Ancillary Service and Office Equipment for a Tire Shop

Last Updated on 05.08.2024 by hrushetskyy

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 oil changes tune-ups and so on.

Tune-Ups Wheel Alignment

Major tune-up equipment consists of an electronic engine analyzer dynamometer diagnostic computer hand tools a vacuum gauge and an air-conditioning charging station.

The engine analyzer is mounted on a test stand that the mechanic rolls up to the car. He clips some wires to your ignition system and after five minutes of watching meters and oscilloscope displays and pushing a few buttons he can tell you the condition of every part of your ignition system.

Electronic analyzers are impressive to the customer and eliminate guesswork in tuning an engine. The top brands are Sun Marquette Kal Equip Allen and Clayton. When you buy the machine take your chief mechanic with you. Some small manufacturers are making machines that produce an unusual pattern on their oscilloscopes. Since the major brands use the same oscilloscope displays many mechanics will have a hard time getting adjusted to a strange pattern and working quickly with it.

A dynamometer is nothing more than a unit consisting of two rollers placed on the floor and hooked to two meters. You can drive the car onto these rollers and run it at highway speeds under load without taking it out of the shop. This equipment costs from $3 400 to $7 500 (non-in- stalled) and is necessary for high speed tuning of the carburetor. Some engines are more critical than others when it comes to carburetor tuning and fine adjustment can only be done under high-speed load conditions. Dynamometer tuning reduces the number of comebacks for readjustment.

Sun Electric the largest manufacturer of engine diagnostic equipment produces the Sun Computer an industry preferred diagnostic device that measures the amount of un-burnt gas coming out the tailpipe the amount of voltage and length of time needed to fire each cylinder RPMs and can interface with the electrical system computer on most current automobiles. Prices including brands other than those manufactured by Sun range from $16000 to $20000, you’ll find local distributors in your phone book under “Service Station Equipment” or “Automobile Diagnostic Service Equipment.”

In addition you’ll need battery chargers hand tools a vacuum gauge air conditioning charging station (used to drain and clean the air conditioning system and reinsert the exact amount of free on each car’s unit requires) a circuit tester and miscellaneous items such as safety goggles and distributor tools.

For wheel alignment the piece of equipment you’re most likely to need first is the front end alignment rack. Some computerized alignment racks run $25 000. It makes more sense for a small operator to start with a used $2 000 standard racks. As for exhaust lube and tune-up services these require a fair amount of capital equipment investment and have proven themselves as strong specialty business performers.

Muffler Replacement/Repair

If offering a muffler replacement and repair you’ll need a pipe bender a simple hydraulic press that bends pipe to any angle or radius necessary. It also flares flanges and can deform the pipe opening for a slip connection. When a car comes into the shop the mechanic pulls a card for that model car showing the settings to make on the bender. He makes the settings activates the bender and in six to 10 minutes the exhaust pipes are ready to install. Pipes for some older cars and trucks and virtually all foreign cars are hard to get and vehicle owners usually have to wait several days or even weeks for the part and then pay premium for it. The pipe bender eliminates all that. It’s possible to buy a new pipe bender for $6 500 to $10 000 including delivery installation in your shop and a pipe bending class for you and your employees. The manufacturers sell the machine for 20 percent down or lease it with as little as 10 percent down. Pipe-bending machines appear virtually identical in design so the choice of which manufacturer to deal with may be dictated by who you feel will treat you the best give you the most help in getting started and has the best price and service policy. We favor American Machine

Worth Manufacturing and Master bend distributed by Hamilton. Ben Pearson and Huth are other leaders in the field.

If you’re eventually doing a high volume of muffler work you might consider an innovative machine that bends tailpipes to fit any American car or pickup at a rate faster than existing hydraulic models. One such device the Bend it is to-tally computerized. A machine operator uses it by “programming” tailpipe specifications into the computer console. In two to three minutes the Bend it produces a tailpipe that conforms exactly to the automobile the device costs $36 350 (making it prohibitive for less than a high degree of muffler work). The manufacturer Eaton Leonard Technologies says the machine can cut overhead in three ways. First the system is almost completely automatic substantially reducing the need for high-salaried muffler technicians. The company also claims that use of Bend it reduces existing tailpipe inventories by more than 50 percent. In addition the time saved in bending tailpipes can help increase business volume by decreasing customer waiting time.

In addition to a pipe bender muffler work requires grinder acetylene torch impact wrenches might welder tubing cutter and hand tools (see the Equipment list later in this section).

Brakes and Shocks

Doing brake and shock work requires a brake lathe which resurfaces drums and rotors, a pressure bleeder which removes air from the hydraulic system parts cleaners (EPA required in many areas) and a Macpherson Strut compressor used to compress the spring around the strut so the replacement can be inserted. In addition you will need wheel-bearing grease and appropriate brake fluids. With these tools you should be able to perform major or minor adjustments or replace of hydraulic or disc brakes.

Lubes and Oil Changes

For lubes and oil changes your equipment needs are divided into five systems: grease gear-oil oil air and waste-oil.

Grease System: Consists of a grease pump with follower plate (used in lubrications), an air regulator and gauge (used to control and monitor your energy source) grease shut off valve grease hose swivel (allowing easier access to fittings) and a control valve.

Gear-Oil System: Comprises an oil pump air regulator and gauge oil shut off valve oil meter control valve and oil hose.

Oil System: Consists of an oil pump air regulator and gauge and an oil reel with meter.

Air System: Includes your air compressor (the central energy source in the installation of oil) magnetic starter for the air compressor a steel flex hose 10-foot air hose per bay air coupler and shut off valve an air line lubricator and filter (which connects to the compressor) and an air reel with tire inflator.

Oil Waste System: Consists of a rolling drain pan and waste oil hose. Be sure to get a drain pan that can easily handle up to 30 gallons of drain oil, it should have a large plated screen to minimize splash and act as a retainer for tools drain plugs and other objects that might fall into the pan.

Oil pumps and the air compressor will be kept in the storage room. Other equipment will be kept in the work area in some cases installed between the bays if space permits. Miscellaneous accessories include an oil suction gun (used to clean the transmission) pistol grease gun (used to grease the bearings) and a 10 gallon capacity car vacuum (optional) for cleaning car interiors as an added service.

In addition you’ll need 55 gallon drums for the storage of oil waste (usually stored on the premises behind container walls depending on local regulations). If you opt for or local laws require an underground storage system placed beneath the bays you’ll require a 1000 gallon storage tank. The rolling drain pan mentioned above would then be connected to underground pipes sending waste oil directly to the storage tank. With this setup you’d also incorporate underground storage of new oil using a 1000 to 2000 gallon tank for your most popular weight (allowing you to take maximum advantage of high volume price breaks when buying oil, see Inventory). During each oil installation the new oil would travel through pipes to your above ground system.

Your next most used grade could be kept in a portable 200 to 300 gallon tank with a full complement of additional canned grades on work area shelves to accommodate individual needs. The less expensive storage method for new oil is to store your most popular grade in the portable tank mentioned above your second most popular weight in 55gallon drums and the remainder in cans on work area shelves.

The estimated equipment cost range for a two pit operation: a minimum of $12000 $17000 at the low end and $30 000 or more at the high end not including the underground storage systems described above (an additional $5000 $10000 or more depending on such factors as local labor costs).

No matter which waste oil storage method you choose you’ll need to retain a storage pickup service listed in the Yellow Pages under “Oils Waste.”

Battery Replacement

Battery service requires you to have a range of equipment including a mobile charger portable charger and battery/starter load tester.

Chargers: You’ll need what’s called a “trickle” charger used to power batteries when for example car lights have been left on all night. They cost from about $20 and up and can be purchased from an auto supply dealer. You’ll also need a fast charger commonly used in gas stations to fast-power batteries that have not completely discharged. Fast chargers cost between $140 and $200.

Load Testers: Any tester you buy must have a bare-minimum 200 amp load capacity with a minimum of 250 amps preferred or even better one capable of reaching 800 amps. The load tester indicates whether the battery has the voltage capacity to do the job required. When the battery is installed in a car it will be under load every time the engine is started so it’s essential to know before installation whether the battery has an adequate charge.

Prices of load testers range from $ 125 for a lightweight hand held model to $200 or more.

Another method of battery-testing is to use a hydrometer a small piece of equipment costing upwards of $3 frequently as high as $15 or more and used in conjunction with not as a replacement for the load tester. If a battery you have reconditioned tests low on the load tester you can use the hydrometer to see whether the problem is a weak acid solution. Also it can be used to comparison test individual cells if one cell shows a lower reading than the other the cell may be deteriorating.

Connector Cables: These are required to connect batteries together on the multiple chargers and can be obtained from auto supply houses for between $5 and $10 per set.

Other accessories you’ll need are jumper cables a filler bulb a battery lifter battery spreaders bolt cutters and workbench tools such as screwdrivers an electric drill with a wire brush attachment to clean the posts a hacksaw and pairs of battery pliers all of which can be purchased from an auto supply or tool shop.

Consumable Supply Items

The high margin revenue to be made in this business comes from add on products and services rather than from tires themselves. Chief among the products you will need are wheel weights and valve stems.

You will regularly be buying lead alloy wheel weights. These come in sizes from ¼ oz. to 4 oz. varying in ¼ oz. increments, the more they weigh the higher the cost. Generally you put one weight per side on each tire with about 8 oz. of weight per passenger car.

The number and size of your wheel weight consumption will vary with your volume and the kinds of vehicles you service. Fifty ¼ oz. weights will run you $3 while 25 4 oz. weights will cost you $11. The heaviest weights as you would expect are used mainly for big trucks and heavy machinery.

Rubber valve stems cost you about 12 cents apiece. There are several sizes varying from those fitting a subcompact like the VW for mid to large size American passenger cars for cars with wire wheel f covers and for big equipment. The purpose of the valve stem is to provide a rubber seal around the air intake valve on the tire. It enables you to put air into the tire and keep it there. It is a one way valve letting air in but not out. Valve stems are generally replaced when a tire is replaced because it is just as susceptible to ozone heat and abuse as tires themselves.

Consumable supplies for other auto services may be obtained from auto supply houses in your area. Here you should establish a trade account and buy parts as needed at a discount passing along retail price to your customers.

Additional Equipment

You may want to have various cabinets or tool chests built into the wall of your bay areas or you can get auto service tool chests from various manufacturers or auto supply houses in your area. Some of these have rollers on them for ease of movement throughout the shop area.

OFFICE EQUIPMENT

In your office setup you can trim costs by going with the minimum. A small desk chair and one or two locking file cabinets will start you off. You probably also will need bookshelves for the many catalogs magazines and pricing guides you’ll be referring to in buying and appraising inventory. You can probably get by for under $500 if you buy used furniture and shop around for it.

You can find a good electric typewriter for $200 to $300. If you buy a typewriter with changeable typefaces expect to pay around $1 000 new and half that if used. To lease one would run you about $50 per month. Don’t go overboard in this area as long as the machine produces crisp letters that look attractive and professional it’s fulfilling its purpose.

A Computer in Your Future

A down the road move in any successful operation is a computerized recordkeeping system. In a business with complicated account keeping and inventory control computers can improve efficiency by 100 percent. But they cost several thousand dollars. In the start up phase you’ll be keeping records in ledgers and files. You have to devise a workable system before you can computerize it.

When, you do decide to computerize think about your plans for the future too. It is much easier to pick the right hardware and software when you know your growth plans.

Microcomputers can make life easier and businesses more profitable. Desktop computers are great “special purpose” problem solvers. You can get typing done more quickly and professionally or if you want to speed your billing process or do any one of a hundred other specific stand alone tasks microcomputers are often very effective small business tools. Chances are you can accomplish improvements of this type by purchasing and installing computers on your own.

If however you plan to create an integrated solution to all of your business problems you are in for a much longer and riskier haul particularly in a small business where the economics of computerization must be considered.

In order for computerization to be cost justified it should do at least one and preferably more than one of the following:

1. The computer should help you provide your customers with a product or service not otherwise possible.

2. It should provide a pocket-able decrease in labor costs.

3. It should give you a clear competitive edge that your customers or clients understand and benefit from.

4. A new computer should give you better profit control and useful management information.

5. Finally it should be able to help you prospect new clients or customers and keep existing ones.

Installing a new computer system will be time-consuming and expensive. Minimum cost usually ends up to be about $5 000 per workstation. You may think that’s excessive since almost every newspaper in the country advertises IBM compatible computer systems for under $900. How could a personal computer possibly end up costing $5 000 these days?

It’s easy. The ads usually fail to mention a few things. First there’s the hardware:

Basic low-cost computer	$700
Monochrome monitor	50
Monitor board	0.125
Extra memory/clock/calendar board	0.125
Modem/communications software	300
Printer	0.9
Surge protector	50
Printer stand	35
Monitor stand	0.25
Total hardware	$2 310

Then there’s the software:

Disk operating system	$85
Word processing	0.25
Spreadsheet	-250
Accounting	.1 500
Memory-resident toys	-100
Total software	$2 185
Then there’s:
Miscellaneous supplies	$200
Magazine subscriptions	50
Insurance	70
Total hardware software and misc.	$4 815

And there you have it. Add who knows how much for conversations with your accountant/bookkeeper during the transition maybe some sales tax throw in the time you and your employees will spend learning consider the cost of money and that low cost $700 computer costs more like $5 000 or $6 000.

Service contracts if you decide to purchase them usually run 10 to 20 percent of the hardware cost per year. If you use a reputable consultant for help with the selection installation testing and training process this could cost an additional 5 to 20 percent of the total system price. Properly done custom programs almost always start at $1 000.

There are ways to cut comers. You can purchase so called “complete” accounting packages for under $100. Chances are you will quickly outgrow most of these and end up with something more sophisticated. The transition from one accounting package to another will be troublesome time consuming and frustrating. Don’t under buy accounting software. Many accounting modules sell for $500 each. The same goes for word processing and spreadsheet software. Also most of the “bargain” software comes with little or no after sale support. Expect to pay extra for help if you can get it.

None of the above should prevent you from computerizing. It is meant to give you a better idea of what it will cost and how long it might take. Frequently the only things worse than computerizing too soon are not computerizing at all or spending less than you should.

BUYING USED EQUIPMENT

You can buy equipment for almost any type of business second or even third hand for a fraction of what it would cost new. Other businesses that have failed merged or grown to the point where they require larger or more modem equipment are often good sources of used equipment.

Judicious shopping will turn up some excellent bargains. In the Sunday classified sections of most large-city newspapers you will find a host of used furniture and equipment bargains. Also check the “Business Opportunities” classification. Businesses that are being liquidated or sold may have fixtures or equipment for sale at substantial savings.

Don’t overlook suppliers of new equipment. Ask them if they have good used items, frequently they have trade-ins or repossessions that can be obtained at discounts of up to 50 percent. You can save hundreds of dollars by shopping wisely for secondhand items for your tire dealership. For example, you can buy used tires with discount.

Lease or Buy Equipment

If your equipment investment will be large compare potential tax savings available through leasing versus buying. See your accountant for current rulings and to determine if your potential leases are suitable for write-offs.

If your start-up capital is limited explore leasing as an alternative. The advantage of leasing is that your initial cash outlay can be significantly less than when you buy on an installment contract. The disadvantage if you have a legitimate tax- deductible lease is that you do not acquire equity in your equipment and therefore do not build up your balance sheet.

A financial statement showing a strong net worth is important to any business. In addition the total cost of leasing over a period of years is higher than if the same items were purchased. Consult your accountant as to the wiser choice for you.

The tax laws generally make the purchase of equipment whether new or used more attractive than leasing. Some financing sources offer no money down options for equipment purchases or leases. No money down leases enables you to own the equipment when the term of the lease is completed.

Investment Tax Credit

Under the current federal tax law you can generally write off the first $10 000 of equipment purchased for use in your business (except automobiles). If a piece of equipment costs more than $10 000 the balance of the amount over that point can be depreciated over a 5 to 7 year lifespan as provided by the IRS.

Contracts for Equipment Purchase two types of credit contracts are commonly used to finance equipment purchases:

1) The conditional sales contract in which the purchaser does not receive title to the equipment until it is fully paid for.

2) The chattel-mortgage contract in which the equipment becomes the property of the purchaser on delivery but the seller holds a mortgage claim against it until the amount specified in the contract is paid.

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