Tire Installations & Balancing

[thetireman]

I am in the used tire business and have began to work my way into the new tire business as well.

Both are going well, however there is no question I'd sell more new tires if I did installs. This brings me to my question:

Is making $60/set worth the headache of doing installs, resetting tpms, and putting up with balancing issues or should I just focus on selling tires?

I am currently a one man operation... Selling tires only takes me a few minutes per sale, installing will obviously take up much more time and may need to higher help.

Thoughts?
Thanks!

 

[dieselgarage]

I guess it might just be me but I could not imagine buying tires at a place that cannot install them for me.

 

[cj7365]

never heard of a place that just sells tires and does not install, but if your a one man operation, are you going to invest the money into all the equipment needed to install and balance??? It will take a lot of $60 installs to pay off the equipment. How many of your customers now would get their tire installed and balanced for $60.00

 

[thetireman]

See most of my tires are used that people find me via classifieds etc. So many don't expect it to even be a business, just a person selling a pair or a set. Nobody who buys used expects installs, but if I offered they'd take me up on them.

As far as the new, I sell them based on price, people can buy from me and save $40 on a set of 14-16" car tires - but have to install elsewhere. This hurts my business a bit because I only get the customers who want to save the money, not the ones who simply want convenience of buying and installing at the same place.

The equipment will run me about $15k for decent stuff or 250 installs (not taking into consideration overhead).

I don't think getting enough clientele to do installs would be the issue, I just want to know if it's worth the headaches.

 

[JimVonBaden]

It is fairly common to sell tires via the internet and ship them either to customers, or to tire places that will install them for a fee. Look at Tire Rack and a few others like them.

As for the labor part, if you have lots of free time, sure. I suspect you will be selling many more tires, and installs will make you a few bucks. There are often used tire machines in CL, as well as balancers.

Don't forget the liability insurance you will also need though.

Jim

 

[djjsr]

Have you looked around for used equipment? Seems like I see stuff quite often on Craigslist and ebay.

 

[thetireman]

I don't really have lots of free time, I stay pretty busy as is but figure it would help my new tires sales and make me a bit of extra coin in the off season. (I'm in Canada so we are very seasonal)

I don't mind hiring a guy or two to help me - I just am at a fork of weather I should focus on selling more tires and keep it a one man operation. Or do installs as well, open myself up to balancing headaches from customers, increased liability, payroll, possibilities of employees up and leaving in the middle of a busy season etc.

 

[jimindm]

I think you may be looking at it the wrong way. How many more tires could you sell if you offered the installation. Not knowing how many you sell now. If you sold 30 more sets a month, that is a payoff in less than a year, just in added sales. My guess is that you would make as much or more in the installation of the tires, as you make in just selling the tires.

Tire machine, balancer, air compressor, floor jacks, impacts, torque wrenchs all have a life span. Many of these tools would do 1000s of tires before needing replaced. You would have to have, and stay current on a TPMS tools and the information required to use it.

You could also offer tire repair, balancing on tires that you did not sell. Long term you could get into the rim business, or the custom wheels also.

As an other said I would expect to have my tires installed at the place I buy them. I have bought tires off CL, to be installed some where else. I most likely would have paid a little more to not have to shop any further.

CL would be a great place to buy the equipment used that you would need.

 

[thetireman]

Both are going well, however there is no question I'd sell more new tires if I did installs. !

I agree Jim - no question it would help my new tire Sales and I could increase pricing because of it. My question is - is it worth the headaches that come with it if im already doing well just doing straight sales? It will for sure bring in more revenue and help the tire sales.

 

[rsanter]

Buy good used equipment to get going, don't spend the money on new just to begin down that road

Bob

 

[thetireman]

To be honest, what I think would be the biggest pain in the *** would be the TPMS

 

[Cobra4B]

In my area most people buying used tires put them on very large expensive wheels that are usually worth more than the car. Can you cover scratching someone's $2000 26" wheel? What I'm getting at is good equipment may be worth it up front. I have an acquaintance that sells tires and does mounting/balancing. He only uses the best equipment because most of his clientele have very expensive wheels and he won't risk boogering one up. We had this exact discussion last time I was getting some race tires mounted up.

 

[thetireman]

I don't think ill end up with a lot of $2000 wheels.. but I do want to have the correct gear if I did it to make my life as easy as possible, not damage ANY wheels and get correct balancing. But overall these are the types of issues that make me wonder if sticking with just sales is less headaches. Its pretty clear to me there is a business for just sales on both new and used - but it's also clear I could get way more new tire business & revenue if I installed.

Does anyone know how easy doing TPMS are? I know there is a unit that will reset them, but it seems like only certain units work on certain vehicles and the entire process is not just a few seconds.

 

[Cobra4B]

Do a ROI analysis and determine if you want to do it or not. Factor in all potential expenses vs. increased revenue.

 

[nit2wn]

You'll get expensive wheels believe it or not. Factory aluminum wheels get pretty expensive to replace. I'm not talking 24's either.

 

[mayday0017]

To bad you don't have a friend just up the road that mounts and balances tires and you could work something out with him.... Then you could offer the full solution with out having all of the overhead and risk.

 

[Steevo]

How can you sell tires without installing them? Do people just take them home in their trunk?

I'd never buy tires without installation/balancing and a guarantee.

 

[thetireman]

How can you sell tires without installing them? Do people just take them home in their trunk?

I'd never buy tires without installation/balancing and a guarantee.

See most of my tires are used that people find me via classifieds etc. So many don't expect it to even be a business, just a person selling a pair or a set. Nobody who buys used expects installs, but if I offered they'd take me up on them.

Typing here because it wont let me submit message with just quotes.

 

[thetireman]

To bad you don't have a friend just up the road that mounts and balances tires and you could work something out with him.... Then you could offer the full solution with out having all of the overhead and risk.

This is ideal. Ive thought about this with other install shops, but two issues:
1. They'd try to steal my customers
2. Matching my appointments for pickup with their install availability..

Like you mentioned ...I really do need a friend who can do good work on the side and not another tire shop..

 

[dipper]

there's a place around me that sells used tires almost exclusively, and also has new tires
as well. They don't have auto lifts, but they do have jacks, jack stands and a tire machine. Used tires are like $25 each installed depending on how good they are. New tires are priced competitively and come with free installation. The best part is, i could just drive in and drive out with new/used tires in under 30 minutes with no appointment. I think having the ability to install the tires will help retain your customer base.

Our local craigslist is littered with cheesy ad's for used tires and installs so if you go the craigslist route try to be different and not 100's or 1000's of ad's for every tire you have.

 

[Iroc-Z]

My shop is about 28 per tire

 

[theoldwizard1]

40+ years ago, when I was "bustin' tire", 90% had steel wheel. If you bent one, you got a BFM and bent it back ! Hiring high school kids and giving them 10 minutes of training was adequate.

With everything now on cast aluminum wheels, inexperience could cost you a lot of $$$ !

 

[jimindm]

Alot of vehicles can be reset with out a TPMS tool. That is if you want to look in the owners manual how to do it. Of coarse finding an owner manuals not buried under all the other stuff in the glove box, if at all. I would think that there is a motor manual, or mitchell manual book just for TPMS. If not research it. You would most likely have to have one to replace a sensor.

You can spend what ever you want on a TPMS tool. Good ones can be had at a very affordable cost. Cheap compared to the costs of some of the equipment that you will need.

An old guy told me years ago when it came to equipment. Buy it, use it, get good with it, know what it will and will not do. Know your limits.

You have got some kind of records on the sizes of tires you sell. Buy equipment to do that business with. Do not over think this. You do not need a machine that does motorcycle tires or super single over the road truck tires. Buy what you need and can utilize.

There are a lot of TPMS, run flat, custom wheels, nitrogen filled, etc out there. Maybe you will not have the equipment to do those right away, if ever. There are many more just plain tires, that you will be able to service.

 

[KEH]

How do you get rid of old tires? If you install tires there will be "trade ins" that your customers expect you to dispose of.

KEH

 

[lessersivad]

How can you sell tires without installing them? Do people just take them home in their trunk?

I'd never buy tires without installation/balancing and a guarantee.

I haven't had to pay anyone since 1976 to mount tires.

But then again I've been fortunate enough to work at places that offer this service and 4 years ago I bought a used Coats 4030A off ebay.

I don't have anything in my fleet that takes anything over a 16" tire so no problem.

 

[Cobra4B]

How do you get rid of old tires? If you install tires there will be "trade ins" that your customers expect you to dispose of.

KEH

There are tire recyclers that turn old tires into bio-diesel. They'll take the no-good tires for free since it's their input material.

 

[ra42mario]

$15k for a tire machine & balancer for a craigslist operation? You are dreaming my friend.

Brand new balancers can be had for ~$1500, brand new decent tire changers can be had for $2000 with bead blasters included.

In my shop I have a wheel balancer that is about 5 years old, I paid $450 for it. We use a Coats 20/20 still, I paid $200. It does up to 16" no problem, 17" you have to play with but it can do. Bigger then 17" I don't mess with. With a $650 investment in tire equipment I can actually see a profit on mounting & balancing tires at $12.50 a pop.

 

[thetireman]

How do you get rid of old tires? If you install tires there will be "trade ins" that your customers expect you to dispose of.

KEH

Here new tires have a $3 tire fee that the customer pays which goes to a government tire recycling program. When you remove a tires customers they come pick up.

 

[thetireman]

My shop is about 28 per tire

Where are you located? Is that competitive for your area?
Here lowest is $10, highest is $20 that I am aware of.

 

[thetireman]

there's a place around me that sells used tires almost exclusively, and also has new tires
as well. They don't have auto lifts, but they do have jacks, jack stands and a tire machine. Used tires are like $25 each installed depending on how good they are. New tires are priced competitively and come with free installation. The best part is, i could just drive in and drive out with new/used tires in under 30 minutes with no appointment. I think having the ability to install the tires will help retain your customer base.

Good point.

 

[RKA]

Opportunity cost...if you're installing tires and making ~$75/hr doing that (still have to subtract to cover the cost of your equipment/space/misc., then you're not selling tires. You made it sound like you didn't have a lot of free time, so how much are you making selling tires as it is? Bringing in and retaining more business is one thing, but if it means working harder and making less per hour when it's all said and done, you're going in the wrong direction.

 

[Cobra4B]

$15k for a tire machine & balancer for a craigslist operation? You are dreaming my friend.

Brand new balancers can be had for ~$1500, brand new decent tire changers can be had for $2000 with bead blasters included.

In my shop I have a wheel balancer that is about 5 years old, I paid $450 for it. We use a Coats 20/20 still, I paid $200. It does up to 16" no problem, 17" you have to play with but it can do. Bigger then 17" I don't mess with. With a $650 investment in tire equipment I can actually see a profit on mounting & balancing tires at $12.50 a pop.

The equipment was cheap because it can only do 16s easily and you have to work on doing 17s. Most new cars come with 18s-20s these days if not larger.

 

[RECox286]

FWIW Dept:

How can you sell tires without installing them? Do people just take them home in their trunk?

I'd never buy tires without installation/balancing and a guarantee.

When I was a bit younger, and for many years, I bought new tires from

Pep Boys or used ones from the JY and brought them home. I used a bead

breaker and 2 spoons, until I could afford a HF manual tire machine for the

garage. Balanced with an old Hunter we bought well used that did the

job "on the truck". I think I know what it means to keep things going

on a shoe string budget. I don't know of anyone else that has done this,

so I guess I am a loner rowing in my own little boat. Any more, being old

and a bit more well off with Social Security helping out, I too opt to have

someone else do the lugging. Still, when it comes to patching a hole in one

of my black round things, I am not at all incapable of clearing out that

corner of the shop.

Bottom line: Tires are a tough business, and if you are doing OK as you

say you are, don't give up your day job, and don't get into the expense,

hassle, and liability that comes with the business, unless you are willing

to go all the way, in which case you might be better off with a big name

franchise that would almost guarantee that you would be busy all the time.

Uncle Bob

 

[Outlander]

Here new tires have a $3 tire fee that the customer pays which goes to a government tire recycling program. When you remove a tires customers they come pick up.

Yup...that's what happens when people let them burn into a ********* mess!

 

[Pete D.]

What would happen if you installed a used tire for a customer and the tire blew out and they hit someone.

 

[thetireman]

What would happen if you installed a used tire for a customer and the tire blew out and they hit someone.

My insurance would cover it if they determined there was an issue with the tire.

 

[thetireman]

$15k for a tire machine & balancer for a craigslist operation? You are dreaming my friend.

Brand new balancers can be had for ~$1500, brand new decent tire changers can be had for $2000 with bead blasters included.

In my shop I have a wheel balancer that is about 5 years old, I paid $450 for it. We use a Coats 20/20 still, I paid $200. It does up to 16" no problem, 17" you have to play with but it can do. Bigger then 17" I don't mess with. With a $650 investment in tire equipment I can actually see a profit on mounting & balancing tires at $12.50 a pop.

I dont mind paying extra to have good equipment, I can depend on, wont damage peoples rims, can manage large and small rims.

 

[ra42mario]

Yes my equipment was cheap, but it also allowed me to turn a profit right away, not 250 tire installs from now.

Realistically how many 18-20 tires are you selling? In my area, new cars head to the dealership for tires, they aren't visiting small independent tire dealers. Even then, the majority of new cars still run under 17" tires.

You are still over estimating the cost of equipment. When you go to buy tire equipment, even new good equipment, you probably would only have $6000 tops invested which brings it down to 100 tire installs until you start turning a profit on them which is much more manageable in my opinion.

The big thing nobody mentioned is make sure you have a supplier for TPMS stems, because they will on occasion break, and your customer will be forced to wait. A lot of manufactures are putting them on bands these days around the center of the wheel which makes them easier to work with in my opinion.

Most vehicles have their own sequence to reset TPMS. A lot of GMs you can do it from the factory radio, Ford gives you a reset controller with the vehicle if equipped and the owner has not lost it.

 

[ra42mario]

What would happen if you installed a used tire for a customer and the tire blew out and they hit someone.

Pete I believe it is widely accepted that used tires are as is. I don't know of any used tire shop or installer warranting used tires. Although you do have to be careful. Normally customers asking for used tires aren't the creme of the crop people in my experience. I do not hardly install used tires for this reason.

Cheap priced work in general usually draws in the most pain in the **** people to deal with.

 

[2mJps]

I replace and repair my tires by hand. I worked for 4 years doing tires and fill in at a tire shop when they need me. That said if i could make money selling tires and not puting tires on i would.