Enhance Profits: Computing Margin and Markup for Tire Shops

As a (potential) tire shop owner, you must calculate gross profit margin and markup before even starting a business. Optimizing these two key metrics strategically is the only way to position yourself for growth and expansion. Our UTires management team created this blog post specifically for prospective tire shop owners. Learn how to compute margin […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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