a huge assortment (in order to somehow stand out from competitors), or open a small service (tire fitting) and, based on it, a small trading department. Both options have the right to life, although the second requires much less financial resources to open, and therefore looks like the least risky business ...
About the tire business
The tire business is far from what it was 10-15 years ago. According to experienced businessmen, today an increasing number of car owners prefer to buy tires in online stores. Especially in major cities and megacities. This certainly hits hard on the pocket of the real retail stores. Therefore, in order to survive in the face of increasing competition, it is also necessary to transfer your business online, create an online store (the opening of which costs from 60 thousand rubles).
Although online, too, not everything is so sweet. Other market players also understand the benefits of the Internet, so there are more and more online tire stores every year. However, it is one thing to create an online store, any web programmer will do it for you. Another thing is to promote it and promote it as high as possible in the search results. Advertising in Yandex Direct is an expensive pleasure, although it is enough effective remedy to attract buyers. For example, 100 clicks to your site through Yandex Direct will cost you 1,500 - 2,000 rubles.
How much money do you need to open a tire shop
Be that as it may, the investment in opening a tire store can amount to several million rubles. Given that the premises will be rented. The main cost item is the creation of a range of tires. The main thing here is not to make a mistake with the initial purchase, so as not to stock the warehouses with non-traveling items. If there is no experience, it is better to consult with experienced market players, to study the market and demand as closely as possible. For example, the most popular tire sizes for foreign cars are as follows: 175/70 13, 175/65 14, 185/70 14, 195/60 15, 195/65 15, 205/65 15, 205/55 16. For expensive car brands (Toyota Prado, Volkswagen Tuareg, etc.) sizes are in great demand: 225/65 17, 255/55 18, 265/65 17.
Some difficulties may arise with the search for tire suppliers. The ideal option, although the longest, is to work for a tire company in your city or region for some time (well, or find good friends there). So you can thoroughly study the car tire market, which in the future will significantly increase the chance of successfully building your own business in this industry.
Experienced entrepreneurs argue that those stores that, in addition to trade, also develop service, have a greater chance of success. A good tire service, which also sells tires, will never “bend”. Tire fitters win customers much faster and easier, especially during the next “rubber change”. Yes, and it’s easier for the car owner - I bought rubber in a tire shop and immediately replaced the old tires with new ones. In addition, tire shops sell used tires, and earn good money from it. Therefore, the path from opening a tire fitting, and then already sales department for the sale of tires is seen as much more "cheap", reliable and proven.
On the Kolesa.ru forum, a user under the nickname “nbv” published a very interesting material called “The Tire Business Has Come to an End”. He said that today there are fewer and fewer businessmen earning serious money in the tire business. Some big players, eager to overtake competitors, greatly underestimate prices, selling tires almost at cost. As a result, they themselves do not earn and do not allow others to do it.
Beginning Entrepreneur Mistake
The mistake of most market players is the pursuit of sales volumes. A wise manufacturer offers all sorts of bonuses to wholesalers, who collect thousands of batches of tires, clog warehouses and, as a result, do not know how to sell it all. It turns out that tires are sold with a ridiculous markup of 5-10%, instead of the prescribed 30% markup. At the end of the season, such a company does not earn anything, its employees quit, the company cannot develop its network, purchase new equipment, etc. The moral here is that you should not try to sell more, it is better to sell less, but at a higher price. After all, in order to sell more tires, you need more managers, more storage space, more logistics costs, and so on.
Step by step plan to open a tire shop
To organize a tire business that will bring a stable profit, serious financial injections or a non-standard approach are required that can interest representatives target audience. But the general algorithm for opening a tire store is practically the same as solving similar issues for other business lines.
- First of all, it is necessary to analyze the market situation in the tire segment at the local level. If there are a sufficient number of retail outlets selling tires in the city, then it is better to invest your money in another business.
- Prepare a business plan and figure out how you can increase sales (carry out free tire changes, sign contracts with large trucking companies, etc.).
- Register an individual entrepreneur or LLC.
- Find premises, buy equipment and form a staff.
- Organize an advertising campaign.
- Sign contracts with suppliers and other contractors.
After opening a store, business organizers must constantly look for ways to increase daily revenue and ways to reduce the costs of the firm. Only this approach allows you to count on obtaining a stable and high profit.
How much does a tire shop owner earn?
To answer the question about profit outlet For the sale of tires, we consider two options.
- A small shop that offers customers free tire changes. If we divide the annual revenue and costs of the outlet by 12 months, we get the amount of gross income of about 3.5 thousand dollars, and expenses - 2 thousand. At the same time, the company will pay 210 dollars in taxes (USN 6%), that is net profit will be: 3500-2000-210=1290 USD/month.
- Retail outlet with a huge range of tire products. In this case, the firm's monthly income is about $20,000, costs (including taxes) are $12,000-13,000, and the net profit is $7,000-8,000.
Purchase of equipment
To operate a tire store, you must purchase the following equipment:
- Showcases, racks and shelves for placing goods.
- Lighting.
- Cash machine.
- A computer.
- Office equipment and furniture for accounting.
If you plan to change tires, you will need to purchase optional equipment and tools.
Preparation of documents
A retail outlet specializing in the sale of tires does not belong to the category of licensed activities and does not require special permits. The list of documents that are needed for the legal operation of the store includes:
- Standard papers of IP or LLC.
- Permissions local administration, Rospotrebnadzor and fire inspection.
- Room lease agreement.
- Labor contracts with personnel.
In addition, the store should have a buyer's corner, where each visitor can find information about the company, phone numbers of controlling state institutions, or leave their feedback on the work of the outlet.
In Russia. The organization's portfolio includes distribution contracts with such global manufacturers as:
MORE THAN 130 CITIES IN 42 REGIONS RUSSIA, as well asRepublics of KAZAKHSTAN and BELARUS!
About 200 tire centers in 139 cities of Russia, Kazakhstan and Belarus have their own retail and warehouse space, as well as tire fitting service areas (from 1 to 7 posts), where the most modern equipment is installed. This allows, in addition to the purchase of tires and wheels, to install them as quickly and efficiently as possible on almost any car or motorcycle.
4 VECTORS OF DEVELOPMENT!
To date, the company "Wheels for Free" offers customers over 4,000 types of tires and 18 000 disc models! And the entire range of auto, motorcycle, bicycle products is about 100 000 items!
OVER 88 THOUSAND. M 2 OWN STORAGE SPACE!
We have colossal warehouse resources, meeting the needs of customers all around Russia and the nearest regions of the countries CIS. Organized logistics with round trips of our own trucks allows us to ensure delivery to most regions of Russia as quickly as possible.
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DEPARTMENT ONLINE STORE FOR FAVORABLE SHOPPING!
PARTNERSHIP WITH KOLESA DAROM
We have accumulated solid experience in the franchising system and have effectively established work with our partners in this area. The Wheels for Free franchise gives you the opportunity to start new business, having a small capital and at the same time not spending money on promotion and active advertising. The entire experience of the company, from legal issues to source code advertising campaigns, is framed in a special knowledge base, which we actively share with our partners. Cooperation with us gives a number of undeniable advantages: from providing famous brand with an unshakable reputation to unique discounts on collective purchases.
OUR MISSION IS A HAPPY CUSTOMER!
Over 1600 employees"Kolesa Darom" companies work for the benefit of our customers! Our motto is to anticipate the future, acting one step ahead! Long-term cooperation with the largest manufacturers and suppliers - on the one hand, as well as numerous customers and wholesale buyers- on the other hand, it testifies to the high confidence in the organization and professionalism of the staff of "Wheels for Free"!
* Number 1 in Russia in terms of the number of visitors among online stores selling tires and wheels - from the open statistics of the www.liveinternet.ru portal in the "Auto" section.
Becoming a Finnish Nokian Tires franchisee is definitely beneficial if you already have a business that lacks a brand. If you build everything from scratch, then the payback period is incomprehensible
Tire shop at Vianor's flagship tire center in the Leningrad Region (Photo: RIA Novosti)
Entrepreneur Dmitry Shmatov from St. Petersburg rebuilt his car service center into a tire center under the Vianor brand in 2010. Investments of 10 million rubles. (a third of which was compensated by the franchisor) he recaptured after a little over two years. Twice a year, when motorists "change shoes", the monthly revenue of its tire center is about 1 million rubles, and out of season - half as much.
Vianor in numbers
$800 million invested by Nokian Tires in its plant in Russia since 2005
1429 tire centers around the world is part of the Vianor network
411 Vianor centers operate in Russia
26% sales of Nokian Tires are in Russia and the CIS
37,4 billion rubles bailed out Nokian Tire LLC, which sells Nokian tires in Russia, in 2014
Source: company data, SPARK
Franchisor's view
The Finnish tire manufacturer Nokian Tires has one of the largest branded tire distribution networks in Russia, operating under the Vianor brand. According to the company, now the network has 411 tire centers, of which only two are own, and the rest are franchised. In 2015, 35 points were opened, and 15 stopped working.
According to Andrey Pantyukhov, General Director of Nokian Tires Russia, in order to become a franchisee, the company needs to pay a one-time entrance fee at 60 thousand rubles, and then annually pay contributions to the marketing fund - 25 thousand rubles. Franchisees enter into a commercial concession agreement with Nokian Tires for a period of five years. “As a rule, franchise tire centers are opened by people with experience in this business,” explains Pantyukhov in an interview with RBC.
The requirements for the premises of the tire center are quite strict, since Vianor positions itself as a premium network. “There should be a convenient location for customers, convenient access, there must be parking and a recreation area for customers,” Pantyukhov lists. The sales area must be at least 45 sq. m, warehouse - from 100 sq. The franchisee must coordinate with the company the external and internal design of the center. Nokian Tires recommend partners to several agencies who are familiar with the requirements for finishing work.
“Partner investments can be small - within a few hundred thousand rubles - and consist in upgrading an existing tire center,” says Pantyukhov. - If the tire center is being built from scratch, investments can range from 40 million to 100 million rubles. - depending on the format, area and number of posts for tire fitting. To help a partner at the start, the company provides him with gratuitous material support of 500 thousand rubles. for the first open center and up to 2 million rubles. for the next ones. In addition, Nokian Tires, at its own expense, supplies the franchisee with signs, sales and tire fitting equipment (it remains the property of the franchisor, and in the event of termination of the contract, the franchisee must return or buy it back).
Nokian Tires reimburses franchisees half of the cost of advertising their tires. She provides sales uniforms for free and provides free sales training twice a year. In addition, for marketing support to franchisees, for which they pay a nominal 25,000 rubles, Nokian Tires gives them all sorts of nice little things - pens with the Vianor logo, sweets, sun shades for cars, ice scrapers, small bags, key rings, flavors . “Souvenir products are given to customers for free and are very popular with them,” says Vianor franchisee Dmitry Shmatov from St. Petersburg to RBC.
The main requirement for the Vianor franchisee is to provide a multi-brand product line for the customer, which will be dominated by sales of Nokian Tires. Thus, new partners within five years should increase the share of both premium (Nokian Hakkapeliitta, Nokian Hakka) and mid-price segment (Nokian Nordman) up to 60% of tire sales in the center. Nokian Tires does not control the choice of other brands in the line of partner tire centers, but they must be in stock. “We can sell tires of any brand, but Nokian tires are a priority,” Alexander Makarov, manager of the Vianor tire center in Mezhdurechensk (Kemerovo region), confirmed to RBC.
In addition, Nokian Tires sets a minimum recommended selling price. The franchisor checks the centers for compliance with the requirements: they send mystery shoppers who monitor the assortment, prices, and ensure that Vianor sellers offer the Nokian brand in the first place.
Nokian Tires does not track financial indicators franchisees: it is impossible to bring more than 200 cities in Russia where Vianor centers are located, to a common denominator, explains Pantyukhov. But the company proceeds from the fact that any tire center must sell at least 1.5 thousand tires per year, which usually gives sales of about 8 million rubles. “These are the minimum levels - a large number of network members, especially in large cities, have turnovers that are an order of magnitude higher than these figures,” says Pantyukhov.
Franchisee's view
Dmitry Baginsky, commercial director of the Vianor tire centers network in Barnaul, believes that it is profitable to work with Nokian Tires. “They themselves are looking for partners in the regions and offer interesting conditions for cooperation,” he told RBC. The first Vianor-branded center in Barnaul was opened by Baginskiy in 2008, having re-equipped the existing tire shop, now he manages four points. Investments in the latter, built from scratch and opened in December 2014, were about 60 million rubles. In it, on an area of about 1 thousand square meters. m there is not only a tire service, but also a large shopping room, and warehouse.
Shmatov from St. Petersburg already owned a car service when in 2010 he decided to attach a tire shop and a shop to it; since he already had land, communications and part of the buildings, investments did not exceed 10 million rubles. He returned them after two and a half years of work. Alexander Nakonechny from Novosibirsk says that the refurbishment of the existing center (without significant construction works) will cost 1-2 million rubles, which can be returned in six months.
The revenue of tire centers is subject to seasonality: in the high season (March-April and October-November), when there is a mass "re-shoeing" of cars, it can differ significantly from the low season (the remaining eight months of the year). Shmatov from St. Petersburg says about 0.5 million in the low season and 1 million rubles. per month in high, and Baginsky from Barnaul - about 2.5-25 million rubles. for a tire center with an area of 1,000 sq. m. m. Such a big difference is explained not only by the surge in tire sales and demand for tire fitting. Oleg Khryashchev from Dmitrov, near Moscow, says that the conversion of buyers of new tires into tire fitting customers reaches 90%. “Almost everyone who buys tires prefers to put them there,” he tells RBC. - But additional earnings depend on the number of tire fitting racks: if you have only one post, then all customers cannot be offered to “change shoes”. The representative of the Kirov company "Regionshina" speaks of the average revenue of the Vianor center at 2-3 million rubles. per month, Nakonechny from Novosibirsk - about fluctuations of 1.5-2.5 million rubles. per month. “In the off-season, tires generally stand, other goods work,” says Khryashchev from Dmitrov. According to his estimates, in the low season "non-tyres" (oil, accessories, spare parts) can bring up to 40% of revenue - twice as much as in the high season.
Nokian Tires does not control the markup. "AT better times our margin is 10-15% of the minimum price, says Nakonechny from Novosibirsk. - When the season ends and many are left with leftovers, anarchy begins on the price - a holiday for the client. Merchants go down to 5%, and someone probably sells at the purchase price.” Shmatov from St. Petersburg says that some tire brands provide retailers with a 10-15% rebate on sales. Shops, knowing that they are guaranteed to receive a percentage of sales, sell such tires at the purchase price.
Not a single Vianor franchisee wanted to name the absolute values of profit: the majority speak of an average annual rate of 10-15% of revenue.
Additional discounts from the manufacturer allow you to increase the margins of your business. According to Baginsky from Barnaul, from a certain sales volume (“several thousand tires per month”), Nokian Tires allows you to buy tires directly from the plant in Vsevolozhsk, bypassing distributors, which significantly reduces costs, since the manufacturer pays for the delivery of tires. “Reducing logistics costs allowed us to save 2.5% of the purchase price that we paid for shipping to distributors,” Baginsky says. For partners who buy tires directly from the company, other concessions are possible, such as deferred payments.
Only large partners have the opportunity to purchase directly from the manufacturer - from a thousand tires per month, complains Shmatov from St. Petersburg. However, according to Baginsky, with smaller volumes this is not profitable: “The truck assumes a volume of 800 to 1200 tires, with smaller volumes, no manufacturer is interested in this.” There are no restrictions on the volume and frequency of purchases from regional distributors (35 in the country). "During the season - in October-November and March-April - you can buy tires once a week," says Shmatov from St. Petersburg. Out of season, he usually makes purchases once a month.
Most franchisees easily comply with the 60% share of Nokian Tires products in sales. In Mezhdurechensk and Kirov, the share of Finnish tires even reaches 70%, but Nakonechny from Novosibirsk says that in the capital of Siberia, even a share of 40% is considered a good indicator. “Other brands historically flourished in our region, like Bridgestone,” he explains. According to the entrepreneur, Nokian Tires is sympathetic to the deviation from the standards - competition with other brands is quite high, and no one wants to lose the sales channel.
According to Khryashchev from Dmitrov, a big plus for Nokian Tires is an extended tire warranty. “We change or repair tires for free, regardless of the nature of the damage: a hernia, a rupture, a puncture beyond repair,” he says. Lifetime warranty as long as the tire is in service (tread height not less than 4 mm). Nokian Tires compensates all expenses of the franchisee for warranty work.
There used to be a markup!
One of the main difficulties in the tire business, franchisees interviewed by RBC called increased competition from online stores, which led to a several-fold drop in the markup on Nokian Tires tires. “Six years ago, we had a margin of 40-50%,” admits Baginsky from Barnaul. In addition, branded tire centers began to lose customers due to the fact that products began to be sold in hypermarkets at minimum prices, two entrepreneurs interviewed by RBC noted. “Hypermarkets really squeeze all the juice out of entrepreneurs, but in the case of Nokian, this effect is less noticeable, since the company controls the minimum price for its products there too,” notes Shmatov from St. Petersburg.
But the economic situation in the country calmed down a bit and after the decline, the markets began to regain their positions. Thus, the very next year, the number of passenger car tires sold increased to 29 million.
And the fact remains, despite general trends falling sales, tires for cars are among the products that will always buy. And given the continued growth in the number of personal Vehicle, there is no doubt about it.
However, you need to understand that compared to recent times, the situation in this market is still changing. So, for example, the accents of consumer demand are noticeably shifting. And more and more customers are abandoning the expensive and premium segment in favor of a mass mid-price product. 65% of all sales both come from him.
Major players in Russian market few among tire manufacturers. These are Cordiant, Nordman, Bridgestone, Nokian tires. Kama is also included in the list of manufacturers whose market share exceeds 5 percent. The rest are beyond this line and do not stand out so much in the general mass.
Tire shops for cars in franchising
Theoretically, becoming a participant in this market is quite simple, because all manufacturers openly cooperate with buyers and supply their goods. Most often there are shops where the assortment is presented immediately from different manufacturers. This is due to the fact that selling tires of only one brand means reducing your potential audience.
Moreover, tire shops are often part of a larger business that also provides car repair services and sells other accessories. Combining a repair shop, tire shop and store is a great option for a large entrepreneur who wants to firmly cling to his market share.
But on the other hand, such a scale always leads to large start-up and recurring costs. It is not at all easy to put on its feet a voluminous colossus, which not only brings tangible profits, but also asks for a lot of money for its maintenance. And a novice entrepreneur cannot cope here without attracting additional investments.
Another important factor is the volume of purchases. It is known that the more goods are ordered from the manufacturer, the more favorable price he can sell it, respectively, the more comfortable the entrepreneur will be able to feel, forming his own selling prices. And it is natural that firms trading on the market will cope with this many times better due to their own volumes and experience. A newcomer will not be able to compete here.
Therefore, franchising offers are popular among those who are looking for opportunities to enter the passenger car tire market.
Franchising in this case has undeniable advantages. Among the main ones:
- Significant savings on investment
- Favorable prices when purchasing from suppliers and manufacturers
- The operating scheme of the franchisor and assistance in organizing
So let's take a look at what the franchise market offers us in this industry.
Car tire store franchises
Vianor Franchise
Starting investment: from 600,000 rubles.
Claimed payback period: from 10 months
Lump sum: 600,000 rubles
Royalty: 20,000 rubles per month
Requirements: Presence of a format well-located premises for the Tire Center.
Vianor is a network of premium tire centers. Currently, the Vianor network is represented in twenty-four countries of the world, and the first center in Russia was opened in 2005.
You can find out more about the Vianor franchise.
Franchise Cordiant
Lump sum: none
Royalty: none
Cordiant holding actively develops retail trading network throughout Russia. Main brands: Cordiant (car and light truck tires) and TyRex (truck and agricultural tires).
You can find out more about the Cordiant franchise.
Franchise "TIRE PROS"
Starting investment: from 1,000,000 rubles
Claimed payback period: ?
Lump sum: none
Royalty: none
Under this trademark, the world is developing dynamically retail network, which currently has more than 500 tire centers.
Franchise "On Wheels.RU"
Starting investment: from 500,000 rubles
Claimed payback period: ?
Lump sum: 50,000 rubles
Royalty: 10,000 rubles
Wholesale buyers of Na Kolesakh.RU sell our entire range of wheels, tires and other goods on favorable terms. There is no need to reinvent it, no need to create logistics, warehouses, websites, invest in IT technologies, everything is already there.
You can find out more about the franchise.
