Yes, used tire stores can be profitable. They typically have a greater profit margin than new tire stores. The profit margin is also in line with the increased number of shoppers because of the unlimited room for negotiation. This means that customers can get tire discounts of up to 50% off on both new and used tires.
The best part is that there is no need for upfront costs. Customers pay after the sale. This is especially helpful for new tire shop owners as they don't have to worry about securing the right financing or securing new tires for the vehicles they're trying to sell. This can be a great deal for new tire shop owners as well as tire maintenance experts. Not only do they make more profit by selling used tires but they get to benefit from the sales volume as well.
Used tire shops typically purchase new tires after a customer has purchased another vehicle. This is why tire sizes at these types of businesses are constantly changing. Often times they run out of tire size selections when a new vehicle is purchased. As a result they'll order new tires Greenville NC and have them delivered to their business location.
There are multiple advantages to this arrangement. When a new vehicle is purchased the new tire size is set. Then the tires are sent to the Washington tire shop. When tire pressure needs to be increased, it's done automatically without the customer having to do anything. That's why there's never any need for an over the counter tire pressure increase.
All told, a tire shop may not even need to purchase any additional equipment to maintain their existing setup. They can increase their revenue by providing quality service and adding another service to their menu. It's also possible that a liability insurance policy will cover some or all of their repair bills. All it really takes is one customer filing a claim and the entire business can be facing financial ruin.
You don't have to run a tire shop in this day and age if you don't want to. If your local economy is healthy, there's no reason to invest the time or money into an extra business. Tires and alignment are very minor expenses for most small tire shops. The best advice before investing in your tire business is to conduct some market research to find out what type of demographics are likely to be your customers.
