New business venture.

[Whaazup17]

I am interested in getting into the tire business. I tried to call up places like goodyear gemini and tire kingdom. They all wnat 2 million to start. WAAAAy to much to start for me and probably take to long to turn profit. That 2 million includes real estate by the way.

I was thinking about an alternative route and much cheaper. Since I already have a balancer and beader (from racing automobiles). I was thinking about getting a hold of some tire manufactures to become a dealer. I wouldn't have the store front property just maybe a small place to keep my balancer and beader in an industial storage place. I know I would need insurance...

but hell do you think this is possible?

I would go for the niche markets getting tires cheap for anybody on TR and start from there.

[moldyhands]

honestly you'd be going into a very competitive area in which low cost is already a well saturated business strategy. on top of that, people with money will almost always to go a shop with a brand name. unless you're able to get a network started with other shops for referrals and get a kick ass location, it's going to be iffy for success. one way a lot of people have made it somewhat is by making deals with used car lots to fix up cars. but they're full service and not just tires.

not trying to shoot your idea down, just letting you know the specific ramifications of opening a shop like that.

[TNathe]

I disagree to an extent, mainly depending on your location. Here in Dade City, there are NO big tire shops, they are all small ones, owned by someone local and run by them as well, and they ALL do very well.

[Amortized]

i wouldn't try to make the money on the tires, maybe something with a better profit margin like repairs. Use the low priced tires to get them in and as soon as you see uneven wear patterns on the tires, or leaky gaskets, you better get that repair. Most businesses in highly competive industries have to use something as a loss leader to pull in customers, once you get them there, you'll need to rely on your sales department needs to push the other services products on those customers to make up for the loss.

[corey r.]

just remember you have to compete with tire rack.

[DookieLuv!]

Considering you probably wont be able to buy in the same bulk that the larger tire stores do, you may not be able to offer as low as prices. Hole in the wall shop + higher prices = no customers.

[Epicman]

Considering you probably wont be able to buy in the same bulk that the larger tire stores do, you may not be able to offer as low as prices. Hole in the wall shop + higher prices = no customers.

:werd:

There's no way you could compete with the likes of Tire Rack or, everybody's favorite, Wal-Mart.

[Whaazup17]

yea tire rack is pretty cheap. I guess they are cheap because of the low overhead. But then on top of that you have to install the tires yourself. And then if you are just replacing tires you have to get them mounted. I don't know to many people that can dismount and mount tires.

Yes walmart is the one I fear the most. But I don't think I am the only one... grrrr

[Whaazup17]

I just researched tire prices. Walmart beat prices in Tire kingdom. But tire rack beats them all but of course you have to mount them on the rim and on the vehicle.

I wonder if walmart has any hidden costs like mount fees or anything

Does anybody know?

[Amortized]

I'd quit trying to compete with the big boys, you need to offer something they don't. I could persue A paper loans all day long, but why compete with the big boys when you can do things they can't? Everybody needs tires, everybody sells tires at every street corner. What can you offer that they can't, and no, customer service isn't a sufficient answer since anybody can claim that. You need to find something that your market will love, something they'll need, and something they'll tell their friends about.

[Epicman]

I'd quit trying to compete with the big boys, you need to offer something they don't.

Best advice ever!!!!!!!!!!!!!!!

Seems like you want to make tons of money, which is not a bad thing, but you need to take it one step at a time.

[Whaazup17]

I'd quit trying to compete with the big boys, you need to offer something they don't. I could persue A paper loans all day long, but why compete with the big boys when you can do things they can't? Everybody needs tires, everybody sells tires at every street corner. What can you offer that they can't, and no, customer service isn't a sufficient answer since anybody can claim that. You need to find something that your market will love, something they'll need, and something they'll tell their friends about.


yea I know I need to find a "niche" market. I am just trying to figure that out. That is why I am asking people. I am trying to find a niche market and not spend to much money at the same time.

[Whaazup17]

by the way know of any ideas for a "niche" market?

[Epicman]

I am trying to find a niche market and not spend to much money at the same time.

To make money you have to spend money. The reality of the business market today is that if you want to make lots of money, you have to spend lots of money. Shy of inventing the next great thing, you will have to have some big financial backing.

Like I said earlier, seems you want to make lots of money, which is a good thing but you have to work hard at it. You'll probably need to bust your ass at some regular job, regardless of what it is, to save up enough cash to get somethig going. Even then you will have a tough time turning a profit. However, if you can survive that then you'll might make it.

[Whaazup17]

To make money you have to spend money. The reality of the business market today is that if you want to make lots of money, you have to spend lots of money. Shy of inventing the next great thing, you will have to have some big financial backing.

Like I said earlier, seems you want to make lots of money, which is a good thing but you have to work hard at it. You'll probably need to bust your ass at some regular job, regardless of what it is, to save up enough cash to get somethig going. Even then you will have a tough time turning a profit. However, if you can survive that then you'll might make it.

how much money you think we are talking about ?

[DookieLuv!]

by the way know of any ideas for a "niche" market?How bout selling 20+" rims, sizes that Wal-Mart and Tire Kingdom might not carry. Try to become a wholesaler to the rim shops around town.

[Amortized]

how much money you think we are talking about ?

depends on your business plan and what niche you persue, it could be as little as $5k to get started, could be $25k, and thats just to get started. You need to figure out how much time and capital you can afford to lose if things don't end up profitable. You need to know when you'll pull out, or when you'll go to the bank for another $100k. How much $$$ you need depends on you and how well you get your name out.

[Xiwei]

i have a hard time thinking just a tire business will work

i deal with american tire, carroll tire and martino tire on a daily basis. tirerack's prices are only 10-12 dollars more than the cost of my tires, both shipped